An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
I go back and forth on this. They are REITs, and Schwab classifies them under Financials, so that it what I've done. I sometimes think it would make sense to put the health care REITs under healthcare. However, does a retail (stores) REIT go under Consumer Discretionary? I've seen Industrial REITs too...gets more complicated than I want to deal with. Banks and insurance are also under financials, the REITs just have better yields, so they "win". In some ways, I like this, but it means the portfolio doesn't hold any true financial firms. The other DG models do include some actual firms (CB, AFL, TRV, etc.)
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
I've noticed that all of the portfolios had their betas creep upward recently, though they seemed to settle back down over the past 3 months. I haven't taken the time to trace which holdings are the culprits. This portfolio doesn't factor it in, though it has had the lowest beta of all the models. The low-beta model would consider this factor at rebalance.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
You're welcome, Rom! Thanks for the feedback. I think processes like this, based on the CCC list, provide an excellent starting point for individual investors. I always recommend doing more diligence, as these models are strictly rule-based off of historical numbers.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Agreed, that's why I check the operating cash flows. The CCC list does now have a column with free cash flow payout ratio (Div / FCF), which is also an option.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Each of my models operates a little differently. The HYLP model looks for high yield and low payout, which mathematically implies low PE. This model does not force out a stock with high PE, however, when it is above ~65%, I do check that recent operating cash flows covered the dividend. This is because of the focus on yield, and with a 6-month rebalance, those that stumble on this front will get removed next time around.
I've debated whether to apply the stop-loss when rebalancing/creating a portfolio. It is more of a momentum check, but I figure if I use it to remove a stock from one model, than it seems hypocritical to not exclude the stock from another that is rebalancing. Yes, some would see it as an opportunity. But, in the short-term, selling it was the correct move. I would need another rule to determine when to allow it back in, other than div increase, which only occurs annually, hence the problem at this rebalance.
On the flip side, in the near term (next 6 months), Intel would need to do something that moves its stock up, while the overall market could see some correction. It hasn't been doing that the last few months, so it does have something to prove in that respect. My guess is that it will be available for the portfolios at the next rebalance, hopefully near the same price range ($20-$23), which still offers a great yield.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Thanks, meditative. Since I'm going for total return, I owned ABT (pre-spin off) over AZN. Currently don't have either. I have NHI and SYK in healthcare.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
WEC is in the low-beta, High DGR portfolio. It was in the final screened universe for this portfolio, but since DG-IncGro focuses more on yield, NU was selected over it.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
The CCC list has a beta column (go to the FAR right in the spreadsheet). The portfolio beta is just an average of those values, since I use equal weighting based on dollars.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Thanks, billinsd. No, nothing wrong with owning multiple companies in the same industry. For a model limited to 30 stocks though, I'd like to see at least some diversification in each sector, if possible. I own multiple telecoms, and have had multiple tobacco stocks in the past.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Thanks, smlaker. That's a good idea. I didn't include it as the primary objective is yield and then the overall portfolio DGR. You can find them in the CCC; about half were above 10%, probably averaging 15%. The other half were below 10%, avg of around 7%. Combined avg = ~11%.
An Income Growth Dividend Portfolio For 2013: 3.9% Yield And 0.70 Beta [View article]
Thanks, horowitzcpa. K and LO were excluded from the screened universe because their respectively histories are less than 9 years of DG. This model focuses on stocks with longer histories of DG. Personally, I do own LO.
Dividend Growth Models Update: Low Beta, High DGR Portfolio Off To A Great Start! [View article]
The betas listed in the graphics are for the time frame being measured, which is about 19 months for the Inception graph. That is a shorter timeperiod than what Yahoo Finance reports (60-month beta). I also calculate the volatility of weekly returns, which is a component of the beta calculation, but independent of comparison to the SPY. I consider 0.65 to be low, relative to 1.0 for the SPY. That isn't a scientific definition, nor do I use it as a baseline for any decisions. Some investors probably consider anything under 0.80 low, and some may have a stricter cutoff (0.50?). The bottom line is that these portfolios have lower beta than the market index and are thus far achieving higher total return.
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]
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]
I've debated whether to apply the stop-loss when rebalancing/creating a portfolio. It is more of a momentum check, but I figure if I use it to remove a stock from one model, than it seems hypocritical to not exclude the stock from another that is rebalancing. Yes, some would see it as an opportunity. But, in the short-term, selling it was the correct move. I would need another rule to determine when to allow it back in, other than div increase, which only occurs annually, hence the problem at this rebalance.
On the flip side, in the near term (next 6 months), Intel would need to do something that moves its stock up, while the overall market could see some correction. It hasn't been doing that the last few months, so it does have something to prove in that respect. My guess is that it will be available for the portfolios at the next rebalance, hopefully near the same price range ($20-$23), which still offers a great yield.
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]
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]
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]
Dividend Growth Models Update: Low Beta, High DGR Portfolio Off To A Great Start! [View article]