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  • Buy The Sector Dips Portfolio: The Industrials Sector
    Tue, Apr. 7 CVX, EMR, FAST 20 Comments

    Summary

    • Instead of waiting for a 20% to 50% market crash, a do-it-yourself investor can allocate some capital in high quality companies on 10-20% dips.
    • The Buy The Dips Portfolio is diversifying from its Energy holdings, and buying wide moat companies in the Industrials sector that has experienced dips.
    • I went through the list of 65 Industrials in the XLI ETF and shortened the list to 4 high quality companies.
    • The 4 Industrials chosen have been confirmed that they're selling at or below fair valuation.
  • Buy The Sector Dips Portfolio: The Energy Sector Revisited
    Thu, Apr. 2 CVX, KMI, SLB 2 Comments

    Summary

    • The first article of this series was in December 2014 when the Energy sector first dipped.
    • Instead of waiting for a 20% to 50% market crash, a do-it-yourself investor can allocate some capital in the 23% Energy sector dip.
    • Instead of investing in the Energy Sector ETF to mimic the performance of the index, the Buy the Sector Dips Portfolio chooses a selected few from the ETFs' top holdings.
    • What we end up with is the highest-quality companies and a higher yield. The shares added in the 4 companies today yield 11% more income than buying the ETF.
  • Amid Low Oil Prices, An Investment In Chevron Is Attractive
    Tue, Mar. 31 CVX 31 Comments

    Summary

    • Global energy demand is increasing, and estimated to increase by 40% by 2035.
    • Chevron has an overall strategy of growing cash flow, reducing spending, and selling non-core assets.
    • Chevron is a good long-term investment when the oil price is low, and its yield hits 4+%.
    • Chevron plans to cover its dividend with free cash flow by 2017 with oil price expected to recover to $70/bbl.
  • General Motors Is Playing Out Its Comeback Story
    Wed, Mar. 11 GM 7 Comments

    Summary

    • General Motors' cost-saving plans has lowered its break-even point.
    • Increase in demand of light trucks will add to GM's profitability and reflect on its earnings.
    • GM increases its quarterly dividend from $0.30 to $0.36, a 20% increase.
    • GM announces an initial $5B share repurchase plan to be completed by the end of 2016.
    • Estimated total return for buying GM shares now is about 21% to 34% for a holding period of 1 to 2 years.
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy
    Mon, Mar. 2 CVX, F, GE 41 Comments

    Summary

    • I’m in my late twenties, and in the early years of my compounding journey with my dividend growth portfolio.
    • How do I stay the course in being invested and receiving a growing income while the market goes up and down everyday?
    • I have 2 spreadsheets to track my growing dividends. One for the anticipated dividends and another for the actual dividends received.
  • Why Warren Buffett Sold Exxon Mobil And Bought Suncor Energy
    Thu, Feb. 19 COP, SU, XOM 46 Comments

    Summary

    • Berkshire Hathaway sold out of 41 million shares of its Exxon Mobil and 5 million shares of ConocoPhillips stake.
    • And added 4 million shares of Suncor Energy.
    • Reason 1: US dollar to the Canadian dollar is at decade's low.
    • Reason 2: The Canadian Dollar is correlated to the oil price.
    • Reason 3: Suncor Energy is a quality company priced at a value.
  • Is Kinder Morgan A Buy Now For A Dividend Growth Investor?
    Mon, Feb. 9 KMI 78 Comments

    Summary

    • Kinder Morgan's price is 3% away from its 52-week high. Is it a buy now?
    • Its dividends are expected to grow 10% a year through to 2020. That is $3.22 per share of dividends by the end of 2020.
    • Based on a 4.5% yield, Kinder Morgan will reach $71.58 by the end of 2020.
    • It's reasonable to expect Kinder Morgan to have annualized returns of more than 13.5% with Friday's closing price of around $41.50.
    • Kinder Morgan is truly an income growth machine.
  • 3 Core Holdings I Added To In January 2015
    Mon, Feb. 2 BNS, CVX, ENB 15 Comments

    Summary

    • Adding core holdings when they're at the high ends of their historical yields pays you a higher income.
    • These companies have high yields due to price declines, dividend growth, or both.
    • The core holdings I added to are Chevron, Bank of Nova Scotia, and Enbridge.
  • Ann's Simple Income Investing Strategy
    Mon, Jan. 26 BBL, CVX, KMI 37 Comments

    Summary

    • Ann, our simple investor, looks forward to income, money received on a regular basis, because it can be used to pay down debt, pay bills, or to be reinvested.
    • A simple way to earn income is to buy shares in dividend-paying leaders.
    • Ann decides that her $11,000 investment should earn her a minimum income of $330 annually.
    • Ann ends up buying shares in 11 leaders in 11 sectors, earning an income of over $400, exceeding her goal.
  • Q4 2014 Update: Core Changes In My Whistler Income And Growth Portfolio
    Sun, Jan. 4 AMGN, BAX, BBL 24 Comments

    Summary

    • The primary goal of my income and growth portfolio is to produce a reliable and growing income stream that beats inflation.
    • The secondary goal is capital preservation and maximizing total return.
    • Could taking (at least some) profit on more volatile companies in sectors such as Energy and Mining be a good strategy for income investors to maximize total returns?
  • Launching The Buy The Sector Dips Portfolio: The Energy Sector Dip
    Dec. 9, 2014 CVX, KMI, SLB 11 Comments

    Summary

    • Instead of waiting for a 20% to 50% market crash, a do-it-yourself investor can allocate some capital in the 20% Energy Sector dip.
    • Instead of investing in the Energy Sector ETF to mimic the performance of the index, the Buy the Sector Dips Portfolio chooses a selected few from the ETF’s top holdings.
    • What we end up with is the highest quality companies and a higher yield. In fact, for this portfolio, we get 27% more income than buying the ETF.
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income
    Editors' Pick • Nov. 10, 2014 VET 45 Comments

    Summary

    • Vermilion Energy is a mid cap oil and gas producer with stellar historical returns. From 10 years ago, a $10k investment grew 6.5x to $75k (25% annual growth).
    • Vermilion Energy's total return beats all its Mid Core peers in the 1-year, 3-year, 5-year, 10-year, and 15-year periods.
    • Between 2013 and 2016, the company plans to grow production by 55% and to grow funds from operations by 60%.
    • Analysts estimate a one-year total return of 18% to 21% at Friday's closing price.
    • Since 2003, Vermilion Energy has paid a continuous monthly dividend, currently yielding 3.9%. Its decreasing payout ratio since 2003 led to 2014's dividend raise and the potential for future dividend growth.
  • Oil Companies Sensitive To The Oil Price Decline And Those That Are Not
    Oct. 22, 2014 BP, CVE, CVX 26 Comments

    Summary

    • Oil price has declined about 25% since June 2014.
    • Let’s see which oil companies were more sensitive to the oil price decline.
    • Let’s see which oil companies weren’t as sensitive to the oil price decline.
    • Now maybe a good time to start dollar-cost averaging into quality oil companies for a higher starting income after the price decline.
  • Reviewing The Core Holdings In My Whistler Income And Growth Portfolio: Q3 2014 Update
    Oct. 13, 2014 BNS, CVX, ENB 19 Comments

    Summary

    • This is a close-up view to analyze the core holdings of my income and growth portfolio.
    • Generally, my core holdings have good credit ratings, and a trend of earnings growth and dividend growth.
    • This review allowed me to identify improvement areas to strengthen the core of my portfolio.
  • Gift From Mr. Market: What To Buy In The Big Oils' 10% Pullback
    Sep. 29, 2014 BP, CVX, SU 27 Comments

    Summary

    • Mr. Market is near an all-time high, but the Energy sector has experienced a pullback.
    • The Energy sector's 10% pullback is an opportunity for income investors sitting on cash to buy on the dip.
    • Buy more shares with the same amount of capital for a higher yield. You can increase your income stream now.
    • This article will outline high-quality big oil, blue chip companies and deeper value plays for initial research.
  • I Am A Dividend Growth Investor. I Want Dividends, Growth, And Dividend Growth
    Sep. 23, 2014 KO, PEP, PG 235 Comments

    Summary

    • Dividends received can be used, or can serve as additional capital to buy more shares.
    • Growth is the holdings’ steady price appreciation led by business growth, and having bought shares at proper valuations.
    • Dividend growth comes from growing businesses that are earning more and giving a higher payout every year.
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters
    Aug. 25, 2014 BNS, CSCO, CVX 100 Comments

    Summary

    • The amount of capital you have in a company is more important than the number of shares you have in a company.
    • The more the capital you have in a dividend stock, the higher the amount of dividends you receive.
    • Therefore, it’s better to think in terms of how much capital you are using to buy your shares, instead of how many shares you are buying.
    • The above make sense only given that you buy shares at proper valuations, as it goes without saying the lower price you pay, the higher income you get.
    • Thinking in terms of how much capital you have allocated to each holding also helps with risk management by thinking of stock allocation and income allocation.
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing?
    Aug. 18, 2014 BNS, CSCO, CVX 45 Comments

    Summary

    • I started with small number of shares that paid only a few bucks every 3 months.
    • Slowly, building a portfolio of these dividend growers, the few bucks grow into possibly a few hundred bucks in a year.
    • Tracking the growth of the dividend helps me stay the course. I will show you my simple way of tracking the dividend growth.
    • The income is growing at a rate much faster than inflation to maintain purchasing power.
  • What I'm Doing With My Kinder Morgan Shares As A Dividend Growth Investor
    Aug. 13, 2014 KMI 68 Comments

    Summary

    • Kinder Morgan has a projected annual dividend of $2.00 per share in 2015.
    • That's a projected dividend yield of 5% at today's price of $40.
    • The dividend is expected to grow by at least 10% annually from 2015 to 2020.
    • $17B of growth projects for the next 5 years has already been identified.
    • Looking to scoop up some shares between $36 and $39.
  • Qualcomm Priced At 16% Discount With Double-Digit Growth
    Aug. 7, 2014 QCOM 11 Comments

    Summary

    • Qualcomm is undervalued with 16% discount around the $73 price level.
    • Strong results from Q3 earnings release with raised FY2014 EPS guidance.
    • There continues to be a strong need for Qualcomm's products as its revenue continues to grow in the double digits.
    • I added to my Qualcomm position at the end of July. Now it's even cheaper.
  • When To Add To An Existing Dividend Growth Holding That Has Been Advancing
    Aug. 4, 2014 BNS 32 Comments

    Summary

    • As a self-directed dividend investor, it’s essential to keep emotions in check when investing and making a trade.
    • When you feel like selling, maybe it is time to buy more shares instead.
    • The best time to buy a high quality company is when it's at the right valuation.
    • F.A.S.T. Graphs helps with checking the valuation of a company.
    • Even when the share price is at fair valuation, it could go lower. Dollar-cost averaging into a position is psychologically more bearable than buying in a big lump sum.
  • Q2 2014 Update: My Whistler Income And Growth Portfolio
    Jul. 15, 2014 AMGN, BAX, BIDU 18 Comments

    Summary

    • Managing my own income and growth portfolio requires periodic reviews.
    • From actual decisions that I make in the portfolio, I can get a better feel for my temperament.
    • Part of my quarterly review is to check sector allocation to determine if too much capital is allocated to one specific sector.
    • Another part of the review is to check dividend allocation to ensure I'm not getting too much dividends from one specific sector.
    • These updates are kind of like a journal which shows exactly what I did - for better or for worse.
  • Bought Raytheon At 10% Discount For Dividend Growth And Steady Price Appreciation
    Jul. 2, 2014 RTN 24 Comments

    Summary

    • I bought Raytheon at a 10% discount this week.
    • At the end of Q1 2014, it had a backlog of $32.2B.
    • It is a high quality company with a current yield of 2.6% and expected dividend growth of 8 - 10%.
    • Its earnings growth should lead to steady price appreciation and a growing dividend.
    • A look at my lessons learned after selling out of Raytheon a year ago.
  • How To Better Use Capital To Get Higher Income And Higher Total Return
    Jun. 30, 2014 TGT, UNP 24 Comments

    Summary

    • Set buy ranges ahead of time to eliminate as much emotion as possible.
    • FAST Graphs & Morningstar are tools to help you identify the fair price of a security. Combined with technical charts, you can determine a price to ease in your money.
    • Once you set up the buy ranges, your brokerage or Finviz.com can be tools to indicate what is a good buy on any given trading day.
    • Setting buy ranges rationally increases the starting yield and total return of your new purchase.
    • Periodically update your buy ranges so that you are always ready to deploy your cash on the best valued company for your portfolio.
  • Characteristics Of A Solid Dividend Portfolio
    Jun. 16, 2014 WMT, TGT 15 Comments

    Summary

    • I'm primarily using dividend growth and value investing for my portfolio.
    • To ensure my income portfolio is solid, I analyze individual companies it holds.
    • I look at each holding on its dividend safety, dividend growth, and its expected total return.
    • Only buy good companies at a fair or discounted price to improve total return.
    • In a simple way, I will use Target to illustrate the above concepts.
  • IBM's Stagnant Revenue May Be Coming To An End And It's Priced At A Discount Right Now
    Jun. 9, 2014 IBM 43 Comments

    Summary

    • IBM is sitting at 13% to 27% discount depending on which tool you use.
    • IBM has increased its dividends for 19 years at a compounded annual growth rate of 17.5%.
    • With earnings per share expected to reach $20 by 2015, and ample free cash flow, IBM's dividend should continue to grow at least 10% annually.
    • As $24B has been invested into Big Data, and 15 planned data centers, totaling to 40 across the globe, revenue may start to pick up in a couple years.
  • Bought Silver Wheaton For Capital Gains
    Jun. 2, 2014 SLW 30 Comments

    Summary

    • Silver Wheaton is the biggest precious metals streaming company on earth.
    • It has lowered downside risk because it pays low, fixed costs for silver and gold.
    • Current risk/reward is in buyer's favour as price hits 400-day MA.
    • 40% upside potential from Friday's closing price.
  • How I 'Played' My Microsoft Shares And What I'm Doing With Them
    May. 2, 2014 MSFT 35 Comments

    Summary

    • Nice capital gain of 40+% if you bought Microsoft shares in early 2013.
    • Recognize that the undervalued Microsoft opportunity between 2010 and 2013 is gone.
    • Going forward, the return of buying shares from this point on will base on Microsoft's business performance.
    • I shall continue to hold my shares, expecting ~8% dividend growth annually.
    • I may add shares to this AAA rated company on meaningful dips.
  • Q1 2014 Update: My Whistler Income And Growth Portfolio
    Apr. 7, 2014 BAX, BIDU, F 22 Comments

    Summary

    • Managing my own income and growth portfolio requires periodic reviews.
    • Part of my quarterly review is to check sector allocation to determine if too much capital is allocated to 1 specific sector.
    • Another part of the review is to check dividend allocation to ensure I'm not getting too much dividends from 1 specific sector.
  • Build A Margin Of Safety For Your Dividend Income
    Mar. 24, 2014 BCE, KO, PEP 18 Comments

    Summary

    • A low payout ratio does not suggest plenty of room for dividend growth.
    • Companies with wide economic moats are likely to continue growing dividends.
    • Companies with strong balance sheet strength are more likely to continue growing dividends.
  • Book Review: The Single Best Investment - Creating Wealth With Dividend Growth
    Mar. 24, 2014 JNJ 17 Comments

    Summary

    • Growing dividends from a portfolio of stocks serve as a compounding machine.
    • The stocks in this portfolio have the characteristics of high quality, high yield, and high growth of yield.
    • The essential ingredient in compounding is time.
  • Adding High Growth Core Holdings To Strengthen My Dividend Growth Portfolio
    Feb. 12, 2014 SBUX, V, DLR 25 Comments