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  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    Bob J,

    Thanks for your insight and the links. Part of the reason why I purchased 2 stocks will low yield is because the funds were in my tax free account. For tax purposes, I'm better off holding capital gains play in there. That said, both UNP and IBM pay a stable, growing dividend. And I do have at least 30 odd years for compounding before retirement. My higher yield US holdings are better off held in my tax-deferred account (RRSP) because there's no taxwithholding per the tax treaty between Canada and the United States.

    In my blog post (http://bit.ly/1gURURB), I explained why I bought UNP and IBM in my tax free account.

    I understand there are many companies yielding 3% or higher on the CCC list, but I also need to look at their current valuations, and other numbers, and whether they fit into my portfolio. I suppose I was keeping my eyes on names I'm familiar with. It definitely would serve me well to dig deeper into CCC and look at other companies and sectors that I can diversify into in the future.

    Canadian
    Oct 19 05:55 PM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    rubel, I agree! Thanks for reading.
    Oct 19 02:27 PM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    george,

    I agree with rd on that "2% yield on IBM is pretty good". In fact, I wrote an article earlier this year on "Dividend Yield As An Indicator Of A Bargain" using IBM as one of the examples. (Link to the article: http://seekingalpha.co...) IBM continues to have a low yield because of its steady price appreciation.

    Cheers,
    Canadian
    Oct 19 02:26 PM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    rd, thanks for your insight.
    Oct 19 02:23 PM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    Matthew, I did. You can check out my blog post (http://bit.ly/1gURURB). It explains why I bought UNP and IBM in there.
    Oct 19 02:22 PM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    Hi Cranky,

    Good question. When I bought Teck, I didn't have the rules in place. In fact, it was one of the first stocks I bought. At the time, I knew nothing about investing. We all gotta start somewhere right? Knowing what I know now, I wouldn't buy Teck.

    I'm still developing criteria for company selection. Still learning and growing.

    CDGI
    Oct 19 02:21 PM | 1 Like Like |Link to Comment
  • Trying To Beat The Market Is A Fool's Errand [View article]
    sweeps63,

    There are a couple ways from the top of my head to set up your investments to meet your needs (or at least as close as possible) for retirement.

    1) You can list your everyday expenses and how much they cost per month. For example:

    Rent/Mortgage
    Utilities (Gas, Electricity, Water)
    Food / Groceries
    Telecom (Landline, Cell)
    Internet
    Transportation (Transit/Car gas)
    Entertainment

    Irregular expenses: car maintenance, vacation. Estimate for the whole year.

    Determine the cost of living for each month. Multiply by 12 to determine the amount of dividends you need for your expenses for a year. Work towards that goal. If you build your portfolio right, its dividend growth will take care of the rest (the actual income needed when it comes to retirement).

    2) If you want to spare from all those calculations, then, set your goal to replace your current job income.

    With 20 years until retirement, you have plenty of time to scale into high quality companies with long-term records of growing dividends. Just make sure you're buying at proper valuations. The 20-year time frame shall allow your income stream to grow nicely with reinvestments of dividends and possibly regular contributions.

    Some do-it-yourself investors go the route of focusing on capital gains before converting to an income-oriented portfolio several years before retirement. It's really up to each individual how they want to arrive at the end goal. Hope this sheds some light.

    Canadian
    Oct 19 01:49 AM | 2 Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    OpsRes, I'm glad you were able to get out of TCK and into a DG company like WAG. A quick look at the numbers indicates WAG is a solid company, but on FAST graphs, it looks fully valued, and Morningstar says it's way overvalued.

    Canadian
    Oct 19 01:02 AM | Likes Like |Link to Comment
  • Replace A Loser With A Dividend Growth Blue Chip [View article]
    AnotherOpinion,

    I've already started an IBM position in another account. So, I've been keeping an eye on it, and looking for an opportunity to buy some more. I would have bought some under $186, but I waited to see if there would be a better opportunity because of the exchange rate that would incur when I buy US shares (since I'm Canadian).

    It certainly would be more prudent to wait a few days to see if the current price holds. And certainly I could buy some shares today for a couple bucks cheaper. 5 years from now, I wouldn't even remember the few bucks difference.

    Cheers,
    Canadian
    Oct 18 03:02 PM | 3 Likes Like |Link to Comment
  • Trying To Beat The Market Is A Fool's Errand [View article]
    My take away message is "a portfolio should be designed with the intention of meeting the needs of the investor designing it. If in the accumulation phase, then going for maximum capital appreciation may be a good course of action. However, once the need to harvest income from your portfolio kicks in, then focus should shift to dividend income over capital gain."

    I'm in the accumulation stage, and for now, I've decided to keep 80-90% of my portfolio in buying quality dividend growth stocks which are at minimum at fair value. The rest of my portfolio are capital appreciation plays. The fact being that I went for capital appreciation when I first started "investing" and it didn't go very well. But that was probably because I didn't know about valuations back then. Anyhow, dividends is a surer thing than price appreciation in my books. But I'll still buy a capital appreciation play when a good opportunity arises.
    Oct 18 01:27 PM | 3 Likes Like |Link to Comment
  • 10 Rules For Investing In Today's Stock Market [View article]
    Dave, enjoyed the article. I'm trying not to stray away too much from buying core companies first since I'm still early in my accumulation stage. But your finding value plays in dividend growth stocks of WU, SPLS, SWY, etc. surely are playing nicely.

    Canadian
    Oct 18 12:48 AM | Likes Like |Link to Comment
  • Why Building A Cash Position For My Dividend Income Portfolio Makes Sense [View article]
    Peace,

    I've caught on the frugal way of living from my parents. I never use up my paycheck. And I use my credit card with the plan of paying it off every month. And I try to pay off everything in full instead of having to pay interest.

    "Like one or two others who have written here, I am trying to "ladder" my monthly dividends by including dividend payment dates into my decision making process about buying stocks, so I can get paid something every month."

    If there's a buffer in the dividends that are coming in, then, there's less importance in making dividend payment dates as part of your decision process.

    "This investing bit is all in proportion so it helps the rich guys and the not so rich guys too."

    Yes, I'm glad it's a fair game for everyone. I learn by experience. I made some mistakes early on, and I mentioned them in a couple of articles on SA. Before finding SA, I didn't have the concept of buying businesses. I was more of a gambler playing on the ups and downs of the market. That was very dangerous, and I lost quite a large amount of money. But after getting those main concepts straight: valuation, earnings, allocation, dollar-cost averaging, yield, yield on cost, dividend growth rate, ... , I sell much less now. Instead, I focus on building the core of my portfolio. I'm after all in the early stage of accumulation. So, now, I buy on what I think is cheap/fair value compared to intrinsic value. (FAST graphs as you mention helps with the valuation. Oh, and also to future earnings estimations) And I try to buy essential products/services. Now, I try to keep individual holdings to less than 6% of the portfolio, and each sector no more than 20-25% of portfolio.

    I know I have much to learn. So I keep on reading and writing. Reading both articles and comment discussions. :)

    Canadian
    Oct 13 03:35 PM | 2 Likes Like |Link to Comment
  • Why Building A Cash Position For My Dividend Income Portfolio Makes Sense [View article]
    peace, is that a way of saying let the train (our portfolio) chug on? Some say of even keeping 5 years of cash ready!
    Oct 12 01:50 AM | Likes Like |Link to Comment
  • My Thoughts About “Stay 100% Investing” [View instapost]
    Maybe you used some skills along with luck. :)
    Oct 11 02:47 AM | Likes Like |Link to Comment
  • Why Building A Cash Position For My Dividend Income Portfolio Makes Sense [View article]
    Uain,

    It's nice to have the price appreciation, but getting in on a higher yield (and thus, eventually yield on cost) certainly helps as well. Then, in a downtrend, can reinvest dividends or build cash to deploy manually.

    My article on "When to Reinvest Dividends automatically and when to Deploy Dividends Manually": http://seekingalpha.co...
    Oct 11 02:24 AM | 1 Like Like |Link to Comment
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