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Doug Meeks

 
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  • Bakken Update: EOG Antelope Well Has One-Year Payback At $50/Bbl WTI [View article]
    Nice done here, thanks for sharing your work.

    Doug
    Dec 4, 2014. 08:12 AM | Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    TF17,

    "I would caution against loading up on a single sector, though. Try to make your first ten purchases in ten different sectors (or at least ten distinctly different lines of business)."

    This is so very important, I wanted to support this wise comment and suggestion.

    Doug
    Dec 4, 2014. 07:57 AM | 3 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    Smarty, I watch beta performance a little. I do not crunch the numbers but when the volatility goes up I watch the changes over here vs the S&P. A dollar weighted average of the 36 month beta is a very good estimate of a full size portfolio of the DGI standards. It's idiosyncratic if it varies, like the Walmart Mexico Pay-off Scandal, so you need a full base of balanced holdings and it's pretty solid, not perfect.

    Doug
    Dec 4, 2014. 07:51 AM | Likes Like |Link to Comment
  • The Walt Disney Company declares $1.15 dividend [View news story]
    Wow. Nice job DIS!!!
    Dec 3, 2014. 09:07 PM | Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    linter,

    Great comment/question. I do this everyday, build DGI portfolios. I help other people deal with that same transition you describe, it's just not a perfect science and not a situation that has a single answer. The only reason to aim for dips in the market is - that an investor does not need the income, the longer and more comfortable that time frame before needing the income is.... the longer you can wait to take a position. The real art is in recognizing a dip, some super low beta companies like General Mills can make you wait years for a 10%+ dip, so waiting can be destructive to income at a certain point. Again the need for income helps set how aggressive your stance should be, and please look at the price, price is important, utilization of capital to meet goals requires that you study price, as you add the income component THEN another variable to consider comes into play.

    so pick and group of 20-30 stocks you like, learn all you can about that group. Set a price target for each that makes sense and set your limit orders and wait, depending on income needs I prefer to move 1/3 of an allocation at a time ( more or less depending on the amounts), unless my price targets are set up strongly. In that case I move up to 75% of a single allocation in a "conviction" purchase, I recently did this with WFM at $34, JNJ at $97, PSX at $71, PAA at $47, and PBA at $36/37, and others.

    Waiting for Realty Income to give up 7% yield is pure speculation, but getting them at 5% yield could happen for a patient investor.

    Set up a strong and full model in excel (or Numbers) and build the portfolio first with all the numbers and then look at it and learn it, and get started.

    Also, I would be happy to talk with you and share ideas and listen to yours, no charge, no need to hire me at all, look in my bio, email me. The situation you described is very common, no worries.

    Doug
    Dec 3, 2014. 09:04 PM | 17 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    Mr. Fish, some can handle it themselves, some can not and yet others will not, advisors have a great responsibility do their best for all of these. I have seen far to many unjustified fees to even make it to the point of assessing the ideas and work many advisors are doing. After seeing a 5.75% upfront charge for each deposit on a growth fund, I hand the statement back and excuse myself to be sick.

    When this discussion of self direction comes up, Bob Wells comes to my mind. He is probably a rare person but many can follow that path and get it done themselves.

    Doug
    Dec 3, 2014. 08:33 PM | 4 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    I agree 100% the market allows income AND a great way to stay ahead of inflation. That growth (even when discounted by taking the income out) is very important over the years, very very important. DGI and real estate offer the advantage of retained earnings as well, which can be very very tax efficient.

    great comment,

    Doug
    Dec 3, 2014. 04:16 PM | 2 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    RAS, I know you know. But many comments only talk about rollovers, when each year IRA holders have the option to evaluate.balance their tax bracket and take a portion and move it over to the ROTH or cash or other. I was just expanding the the discussion, I probably learned most of what I know about RMD's from you. ha!

    Happy when you get in the discussion.

    Doug
    Dec 3, 2014. 04:12 PM | 2 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    DG R, income is a broad investment goal and not just bound by DGI. I like the liquidity of the stock market. An important trade off vs. hard assets like real estate.

    good comment,

    Doug
    Dec 3, 2014. 11:52 AM | 1 Like Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    IZZ, I'm never offended by you. In fact, I always read your comments. I'm not here to be cool, and here to get smarter.

    Doug
    Dec 3, 2014. 11:46 AM | 5 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    RAS, RMD's are not roll overs and can be taken at any time (in any amount not minimum). The restriction after that is simply the limits of the ROTH for the year. Slightly different from a rollover, but it helps. No reason not to migrate like that long before RMD's. Also, acceleration out of IRA's might be smart in some cases, as qualified dividends are fairly tax advantaged. Ever case is different, but resources are easily found on line.

    Doug
    Dec 3, 2014. 11:45 AM | 1 Like Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    dj, a stock transfer is still considered income when from an IRA, cost basis is set at transfer and it's ALL income. Not that efficient.

    I have run exhaustive DGI models against the RMD effect. The RMD does not effect the upward trajectory of the income even with the tax hit. Simply move the assets out as RMD's, pay taxes, invest in the same Div Growth holding, get on with it. RMD's are small and taxes are often low, so this works and keeps dividend income growing (with a new small discount to the growth) unless the individual is at a very high tax bracket (which can be the case), often these individuals are not that involved with IRA's.

    regards,

    Doug
    Dec 3, 2014. 11:40 AM | 5 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    Trader, some idea of greater market, economic and social direction helps build alpha as well.

    Doug
    Dec 3, 2014. 11:35 AM | Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    IZZ,

    "How many RIA's would honestly direct funds to individual stocks at this point for most people who already have a 'fear' of the stock market influenced by all of the constant 'price' noise."

    I'm that RIA. Starting a DG portfolio today is a difficult task, I move into the market for clients all the time and my tendency toward value is getting stretched. Often it takes months to get it all in the market, but even in the cases where income is needed in a very short time frame it still produces the income and income growth. I have found that most people who need to hire an RIA (like me) for a dividend growth portfolio will accept the risk in the market for the income. The most important thing is explaining the risks, I'm legally required to explain market risk. It is considered 'hedging' my responsibilities to make assurances about dividend income because it's market derived and has risk (elevated risk as markets stay above long term PE averages). I typically just give a referral (or 10) to new clients, they make a call or two and find out that the dividend checks keep coming and keep growing.

    Anyway portfolios are diverse and where value can be added it get's added and where income is needed the current value offsets the wider risk. I would simply say..... BDX is expensive but PSX is cheap. Every person/client has a different story and different needs and ideas. The ones that hurt are those people that are not ready and want the market to do more than it safely will do.

    Doug
    Dec 3, 2014. 09:17 AM | 9 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    DVK, nice read here. Calm and assured, just like the dividend from JNJ. Thanks for taking time to share.

    Regards,

    Doug
    Dec 3, 2014. 08:39 AM | 7 Likes Like |Link to Comment
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