What's a Safe Withdrawal Rate? These 10 Dividend Stocks Are the Answer [View article]
Mr. Swedroe: Many of my retorts and questions have been asked by commenters above. I will add that a well executed dividend growth strategy is NOT a "high dividend strategy" that you wrote about. It is part a larger portfolio that includes asset allocation and diversification (including bonds). I have never suggested that dividend stocks are a substitute for bonds (I am slightly over-allocated in short-term bonds presently).
A dividend growth strategy focuses on finding companies that have a long history of growing their dividends (culture) and the wherewithal to continue to do so (sustainability). These two requirements rarely produce "high dividend stocks" as noted my the 2-3% yields listed above.
There are quite a few studies showing a dividend growth strategy out-performs the market over time (Jeremy Siegel's probably being the most prominent of these). What studies are you basing your position on?
Watching Dividends Rise: Putting Together a Focused Dividend-Growth Portfolio [View article]
David: Congratulations! I love reading dividend growth success stories. Also, thanks for sharing what's happening with your portfolio. Nothing beats a real world example.
hubbstan: I don't reinvest dividends into the same stock. I use them to buy the best available stock. In addition, I add whatever online earnings (blogs, premium membership subscriptions, etc.) to the dividends earned and reinvest monthly.
22 Dividend Stocks Building Long-Term Returns [View article]
richjoy403: As noted in the last paragraph, "The above list contains stocks that recently raised their dividends; it is not a list of recommend buys." Each Friday, I list some of the notable stocks that raised their dividends over the previous week. Sometimes it exposes me to names I don't follow.
How to Buy Dividend Stocks at Bottom [View article]
I purchase income stocks each month and what I buy is no secret. It is published on my website. Someone asked about November 2008. Here is a link to that update:
@Snowjob3 and @montrachet: At one time I provided a complete reconciliation of my Pocket Change Portfolio (see dividendsvalue.com/594.../), which included Contributions (Online Earnings), Dividends/Interest and Capital Gains. Once I experienced a degree of success, I started to receive "hateful" emails. I then determined there is a point of too much information, and I had crossed it. For those that really want to know you can reasonable estimate monthly contributions by following share changes in my Pocket Change Portfolio here: dividendsvalue.com/hol.../ I have found those that want to complain and send hateful emails are too lazy to do it, so I continue to post this information.
@David: I was shocked at the downward pull on YOC resulting from new investments. I do track YOC on each individual layer of each investment, as you have noted, I have seen some strong improvements on early layers (eg. MCD 10/2007 layer yielded 2.63% when purchased, no has a YOC of 4.27% after 3 dividend increases).
A Basic Retirement Plan, And 9 Dividend Income Stocks to Help Get You There [View article]
Google Docs didn’t work quite as well as I had hoped. It appears that if more than one person is in the spreadsheet, they are overwriting each other's inputs. For those that have access to Excel or Open Office you can download Retirement-Calculator(... or .ods) at:
7 Companies Paying Higher Dividends in April, Plus 1 Raising Its Annual Payout [View article]
tweedn: Only one notable company (IP) announced an increase this week. The title of this article on my site is "1 Company Announced A Higher Dividend, 7 To Pay Higher Dividends in April". The other companies had previously announced
Here's Why Dividend Stocks Are Evil (And 7 Good Examples Worth Considering) [View article]
hedas2303 and others:
Before setting up a portfolio you have to define its goals and then build the portfolio to obtain the goals. The primary goal of my income portfolio is an ever-increasing income stream. As noted in the above linked article, holding foreign stocks in my income portfolio was contrary to my goal.
I will also mention that I don't hold ETFs in my income portfolio for many of the same reasons (see: dividendsvalue.com/300.../).
With that said, my total portfolio has significant international holdings (currently around 24%). However, these are held in my non-income portfolios.
David: Very well done! What seems to be a simple concept to us is so misunderstood by so many people.
I too track individual layers of YOC along with a blended number for individual securities and my income portfolio as a whole. Over the years I have accumulated so many layers it would not be practical to report on them individually.
10 Dividend Stocks With a 10% Yield in 10 Years [View article]
WallstreetPete: We feel this way because as part of our strategy we don't plan to sell our investments. It is hard to get excited about something we hope to never realize.
On the other hand, using your numbers for CL, the investor would be enjoying a 50%+ yield on cost - which would be realized each and every quarter.
December Dividend Portfolio Progress Report: Leggett & Platt, Universal Health YOC's Rise [View article]
KSAccountant: Given where interest rates are and where they are likely headed in the future, I have shortened the term of my debt allocation. Nothing against PCY, it was very good to me while I held it.
I will likely add a modest amount to my MCD holdings in the next few months. I have allocation room in Consumer Services and MCD is a great company.
As for the dividend haters, it seems that people like to attack what has been successful and is working. I suspect their portfolios didn't do so well over the last couple of years.
Just Ducky: Since my analysis is based on cash flow, I don't recognize a dividend until it is paid. The dividend declared on 09/24 wasn't paid until 11/01/10.
As for its latest increase, I wasn't surprised. Normally you get yield or growth, it is hard to get both. A potion of T's business is in decline (landlines, long-distance, etc.) and with a 5.7% yield, any growth is good.
What's a Safe Withdrawal Rate? These 10 Dividend Stocks Are the Answer [View article]
A dividend growth strategy focuses on finding companies that have a long history of growing their dividends (culture) and the wherewithal to continue to do so (sustainability). These two requirements rarely produce "high dividend stocks" as noted my the 2-3% yields listed above.
There are quite a few studies showing a dividend growth strategy out-performs the market over time (Jeremy Siegel's probably being the most prominent of these). What studies are you basing your position on?
Best Wishes,
D4L
Watching Dividends Rise: Putting Together a Focused Dividend-Growth Portfolio [View article]
Best Wishes,
D4L
Pocket Change Portfolio Update: Added Medtronic and Cincinnati Financial [View article]
Best Wishes,
d4L
22 Dividend Stocks Building Long-Term Returns [View article]
Best Wishes,
D4L
How to Buy Dividend Stocks at Bottom [View article]
dividendsvalue.com/149.../
Buys that month included:
CTL @ 27.53 Now: 34.52 (10.46% YOC)
KO @ 46.27 Now: 53.90 (3.78% YOC)
TEG @ 43.81 Now: 49.36 (6.16% YOC)
NNN @ 14.24 Now: 24.20 (10.46% YOC)
PGN @ 37.90 Now: 39.25 (6.50% YOC)
ETO @ 12.37 Now: 20.59 (11.32% YOC)
I also purchased CAT and VNQ, which were subsequently sold, so they are no longer in my spreadsheet.
November 2008 was a good month. As I said, "Buying at the bottom is great, but buying near the bottom isn’t bad either."
Best Wishes,
D4L
2011 Dividend Investing Goals [View article]
@David: I was shocked at the downward pull on YOC resulting from new investments. I do track YOC on each individual layer of each investment, as you have noted, I have seen some strong improvements on early layers (eg. MCD 10/2007 layer yielded 2.63% when purchased, no has a YOC of 4.27% after 3 dividend increases).
Best Wishes,
D4L
December Dividend Portfolio Progress Report: Leggett & Platt, Universal Health YOC's Rise [View article]
I have found providing my thoughts and progress reports has made me a better investor. You are more careful when you know others are watching.
I'll sign off today as,
Iced-in in the deep-south
D4L
A Basic Retirement Plan, And 9 Dividend Income Stocks to Help Get You There [View article]
dividendsvalue.com/too.../
The Open Office version should be available later this evening.
For those without access to Excel or OO, you will need to find a time when no one else is using the Google Docs spreadsheet.
Best Wishes,
D4L
7 Companies Paying Higher Dividends in April, Plus 1 Raising Its Annual Payout [View article]
Best Wishes,
D4L
Here's Why Dividend Stocks Are Evil (And 7 Good Examples Worth Considering) [View article]
Before setting up a portfolio you have to define its goals and then build the portfolio to obtain the goals. The primary goal of my income portfolio is an ever-increasing income stream. As noted in the above linked article, holding foreign stocks in my income portfolio was contrary to my goal.
I will also mention that I don't hold ETFs in my income portfolio for many of the same reasons (see: dividendsvalue.com/300.../).
With that said, my total portfolio has significant international holdings (currently around 24%). However, these are held in my non-income portfolios.
Best Wishes,
D4L
How Yield on Cost Works [View article]
I too track individual layers of YOC along with a blended number for individual securities and my income portfolio as a whole. Over the years I have accumulated so many layers it would not be practical to report on them individually.
Best Wishes,
D4L
10 Dividend Stocks With a 10% Yield in 10 Years [View article]
On the other hand, using your numbers for CL, the investor would be enjoying a 50%+ yield on cost - which would be realized each and every quarter.
Best Wishes,
D4L
December Dividend Portfolio Progress Report: Leggett & Platt, Universal Health YOC's Rise [View article]
I will likely add a modest amount to my MCD holdings in the next few months. I have allocation room in Consumer Services and MCD is a great company.
As for the dividend haters, it seems that people like to attack what has been successful and is working. I suspect their portfolios didn't do so well over the last couple of years.
Best Wishes,
D4L
Periodic Table of the Dividend Champions [View article]
Best Wishes,
D4L
Pocket Change Portfolio Update: Added Medtronic and Cincinnati Financial [View article]
As for its latest increase, I wasn't surprised. Normally you get yield or growth, it is hard to get both. A potion of T's business is in decline (landlines, long-distance, etc.) and with a 5.7% yield, any growth is good.
Best Wishes,
D4L