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  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    Some of my reinvested dividends purchase shares at below market lows on some days. Additionally, I get 5% discounts on reinvested shares with some companies.
    Jan 26, 2015. 10:05 PM | 2 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    I've been pounding the table for several years now on the advantage of owning utilities and how some of the high quality ones have outperformed BRK.

    Take a look at a 20 year F.A.S.T. Graph on ED with dividends reinvested. Annualized return, ED - 10.5%, S&P 500 - 7.6%.

    I've held D for many years, it's one of my favorite utility companies and is the single most important factor in what made me decide to go all in on dividend growth investing.

    Over a 20 year period, annualized return with dividends reinvested, D - 12.9%. S&P 500 - 7.6%.

    I started a company sponsored DRIP with D back in early 80's I think it was and ignored it for years. It was in 2008 when I took a real good look at it and it was then that the light bulb went on for me. That light was flashing about dividend growth and utilities.
    Jan 26, 2015. 09:54 PM | 1 Like Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    TD Ameritrade too.
    Jan 26, 2015. 09:35 PM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    In a comment above, varan had this to say ...

    >>> Just buying the top 10 dividend champions on the basis of five year dividend growth rate every year would have yielded much better total return than any of the DG portfolios that are endlessly talked about here. <<<

    I think I should take that comment a step further to help put things in proper perspective.

    This article was about the progress of Project $3 Million. When I sat down 5 years ago and came up with a game plan, I didn't ask what is the best way to achieve total return. I didn't ask what is the best way to achieve maximum income. I didn't ask what is the best way to achieve high growth.

    The first thing I did ask was, how much do you need, when do you need it, and how sure are you of it being there?

    We came up with a monthly income figure of $10K per month. We knew the money had to be there 40 years from the date the objectives were stated.

    We determined that if a portfolio could have a yield of 4%, we would need $3 million in portfolio value to generate $10K per month in income.

    At the time, the portfolio value was $42,205. Working backwards, we learned that the portfolio would need to generate a compounded annual growth rate of 8.25% to achieve the objective.

    Are you kidding me? Just 8.25%? I was delighted! It meant I could be conservative and still achieve the objective. It meant I didn't have to take unnecessary risks to juice return, to juice the income flow, or to chase low quality companies with high potential reward. It meant I didn't have to determine the "best" way to achieve the goal, only the safest. Now think about that concept!

    Will what I am currently doing work? Yes or no? I believe the answer to be yes, and thus it doesn't matter to me that something else might be better.

    The third question was, how sure are you of it being there? I'm sure that by sticking with what I am doing, it will be there. I'm not so sure using other strategies. Conservative and safe will get me there!

    Now if others want higher return, then they will have to select companies that support those higher expectations. If current yield is important, then CEF's, mREIT's and BDC's may be a necessity for you. They aren't a necessity for me so I can ignore them.

    If capital appreciation is a main concern of yours, then investing in T or GIS, or some other low growth Blue Chip may not be for you either. If I wanted to focus on cap appreciation, I'd be using the Investors Business Daily Top 100 list to screen from, not David Fish's CCC list.

    So one needs to determine what it is they want and then put things in proper perspective.

    In the case of Project $3 Million, it doesn't have to beat the market to obtain the final objective. It only has to match it, and if I match it with individual equities, as opposed to owning the index, I can generate twice the income due to the higher yield. It's that simple!

    And that my friends is why I don't wander off the reservation with my plan. It isn't necessary.
    Jan 26, 2015. 08:48 PM | 5 Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    CBRL has shown double digit earnings growth for over a decade, and companies with earnings growth like that, usually sell at a premium.

    I certainly wouldn't expect the type of dividend growth it's shown the last 10 years now that the payout ratio is around 58%.

    If I had to sell shares for some reason today from Project $3 Million, I would look at trimming LMT first. The position is up 123% and the weighting is very high compared to other holdings. It is more than a double position right now. I could sell half and it would still be a full position.

    I might then look at a cyclical that has enjoyed success and is late into its business cycle. Share prices of cyclical's are usually volatile and are what most would consider buy low, sell high candidates. Thus, at some time in the future, another entry point will present itself if one wanted back in.
    Jan 26, 2015. 08:04 PM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Miguel, I was going to sell CDK as well when I saw it up $17 on the day. That's how I found out the tape was wrong.

    CDK is up 53.4% since the spin-off a few months ago. I'm going to keep it for now. PSX took off like this too when it was spun off from COP.

    I'm still holding HYH which was spun off by KMB a few months ago, and it's up 41.1% so far.
    Jan 26, 2015. 07:36 PM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Miguel, if I wanted emerging market exposure, or small cap exposure, I wouldn't hesitate to use an ETF.
    Jan 26, 2015. 07:32 PM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    >>> Not going for sports. <<<

    Yeah, the Missus asked if that's all I was lining up the London trip for. Of course not, I told her, I'm going for the pubs too.
    Jan 26, 2015. 07:27 PM | 1 Like Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Cash Cow. We'll be going to London the week of Sept 13 and if the Gunners are playing, will need 3 tickets. That would great if it works out.
    Jan 26, 2015. 07:25 PM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    BoomBoom, there are lots of viable strategies using hindsight analysis. How long did it take him to find this one? A couple of years?

    Give me something forward looking.

    He can't and won't do it.
    Jan 26, 2015. 02:12 PM | 3 Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    conk, I don't mind criticism as long as it's constructive criticism.

    When I gave performance reviews, we were taught to always end those meetings on a high note. Show or explain what those people, who's performance you just criticized, need to put their attention on. We had to provide them suggestions going forward to improve their performance. We had to provide them something to measure their progress against.

    Those who criticize without forward looking suggestions might be considered whiners or wankers by some.

    I think we all know what has worked or didn't work over the last 5 years. It doesn't take an ounce of intellect to figure that out. It's the forward looking analysis where the real value might be, and most critics won't provide it. They don't want to expose the chinks in their armor.

    I'm not always right, I make my share of mistakes, but I do announce every buy and sell in Project $3 Million before the transaction is made. It not only creates credibility, it provides a learning experience going forward as others can track it for themselves.

    Try getting the critics to follow that example! It'll never happen. ... Ha!
    Jan 26, 2015. 12:22 PM | 5 Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Investing in tiddly winks might have done better in the last 5 years too. You are always referring to the last 5 years. You won't include the Great Recession or the Lost Decade, times where the dividend growth investing strategy excelled compared to anything else you suggested.

    Where we might be restricted by goals and methods, you are restricted by your very narrow time frame. Everything is relative.

    Are you suggesting you have no goals, no objectives?

    It would be nice to get some forward looking suggestions from you as opposed to your constant, you could have done better 5 years ago after the fact routine. Care to share we we should invest for the next 5 years? That might have value!
    Jan 26, 2015. 11:31 AM | 9 Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    I noticed something odd following the CNBC tape today. I noticed CDK going across the screen as being up $17 and change. I noticed the other day it was up $15 and change.

    For some reason, the CNBC tape is showing the accumulative rise in price since the ADP spin-off several months ago. CDK is up $17 and change, or 53.07% since they started trading as a separate company. It is only up $1.42 for the day, not $17 and change.

    I wonder why they show it like that.
    Jan 26, 2015. 11:01 AM | 1 Like Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    troll, Percy and I don't want to work too hard. Sports, beer and fellowship with pub friends keep us kind of busy. ... Ha!
    Jan 26, 2015. 10:58 AM | 1 Like Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    I love the research put out by Jefferson Research. They give ratings to Earnings Quality, Cash Flow Quality, Operating Efficiency Quality and Balance Sheet Quality and compare it to other companies in the industry. I find it to be a very useful tool.

    Fidelity offers this research free of charge.
    Jan 26, 2015. 10:26 AM | 1 Like Like |Link to Comment
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