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Canadian Dividend Growth Investor

 
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  • Time In, Not Timing Dividend Growth Stocks [View article]
    At least, I'd like to applaud Eli for bringing some new perspective into the dividend growth investing discussion. I see many articles that are similar in content and theory (including the ones that I write). Just to be clear, I don't mind reading articles with similar content, because it would take multiple readings on the same concepts to really understand them. Refreshing the mind on the fundamental concepts are also welcome.
    Mar 16 11:42 PM | 7 Likes Like |Link to Comment
  • You Are Responsible For Your Investing Decisions [View article]
    DVK, thanks for writing this article which this vibrant comment stream spurred from.

    Some main points which are good reminders for me:
    - Create a plan, execute it, and refine it.
    - Learn from mistakes and don't make the same ones again.
    - Know what role each holding plays in a portfolio (i.e. for dividend growth, for current income, for short-term capital gain or longer term capital gain)...I write short notes to remind myself why I bought something. I have a document for each long-term holding of why I continue to hold it.

    In particular, to avoid buying with emotion, I determine buy ranges for companies on my watch list ahead of time. This is documented in my recent article, How To Better Use Capital To Get Higher Income And Higher Total Return. The link: http://seekingalpha.co...

    For long-term holdings, I do not set sell points. I just review them quarterly to see if they're excessively overvalued. For capital gain plays, especially short-term ones (6 - 9 months), I set the expected gains range (e.g. 20 - 30%). Once that is hit, I can sell to purchase something else. I use a small portion of my money for the short-term plays with intention to generate more cash for long-term purchases.

    Most of my friends do not buy stocks. A few have dabbled into mutual funds. They simply do not have the interest to learn. When I told them I bought stocks, usually the first reaction is "That's so risky!" I guess I thought buying stocks was ok because my parents bought some too. When I started, I had no idea what made the stock price move up or down, I didn't know about valuation or earnings growth, though I knew I like dividends. But it even took me awhile to learn about "yield" and the "dividend". I didn't understand why they needed to show the yield since back then I only cared about the amount in dividends that I'd receive lol

    Fast forward to today after having found SA in 2012, I learned so much from authors and commenters. I've even bought some books that were recommended by others on here:(not in any particular order)

    - Lowell Miller's The Single Best Investment (Dividend Growth Investing)
    - Benjamin Graham's The Intelligent Investor (Value Investing)
    - Peter Lynch's One Up on Wall Street
    - Lichtenfeld's Get Rich with Dividends
    - Jason Kelly's The Neatest Little Guide to Stock Market Investing
    - Philip Fisher's Common Stocks and Uncommon Profits

    All I can say is, I'm thankful I stumbled upon SA and took responsibility of investments (even though I made quite a number of mistakes along the way). It can only get better from here as I continually learn, track, and reflect what I'm doing.
    Jul 4 03:37 AM | 5 Likes Like |Link to Comment
  • Snowball Down A Hill: My Dividend Growth Portfolio 2013-2014 Report [View article]
    juano,

    Sorry, your comment is not meant for me, but here is what I've read. We have a similar tax-deferred account here in Canada, and we also have the equivalent of the Minimum Required Distributions for when one reaches 70.5 years old. I've read about that you could transfer shares out of the account and into a taxable account. So, you don't have to sell the shares. But of course, when you transfer the shares out, you have to pay the tax. Dividend income from those shares in the taxable account also requires paying tax on. I suspect in the US, you can do something similar.

    Hope this helps,
    Canadian
    Jan 24 07:08 PM | 5 Likes Like |Link to Comment
  • The Business Model Of The Dividend Growth Investor [View article]
    richjoy, this is very helpful. I need to bookmark this and study it. Thanks so much for sharing! I love this SA DG community!
    May 17 01:54 AM | 4 Likes Like |Link to Comment
  • Build A Secure Dividend-Growth Portfolio [View article]
    Ah, I see the problem now. I wrote that sentence very ambiguously. I meant to say "do we really care about the drop as long as our income stream from the dividend growth is increasing every year? I think not"

    Funny how Reim mentioned this same quote above and I didn't catch it. My bad! I will send in to the editors for a correction to what I really meant!

    Thank you for your feedback, Robert! I certainly do care about my dividend growth.
    Nov 29 09:48 PM | 4 Likes Like |Link to Comment
  • Characteristics Of A Solid Dividend Portfolio [View article]
    snoopy, that's a good point. It's good to keep in mind that high growth rates are not sustainable. Robert Allan Schwartz maintains a site which talks about that. For example,
    : Which companies have increased their dividends by at least X% per year over the most recent Y years?http://bit.ly/rCDtjJ

    This is a point I didn't touch upon in the article, but I do expect Target's dividend growth rate to slow down, but even if it goes down to 10%, it's still higher than inflation.
    Jun 17 02:49 AM | 3 Likes Like |Link to Comment
  • Retirement Strategy: Buying The Dips Worked Once Again [View article]
    djean, in the short-term (looking at it in days), it can be frustrating, but in the long-term, buying the dips in dividend-growing blue chips will be profitable. Just need to have the patience to hold on, and don't expect to be able to buy at the lowest prices of the dip ... that is a guessing game. What is sure is that you are building an increasing and relatively secure income in the long-term :)

    Regarded Solutions comment of "don't buy all at once" below is also a good strategy. In other words, dollar-cost average in.
    Feb 9 03:14 PM | 3 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
  • The Team Alpha Retirement Portfolio: The Only Retirement Strategies Guaranteed To Work [View article]
    Consumer Unit Characteristics graph really puts expenses into perspective. Maybe time for me to start tracking my expenses seriously. At least thus far I know to keep income > expenses. :p
    Jul 20 02:15 AM | 3 Likes Like |Link to Comment
  • The Business Model Of The Dividend Growth Investor [View article]
    Superb article! I particular liked the section on "pay days" as I didn't see it that way before... I just thought it took seemingly really long for a quarter to pass. Now, I see things in a new light. Ah, it's so bright :D
    May 16 03:02 AM | 3 Likes Like |Link to Comment
  • Correcting A Mistake: Add To Miner Or Buy Higher Quality Alternative? [View article]
    Bob J,

    Thank you for sharing your insight on the subject. I do follow and read your articles. :)

    I think my biggest mistake in this case was buying without limiting the downside. The second was not choosing the best company from the space.

    For someone with more knowledge in the Mining space, your reassurance on BHP Billiton is most welcome.

    Cheers,
    Canadian
    Apr 7 05:15 PM | 3 Likes Like |Link to Comment
  • The Essence Of Valuation Is Soundness, Not Rate Of Return [View article]
    Hey Chuck,

    Thanks for a good article and thorough examples. I picked up something new today.

    Canadian
    Feb 22 09:14 PM | 3 Likes Like |Link to Comment
  • Buy Microsoft On 20% Pullback: Dividend Grower With Moderate Growth [View article]
    I referenced Chuck Carnevale's article in the "Further Reading" section at the end of the article. He provides an explanation why MSFT have been going nowhere for years.
    Nov 24 01:47 AM | 3 Likes Like |Link to Comment
  • Buy Coca-Cola On 10% Pullback: A Stable And Reliable Company [View article]
    Hi tallguyz,

    Thanks for your comment. I agree I could appreciate a higher starting yield; however, I suppose that is the tradeoff for holding a stable and reliable company like KO.

    For the yield to start at 4% with the current dividends, it'd require the price to drop to $25.5. That's a 30%+ pullback from the current price! According to YCharts, for the past 10 years, there hasn't been a time when the yield reached 4%, closest was ~3.5% in 2008. Not saying it's impossible, but for the investor with extra patience, it'd be a rare opportunity to even grab KO at the yield of 3.5%.
    Nov 20 08:45 PM | 3 Likes Like |Link to Comment
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