☕️ Sunday Coffee: Top and Bottom Lines of Dividend Investing
Two the most fundamental metrics of any business
MaxDividends Mission: Help & support everyone on the way to build growing passive income, retire early and live off dividends
Sunday Coffee is a weekly emails about my personal life & business. This is a column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.
Sunday Coffee is a free section. To get full access to all the features of MaxDividends unlock Premium Membership
Intro
The investing world offers countless metrics to evaluate companies, but two of the most fundamental are the “Top Line” (revenue) and the “Bottom Line” (net income).
The Top Line
Revenue measures how much money a company brings in from selling its products or services. Rising revenue indicates growing demand, but it doesn’t necessarily show whether the company is profitable.
For example, a company could sell dollar bills for 90 cents, generating huge revenue but losing money.
The Bottom Line
Net income, or after-tax profit, reveals how much a company keeps after covering all its expenses.
It shows whether a company can operate sustainably. While net income is critical, it can be manipulated by cutting corners on long-term investments like maintenance or branding, potentially sacrificing future sustainability for short-term gains.
Durable Competitive Advantage
The true key to successful investing is finding companies with a durable competitive advantage. Warren Buffett famously said:
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”
A durable competitive advantage allows a company to grow and profit consistently over time. While many financial metrics are focused on short-term performance, a company’s long-term durability is what really counts.
The Dividend History Advantage
This is where dividend history becomes crucial. For dividend growth investors, a company’s dividend history serves as a strong indicator of its durable competitive advantage.
A company that has steadily increased dividends over decades likely has a sustainable business model and competitive advantage. While dividend history isn’t foolproof—companies can raise dividends even as their competitive edge erodes—it’s still a valuable starting point for identifying stable, shareholder-friendly businesses.
Ultimately, for investors seeking long-term sustainability, dividend history provides a helpful guide to companies with proven track records of rewarding their shareholders and maintaining a competitive advantage.
And that's where the MaxDividends shows its value
Look at this:
Wednesday, September 25 – $1,814
Thursday, September 26 – $1,827
Friday, September 27 – $1,834
…
Friday, October 04 - $1,905
These are just a few days in my life of a dividend investor.
My dividend income just keeps growing. Almost every day. Always upward. Coffee gets cheaper, lunch becomes free, and life gets brighter.
My High Yield Dividend Growth Story
Retire Early and Live Off Dividends. $12,000 monthly for 120 months
My name is Max, nice to meet you! I am an entrepreneur, dad to three, and a private investor in stocks. Pick up high-yield dividend growth stocks to live off dividends and retire early.
The idea of growing passive income typically dawns on us when we realize we’re no longer in our twenties. For me, this realization hit around age 35. I don’t plan to run a business my entire life—I have big plans for other areas of my life too. I enjoy writing, blogging, and sharing my experiences. Retire early before 50 is the main mission for me now.
Ten years ago, I started investing in growth stocks. By now, the capital from those investments and my past savings have allowed me to start implementing my planned strategy. In the early years, I focused primarily on growth stocks, but over the past few years and especially in recent months, I’ve shifted more towards high-yield, dividend growing stocks.
At this stage in my life, predictable growing passive income is more important than the long-term price appreciation of stocks, because I plan to live off the dividends.
🙏 To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.
As an author of the MaxDividends Strategy I follow it to pick up high-yield & dividend growth stocks to live off dividends and retire early.
I share my way and methodology of achieving the dream goal to live off dividends step by step, so that you also can jump on the road or just join to the most unique community of like-minded.
MaxDividends Key Concept
Predictability in important things is the foundation of peace of mind. Peace of mind is the basis of financial well-being. MaxDividends is all about peace of mind.
At MaxDividends, we focus on a dividend growth strategy. It’s a great fit for investors who want capital appreciation, a decent level of safety, and growing income.
As the name suggests, dividend growth investing is all about finding stocks that pay dividends and can keep growing them over time.
MaxDividends Stocks are Unique
They not only provide income but have a strong track record of increasing that income over the years.
Plus, investing in companies that consistently raise dividends has historically been a solid strategy. And the most important thing here is that not only I and my investments participate in the accumulation, but also the companies themselves.
Every week on Fridays, I make purchases according to the plan and post the strategy results on the MaxDividends blog. I keep my purchases in the MaxDividends App and it automatically calculates my dividend income forecast.
Do you know what is the power of the MaxDividends strategy? It is that even if I stop investing right now, my dividend income will continue to grow. And even a conservative forecast says that in the next 10 years the growth will be 4 times.
This is how Max Dividends operates: No worries about price fluctuations, no concerns about stock market noise.
MaxDividends Strategy
My Own Dividend Story
To see how the MaxDividends strategy works in practice, I started an experiment: Goal - $12,000 in dividends per month after 120 months.
I calculated that by investing $12,000 a month with a starting capital of $ 0.00 😳 and reinvesting dividends, I will reach my goal in ~120 months. Until the end of the experiment, I will reinvest all received dividends back.
🚴 Year 1: ~10% of the Goal
🚴 Year 5: ~45% of the Goal
🏆 Year 10: 100% of the Goal
Every Friday, I share with MaxDividends Members my weekly buys in real-time to show my journey toward living off dividends. I focus on high-yield and dividend growth companies to build a solid and growing passive income stream.
Here is my recent Friday’s purchases and Portfolios statement
👉 Max’s Portfolios with all updates and ideas
MaxDividends Mission
Help & support everyone on the way to build growing passive income, retire early and live off dividends.
Build your own dividend machine with MaxDividends to launch growing passive income, retire early and live off dividends with community like-minded
MaxDividends Community
MaxDividends is subscriber’s supported newsletter with community and community member’s tools to start building long-term growing passive income to live off dividends and retire early.
Choosing a strong environment is the key to achieving outstanding results. If you surround yourself with people who dream bigger than you, you increase your chances of reaching greater heights. Surround yourself only with those who will support you on your path to success.
We are recommended on Substack!
⭐️⭐️⭐️⭐️⭐️
“If you are interested in dividend strategies or passive income strategies, this Substack ia great! Its worth a visit“
- The Long View ⭐️⭐️⭐️⭐️⭐️
“Practical dividend focus. Saving for retirement.“
- The Astute Investor’s Calculus ⭐️⭐️⭐️⭐️⭐️
“Love the concept and the execution. If you are into building a portfolio that will generate ever growing income for you, subscribe to Max Dividends. I did.“
⭐️⭐️⭐️⭐️⭐️
“A useful substack for those that invest in stocks that pay dividends or are looking to get into such a strategy. Includes education and actionable ideas.“
Timothy Assi - ⭐️⭐️⭐️⭐️⭐️
“Great for helling you pick up high-yield dividend growth stocks“
And 50+ more other great authors and pro’s are recommend MaxDividends!
MaxDividends Premium: What You’ll Get
+ Bonus - access to full list of MaxDividends stocks updated weekly. Boost your passive income for living off dividends.
Unlock Top-notch dividend growth investment ideas and insights, handpicked to help you crush your financial goals, retire early and live off dividends.
NEW! List of the Most Dangerous Dividend Stocks You Should Avoid to Invest In Right Now
Stay away from dividend-trap companies with the most accurate list of dangerous stocks updated weekly
Ready-to-go step by step weekly guide to achieving financial freedom.
Grab ready-made MaxDividends stock sets starting at $300, $500, or $1000 each week.
Posts & Podcasts with deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.
My personal MaxDividends portfolios and short list with all the changes and updates weekly.
Comprehensive tools to help you on the way retire early and live off dividends.
Community Like-Minded Access
Stay in touch with me and other MaxDividends followers. MaxDividends community chat of like-minded who wants to live off dividends and retire early. Discuss ideas, share insights, build plans and set goals. Support, motivation, like-minded - all in!
My personal life & business column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.
FAQ
👉 What is MaxDividends project idea?
👉 What is MaxDividends strategy?
👉 How do you choose MaxDividends stocks?
👉 How well does the MaxDividends strategy work for building a growing passive income?
👉 One more secret sauce of MaxDividends strategy
👉 MaxDividends Roadmap to Early Retirement with Living Off Dividends