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  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Abdul, the reason I focus on the dividends is that it's more predictable than capital appreciation. That said, there are some holdings I bought more for their growth than dividends such as SBUX and GILD. I started a position in GILD even before it announced initiation of its dividend.
    Mar 3, 2015. 01:38 AM | 1 Like Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Craig, thanks for your input on forecasting future dividends. I only estimate the dividends I would receive for this next 12 months based on announced dividends. The reason is that the future is uncertain so I can be sure my forecasted DGR would be inaccurate. Secondly, estimating dividends in my way is low balling it because dividend increases would lead to more dividends received compared to my estimate.

    That said, I can see why it maybe useful for some investors to forecast dividend growth as it probably helps with long-term holding.

    Thanks again,
    Canadian
    Mar 3, 2015. 01:36 AM | 1 Like Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    DB,

    I'm happy to hear you find the article informative. :)

    Yes, I do update the cost basis as I add to an existing position. It's up to you if you want to update the original yield. The initial idea for the initial yield is so that I know the yield of the first time I bought a position. I have a yield range for when I want to buy into a position (with valuation aside). I try to capture purchases at the higher end of that range.

    Cheers,
    Canadian
    Mar 2, 2015. 04:39 PM | 1 Like Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    NAK,

    "I think it's more accurate to recognize that rising earnings is what leads to capital gains, with or without a dividend." - We're on the same page here. I just focused about writing about the dividends and compounding in this article.

    "Eventually, without rising earnings, the music comes to a stop." - You remind me of my IBM holding. My hope for that particular case is that its investment in Big Data will eventually payoff. Anyhow, we shall see.

    Thanks,
    Canadian
    Mar 2, 2015. 03:48 PM | Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Lutherville, I mostly collect my dividends but have a few DRIPs on. First, I use one of the banks in Canada, and the system only allows synthetic DRIP. So, it only allows buying a full share, no partial shares. So, most of my holdings don't make that cut. Second, I like to buy things at a discount, so I accumulate dividends and buy what I think is at best value and fits my portfolio at the time enough funds is accumulated.
    Mar 2, 2015. 03:43 PM | 1 Like Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Uncledace, congratulations for starting early with DGI. I think you figured out a system that works for you. I do have a few trading stocks myself. I just need to be conscious about which holding is long-term and which is for trading.
    Mar 2, 2015. 03:40 PM | Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Gkom, thanks for read. Glad it helps.
    Mar 2, 2015. 03:38 PM | 2 Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Canidam, you're quick to pick up a suitable strategy for yourself. Good for you.

    I'm assuming when you say you buy a company at the 200 day avg price that it is at a low when you do that. It's hard to buy low and possibly sell high, but using that method for sure you won't buy at the high.

    I use Chuck Carnevale's F.A.S.T. Graphs as a part of the fundamental analysis process. I also read about the company in its corporate website. I also use simple technical analysis to help me decide a buy point, but fundamental analysis always trumps technical analysis. For example, even when technically, RSI is near 70, but if F.A.S.T. Graphs indicate undervaluation (using multiple timeframes), then, I will still buy some if I believe in the company. I mean, even if it's a great opportunity, the company's price could still go down after you buy it. That's the time to buy more. I find it's not a bad idea to average into a position. Classic dollar-cost averaging. :)
    Mar 2, 2015. 03:38 PM | 2 Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Hi Emir,

    I just recreated the spreadsheet using Google sheets. Here it is: http://bit.ly/1DLnqwd

    Cheers,
    Canadian
    Mar 2, 2015. 03:30 PM | Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Thanks Clr :)
    Mar 2, 2015. 03:18 PM | Likes Like |Link to Comment
  • Stay The Course: See Income Compounding Results In The Early Years Of A Dividend Growth Strategy [View article]
    Dale, tallying up the dividends is to help me stay the course and to notice the small but real compounding effect of a growing income. I didn't talk about earnings in this article, but I agree with all that you said. Thanks for bringing that essential element into the discussion.

    Canadian
    Mar 2, 2015. 03:15 PM | 4 Likes Like |Link to Comment
  • Dividend Champions For March 2015 [View article]
    David, thank you for your hard work and continuation in updating the list. I may not comment every time, but I click on everyone of your articles. :) Keep up the good work.
    Mar 1, 2015. 02:03 PM | 2 Likes Like |Link to Comment
  • Dividend Champions For March 2015 [View article]
    Agree with Rnsmth. CSCO looks undervalued here in your graph due to the extreme overvaluation during the .com bubble. Will be more accurate if looking at a FAST graph excluding the .com overvaluation.
    Mar 1, 2015. 01:59 PM | 1 Like Like |Link to Comment
  • Why Warren Buffett Sold Exxon Mobil And Bought Suncor Energy [View article]
    Hi Breege, I only DRIP on a few of my holdings, and I only DRIP if they are at least at fair value. I'm happy to hear HSE is working for you.

    I haven't heard of TAL or TEF before. I believe BX is a limited partnership. That's why you got withholding tax on its distributions even though the units were held in the RRSP. I've stayed with US C-corps and eREITs and haven't ventured into MLP-land.

    Thanks,
    Canadian
    Feb 24, 2015. 04:27 PM | Likes Like |Link to Comment
  • Why Warren Buffett Sold Exxon Mobil And Bought Suncor Energy [View article]
    Hi Breege, I learned about the withholding tax on foreign dividends the hard way too. That's why I keep a record of "Foreign Dividends with No Withholding Tax - Companies List" on my blog: http://bit.ly/1uO6RZJ

    Just because we can get their full dividends in the TFSA, doesn't mean we should buy all of them. But of course you know that. :) I just didn't want people to read this and jump on those companies. :p

    I thought Husky was a buy around $24. It is at fair value now. I did not buy Husky because I already am fully allocated to the Energy sector. Additionally, since HSE cut its dividend in 2009, it has frozen it since. That said, its dividend seems to be safe, and its 4%+ yield maybe attractive to some investors for current income.

    I have another article which you maybe interested in: "Reinvest Canadian Dividends at a Discount – Companies List": http://bit.ly/17TVYkh

    Hope this helps,
    Canadian
    Feb 24, 2015. 02:32 PM | Likes Like |Link to Comment
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