Thanks, everyone! I appreciate your comments and wishes! I'm planning to work with Phillips & Co, a wealth mgmt firm in Portland. I believe the firm has clients nationwide. Should anyone ever contact the firm, please mention SA. I would be interested in knowing to what extent we are meeting an unserved need for income investors, and if there would be significant value in having an SA presence.
Thanks, Chris. I'm not totally sure what will happen yet, but based on previous conversations, if I do indeed start working for this firm, then sadly, I will probably have to discontinue writing. I appreciate your comments! On the plus side, I will get to further develop the DG models and have access to more research, so that will be good.
More On SDY: Better Than A Mutual Fund? [View article]
Hi Alan,
I track the SPY and SDY against my model portfolios. I only have data since Aug 2011, but SDY has outperformed SPY and with much lower beta and max drawdown. Over the last 3 months, beta has been higher (calculated off of weekly returns).
Why Yield On Cost Matters To Long Term Investors [View article]
Hi Dave,
I agree that both camps tend to be reluctant to change their minds. As I've written about in the past, I fall into the "don't find it useful" for decision-making group. My biggest complaint is the lack of a time component. Having a 20% YOC sounds great, but if it took 20 years to get there, your growth rate wasn't so hot. Also, maybe the dividend grew quickly, then slowed down. Looking at current yield and the DGR would provide better decision making info, in terms of historical metrics, and can be compared against alternative investment opportunities.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Thanks, djrryan. Glad you find the list helpful. I owned BP previously, and sold right when the offshore incident occurred. My gripe with BP is that while the yield has been good, price appreciation lags compared to other major oil companies.
Comparing Buybacks To Dividend Growth [View article]
I find it hard to believe that only 8 DG stocks had buybacks in the last year. Looking at the top 10 in the PFM, all of them had buybacks, so crosschecking the two lists is not sufficient.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Hi gjg49,
I don't know the specifics of APD's cash flow use. However, they did issue some bonds (see financing cash flows), about $400K, so collectively the dividend was covered if we assume that the financing was used to cover some of the capital project. Would need to investigate further to figure out where the money went. If it went toward growth projects (one-time) that will improve operating cash flows, then the dividend should not be in jeopardy. The firm also has over $1B in long-term investments, so there is a supply of cash, which also factors into the equation.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Yes, I know. I wrestle with how much to publish, as giving away my entire spreadsheet (which takes quite a bit of time to produce) seems like too much to me. I figure I've given the process, the portfolio list, and summary stats. If you want the specifics for any of these holdings, they are in the CCC list.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
I tend to have the same view as rnsmith. Seems like for every analyst in favor of a stock, I can find one against it. If they were all against it, then some would argue it is a good contrarian play. etc etc. I like to examine the key concerns/opportunities, and reach my own conclusion. With a DG focus, I don't always worry about some of it, as long as there is sufficient cash flow for the dividend. If it is a more concentrated position, I scrutinize it more.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Hi stockpicker99,
Unfortunately, the best answer I have is "it depends". I see Chowder already responded, and his link has a lot of info on price/volume strategies. If, like some DG investors, you're focus is more on the dividend stream, then it may not bother you to buy near a 52-week top, if you are still getting the yield you want, there is room for div growth (higher projected earnings, low payout), and you have a long-term timeframe. Other factors include new developments at the company or expectations on events that could impact the industry/sector.
Personally, I like to see the stock off of its high (correction due to short-term issue), but I am pursuing total return, so I want to have that value cushion. Of course, this has made it tough the last 3 months, as the market has pretty much gone up, though I did find opportunities to buy stocks like Coach and Lockheed that slipped a bit during this timeframe.
Dividend Growth Models Update: Dividend Aristocrat+ Gainers And Decliners [View article]
Dividend Growth Models Update: Dividend Aristocrat+ Gainers And Decliners [View article]
Dividend Growth Models Update: Dividend Aristocrat+ Gainers And Decliners [View article]
Dividend Growth Models Update: Dividend Aristocrat+ Gainers And Decliners [View article]
Dividend Growth Models Update: Dividend Aristocrat+ Gainers And Decliners [View article]
More On SDY: Better Than A Mutual Fund? [View article]
I track the SPY and SDY against my model portfolios. I only have data since Aug 2011, but SDY has outperformed SPY and with much lower beta and max drawdown. Over the last 3 months, beta has been higher (calculated off of weekly returns).
http://seekingalpha.co...
Why Yield On Cost Matters To Long Term Investors [View article]
I agree that both camps tend to be reluctant to change their minds. As I've written about in the past, I fall into the "don't find it useful" for decision-making group. My biggest complaint is the lack of a time component. Having a 20% YOC sounds great, but if it took 20 years to get there, your growth rate wasn't so hot. Also, maybe the dividend grew quickly, then slowed down. Looking at current yield and the DGR would provide better decision making info, in terms of historical metrics, and can be compared against alternative investment opportunities.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Comparing Buybacks To Dividend Growth [View article]
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
I don't know the specifics of APD's cash flow use. However, they did issue some bonds (see financing cash flows), about $400K, so collectively the dividend was covered if we assume that the financing was used to cover some of the capital project. Would need to investigate further to figure out where the money went. If it went toward growth projects (one-time) that will improve operating cash flows, then the dividend should not be in jeopardy. The firm also has over $1B in long-term investments, so there is a supply of cash, which also factors into the equation.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Unfortunately, the best answer I have is "it depends". I see Chowder already responded, and his link has a lot of info on price/volume strategies. If, like some DG investors, you're focus is more on the dividend stream, then it may not bother you to buy near a 52-week top, if you are still getting the yield you want, there is room for div growth (higher projected earnings, low payout), and you have a long-term timeframe. Other factors include new developments at the company or expectations on events that could impact the industry/sector.
Personally, I like to see the stock off of its high (correction due to short-term issue), but I am pursuing total return, so I want to have that value cushion. Of course, this has made it tough the last 3 months, as the market has pretty much gone up, though I did find opportunities to buy stocks like Coach and Lockheed that slipped a bit during this timeframe.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]