Revising My Portfolio Business Plan [View article]
ScottU...
Thanks for commenting. Sounds like a great idea to explore in concept. In execution I expect it would take a lot of work. Keeping a close watch on position size, keeping position sizes 2% or less and not chasing yield combined would appear to protect monthly portfolio income from too severe a jolt should a dividend be cut.
I am sure to let you know if real world dividend cuts change my opinion.
Explanations For The Low-Volatility Anomaly [View article]
Iwant2fly...
Major problem I see is the 2.93% yield. Since she'll need a minimum of 4% that's not going to cut it. Guess we'll have to wait until they develop the S&P 500 Low Volatility/High Yield/High Dividend Growth Index. The 100 lowest volatility stocks with a combined yield of 4% or more and combined dividend growth greater than inflation.
After David Van Knapp's experience I wouldn't count on that happening any time soon.
Back to my fallback position. I tell her to just go to chowder's profile and match his portfolio. Only problem is with Percy's bad influence he may not outlive me.HA!
Explanations For The Low-Volatility Anomaly [View article]
What continues to amaze me is the fact that the industry seems quick to start an ETF for practically anything accept one that models the kind of Dividend Growth model that truly favors low beta, low payout ratios. The average beta for The Dividend Champions and Challengers is .76. Even adding Contenders the beta is .79. Why can't that be used as a standard? Most Dividend ETFs have beta closer to 1.0. Most are still heavy in teach and banks. most yield between 3-3.5%. Why don't they consider a minimum yield of 4% the amount folks need to withdraw each year for income without touching principle? Why don't they require minimum dividend growth equal to inflation?
I can't help but think I'm not the only retired investor asking those questions. Hey we did it their way for 30-40 years. It might be nice to return the favor by offering the kind of model I just described. I would love to know such a vehicle were an option for my wife should I die first.
Revising My Portfolio Business Plan [View article]
palma...
Thanks for stopping. Not sure if your familiar with the lists of Dividend Champions, Challengers and Contenders. These are stocks that did not cut dividends during 2008/2009 but actually grew them. Contributor David Fish up-dates the list monthly. There are around twenty reits and two bdcs for your consideration. Most of the reits have a longer track record of safety and performance. I'm long TCAP a BDC from those lists.
'Team Alpha' Portfolio: Dividend Investing Sooner Than Later [View article]
jd, for additional ideas for increasing yield with a focus on safety, check out Bob Johnson's portfolio or chowder's or Jeff Paul's - he has three or my series on Safety Superstars. I believe you can construct a portfolio of Dividend Champions, Challengers and Contenders that yield a minimum of 4.5% that are low risk, low beta and help anyone sleep well at night. I am very risk adverse and have 8 of RS picks.
Explanations For The Low-Volatility Anomaly [View article]
Jeff...
Great article. Can't wait to see part three.
I agree with Dave that this is the kind of series that desires to be an Editor pick. Instead we just got a "cutting edge" , yeh right ...article on the importance of adherence to the 4% rule...
Revising My Portfolio Business Plan [View article]
SDS...
I do try to mix foreign holdings where possible. For example I own BMO, RDS.B, SJR and AZN to name just a few. My watchlist which I'll present next time out contains some others.
Some industries and sector present a problem for me because I favor low beta non cyclical stocks rather than stocks like CAT.
Revising My Portfolio Business Plan [View article]
Buck...
I appreciate your making your first comment here. You have started off with a very good question. You seldom find a stock like KMB or O show up as undervalued. Its hard at first when you're assembling your core portfolio to always get the price you want. I have found that patience is easier at the later stages of portfolio development.
Revising My Portfolio Business Plan [View article]
moejoe1
Many thanks kind sir. Since you're in your 40's you will probable chose objectives that vary greatly from mine. For example: I recently sold Wal-mart because the yield got so low. If I were in my 40's there is no way that would happen.
The Safety Superstars include a number of stocks with yields too low for me but with great dividend growth. I suspect many of those would be perfect for your portfolio.
For which I hold just go back to the top of each of the Superstar articles. At the very top of each it list which of the stocks I'm long.
Revising My Portfolio Business Plan [View article]
Trader...
I'm sure as a trader cash is important. Frankly we're at a stage where we're not going to be buying a lot of stock since we're retired and no longer employed. That said, according to the provisions in our business plan. We may on occasion sell holdings that have overheated resulting in a dividend under 2.5%. Those funds will then be redeployed in undervalued CCC listed stocks with higher yields.
I started in February of 2011 and as of 12/31/2012 my gains have been 18.52% vs. 15.71% for the S&P 500. My current portfolio beta is .7%.
Revising My Portfolio Business Plan [View article]
seekingpsi...
Thanks for stopping by. Good advice but to be honest, holding cash was tough for us and I suspect many when raising their family, in our case three girls. Fortunately we remained debt free and maxed out our 401K's after the girls graduated from college.
Revising My Portfolio Business Plan [View article]
SDS...
Good Questions. Answers in order:
1. When I started My wife gave me one instruction - Don't loose money trying to honor that request. HA.
2. IMO there's nothing wrong with a customized etf with no fees.
3. By keeping position size in check I reduce pain of any possible dividend cut.
4. The wording I use is consider Selling. Since I adjust if necessary as part of quarterly review fees have proven limited. If that were to change I would likely adjust accordingly.
5. Again I only consider selling...Likely I would put a stock on probation first following a freezes. Dividend cut however and I'm selling.
6. Agree there are problems but IMO its a closer measure than the bank and tech heavy S&P.
Revising My Portfolio Business Plan [View article]
Thanks for commenting. Sounds like a great idea to explore in concept. In execution I expect it would take a lot of work. Keeping a close watch on position size, keeping position sizes 2% or less and not chasing yield combined would appear to protect monthly portfolio income from too severe a jolt should a dividend be cut.
I am sure to let you know if real world dividend cuts change my opinion.
Take care
Bob
Explanations For The Low-Volatility Anomaly [View article]
Major problem I see is the 2.93% yield. Since she'll need a minimum of 4% that's not going to cut it. Guess we'll have to wait until they develop the S&P 500 Low Volatility/High Yield/High Dividend Growth Index. The 100 lowest volatility stocks with a combined yield of 4% or more and combined dividend growth greater than inflation.
After David Van Knapp's experience I wouldn't count on that happening any time soon.
Back to my fallback position. I tell her to just go to chowder's profile and match his portfolio. Only problem is with Percy's bad influence he may not outlive me.HA!
Explanations For The Low-Volatility Anomaly [View article]
of Dividend Growth model that truly favors low beta, low payout ratios. The average beta for The Dividend Champions and Challengers is .76.
Even adding Contenders the beta is .79. Why can't that be used as a standard? Most Dividend ETFs have beta closer to 1.0. Most are still heavy in teach and banks. most yield between 3-3.5%. Why don't they consider a minimum yield of 4% the amount folks need to withdraw each year for income without touching principle? Why don't they require minimum dividend growth equal to inflation?
I can't help but think I'm not the only retired investor asking those questions. Hey we did it their way for 30-40 years. It might be nice to return the favor by offering the kind of model I just described.
I would love to know such a vehicle were an option for my wife should I die first.
Wow felt good to vent....
Revising My Portfolio Business Plan [View article]
Thanks for stopping. Not sure if your familiar with the lists of Dividend Champions, Challengers and Contenders. These are stocks that did not cut dividends during 2008/2009 but actually grew them. Contributor David Fish up-dates the list monthly. There are around twenty reits and two bdcs for your consideration. Most of the reits have a longer track record of safety and performance. I'm long TCAP a BDC from those lists.
Take care
Bob
'Team Alpha' Portfolio: Dividend Investing Sooner Than Later [View article]
Bob
Explanations For The Low-Volatility Anomaly [View article]
Great article. Can't wait to see part three.
I agree with Dave that this is the kind of series that desires to be an Editor pick. Instead we just got a "cutting edge" , yeh right ...article on the importance of adherence to the 4% rule...
I really appreciate your fine work.
Bob
Low-Volatility Stocks Consistently Outperform; Dividend Investors Rejoice [View article]
Thanks for more formally validating that low-beta rocks!
Dave...
I stumbled upon SXL in 2011 during my back test project looking for safe performers. Like you its my best performer to date.
Take care
Bob
Revising My Portfolio Business Plan [View article]
I do try to mix foreign holdings where possible. For example I own BMO, RDS.B, SJR and AZN to name just a few. My watchlist which I'll present next time out contains some others.
Some industries and sector present a problem for me because I favor low beta non cyclical stocks rather than stocks like CAT.
Take care
Bob
Revising My Portfolio Business Plan [View article]
I appreciate your making your first comment here. You have started off with a very good question. You seldom find a stock like KMB or O show up as undervalued. Its hard at first when you're assembling your
core portfolio to always get the price you want. I have found that patience is easier at the later stages of portfolio development.
Bob
Revising My Portfolio Business Plan [View article]
Many thanks kind sir. Since you're in your 40's you will probable chose
objectives that vary greatly from mine. For example: I recently sold Wal-mart because the yield got so low. If I were in my 40's there is no way that would happen.
The Safety Superstars include a number of stocks with yields too low for me but with great dividend growth. I suspect many of those
would be perfect for your portfolio.
For which I hold just go back to the top of each of the Superstar articles. At the very top of each it list which of the stocks I'm long.
Take care
Bob
Revising My Portfolio Business Plan [View article]
Taking one stock though the process is a great idea! Expect an article doing just that soon.
Bob
Revising My Portfolio Business Plan [View article]
I'm sure as a trader cash is important. Frankly we're at a stage where we're not going to be buying a lot of stock since we're retired and no longer employed. That said, according to the provisions in our business plan. We may on occasion sell holdings that have overheated resulting in a dividend under 2.5%. Those funds will then be redeployed in undervalued CCC listed stocks with higher yields.
I started in February of 2011 and as of 12/31/2012 my gains have been 18.52% vs. 15.71% for the S&P 500. My current portfolio beta is .7%.
Thanks
Bob
Revising My Portfolio Business Plan [View article]
Thanks for stopping by. Good advice but to be honest, holding cash was tough for us and I suspect many when raising their family, in our case three girls. Fortunately we remained debt free and maxed out our 401K's after the girls graduated from college.
Bob
Revising My Portfolio Business Plan [View article]
Good Questions. Answers in order:
1. When I started My wife gave me one instruction - Don't loose money trying to honor that request. HA.
2. IMO there's nothing wrong with a customized etf with no fees.
3. By keeping position size in check I reduce pain of any possible dividend cut.
4. The wording I use is consider Selling. Since I adjust if necessary as part of quarterly review fees have proven limited. If that were to change I would likely adjust accordingly.
5. Again I only consider selling...Likely I would put a stock on probation first following a freezes. Dividend cut however and I'm selling.
6. Agree there are problems but IMO its a closer measure than the
bank and tech heavy S&P.
Take care
Bob
Revising My Portfolio Business Plan [View article]
When I looked at the CCC's I could find about a dozen.
Take care
Bob