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Dale Roberts

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  • Can You Get It Done With 3 Funds? [View article]
    Absolutely. That's a great mix. One can adjust the volatility level with the bond to equity allocation. Over the longer term that mix will deliver.

    You will beat many experts with that portfolio if you stay the course, and it sounds like you are doing just that.
    Jul 9, 2013. 09:59 AM | 2 Likes Like |Link to Comment
  • Transitioned To A Dividend-Growth Portfolio [View article]
    Hi Faye. IMO your portfolio could use some more diversification across sectors, and some international diversification as well beyond North America.

    It’s not as much “fun” but an investor slanted toward dividend growth can certainly cover the Canadian markets with ETFs.
    This article details the ETF holdings.

    Of course Canada is largely financials and energy and that is hard to avoid. And certainly that is why Canada as an investment is not very well diversified. One could say it’s largely a sector play.

    Canada for dividend growth investors can be covered with two ETFs XEI and VDY. XEI has recently had a yield of near 5% and an estimated dividend growth rate of 8%. VDY is “new” and it will take a while for its true yield to surface. If you look at the holdings of VDY is appears that the yield will settle at 4% or more and the dividend growth history is generous.

    From there a Canadian investor could add VYM and for U.S. coverage. Here are some of the top holdings: Exxon Mobil (XOM), Microsoft (MSFT), General Electric (GE), Chevron (CVX), AT&T (T), Procter & Gamble (PG), Johnson & Johnson (JNJ), Wal-Mart (WMT), Pfizer (PFE), Coca-Cola (KO), Philip Morris (PM), Merck (MRK), Verizon Communications (VZ), PepsiCo (PEP), Intel (INTC), Abbott Laboratories (ABT), Home Depot (HD), McDonald's (MCD), United Technologies (UTX), ConocoPhillips (COP), 3M (MMM), Altria Group (MO), Eli Lilly (LLY) Colgate-Palmolive (CL), Emerson Electric (EMR), Illinois Tool Works (ITW).

    From there I would suggest adding 10-20% of international coverage with EAFE – Vanguard offers VEF. The trailing yield is 2.3%. That ETF is certainly not for dividend growth but for overall capital appreciation and the portfolio (price) protection that comes from true international diversification. U.S. investors who had a home bias left some on the table during certain periods over the last decade.

    To get a little yield hungry, you may even want to sprinkle in 10% or more of ishares multi asset class ETF XTR – it has yielded above 6% recently.

    My suggestion for an aggressive Canadian “Dividend Growth” Investor would be in the area of …

    30% – VYM
    20% - VEF
    20% - XEI
    20% - VDY
    10% - XTR

    You of course would have the option of sprinkling in some of the funds to your existing holdings to increase diversification.

    Those who want to potentially lessen volatility should certainly include a broad based bond fund or a shorter dated bond fund.
    Jul 9, 2013. 09:32 AM | 1 Like Like |Link to Comment
  • Pondering Simplicity In Asset Allocation [View article]
    In this article, our asset mix (that outrperforms the market) is applied for US investors.
    Jul 8, 2013. 09:24 AM | Likes Like |Link to Comment
  • Pondering Simplicity In Asset Allocation [View article]
    It's true, an investor doesn't really need to complicate things. Keeping things simple can also lead to more discipline in the rebalancing process.

    Our simple index portfolios are consisted of canadian, us and interational equities and canadian bonds. Very similar to the above portfolio suggestion for US investors. And they are rebalanced quarterly. That way the discipline in enforced.

    It would be a great option on the US front. But I don't think anyone offers that - a mutli asset index portfolio with rebalancing.
    Jul 8, 2013. 09:22 AM | Likes Like |Link to Comment
  • Dividend Growth Investor - Call 911 [View article]
    Thank you for that. Sorry for the late reply. Been in the States for my son's ball tourney.
    Jul 8, 2013. 08:51 AM | Likes Like |Link to Comment
  • Wal-Mart: What A 'Double' Investment Looks Like [View article]
    On this one, Warren's "other" advice rings true - most investors should simply buy the index in the most cost effective manner possible. lol
    Jun 25, 2013. 08:57 AM | Likes Like |Link to Comment
  • Wal-Mart: What A 'Double' Investment Looks Like [View article]
    Nice look at Walmart. Thanks.

    Over 10 years this is a market laggard of course. The Dow (of which Walmart is a component) beat Walmart by some 75%. Walmart total return 79%, DIA 132%.

    Walmart looks solid for sure, but may still lag the index over the next 10.
    Jun 25, 2013. 08:55 AM | Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    If you're up for skimming a few from XEI here's an article that breaks down the top holdings.

    One could add a nice little basket with a few picks from that list.
    Jun 25, 2013. 07:58 AM | Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    XEI is now yielding about 5.2% according to TD Waterhouse. Yikes. That's a no brainer. There's very generous dividend growth there as well.

    I don't think that's available to U.S. investors over the counter?
    Jun 25, 2013. 06:07 AM | Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    Thanks Bob, best not to think, I think. The more solid reasons to not buy, the more reasons TO buy?

    Then again, that would not have worked for investing in Japan. ha.

    I'll admit to being on the edge on this one. Roll that BRIC into my EAFE and stay developed? Tough call on the risk reward spectrum.
    Jun 25, 2013. 05:55 AM | Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    And speaking of growth - my BRIC ETF now yields over 4%. Everyone's running the other way - I know what I'm supposed to do here.
    Jun 24, 2013. 10:25 AM | Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    I like using my ugly income to purchase some of the 'goods'. Hopefully there's a beautification process that is occurring. ha
    Jun 24, 2013. 10:23 AM | 2 Likes Like |Link to Comment
  • The Good, The Bad And The Ugly: Long-Term Results [View article]
    Yes, and there may be more long-term value in Canada now. BCE is another great Canadian company that profits from the oligopoly situation - like the Canadian banks.

    Happy to add to my Canadian div ETF (XEI) that yields about 5% with a 9%'ish dividend growth rate history.

    And my yield pig ETF (XTR) that pays 6% - but it's in the ugly category - lol
    Jun 24, 2013. 10:20 AM | 1 Like Like |Link to Comment
  • Temptations That Dividend Investors Need To Resist [View article]
    Yes, happy to add to a couple of Canadian dividend and income rich ETFs today. one offering a 5% yield plus nice dividend growth. And a 6% plus yielding multi asset class ETF. Thought those purchases were made with regular dividend and bond income from within the portfolio.

    Even though the Canadian markets appear to offer more value than U.S. markets I will wait for real value (fire sale) to get aggressive with cash, or rotate some funds out of bond funds.

    Thought bonds are getting hurt as well. Hopefully some negative correlation will return soon. If not, C'est la vie.
    Jun 20, 2013. 05:01 PM | Likes Like |Link to Comment
  • Hold Off On VIG For Now: A Better Opportunity Will Come Along [View article]
    And VIG does deliver some very solid dividend growth - as do the top ten holdings. From my article on VIG dividend history...

    The Compound Annual Rate of Growth for the dividends within SCVIG from mid 2006 to end of 2011 is estimated to be approximately 11.4%.

    Checking in with the Dividend Growth history of the Total VIG holdings we find that VIG increased its quarterly payment from an area of .18 (average of five first dividend distributions) to .32. An increase over that 6½ year period of 80%. That will give us a Dividend CAGR (Compound Annual Growth Rate) of 9.7%.

    I wrote that article in October of 2012. VIG then went on to deliver a payment of almost .50. That's some very impressive dividend growth. One should not sweat one payment from an ETF. Look at your numbers above and you will see that the March payments are consistently lower.

    Even from your above numbers, if we average the first two payments we get an average of 28.5. If we average the last two payment we have 39.3.

    That's a dividend compound annual growth rate of over 11%.

    What's not to like about 11% growth?

    Certainly VIG is offering lower yield, but perhaps it will continue to deliver on dividend growth and moving forward will be a hit on total return?
    Jun 20, 2013. 08:02 AM | 3 Likes Like |Link to Comment