Welcome to my new website. Although rolandhead.com has been around in various guises for a decade now, it's been somewhat neglected over the last few years. That's now going to change.
I'll be using this revamped site as a platform to document and share the systematic investing approach I use to run my dividend portfolio.
Like many investors, I started out with a focus on value stocks. Over the years, that approach has evolved to a primary focus on good quality dividend income.
There's a natural overlap between value and income, in my view. But by focusing on quality income my strategy now more closely reflects the primary goal for my portfolio.
Provide a market-beating dividend yield that grows ahead of inflation and requires minimal trading.
The other big change that's affected my investing over the last decade is that I've become a keen devotee of systematic investing. Airline pilots, surgeons and other highly-skilled professionals routinely execute complex tasks successfully by using checklists to minimise the risk of adverse outcomes.
I believe the same approach makes sense for investing. I find it hard to maintain a consistent and correct approach without a pre-defined framework. In my experience, that has sometimes led me to make inconsistent and poor choices. Using a systematic approach has solved this problem for me.
Over time, I've isolated the criteria I believe drive positive long-term returns and sustainable dividend growth. I've built these into a stock screening system which reduces my investable universe to a manageable number of shares, and assigns a score to each company.
This isn't a one-size fits all system. It's no good for growth stocks, momentum plays or deep value opportunities. Instead, I've designed my rules for one purpose only:
To help me find the best UK dividend shares and build a portfolio which offers market-beating yield and growth.
I'll explain this system in more detail in future posts. For now, I'll just say that although my screen guides my stock selections, I'm not simply investing by numbers. I use my scoring system as a basis for selecting potential candidates. I then carry out further analysis and research before making a decision.
Thanks for reading this far. In the coming days, I'll shortly be revealing the model portfolio I'll use to track the process of my strategy. It's based very closely on my personal portfolio, but doesn't have any of the historic baggage or cash flow complexity, so is easier to track and follow publicly.
As with my work elsewhere, I'll be completely transparent in terms of disclosure and will be open about unsuccessful investments.
There will be lots more content coming down the line in the coming weeks and months. This will include detailed stock reviews and more in-depth insight into my stock-screening rules.
Disclaimer: This is a personal blog/newsletter and I am not a financial adviser. All content is provided for information and educational purposes only. Nothing I say should be interpreted as investing advice or recommendations.
You should carry out your own research and make your own investing decisions. Investors who are not able to do this should seek qualified financial advice. Reasonable efforts are made to ensure that information provided is correct at the time of publication, but no guarantee is implied or provided. Information can change at any time and past articles are not updated.