Seeking Alpha

Dale Roberts

 
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  • How To Get The Most Out Of Dividend Growth [View article]
    Hey DD, VYM and VIG are real portfolios of course with real companies. I am directing most of my portfolio income into VYM.

    It's a fair comparison, and real, as investors have the option of creating their own portfolios (managing selections) or simply buying an index or ETF's. It's a simple and effective way to invest whether it be for total return or income generation.

    I hope readers will consider the broader investment styles and principles here and not think of it as a challenge. This is about peer review in the traditional sense. Certainly returns and performance and evaluation and strategies are what Seeking Alpha is all about.
    Mar 11, 2014. 09:57 AM | 3 Likes Like |Link to Comment
  • How To Get The Most Out Of Dividend Growth [View article]
    Hey DD, yes 'research' may be tricky to evaluate. Also, just because the potential gains are to be had doesn't mean an investor can simply go and grab them. One has to execute and then there is the emotional factor that you mention.

    I think Dividend Growth can also be "a useful distraction" and I don't write that in a facetious manner. Slightly lower volatility and a concentration on income not share price can be useful, to help an investor stay the course.

    We'll see if that holds true when there is a market correction.

    I will search for that original study and see if the parameters are defined.
    Mar 11, 2014. 09:35 AM | 2 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    I agree with Warren from your article.

    "If they do, dividends to Berkshire will increase and, even more important, our unrealized capital gains will, too. (For the four, unrealized gains already totaled $39 billion at year end.)"

    He puts the more importance on the capital gains in this case. That is the question for dividend growth investors. Of course in the accumulation phase all that matters is total return. Will more emphasis on value win out over managing the income over the longer term for greater total return?

    I don't know the answer, but I have added to the discussion with this article that compares the returns of Vanguard's VYM, VIG to Chowder and the Chowder Rule.

    How to get the most out of dividend growth.

    http://seekingalpha.co...

    Mar 11, 2014. 09:20 AM | Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    Also, I have followed up this article with an article that details the returns of VYM, VIG and Chowder from his start date.

    http://seekingalpha.co...

    We can see the result of income growth, yield and price appreciation.

    Interesting stuff, I hope. lol
    Mar 11, 2014. 08:50 AM | Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    Hey JUDS thanks for that, glad to see that you are on that total return track. I am a big fan of the small caps for those who have the time horizon and risk tolerance level. The history of small caps certainly supports their ability to perform over longer periods.

    Yes, the big steady large caps certainly appear to be fully valued and then some. Finding value gets more challenging as the uptrend continues.
    Mar 11, 2014. 08:46 AM | Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    Hey Chowder thanks for the reply and commentary. I think you nailed it with "My Mission Statement is to earn an income stream that is reliable, predictable and increasing. Total dividend return is the priority".

    Your priority and mission is income growth over time.

    We both don't know the answer of what will deliver more on total return. And I would certainly acknowledge that the magic of compounding will take time vs more instantaneous value that can be recognized and rewarded quickly by the market.

    My guess is that forward looking value (more share price appreciation) might still win the day on total return for investors - over managing the income. I could be wrong, I don't know the answer. I am simply suggesting that investors focus on total return and not income, and not close doors based on yield or dividend growth history.

    In the end though, neither side can be "wrong". And the lanes and strategies will certainly overlap.

    All the best, Dale
    Mar 11, 2014. 08:42 AM | Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    And of course I often share the results and strategy of our self directed portfolios and certainly acknowledge and 'mistakes' or the act of leaving money on the table.

    My objective is now beta in those accounts after a few periods of achieving that Alpha by taking on lots of risk. I am now 51. Here's my article The Cost of Playing Defense.

    http://seekingalpha.co...

    I am happy to share and certainly would invite others to point out my mistakes and offer advice on different (better) strategies.

    My new monies invested are a total return strategy, thanks to an employer-matched retirement funding account (to Balanced Portfolio) combined with the dollar cost averaging to a Tax Free Streetwise Balanced Portfolio from a savings account. Those were my best performers last year, not surprising.

    That's another lesson for me.
    Mar 7, 2014. 08:56 AM | 1 Like Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    Hey Chowder thanks for your reply, I appreciate you stopping by. From the article I certainly addressed that you are meeting your goals and objectives, I think it took a paragraph or so to acknowledge that. I made that clear, as you deserve that nod.

    The premise of the article is for readers and followers who consider or adopt your methods and that of other DG writers on SA. All readers or investors should consider how to get the most out of Dividend Growth, if they understand that it is about total return in the accumulation phase.

    This article outlines the opportunities available to maximize the greatest potential gift of dividend growth investing, and that is total return that might be able to beat the market (Achieving Alpha).

    Your strategy I think you'd admit is very focused and (as I think you'd admit) closes many avenues as outlined in the article. Once again, that meets your client's needs. You're not looking to match the market returns or the returns of a passive dividend growth ETF. And you are not concerned if you underperform those benchmarks.

    I am suggesting that readers consider methods that might outperform the market.

    And of course the comparisons are not make believe portfolios, the S&P 500 has been around for a long time and the Vanguard Dividend ETFs from 2006. They are real investments holding real companies. And of course it is certainly fair to compare performance of public portfolios to the market and comparable sector ETF. That's what we are all here for, or learn and to share and sometimes to compare.

    I hope you take no offense, as these articles may help some investors get curious and find strategies that lead to greater gains. That's my mission in my working life, and in my online writing adventures that will likely expand in the near future.

    Again, appreciate your comments and you stopping by.
    Mar 7, 2014. 08:39 AM | 4 Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    It shows payout ratios as being a very good determinant.

    Also from the article ... "The correlation between returns and the 5 yr DGR is even weaker than the correlation with the 3 yr DGR".

    Also he eliminates any company from the study once it is removed from the CCC list. That's a stopper right there as we now have selective survivor bias. But...

    I think the examination shows that over a ten year period companies that increased their dividend at a greater pace (looking back) increased in share price or total return more than companies that were growing their dividends at a lesser pace. That makes sense. The companies increasing their dividends likely have the earnings and low to modest payout ratios to support dividend growth.

    Again, looking at those long term trends from my article to help investors find the companies with the future growth and total return.
    Mar 6, 2014. 10:01 PM | Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    Thanks. Certainly looking at all of that for follow up.
    Mar 6, 2014. 03:45 PM | Likes Like |Link to Comment
  • Do Not Become A Victim Of Fear In Your Dividend Investing [View article]
    Don't worry if you are long term. Bonds in this case are for risk management. If you can handle the dips and crashes then merely get greedy when others are fearful as Uncle Warren likes to say.
    Mar 6, 2014. 07:37 AM | 5 Likes Like |Link to Comment
  • A Hot Trend Warren Buffett Guarantees Will Continue [View article]
    Thanks Lou. Given that Warren uses an incredible amount of cheap leverage (many cite 60%), how is it that he could not blow the doors off the market in the last 5-years? Any borrowing and reinvesting in a rising market (especially from 3-5 years ago), should have lead to an easy and very dramatic market outperform.

    Wondering if anyone knows what happened to the leverage. Of did he still leverage and hence under perform the market by an every greater degree than suggested?
    Mar 6, 2014. 07:13 AM | 1 Like Like |Link to Comment
  • Do Not Become A Victim Of Fear In Your Dividend Investing [View article]
    And yes, this would be a good time for investors to take a 'risk check'. Many are likely taking on too much risk according to history. We saw many Seeking Alpha investors very nervous over the little blips in 2010 and 2011 and recently.

    If one needs to manage portfolio volatility bonds offer that price protection historically. And for the ultimate market correction hedge, there's long term treasuries. Check out the inverse correlation between the market and TLT in this article.

    http://seekingalpha.co...
    Mar 6, 2014. 07:06 AM | 2 Likes Like |Link to Comment
  • Do Not Become A Victim Of Fear In Your Dividend Investing [View article]
    Hi borrowed, I hope you are buying the index or income ETFs? That is if you state you knowledge is limited.

    There's no need to guess out there. lol
    Mar 6, 2014. 06:58 AM | 4 Likes Like |Link to Comment
  • Dividend Growth: Managing Income, Reducing Total Return [View article]
    thanks for that, can you outline that Vanguard approach and holdings? Is that a fund of funds or your own composition.

    Thanks, Dale
    Mar 6, 2014. 06:42 AM | Likes Like |Link to Comment
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