Readers here know the Make Your Family Rich (MYFR) System. We measure success by our constantly increasing dividend income and not the value of what we own. We can’t control the direction of the markets, but we can ensure the constant growth of income by limiting our investments to those great businesses that have increased their income for at least twenty-five years. They’re called Dividend Champions (DCs) and there are currently 145 businesses that meet that standard. We acquire those businesses by selling out of the money (OM) puts on dips. We have some exceptions to our DCs-only rule. Those are mostly what we refer to as Scratch the Itch (STI) businesses. Most of our STIs are what we call Tech DC Wannabes. Those are the great tech companies that have increased their dividends for a number of years and, given enough time, we believe will make the DC twenty-five year standard. The Wannabes tend to be volatile with solid put premiums and over time we have accumulated a significant interest. AAPL and MSFT, for example, are among our largest holdings.
We recently made two additional additions when they started paying dividends. That’s Alphabet (GOOGL) and Meta Platforms (META). They have only just began paying dividends but with their growth and earnings we are reasonably confident they will continue increasing distributions to their owners. We like to think of them as Wannabes in Training. Let’s see what they do but, in the meantime, we will try to take advantage of the price volatility of these great companies by selling OM puts on down days.
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