Long only, value, long-term horizon, dividend investing
Long only, value, long-term horizon, dividend investing
Contributor since: 2012
Thanks for the tip. I have ACN on my watchlist but haven't liked the price yet.
Thanks for reading and writing. I'd love to own a few water utilities but haven't liked the prices (although they seem to always be expensive). For energy, I don't know enough about the sector to make intelligent decisions, so I get my exposure elsewhere. If prices keep going down, I'm considering a sector ETF and then forgetting it for a few years.
great, thanks for reading and writing. hoping to write more after the holidays.
I imagine everyone's seen the news, but INTC just announced a dividend increase and 2015 guidance.
Great, thanks for reading and commenting.
Hi, thanks for reading and commenting.
I think there were several reasons. Here are a few off the top of my head:
1) I was moving out of a bond fund that I'd held for several years before starting this portfolio, and it made it pretty straight forward to transition into an ETF instead of purchasing a bunch of stocks that I didn't like the valuations of or going to cash, which i also wasn't interested in.
2) I've been under a lot more time pressure which impacts my ability to look for new investment opportunities (magnified by it feeling harder to find value at the time) so having a chunk of the portfolio in a low-cost etf that I felt would do what I was looking for made sense.
I'm likely done adding to VYM, but as I mentioned I might add a second ETF (I doubt more) as well as individual equities as opportunity arises.
Hope that answers somewhat...
that's based on morninstar's data and is taken over 5 years. The dividend is currently frozen, but if you look back five years and compare now to then, you'll get a "growth rate". It's a good example of not relying on just one or two "stats" to tell the whole story.
thanks for reading and commenting.
I have a 403b, but it has an option to self-direct the investments (which you have to elect instead of the menu of options). if yours doesn't, you might talk with your HR about improving the investment options.
thanks, will take a look. always love to hear specific suggestions.
It's been a while, but I did it through a screen on a bloomberg terminal that i wrote myself. i used local currency in judging whether the dividend had increased, so it may not have in us dollars or other currencies.
Thanks for reading and writing. When I'm looking for ideas, I'm certainly guilty of checking the top holdings of a few ETFS, such as VIG and VYM, and funds, such as SEQUX.
Great, thanks for reading and writing.
Don't know and I think it's a great question (particularly as I'm long PG myself...:P). They do say they track the NASDAQ US Dividend Achievers Select Index, so you might look there first. Thanks for reading and commenting.
Not sure why McDonald's wouldn't show up strongly. They say they track the NASDAQ US Dividend Achievers Select Index and weight in roughly the same manner. Thanks for reading and commenting.
Thanks for reading and commenting. I have a lot of respect for Vanguard and would probably add this ETF as a component of my portfolio (which includes a number of individual equities as well) if the current yield was higher.
yes, certainly. my apologies for not being explicit. it didn't actually occur to me to just average the numbers, so i didn't think to make clear how i did it...i thought about putting in the spreadsheet, but it seemed more like evidence that i did what i said than adding new insight. :P
I just reread your comment. To make my answer more explicit from your example, I did account for yield directly before putting it together. I followed your "Correct year 2 dividend" but for all 25 stocks.
I did not take a direct average. Rather, let's take XOM for example. At the present yield, it generates a certain distribution. After application of dividend growth, it generates a new amount. I did that for each holding. Holdings where I "forecast" no growth generated the same income after 1 year. After that, I added the total distributions for each holding and compared at the portfolio level.
Certainly maintain an emergency fund, but I'm thinking beyond that. If college costs 30k / year for 6 years (call it 2 kids), it makes sense to me that you would want your portfolio generating income during that time period before switching back to accumulation. i suppose 10 years before you could section off a portion of the portfolio, but I'm unclear what you do if the market crashes 3 years before college and doesn't recover rapidly.
This might actually be a good point to raise a thought i've had. To me, the real problem is that life doesn't necessarily break down into 2 parts: 1) accumulate and 2) spend. For instance, if you have children, you might shift into spend during the college years and then back into accumulate. If you have a medical emergency or lose a job, you might need to shift into spend for a short amount of time and back to accumulate. So you can either turn the portfolio over or shift from reinvesting to distributing and back when appropriate...of course then you need holdings that are "reasonable" for both modes. Thoughts?
I'll chime in too. I agree with in so far as an individual is interested in and has the time to perform due diligence. However, there are a number of people who want to invest but don't want to invest in common stocks individually, and thinking through appropriate options there is important. Also, you can use an ETF or combination of ETFs/funds as "ballast" in a portfolio and choose common stocks around that. Lots of ways to make the puzzle fit together.
Thank you for reading and writing. A lot there to think about. One thing that immediately jumps out is that you do have to check-in as the ETFs rebalance if you are skimming off the top holdings. I'm pretty sure Apple wasn't in the portfolio last year, for instance, or at least not with such weighting.
Certainly when I started putting together my own portfolio, I looked at the top holdings of ETFs such as VIG and VYM (and some mutual funds I like) as starting points for "ideas".
Btw, this sort of analysis is fairly straight forward. Would people be interested in seeing similar calculations on other ETFs, such as VIG? Feel free to click "like" to express interest.
Great, thank you for reading and writing. It's good to hear from people who've owned for a while and kept track over time. I agree about the valuation (also with regards to many individual names I'm interested in) and personally only invest when I don't have a common equity I want to purchase at a price I like. A more devoted value investor might hold cash and wait. I have some cash but want to be more invested than if I solely waited.
thanks for reading and writing. Getting dedicated growth with a reasonable starting yield is definitely a challenge these days.
This is a great point. Mainly for the ease of keeping most of my portfolio with a single broker. I have a number of common equity holdings as well. This simplifies my life a bit in the event I don't want to reinvest dividends and want to direct other places. I buy in large enough blocks and very rarely sell, so the small commission isn't enough of a % to worry me.
Great, thanks for writing. I pay a small commission at fidelity.
I think I'm actually very similar. I have a number of individual names and have been adding VYM when I am not happy with valuations on names I want to purchase. I definitely enjoy watching the individual equities.
Thanks for reading and writing.
Thanks for checking in and writing. I appreciate the comments.
Hi smurf,
Thanks for checking in and commenting. I'm evaluating VYM on purpose. There are a number of articles here proposing it for DGI even though, as you note, it makes no explicit mention of dividend growth in its description. But if you look under the hood a bit, you see a lot of potential for dividend growth in the names that end up as part of the portfolio.
I've recently added it to my portfolio and anticipate holding it for years to come unless they really stray from their mission. I also like that it's more evently diversified across sectors than many other index/"passive" products.
thanks for commenting.