Dear DTA,
Love the content. I see a lot of good ideas being shared here. But I’m wondering how I find my own ideas? Want to learn how to find the best trades and investments.
-Lisa D.
Hi, Lisa.
Thanks for writing in. Glad to hear you’re enjoying the content!
We do our best to cull the best trading and investment ideas from the best analysts out there.
So what you end up seeing is the “best of the best”.
A great example of this is my own FIRE Fund.
That’s my real-money portfolio.
It’s a dividend growth stock portfolio that I built using my hard-earned savings from a very middle-class job.
As I lay out in my Early Retirement Blueprint, I built this portfolio so that I could live off of growing dividend income for the rest of my life.
Indeed, I was able to retire in my early 30s.
The plan worked out wonderfully.
By living below my means and systematically buying the highest-quality dividend growth stocks off of the Dividend Champions, Contenders, and Challengers list (when the stocks appeared to be undervalued), I put myself in a fantastic financial position.
That list, by the way, is an incredible source of data on more than 800 US-listed stocks that have raised their dividends each year for at least the last five consecutive years.
Again, “best of the best”.
Of course, I’m not the only contributor And my portfolio is just one example of what’s possible when you seek out and execute on great investment ideas.
Fellow contributor Dave Van Knapp also runs a real-money dividend growth stock portfolio.
He calls it the Dividend Growth Portfolio.
I’ll give you more.
There’s also the Income Builder Portfolio.
The IBP is a real-money portfolio funded by Daily Trade Alert. It’s not just the contributors that are transparent; this very site is also transparent.
This is an exercise in live portfolio building, using the tenets of dividend growth investing to build a reliable, growing income stream by making regular investments in high-quality, dividend-paying companies.
Why dividend growth investing?
I know I’ve mentioned this strategy multiple times.
That’s because many of us follow it and are seeing amazing real-life results.
Check out Dave Van Knapp’s Dividend Growth Investing Lessons for more on what this strategy is, why it’s so powerful, and how to successfully implement it.
I’m now going to throw you what could be argued as the ultimate list of “best” ideas.
That’s because the list is generated by arguably the greatest investor to ever live.
It’s the ~$200 billion Berkshire Hathaway Inc. (BRK.B) common stock portfolio managed by none other than Warren Buffett.
Lo and behold, there are also a lot of dividend growth stocks in that portfolio.
Surprised?
You shouldn’t be.
Now, I understand your original question.
I know you want to find your own ideas.
I simply wanted to show you how many ideas are here at DTA and how you can benefit from them.
But if you’re interested in going your own way and seeing what you can dig up, there are a lot of ways to go about that.
I’ll share a straightforward and time-tested way to go about it.
That would be using a stock screener.
You can find these everywhere. Most brokerages provide them. You can even find free software online that can screen stocks for you.
They might vary a bit in terms of their robustness, but many will get the job done.
You simply input your desired parameters (based on fundamentals, valuation, etc.) and then sift through the output.
It’s a bit of a time consuming way to go about it.
But you might turn up some real gems.
Of course, everyone I just mentioned above has the same access to screeners.
And Buffett obviously has access to the best resources in the whole world, including his own brain.
That’s why I kept referring to these ideas as some of the best out there.
However, there’s nothing stopping you from using a screener and cross-referencing that with some of the ideas that we share here. They’re not mutually exclusive.
It’s your money. Make sure you feel comfortable with any ideas you decide to pursue with your capital.
One last resource I’ll share with you is one I spend a great deal of time with.
It’s the Undervalued Dividend Growth Stock of the Week series.
These are stocks vetted from the aforementioned CCC list.
Then they go through a rigorous analysis, which includes exploring fundamentals, qualitative aspects, and risks.
Finally, intrinsic value is estimated.
Only high-quality dividend growth stocks that appear undervalued are shared.
If you want the “best of the best”, this series is a great starting point.
Of course, ideas alone won’t get the job done.
You actually need to execute, Lisa.
Capital needs to be saved and invested into great ideas.
The best time to start using the best ideas to your advantage is today.
I wish you luck and success.
Jason Fieber
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Disclaimer: Jason Fieber is not a licensed financial advisor, tax professional, or stock broker. Please consult with a licensed investment professional before investing any of your money. If your money is not FDIC insured, it may decline in value. To protect the privacy of our readers, any names published in this article are under aliases. In addition, text may be edited, omitted or paraphrased for grammar or length.