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  • Dividend Growth Investing And The Reluctant Spouse [View article]
    Congratulations Nlschill for being honest and not adding the insult of trickery to the injury of divorce.

    I too am fully responsible for the financial management (and most other types of management) of our home. For at least a dozen years (long before my investing career) there has been a file on a flashdrive (formerly on disk) that is never used on an internet connected computer, that contains all accounts passwords contact information. Essentially a detailed roadmap for whomever needs to clean up the mess! All family members know where it's located and I review it with one of the children if we are traveling (every couple of years).
    Apr 5, 2013. 10:11 AM | 5 Likes Like |Link to Comment
  • Transitioning To A Dividend Growth Portfolio [View article]
    The energy stocks that pay no dividend are the growth and value part of my portfolio, with 90% of the portfolio being DGI. LEG.TO is a name I traded previously and am underwater in. I feel it's prospects are the best way to recover those funds (and more), so I'm still holding. PPY.V is something I expect considerable growth in, in the later half of the year and plan to hold it for several years. At age 44, and still in transition, I'm not quite ready for 100% DGI!

    As for REITs, I was told by an advisor several years ago that since one's home is usually their biggest asset at retirement, that I should be careful investing in REIT's. ie, if half of our net worth is from our own real estate, that's a large enough portion of your portfolio! Now that we have rental property as well, I've shied away, but fairly recently revisited this advice and have dismissed it, though I will be careful to not let their percentages get too large. I have two REIT's on my watchlist and at least one will be purchased with the new funds.

    The same advice was given about the technology sector. I was told that since our income is mostly derived from that sector, I should be wary of investing in it, as a downturn in that sector may cause loss of that income and one wouldn't want a corresponding loss of assets at the same time. I've dismissed that as well, as careful asset allocation will take care of the risk, and my husband, though still a programmer, is no longer working for a tech company, but an engineering firm.

    So, I'm currently hunting for both REITs and Tech!
    Feb 24, 2013. 11:23 AM | 5 Likes Like |Link to Comment
  • I Am A Dividend Growth Investor. I Want Dividends, Growth, And Dividend Growth [View article]
    Welcome to Seeking Alpha. I hope you find it as helpful as I have.

    DRIP is Dividend Re-Investment Program. Instead of receiving dividends as cash payments, you can take your dividend as new shares of the company automatically and you will not pay any trading fees like a purchase. This needs to be set up through your broker, or if you have bought shares directly from the company, through the company or Computershare or however you bought them. You must already have shares to sign up for the DRIP; however people do trade small amounts of shares to get the initial one(s) required to start a direct DRIP.

    For me, the ones through my broker must be full shares, but the direct ones can be part shares.

    DRIPs can be turned on and off. I can do that with a quick phone call to my broker. I can turn all stocks onto DRIP programs together in the account, or pick which stocks I want to DRIP individually.

    Another benefit of DRIPs is that you sometimes get a discount on the shares, 2%, 4% or, 5% for participating in the DRIP program. A nice little bonus. Companies like to have you DRIP so they don't have to pay out the cash directly.

    There are lots of books and websites on DRIPping.

    Happy Investing and welcome to the forum.
    Sep 24, 2014. 01:59 PM | 4 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    We are still only 46 (hanging here with the older crowd makes me feel so young!) so this discussion is only theoretical for me for quite a while (assuming there are still such programs by then).

    Dividend Nut wrote: "I see retirement as 3 phases: The 1st is the travel phase where we are traveling and taking trips to new destinations. The 2nd phase is we are traveling but mostly to see the kids and grandchildren. The 3rd phase is the tea and biscuit phase where the family will come and visit you."

    This analysis boils retirement down fabulously. Only a few years ago I thought we'd never afford the travel phase or a comfortable retirement, but thanks to DGI, good planning, a bit of luck, plus careful and aggressive saving, things are looking up - a lot. What a change! This year my husband's health has been very poor, upsetting the apple cart and causing us to think very different thoughts. If he continues as is, his working horizon may be much less than a decade. However, downsizing the home now and spending the difference in monthly expenses (not spending the unlocked equity, that'll go straight to the portfolio) to take an annual month-long unpaid leave-of-absence added to his month holiday time may extend this to a more normal time frame, leaving the retirement plan intact PLUS launch us into the travel phase immediately. Of course, it means giving up my dream home (sweet little 1000 sq ft bungalow with beautiful gardens), but the kids are grown and it'd be worth it to give up the snow for several months every year.

    I've always thought taking SS as early as possible would be my choice. It's important to save for a rainy day, but life has always proved quite uncertain. Though the majority of our grandparents lived over 85, its not as likely to be our story. Taxes and working situation will likely make the final decision of exactly when to take SS at the time.

    RAS, I really like your concluding statement, "The less I need, the less time I need to wait." Often people are blindly pursuing more money, as if that's the whole point to life. Enough money at the right time is a far better goal. I like your plan, I think it works well for you.
    Aug 31, 2014. 01:51 PM | 4 Likes Like |Link to Comment
  • What If My Stocks Crash And Burn? Part 1 [View article]
    Smallstep, I haven't read that specific book, but I have realized the same thing. "Diversification is a necessity for the beginner. On the other hand, the really great fortunes were made by concentration."

    However, my goal is not to make a great fortune. My goal is to make a retirement. If I have completed the goal of making a retirement and have a bunch of spare cash at that time, it might be fun to try to make a fortune then. . However, my observations of people who make great fortunes tend to make it, lose it, make lose it, over and over. Some of them learn to quit while they have a fortune, some don't. Maybe I'll just give it away instead.
    Apr 9, 2014. 11:04 PM | 4 Likes Like |Link to Comment
  • Portfolio Prime Directive [View article]
    Detail, you have summed up the discussion. Some people think we should be pursuing capital gain, and then when it is time to retire worry about income. They think that they will earn more in growth stocks now, and have a larger portfolio to get income from. I tried my hand at trading, and did ok, but I found it very stressful and was so glad to read about dividend-growth investing here at Seeking Alpha.

    I do not need a lot of capital gain (5% per year on average) in order to meet my goals of retiring able to live on the income the portfolio generates, if the contributions and dividends also meet the targets. So far, I'm far ahead as I've contributed a lot more than expected and had a much more growth last year (as did most people) than expected.

    The problem with relying on a lot of capital gain is that it can change at any time. Dividends are already paid out to you and cannot be taken away (future dividends and dividend growth are less certain, though can be predicted with a much smaller margin of error). Contributions are more under your control (I would have said 100%, but not after this past year...) The second problem with capital gain is that the only way you can capture it is by selling. So if you don't, oh dear. I currently have an example that was up more than 35%, but now is down. All within a couple months. I feel like it was just teasing me (or teaching me?).

    It is up to you how much you want to focus on capital gain. It has taken a several years for me to move from pursuing cap gain only, to pursuing both capital gain and income, to now primarily focusing on income.

    You are young. You have time. How much do you need? What are your targets for the long term and for each year? What kind of losses can you expect and tolerate? How will you recover from losses? How much do you need to rely on cap gain to get you where you want to go?

    Tim McAleenan had a recent article on favorite authors. He named some of mine as well and I enjoy his easy to understand writing. There is great teaching here and I'm glad you are benefiting.
    Apr 4, 2014. 03:20 PM | 4 Likes Like |Link to Comment
  • Spring Changes [View article]
    Hi Dale,
    I missed your comment earlier, I'm sorry. I guess we've found more to discuss. Total return is definitely, imo, not everything, and even in order of importance, I would certainly put it farther down the list. If I had to make that list, 'creating income stream' would be on top, and 'managing risk' would be nearby. Granted, it helps to have a high total portfolio value to create a high income stream, but pursuing total portfolio value is not how I plan to get there from here.

    "In the end it will all come down to how much you have to go shopping for said income. Track the portfolio value, not the portfolio income. "

    To me these are too contradictory statements. If it all comes down to how much you have to go shopping with, it would seem tracking the income - which is what I will have to go shopping with - is the only thing of importance. I cannot go shopping with unrealized gains, and if I realize those gains to go shopping, I destroy income. Total portfolio value is only useful for me in tracking how I am doing against my targets.

    I doubt my portfolio has the risk of the market. Just a glance at the holdings ensures that the beta is far lower. 'Beating the market' is not at all one of my goals. Meeting my targets is my main secondary goal, after 'creating income stream'. As long as I have enough income for our needs, (hence the targets) I don't care how much money is left on the table. I don't have expensive tastes or a desire to live someone else's lifestyle. It is not that I wouldn't mind retiring a little earlier, heading south more often, or being more generous, but those are perks not needs.
    Apr 1, 2014. 05:15 PM | 4 Likes Like |Link to Comment
  • What Can Investors Expect Of Johnson & Johnson's Dividend Going Forward? [View article]
    Thank you for the article. There are many here new to investing and this is exactly the kind of straight forward thinking they need to read. It took me far to long to buy my first shares of JNJ. Though it is one of my largest positions, I would be happy to buy more shares on weakness.

    Bahamas, I like your analogy of JNJ being a no-fee healthcare mutual fund with increasing income. I hadn't thought of it that way before, but it's pefectly apt.
    Apr 1, 2014. 01:20 PM | 4 Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Eddie: Another thoughtful article challenging us to think.
    I fully agree that total return is not everyone's primary goal in the accumulation stage. This represents a very narrow viewpoint, especially for someone in an advisory role. We're all happy with a nice fat total return, and most of us would be thrilled with more years of juicy total return like last year, but it just simply isn't always the primary motivating factor. There are so many other factors to consider and anyone of them can be primary. For some people it's capital protection, for many DGI it's building an income stream - something that usually cannot be done effectively at the point of retirement. I also agree that investing is an intensely personal venture based upon your past experiences, future goals, future earning potential, individual needs, time horizon, and risk tolerances to name just a few of the factors.

    I like your list of 7 recommendations as well. Keep inspiring us!
    Mar 20, 2014. 06:05 PM | 4 Likes Like |Link to Comment
  • What Happens To Dividend Growth Investing When Inflation Hits 10% [View article]
    Thank you for an educational article explaining yet another bead in the dividend-growth's necklace of pearls - inflation protection. Your articles are easy enough for us newbies to understand and are always clear and easy to read. You are definitely one of my favorite authors as I have learned so much from your patient instruction.

    For me being the manager of the portfolio is a natural transition from manager of the home, family, and household expenditures. I have the time to do this while my husband is busy with his work now that I'm no longer managing children. All of my part time jobs and most everything I do are in support of this endeavor and share the same goal...maximization of our resources. There are many females in the financial industry and though I don't have any interest in a full-time job (I need time for household, financial and investment management) I am surprised more women and mothers-at-home are not involved in the investing world, but I imagine that many of the unnamed forum participants are. I know several who are property managers for the same reason.

    Men have greater tendencies to display their wealth and standing, but for many women, especially single, it is simply not safe.

    Thank you again, Eddie.
    Feb 11, 2014. 07:27 PM | 4 Likes Like |Link to Comment
  • Building A Portfolio Part 3: Due Diligence [View article]
    Thank you Jrepasch,
    Would you like more articles in a similar to this on different companies?
    Jan 8, 2014. 05:26 PM | 4 Likes Like |Link to Comment
  • Why I Support Chuck Carnevale's Preference For Valuation [View article]
    I'm not particularly enthralled with the thesis of this article, having wrestled with this exact problem last year, coming to the opposite conclusion. As a newer self-directed investor and even newer to DGI, I don't think just sitting and holding cash and waiting for the ideal entry point is a great plan. Those great cumulative dividends are fine, if you could have bought in 2006. I would own very few stocks if this were the case. I can only make my decision for now with the intent that 20 years from now the cumulative dividends will be fabulous.

    When I bought JNJ last spring I was told it was too overvalued, but others argued that cash earns me nothing. It has once since dropped near my purchase price and I added as much as I could and I will continue to add more as I have opportunity (maybe in January if the US gov't can't get it together, though everyone seems tired of that story).

    I much rather prefer the idea of nibbling small bits of the things I want (assuming they are not ridiculously overvalued, especially compared to their own average) than doing nothing, as well as being prepared to jump in big when things look rough, as I did this summer with Cdn REITs and Telcos. Sure, it's really helpful to buy quality companies at a bargain, and I hope I'll be paying attention when it happens next, but I also can't afford to endlessly sit on the sidelines while the quality companies continue to appreciate without me.

    I started buying much poorer, smaller companies to not pay premium value for the best. Also a mistake. I've backed out of most of those and am enjoying great gains even in the 'expensive' ones. These expensive ones will hold up better than the smaller cap in a correction anyway.

    My goal isn't to hit home runs every time. I don't need double digit growth added to my dividends in order to retire, I just need steady consistent growth and income to get there (ideally 9% total). I'm trying to choose the best value for the best quality I can.
    I'm starting now.
    Dec 7, 2013. 03:11 PM | 4 Likes Like |Link to Comment
  • It's Time To Play Ball And Finally Do Dividend Growth Investing Right [View article]
    Excellent article, Mike. Many of the struggles, concerns and issues you address resonate significantly for me. Our investment journeys have had many, many similarities. Not long ago, I came to the conclusion that it was riskier for me NOT to own JNJ than to own it at these prices and recently Chowder's chastisement regarding TGH made me realize I was too often choosing the second string players for my portfolio with valuation being the excuse. He pointed out that is all fine and good when the market's roaring, but can have disastrous consequences in a sharp downturn.

    As we are both still in significant accumulation mode, we can take heart that there will be more money entering the portfolio for future purchases and today's purchase of KO won't be the last! We should completely expect that the market will suffer at some point (probably at several points) before we retire and that we won't buy in at the best price (hence moving in and out in part positions). Those will be fantastic buying opportunities, especially if we have our partner companies already picked out and are carefully watching. There's no way to predict when they will come, so a little cash ready to deploy is a good thing, but I'd rather have my money be working than waiting.

    I really appreciate Tim McAleenan's clear writing and I remember him saying that he looks at each name and if he wouldn't be willing to hold on in the case of a 50% drop, and buy more, why would he buy now? I also have a few names that I wouldn't be comfortable with on a 25% drop and I need to do some re-evaluation.

    Yesterday, I created a list with earnings dates on them and I plan to do some rigorous fundamental (not so fun, might drive me mental) analysis before the earnings announcement so that when earnings do come out I will know exactly what my partnership commitment level is with each one. It took me about 2.5 hours to do the last one thoroughly, so I have a few weeks worth of work ahead. But the result will be worth it and pay dividends (literally and figuratively) for years to come.

    Congratulations on making a clear decision and enjoy your flight to quality!
    Jul 12, 2013. 10:08 AM | 4 Likes Like |Link to Comment
  • Weighting Your Dividend Paying Stocks: A Disciplined Approach [View article]
    I haven't worried too much yet about adjusting weightings in my portfolio as my main project this year has been diversification. I have trimmed 3 grossly overweight - double or more in size to the average - but that would hardly be considered typical rebalancing.

    I agree with richjoy that the costs would be prohibitive to fine tune too much. Part of the brilliance and outperformance of DGI is the 'do nothing' aspect of the hold and monitor approach. Author after author (Lynch, Graham, Lowell) discuss that it's the costs of trading that make a speculative approach to the markets unprofitable.

    rratty: I wouldn't want to weight a portfolio based on dividends. I do like to weight based on fundamental quality as Mr. Carey suggests, though not quite so particularly with not so much rebalancing. It is definitely wise to hold some of the highest dividend payers lightly, such as the mREITs (which I don't own), but in many cases dividends are typical for sector or industry. For example retail stocks tend to pay 2-3% 2%, whereas the Canadian banks hover between 4-5%. I hold more Canadian banks right now than US retail as this is not necessarily the best time to buy into US retail. (most of my purchasing has been in the last year). Some of the higher dividend paying oil companies are excellent purchases, but you would be suggesting holding smaller positions in them than something cyclical or industrial which might pay under 2%. I'm sorry, but I just can't see that working well for the long term health and future income of my portfolio.

    Experienced DGI investors here seem to aim for a target of an average of 4% in income and seem to desire a minimum of 3% initial yield. I don't have such a minimum as I have a long time horizon until I expect to need the income (just over 20 years). This allows me to invest in something like Ford Motor, Agrium, and Visa even though they are not the usual DGI suspects...yet! I can see better days for these industries in the future and expect them to raise their dividends and who knows, maybe someday they'll be dividend champions. Meanwhile I have time to wait and can enjoy a little growth too.

    Another no-cost idea to help with rebalancing is to manipulate your DRIP programs. I haven't done this yet either, as I don't DRIP much. I am significantly accumulating into my portfolio each month and purchase new companies into it several times each quarter. Redeploying dividends with the next purchase is simple and strategic for me. Additionally my broker only DRIPs whole shares so I not able to purchase one whole share from the dividends (many of them monthly payers) into most of my positions...yet!

    Thank you for the thought-provoking article Mr. Carey. It's much appreciated.
    Jul 4, 2013. 10:44 AM | 4 Likes Like |Link to Comment
  • Is Now The Time To Sell? [View article]
    Thank you, gentlemen,
    I realized a few months ago that I've been reading primarily on SA for the last year or so. It's been wonderful and stretching, and provided me with the rare opportunity to dialogue with experienced professionals and read detailed discussions on very specific topics, but it was time to broaden my horizons and get more thorough, organized, and detailed input from some recommended books. It's been excellent in shaping my thinking and I'm grateful for more suggestions! I've only read three so far in the past couple of months: Ben Graham's "The Intelligent Investor", and Lowell Miller's "Single Best Investment", and Lynch's "One Up on Wall Street" was my least favorite so far, but that doesn't mean I didn't learn a lot!

    Our own David Van Knapp's book is next on my list, but Uncommon Stocks will be after that! Feel free to recommend more. My pageview earnings are exclusively earmarked for investing expenses (incl FAST Graphs subscription) and then investing in my financial education (yeah, book allowance!). At this point in my investing career, it's the best investment I could make!
    Jun 10, 2013. 06:46 PM | 4 Likes Like |Link to Comment