My 5 Points For Managing My Retirement Investing Behavior [View article]
Wow Eddie...
You just struck a chord. I bought a conversion turntable to convert my record collection of nearly 700 albums to MP3s. Like you I think there is something timeless about old vinyl.
My 5 Points For Managing My Retirement Investing Behavior [View article]
Gentlemen...
If I may join the conversation. Mike...Like you apparently I struggle with Excel. Finally learned how to better manage the CCC lists by organizing by things like yield, payout ratio and chowder index.
What I think would really benefit this community and the growth of the Dividend Growth concept would be the development of some kind of retirement calculator for Dividend Growth investors who are already retired. It could better identify things such as inflation through projections of dividend growth rate. It could tell you when you would need to withdraw income from principle due to Required Minimum Withdraws necessary after 70 1/2.
If I have XXX dollars with a current yield of XXX and dividend growth of XXX ... How much could I withdraw each month? You get the idea.
The Business Model Of The Dividend Growth Investor [View article]
Cross...
You said... "You all seem convinced that you have the magic formula, that you have picked the creme de la creme and are, of course, outperforming the market but none of you seem to be up to putting in the minimal effort into establishing if that is really true"
My portfolio consistently out performs the market. Since starting in 2/2011 to the end of this month, my total return was 40.28 vs. 30.45 for the S&P 500 for the same period. When I back tested my portfolio's performance for 2002- 2011, it had an average return of over 10% vs. about 3% for the market and beat the market each of the ten years. When I back tested chowder's portfolio for the same period it averaged 12.66%. He just gave you his recent performance figures. When I back tested Jeff Paul's Income and Growth portfolio for the same ten years it averaged a 15.04% gain.
My portfolio beta is.65 vs. 1.00 for the market. None of my stocks cut their dividend between 2002 and today. In fact the dividends grew.
Now that is beating the market. As Big Thunder says below each of us beat because we did the work of creating a portfolio investing plan with clear objectives defining when and what we buy and when and what we sell.
We are "Seeking Income" not Alpha from safe and growing dividends and somehow in the process we also obtained the Alpha you seek.
The Business Model Of The Dividend Growth Investor [View article]
cross...
The problem is this The S&P 500 Index doesn't resemble the portfolio held by most retirees practicing Dividend Growth investing. The Index is bank and tech heavy. Of my 50 stocks only one is a bank BMO and only one is tech INTC. I could I guess compare performance by sectors for the sectors I invest in but in the end what exactly would that prove.
At this stage what is important is that the dividend grows along with income at a rate greater than inflation. That dividends don't get cut and that I don't have to sell stocks every month for income particularly during down markets.
BTW I'm significantly beating the market year over year by about 6%. Will I next year probably not but I'll bet you my monthly income goes up. BTW If I'm not sell any stock and investing in some of the best companies in America I'll bet I don't run out of money either.
SDIX with a Beta of 1.1 is not a sleep well at night choice. Only one of the top ten holdings is a Dividend Champion, Challenger or Contender.
For a true sleep well at night portfolio I don't believe you should push for more than a 5% yielding portfolio. Most who follow Dave prefer a hand selected portfolio.
If you feel you need EFTs you could consider starting with a sector ETF for the utilities portion. Some seeking income from MLPs might consider AMLP. Vanguard has an etf for REIT exposure. Wisdom Tree's Equity Income is as close as I can find to a "real Dividend Growth" etf and yields over 3.7%. A combined portfolio would yield at least 4% and might be a good way to start feeling comfortable again.
I would really hate to see you chasing either yield or capital gain at this stage.
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
Thanks Craig...
Currently own Three from the Frozen Angel list ...Payx, Royal Dutch Shell and BCE. I also have a few on the near challenger list. I am conservative in having 90% in CCC listed stocks that both maintained and grew dividends during the last financial crisis.
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
Clayton...
Out of more than 50 Holdings I have only one bank BMO and one tech stock INTC. Highest in Consumer Staples, Energy/MLPs, Reits, Consumer Discretionary, Telecom, Utilities and Heath.
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
Craig...
I appreciated your thought provoking first article. I'm in the distribution phase of investing so I'm looking for a balance between yield income and dividend growth. I look to keep beta low - .7 or less. Have more than 50 equal weights stocks to reduce impact to income from any dividend cut.
What would you recommend for this stage of investing?
Let me join in thanking you for all you have done for the Dividend Growth community and for me personally. Along with you and "the other Daves" you were among the first I read on the Dividend Growth concept as I was struggling during my first year as a self-directed investor back in 2011. Your articles continue to make a difference my friend.
The Business Model Of The Dividend Growth Investor [View article]
chowder...
I post my numbers vs. the market only to show folks that you aren't necessarily giving up capital gains when you fully embrace the Dividend Growth stocks that make up the Dividend Champions, Challengers and Contenders.
Since I'm fully retired the number that matters most is increase in dividend income due to dividend growth. Strong earnings mean not only capital growth but dividend growth, provided of course that you choose the right companies.
Forget Dividend Growth Investing, It's ROIC Investing [View article]
Very interesting concept. What site do you use for your figures on 5 year ROIC.
Take Care
Bob
My 5 Points For Managing My Retirement Investing Behavior [View article]
You just struck a chord. I bought a conversion turntable to convert my record collection of nearly 700 albums to MP3s. Like you I think there is something timeless about old vinyl.
Bob
My 5 Points For Managing My Retirement Investing Behavior [View article]
If I may join the conversation. Mike...Like you apparently I struggle with Excel. Finally learned how to better manage the CCC lists by organizing by things like yield, payout ratio and chowder index.
What I think would really benefit this community and the growth of the Dividend Growth concept would be the development of some kind of retirement calculator for Dividend Growth investors who are already retired. It could better identify things such as inflation through projections of dividend growth rate. It could tell you when you would need to withdraw income from principle due to Required Minimum Withdraws necessary after 70 1/2.
If I have XXX dollars with a current yield of XXX and dividend growth of XXX ... How much could I withdraw each month? You get the idea.
Bob
The Business Model Of The Dividend Growth Investor [View article]
You said...
"You all seem convinced that you have the magic formula, that you have picked the creme de la creme and are, of course, outperforming the market but none of you seem to be up to putting in the minimal effort into establishing if that is really true"
My portfolio consistently out performs the market.
Since starting in 2/2011 to the end of this month, my total return was 40.28 vs. 30.45 for the S&P 500 for the same period. When I back tested my portfolio's performance for 2002- 2011, it had an average return of over 10% vs. about 3% for the market and beat the market each of the ten years. When I back tested chowder's portfolio for the same period it averaged 12.66%. He just gave you his recent performance figures. When I back tested Jeff Paul's Income and Growth portfolio for the same ten years it averaged a 15.04% gain.
My portfolio beta is.65 vs. 1.00 for the market. None of my stocks cut their dividend between 2002 and today. In fact the dividends grew.
Now that is beating the market. As Big Thunder says below each of us beat because we did the work of creating a portfolio investing plan with clear objectives defining when and what we buy and when and what we sell.
We are "Seeking Income" not Alpha from safe and growing dividends and somehow in the process we also obtained the Alpha you seek.
Dripping Works: A Real-World Example [View article]
Always enjoy reading about your personal investing decisions. Love reading folks who just tell you "Here's what I do and Why I do it"
Take care
Bob
6 Lessons Learned From Up And Down Markets [View article]
Nicely done. Excellent points to keep in mind during a run up like this.
Take care
Bob
My 5 Points For Managing My Retirement Investing Behavior [View article]
Another fine article my friend. Much food for thought.
Bob
The Business Model Of The Dividend Growth Investor [View article]
The problem is this The S&P 500 Index doesn't resemble the portfolio held by most retirees practicing Dividend Growth investing. The Index is bank and tech heavy. Of my 50 stocks only one is a bank BMO and only one is tech INTC. I could I guess compare performance by sectors for the sectors I invest in but in the end what exactly would that prove.
At this stage what is important is that the dividend grows along with income at a rate greater than inflation. That dividends don't get cut and that I don't have to sell stocks every month for income particularly during down markets.
BTW I'm significantly beating the market year over year by about 6%. Will I next year probably not but I'll bet you my monthly income goes up. BTW If I'm not sell any stock and investing in some of the best companies in America I'll bet I don't run out of money either.
Why I Am A DG Investor [View instapost]
SDIX with a Beta of 1.1 is not a sleep well at night choice. Only one of the top ten holdings is a Dividend Champion, Challenger or Contender.
For a true sleep well at night portfolio I don't believe you should push for more than a 5% yielding portfolio. Most who follow Dave prefer a hand selected portfolio.
If you feel you need EFTs you could consider starting with a sector ETF for the utilities portion. Some seeking income from MLPs might consider AMLP. Vanguard has an etf for REIT exposure. Wisdom Tree's Equity Income is as close as I can find to a "real Dividend Growth" etf and yields over 3.7%. A combined portfolio would yield at least 4% and might be a good way to start feeling comfortable again.
I would really hate to see you chasing either yield or capital gain at this stage.
Take care
Bob
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
Currently own Three from the Frozen Angel list ...Payx, Royal Dutch Shell and BCE. I also have a few on the near challenger list. I am conservative in having 90% in CCC listed stocks that both maintained and grew dividends during the last financial crisis.
Bob
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
Out of more than 50 Holdings I have only one bank BMO and one tech stock INTC. Highest in Consumer Staples, Energy/MLPs, Reits, Consumer Discretionary, Telecom, Utilities and Heath.
Are Streaks And Current Yields The Best Metrics For Dividend Growth Investors? [View article]
I appreciated your thought provoking first article. I'm in the distribution phase of investing so I'm looking for a balance between yield income and dividend growth. I look to keep beta low - .7 or less. Have more than 50 equal weights stocks to reduce impact to income from any dividend cut.
What would you recommend for this stage of investing?
Bob
Why I Am A DG Investor [View instapost]
Let me join in thanking you for all you have done for the Dividend Growth community and for me personally. Along with you and "the other Daves" you were among the first I read on the Dividend Growth concept as I was struggling during my first year as a self-directed investor back in 2011. Your articles continue to make a difference my friend.
Bob
My Q2 Dividend Growth Watch List [View article]
Nice example. Long DLR.
The Business Model Of The Dividend Growth Investor [View article]
I post my numbers vs. the market only to show folks that you aren't necessarily giving up capital gains when you fully embrace the Dividend Growth stocks that make up the Dividend Champions, Challengers and Contenders.
Since I'm fully retired the number that matters most is increase in dividend income due to dividend growth. Strong earnings mean not only capital growth but dividend growth, provided of course that you choose the right companies.