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  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    u01bsb0,

    The most important thing is to get started. Don't worry you have little money now - in time you will have more to invest. The knowledge you are accumulating will pay dividends for years to come.

    Good luck my friend!
    Jul 2 08:10 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    Actually the articles that appear on Seeking Alpha are republished from my personal site. The table didn't post, so here is the link to it:

    http://bit.ly/15F0YBt

    I think someone in their mid to late 20s can afford to put $3K/month in stocks. For most in their 30s, they should be able to do it. Of course, everyone is different, and just because it is easy for me to do it, doesn't mean I am the benchmark. However, if you never set high goals for yourself, you have a very low chance of achieving them
    Jul 2 07:59 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    Richjoy,

    I appreciate your comment. However, I am not sure what exactly you are disagreeing with.

    This article is written for someone who

    1) Has money to invest, and has a basic knowledge of Personal Finance with knowledge of credit cards, student loans, mortgages etc.
    &
    2) Has the time/inclination to learn how to invest in stocks, and hopefully dividend stocks.

    If Johnny doesn't have money, he won't invest. If Johnny has money, but no time, he is better off in index funds. However, my audience is the DIY type investor, who manages their own money and has basic PF knowledge.

    Also, when do you think is the best time for Johnny to learn about investing? Wouldn't it be a lifetime goal to keep learning? Wouldn't it be nice for Johnny to start learning when he is 24? Or do you think Johnny should start learning at age of 62 -65? Even if Johnny used index funds, he can still lose money if he doesn't know what he is doing.

    I know this is not factual evidence from a study, but in my experience dealing with investors since 2008, many are switching to DGI or dividend investing after accumulating a certain amount in traditional 401k plans or cashing in pension lump sums. Many of these people are going straight for the highest yielders, and make silly mistakes. Anytime I discuss investing with someone in their 50s and 60s, I do not get through - they are already set in their ways and keep going without learning. I have a gentleman that is fully invested in high dividend stocks, who has no idea what total return means, and appears totally unprepared to manage his money (at least to a layperson like me).

    As far as a young person doing dividend stocks, I bought my first dividend stock at 23, and have never looked back. Before that, I had researched investing strategies for the previous 10 years, but didn't really have much in real money to invest till I was 22. My strategy has been predominantly dividend growth stocks since then ( plus some CD's). So I believe that if someone like me can do what I have described being done, then everyone should be able to do it.

    Learning about investing is very important, and is a lifelong journey. There are so many options out there to invest ones money - Johnny should pick the one that suits him best.
    Jul 2 07:56 PM | 3 Likes Like |Link to Comment
  • How To Crush The Market With Dividend Growth Investing [View article]
    jimandsandymas,

    I feel awful. Absolutely terrible..

    That's because I won't have much cash to invest until August. I never talk about the personal finance aspect of it, but paying estimated taxes in June, plus spending $$ on your vacation trips make it difficult to save in June & July & sometimes even August. But then come October, I would have more cash coming in that I know what to do with it (relatively speaking).

    I just hope stock prices go down from here.

    By the way, Charlie Munger says that if you are not willing to sit through a 50% correction, you should not be investing in stocks. I agree 100% with that.
    Jun 21 11:41 AM | 4 Likes Like |Link to Comment
  • General Mills Dividend Stock Analysis [View article]
    I am looking at GIS too. A pullback would be nice..
    Jun 17 12:58 PM | 1 Like Like |Link to Comment
  • General Mills Dividend Stock Analysis [View article]
    Instead of hitting the % sign, I put a 5 instead. Good catch - it is 54%
    Jun 17 12:57 PM | Likes Like |Link to Comment
  • Boost Your Portfolio With Wells Fargo [View article]
    Aren't you worried about the flat revenues and the fact that EPS increase since 2009 was only as a result of the reduction for provision for loan losses? Check my analysis below:

    http://bit.ly/10CAZYD
    Jun 12 06:34 PM | 2 Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    The reason why I didn’t answer right away is because I do not believe you can learn much simply by me stating my total return performance year to date. A 5 month period is not a good measure of performance– if you think I suck as an investor because I am down vs S&P 500 – then that’s fine with me, but you probably have a lot to learn. I asked the questions to gauge Cross and why he is asking this question, because asking someone for performance is not something you hear every day. It indicated to me that he is better off spending his time learning more about why I do something vs what the outcome is. Based on his comment, he looked like a complete novice investor to me – and you need to shake those if you want to teach them anything. If that makes me argumentative, then so be it.

    I also provided my original response, because the way I read the comment, it looked as if the person just read the title, and then had a comment, which was unrelated to the article. I seem to get those comments more frequently as of lately, which is very irritating. For example, I received a comment on my analysis of Vodafone from someone, who hadn’t read the article but made a comment about something that was already addressed in the article. Now I know Cross is probably not what I thought he/she is. His follow up seems good, although I disagree that he should have compared me to Bernie Madoff. I prefer to be compared to Warren Buffett. In terms of popularity of articles, you should look at pageviews, not comments.

    I honestly do not see what value tracking my performance monthly/daily or even annually provides, because this is noise in long-term data set, that doesn’t provide much in actionable insight. Will I stop using DGI because I underperformed YTD – not at all. I actually outperformed market this year till early May, when a few of my stocks started going down.

    DGI stocks perform their best when market is down or flat, and not as well in an up market. Now if 10 years down the road, I underperform S&P 500 by more than 1%/year, I might have room for concern. So I would say, give me 4 - 5 more years, before I can say with some level of certainty in my results to say whether the past 5.5 yrs I have been plain lucky . Of course, the caveat is that past performance is no guarantee for future results.

    However, how do you translate the concept of total returns into an income stream in retirement? I turned to dividend investing, which works great. I select a company with rising EPS, rising DPS, at what I think are attractive valuations, and then hold on to it for as long as possible. I diversify, reinvest dividends selectively , monitor regularly and am fine selling if something goes wrong. I like the fact that dividends as part of total returns are always positive, and yet you also have a shot of generating capital gains and meet or beat the market averages. I like having my cheesecake and eating it too.

    I think it is better to learn what my objectives are, what stocks I look for, holding period etc. My goal is to generate rising dividends. Using my process of not really paying much attention to performance vs market I have crushed it over the past 5 years, although this could likely not be the case going forward. Well-diversified portfolios of 30 stocks will very likely match returns of Dow, S&P 500 etc over time, which is what I would probably achieve. As a result, I would think I would do better in flat, slightly higher or declining markets, but do worse during rising markets. Of course, if you under perform by more than 1%/year for a period of say 5 - 10 years, you would likely be better off in index funds. After all, DGI takes more effort than indexing.

    So, hope I explained my reluctance for providing my returns. I am not trying to be a smart-a$$, just sharing the answers to what I thought the right questions should have been.
    Jun 4 09:39 PM | Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    Hi, as promised I below are my total returns since starting http://bit.ly/14xxhn8 to document my journey in dividend investing in 2008

    DGI TR S&P 500 TR
    2008 -11.76% -36.80%
    2009 23.35% 26.36%
    2010 18.75% 15.05%
    2011 14.32% 1.90%
    2012 12.99% 15.99%
    2013 14.13% 15.36%
    Jun 4 09:09 PM | Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    No, I do know my performance. I already told you that I know the number. But you refuse to listen. But I know that simply telling you a number is not going to add any value to you, but raise more questions. I also know that performance for 5 months is not indicative of anything. Do you even know what the purpose of dividend investing is?

    The problem is, that as a dividend author, I do not want someone who simply reads the headline, and then comments.

    I told you, answer my questions, and I will share my performance with you. I am not a mutual fund, but I keep track of it. Why don't you answer?

    It is so simple, a caveman can do it -

    Step 1: Answer the following questions below:

    Did you even read the article - your question shows you haven't?

    As an investor, what are you going to learn from me telling you I gained say 20% in a given time period, versus learning about a process of dividend investing?

    Do you think you will learn everything there is to my investing strategy by reading just one article?

    Do you think I would have gained over 13 thousand readers on this site since 2008, and 7000 on my personal site if I was peddling crap to the public?

    Step 2: I will provide my performance numbers YTD, which I have.

    The only reason I am not telling you the number, is not because I am hiding anything, but because it is evident that you have not read my article but you are commenting on the title, rather than content, and it is not evident why you need the number.

    I hope that is clear.
    Jun 4 07:31 AM | 4 Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    No, I understood your question the first time, but find that it is not at all relevant to the article. Did you even read the article - your question shows you haven't?

    As an investor, what are you going to learn from me telling you I gained say 20% in a given time period, versus learning about a process of dividend investing?

    Do you think you will learn everything there is to my investing strategy by reading just one article?

    Do you think I would have gained over 13 thousand readers on this site since 2008, and 7000 on my personal site if I was peddling crap to the public?

    If you answer those questions, I have the numbers right in front of me
    Jun 3 10:57 PM | 5 Likes Like |Link to Comment
  • Are Dividend Investors Concentrating Too Much On Consumer Staples? [View article]
    To clarify earlier comment, my primary focus is to select companies with rising DPS, that have rising EPS and bright prospects ahead, while purchasing them at an attractive price. It is funny how looking at quality companies with bright prospects, and rising EPS and DPS has lead to my outperforming the S&P 500 over the past five and a half years.

    I try to avoid permanent losses in capital, that a few bad apples can produce, which is why I keep myself diversified. The rising dividend income is what will pay for my expenses in retirement, or whatever financial independence is called these days.

    In fact, I would lose much more sleep if I fail to generate a sufficient stream of dividend income from my portfolio that keeps up with inflation, than if I underperform the S&P 500 over the next decade by 0.50%/annum
    Jun 3 09:46 PM | 2 Likes Like |Link to Comment
  • Are Dividend Investors Concentrating Too Much On Consumer Staples? [View article]
    Hi Bruce,

    Before I answer you points I want to make a clarification that many readers might overlook - I write at my personal website http://bit.ly/14xxhn8, and have chosen to have my content republished at SA and a few other sites. Actually, I have written over 1000 articles since 2008. Check my archive here if you do not believe me:

    http://bit.ly/17k5bAt

    By the way, the archives include the answers to many if not all of your questions. To your other comment below, I do not need to publish my performance every month, quarter, year, because i am not managing OPM. When I do however, I would make sure to submit my complete audited financial and investment record in the brochure.

    I have spoken about benchmarks before, and it is S&P 500. I benchmark returns and dividend income growth as well.

    http://bit.ly/18Kdkfo

    My goal is to at least match S&P 500 return over long periods of time. Since 2008 I have done much better than S&P 500. I was lucky, as I had a lot of cash in 2007- 2008, and many of my CD's matured in around 2009. I did not have the money to invest prior to 2007. Then I was lucky to buy the great dividend stocks at depressed valuations, and was lucky that this was a situation where everyone has been hungry for yield. I was also lucky that I had good health, decent employment to provide me money to put in the market and good family. I was also lucky because I ignore people that forecasted depression, hyperinflation, and other gloom. I like to do my own thinking/analysis, which is seldom understood/appreciated by others. This is my alpha.

    I do care about total return. DGI stocks are the most misunderstood investment vehicle out there - now that is alpha. A company that trades at 100, earns $6-7/share and pays $3 in dividends, which can grow EPS at say 10%/year, will double earnings in 7 years. This company would likely double DPS and maybe even stock prices. That way in 7 years, this stock will probably still yield 3%, and have a similar P/E as before, but the stock price will likely be around 200 (all of this is within a range of course). Reality is that nothing is linear. However, I would much rather own a stock that pays 3% dividend and returns the other 7% through capital gains, than have a stock that will return 10% in capital gains only. If you live off your investments, it is much easier to rely on that 3% dividend in a bear market, than the 10% in cap gains ( which is average and could vary from plus to minus greatly)

    I did not care about taxes for the first five years. I did this until my dividend income reached a certain threshold of covering half my expenses. Now that my income has risen, I am trying to minimize current tax liabilities. I am trying to max out 401K and IRA's today, because I am saving 30%+ on every dollar I put in those vehicles. I don't care that I will pay ordinary tax rates when I turn 70.5 yrs. I would have received my tax deduction TODAY, and then I would have several decades of tax-free compounding.

    However it is wrong to believe that in situations where you compare investing in dividend stocks vs non dividend stocks at equal total returns, dividend stocks are inferior because of taxes. A non-dividend investor is not simply going to buy a stock, and hold on to it for 30 years, while the stock appreciates at 10%/annum like clockwork. Chances are that this investor will buy a stock, and then sell it or a portion of it later. However, I would much rather have a lot of taxable income that gets taxed at 30%, than have no taxable income at all. I would much rather be a highly paid lawyer making $200K and paying a ton in taxes, than be a cashier at a grocery store and pay almost no taxes.

    I talk about my investment philosophy in each of the 1000 articles I have written. Investing is not just a few rules you can program into a computer. There are nuances, and as you get more experience, your strategy evolves. I have written 1000 articles, and I have about 100 - 150 articles in various stages of completion that I will publish sometime over the next 2 years. Some are finished, while others are just ideas and outlines of what I will talk about. The more I learn abt investing, the more ideas I get.

    The one thing that shows me whether an investor is successful or not, is the willingness to do a lot of digging, reading, researching on their own. If they want to get all of their answers fed to them, without much effort, they would likely not be successful in the investing game. This is important, because you have to select a method that works for you - I have a friend who buys tech stocks, and he has done really well. He would never listen about dividend stocks, and I would never be comfortable owning his tech stocks. But yet, we both made very good money investing in what works for each one of us.
    Jun 3 09:19 PM | Likes Like |Link to Comment
  • Are Dividend Investors Concentrating Too Much On Consumer Staples? [View article]
    Hi Bruce,

    Before I answer you points I want to make a clarification that many readers might overlook - I write at my personal website http://bit.ly/14xxhn8, and have chosen to have my content republished at SA and a few other sites. Actually, I have written over 1000 articles since 2008. Check my archive here if you do not believe me:

    http://bit.ly/17k5bAt

    By the way, the archives include the answers to many if not all of your questions. To your other comment below, I do not need to publish my performance every month, quarter, year, because i am not managing OPM. When I do however, I would make sure to submit my complete audited financial and investment record in the brochure.

    I have spoken about benchmarks before, and it is S&P 500. I benchmark returns and dividend income growth as well.

    http://bit.ly/18Kdkfo

    My goal is to at least match S&P 500 return over long periods of time. Since 2008 I have done much better than S&P 500. I was lucky, as I had a lot of cash in 2007- 2008, and many of my CD's matured in around 2009. I did not have the money to invest prior to 2007. Then I was lucky to buy the great dividend stocks at depressed valuations, and was lucky that this was a situation where everyone has been hungry for yield. I was also lucky that I had good health, decent employment to provide me money to put in the market and good family. I was also lucky because I ignore people that forecasted depression, hyperinflation, and other gloom. I like to do my own thinking/analysis, which is seldom understood/appreciated by others. This is my alpha.

    I do care about total return. DGI stocks are the most misunderstood investment vehicle out there - now that is alpha. A company that trades at 100, earns $6-7/share and pays $3 in dividends, which can grow EPS at say 10%/year, will double earnings in 7 years. This company would likely double DPS and maybe even stock prices. That way in 7 years, this stock will probably still yield 3%, and have a similar P/E as before, but the stock price will likely be around 200 (all of this is within a range of course). Reality is that nothing is linear. However, I would much rather own a stock that pays 3% dividend and returns the other 7% through capital gains, than have a stock that will return 10% in capital gains only. If you live off your investments, it is much easier to rely on that 3% dividend in a bear market, than the 10% in cap gains ( which is average and could vary from plus to minus greatly)

    I did not care about taxes for the first five years. I did this until my dividend income reached a certain threshold of covering half my expenses. Now that my income has risen, I am trying to minimize current tax liabilities. I am trying to max out 401K and IRA's today, because I am saving 30%+ on every dollar I put in those vehicles. I don't care that I will pay ordinary tax rates when I turn 70.5 yrs. I would have received my tax deduction TODAY, and then I would have several decades of tax-free compounding.

    However it is wrong to believe that in situations where you compare investing in dividend stocks vs non dividend stocks at equal total returns, dividend stocks are inferior because of taxes. A non-dividend investor is not simply going to buy a stock, and hold on to it for 30 years, while the stock appreciates at 10%/annum like clockwork. Chances are that this investor will buy a stock, and then sell it or a portion of it later. However, I would much rather have a lot of taxable income that gets taxed at 30%, than have no taxable income at all. I would much rather be a highly paid lawyer making $200K and paying a ton in taxes, than be a cashier at a grocery store and pay almost no taxes.

    I talk about my investment philosophy in each of the 1000 articles I have written. Investing is not just a few rules you can program into a computer. There are nuances, and as you get more experience, your strategy evolves. I have written 1000 articles, and I have about 100 - 150 articles in various stages of completion that I will publish sometime over the next 2 years. Some are finished, while others are just ideas and outlines of what I will talk about. The more I learn abt investing, the more ideas I get.

    The one thing that shows me whether an investor is successful or not, is the willingness to do a lot of digging, reading, researching on their own. If they want to get all of their answers fed to them, without much effort, they would likely not be successful in the investing game. This is important, because you have to select a method that works for you - I have a friend who buys tech stocks, and he has done really well. He would never listen about dividend stocks, and I would never be comfortable owning his tech stocks. But yet, we both made very good money investing in what works for each one of us.
    Jun 3 09:16 PM | 2 Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    Cross,

    Did you read the whole article, or did you simply read the headline and then comment? I am just checking, because based on your comment it seems that way.
    Jun 3 07:47 PM | 2 Likes Like |Link to Comment
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