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  • Old-School DGI Method: Leveling The Income Stream [View article]
    Robert - Nice table you've put together...and your 'except for those that don't' comment is of course, spot on...
    Oct 28, 2013. 04:07 PM | 1 Like Like |Link to Comment
  • Temptations That Dividend Investors Need To Resist [View article]
    Cranky - this month's AAII newsletter has an article profiling a DGI screen they derived from Chowder's bible - Lowell Miller's "The Single Best Investment". For the members of our readership that don't subscribe to AAII, or perhaps those that do but have not invested in their Stock Investor Pro software (the platform they used to create the screen) I'll try to recreate it in Morningstar's premium screener and/or StockRover over this coming weekend and share the results. I expect some degree of imperfect replication...won't know exactly what criteria won't be available until I get under the hood....
    Jun 20, 2013. 08:07 PM | 5 Likes Like |Link to Comment
  • Very Undervalued Stock Yielding 5% Plus A 7.3% 'Special Dividend' [View article]
    Tipper - other than in his 'screen name', I haven't seen or read anything Mike has posted that sounds at all like academic badge flashing. To your point, his articles are generally astute, to the point, and well researched. Where do these alleged displays of 'vast intellectual capacity' and presumably snubs to us common folks show up?
    Jun 10, 2013. 08:00 PM | 2 Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Disallusioned - appreciate the comments. I apologize for not having had time to reply to your post sooner - or to look at the content you linked.

    If that 0.25% or 0.0625% per year were compounded over a twenty or thirty year period the difference would be far more significant.
    May 28, 2013. 07:54 PM | Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Trapper - appreciate the remarks. I was fortunate to get referred to Ebie at a time when I was both eager to learn AND still single with a high enough income to not especially mind the full service brokerage fees that were still around in those days. Today I balk at paying more than 0.5% of a trade's value on either side, and try to keep fees lower than that percentage wise...not always possible when you're easing into a position.

    If you look in the original article follow the link to David Fish's page - lots of good tools there all free to download. The crown jewel of Mr. Fish's page is the Champions, Challengers, and Contenders Excel workbook. If you're a numbers guy, you can do a lot of data mining in that workbook to help you select from Mr. Fish's universe of DGI stocks. Anything on the list is pre-screened for dividend reliability - but there's a lot more that you should look at as part of your due diligence before jumping into a stock.

    I'm waiting on delivery of a book that I probably should have read a long time ago - I found it linked on Chowder's (another forum member's) home page - that should be an interesting and enlightening study in DGI investing. "The Single Best Investment". Find the link here:
    May 28, 2013. 07:51 PM | 3 Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Thanks RNS - is your VOD position the ADR or the foreign listing?

    May 28, 2013. 07:39 PM | 1 Like Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Miguel - started looking at them. The ones I can trade via Fidelity w/o fees are (last time I checked) limited to bond etf's, and I've got more than enough bond exposure for the moment in a balanced fund I've had in my 401k for some time.
    I'd consider doing ETFs to cover a particular sector or investment type I'm underweighted in (e.g. I am long VIG and SPLV for a low volatility with income play that's a bit more diversified than my individual stocks and both funds screen for high quality companies...I think in another post I alluded to 'active indexing' - these are what I was referencing as they are both S&P 500 subsets.
    May 28, 2013. 07:38 PM | Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Bill...thank you for commenting.

    Boys will be boys sir. Frankly, I'm enjoying the exchanges. Been awhile since my last online rhubarb.

    May 26, 2013. 03:23 PM | 1 Like Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Miguel - thanks. I agree that picking great companies is goal #1. Once you've got that core built you have a few options to explore - add some complementary stocks to the sector stalwart you've been building a position in to manage risk a bit by way of diversification, or to take advantage of a market cycle in which several stocks in an Industry group are outperforming...whatever. Adding payment schedule to the selection criteria - only after the primaries screens have been satisfied reduces variance, improves your DCA batting average assuming you're reinvesting dividends in the stocks that pay them, etc.

    By all means walk your own path though. Cheers.
    May 26, 2013. 03:22 PM | Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    DH - pardon the lapse in replying, and thanks for your comment. I didn't exactly propose an equal allocation to groups A, B, and C - particularly since, as you point out, most of the 'majors' are in group C.

    I assume the distribution schedule companies select is tied to whether or not their accounting is aligned with the normal calendar year or some offset fiscal year to account for the sales cycle of their particular Industry group. There may also be differences of opinion or accounting advantages / disadvantages tied to their cash flows that influence when they want to take the expense entry of the dividend distribution. Perhaps Mr. Fish or another respondent can enlighten us on exactly how/why the different schedules are selected by a dividend-paying public entity.

    In any case, I do make it a point to state that it's unlikely that a completely evenly weighted allocation across the three groups is possible without compromising your primary selection criteria in some way.

    The objective, as I've replied elsewhere, is to have SOME dividend income in all calendar months...even if most of it is weighted to 3, 6, 9, 12.

    May 26, 2013. 03:16 PM | Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Wow. The hook is set killjoy. Here's my fourth bite. Perhaps my ad hominem attack was a bit over the top. That's something I'll work on in the interest of future polite discourse with other members of the forum.

    Here's the thing though - you keep coming back to my failure to address the issues raised. You raised exactly one issue in your first reply - the degree of forecasting you insist is key to the attempt at leveling the curve serving any purpose. having any upside at all, or any chance of success. I quote:

    " You must also ACCURATELY forecast the exact month in which unusual expenses will fall...medical expenses, dental and orthodontic expenses, appliance replacement, vacation expenses, major home repairs, car repairs/replacement of tires & battery, property taxes, income taxes, homeowners insurance, and so forth.

    If you could do that accurately, you would still need to buy select stocks on the basis of their dividend amount and payment dates. Failing to do all that, and to do it accurately--WHAT'S THE POINT?"

    Why do you believe it necessary to shoot for that level of detail in an investment income stream?

    Why - in your opinion - does the scheme break down if it fails to exactly fulfill each and every financial obligation in the exact month in which it occurs?

    The objective of smoothing the curve is simply to reduce income variance from month to month. And any DGI stock selection that results in months other than 3, 6, 9, 12 having dividend income >$0 serves that purpose.

    If what you say regarding the method I proposed (admittedly shamelessly 'stolen' from Ebie - my first broker and mentor) is true, then it can only make sense that I and every other working stiff negotiate with our employers to re-allocate our paychecks to exactly match our recurring and unusual expenses as they occur over the course of each year. Right? And if anything changes, back to the drawing board!

    In your version of this scenario, failure to do such meticulous planning and forecasting with our DGI stock selection renders the herculean effort of considering a few stocks from column A and column B (assuming these stocks in all other regards satisfy an individual investor's screening criteria) for inclusion in one's portfolio a complete waste of time.

    Is this not your core argument - and the 'issue' that you insist I have repeatedly refused to address? Please enlighten me if I'm missing your point.

    Or would you simply prefer that I throw in the towel and yield to your obviously superior intellect and investing acumen?
    May 26, 2013. 03:02 PM | 1 Like Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Rich..."your over-sensitivity"? Really?

    First time poster Free Pass? Give me a break..I've been a participant on many forums in the past, and there's inevitably at least one participant that takes a loud and narrow-viewed opposing position to anything and everything posted by anyone. I think I've found that guy.

    Typically it's a member that rarely if ever posts an original thought or *cough* article, but lays in wait to critique the works of others. I am all for devil's advocacy to the extent that the role invites critical thinking and reasoned discourse. I believe you lack the objectivity to engage in either.

    Maybe it's early in my history with posting and writing on SA to say this, but for the love of Pete, be gone troll.
    May 25, 2013. 02:30 PM | 3 Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Rich - with all respect, I think your counter-point is far more one-sided than any suggestion my article makes.

    I just don't see that there's the need for the sort of agonizingly detailed forecasting you insist is the ONLY way this could work.

    And just an FYI - my 'beta savings' reference applied to reinvested funds - not so-called 'new money'. (In my opinion, it's all new money since you're free to reinvest it or not...)

    One does not have the option of applying limit order pricing to reinvested funds...and obviously one would do whatever one could to ensure they're not over-paying for accumulation or new stock buys made made by way of other-than-dividend cash-infusion to a portfolio.

    Since we live in a democratic republic, you are free to use any method you wish to select your stocks, and manage your fund flows now and in the future. I simply offered the readership here an approach that my mentor passed to me, and that for some *may* enhance their DGI experience and success.

    Since it's clearly not your cup of tea, let's just agree to disagree.

    To me, it's fairly obvious that this information is useful to a fair number of investors. I recall coming across the data in the Money Paper's guide to DRIPs many years ago, and was delighted to have a single, more-or-less authoritative source of this information.

    Naturally, Mr. Fish takes the time to include this info in his Champions workbook as well. I've done enough work in Excel to know that I dread the mindless tedium of entering all of those data points and keeping them again, a respectful hat-tip to David.
    May 25, 2013. 05:15 AM | 1 Like Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    SDS - thanks for the comments.

    I wrote:

    "Granted - it's not always possible, or advisable, to discard a stock you've screened as an eligible "buy" for your portfolio simply because the payment schedule is inconvenient."

    What part of that statement suggests that one should disqualify a compelling buy, or dump a stock b/c the company changed their payment schedule? :D

    I know what you mean about non-US DGI stocks, and I have thus far limited my exposure to these to investing in ADRs if they're available, or by using 'active index' ETF's as a proxy for high quality developed and emerging market DGI stocks.

    I lack the patience to wait a year to watch the share counter move up. Which is not to say that I won't do so for a fair risk-adjusted return, but it's like watching a pot waiting for it to boil...
    May 25, 2013. 05:15 AM | Likes Like |Link to Comment
  • Old-School DGI Method: Leveling The Income Stream [View article]
    Rich - thanks for your feedback on my first ever post here. Perhaps I was under-analytical, or you're complicating this way too much.

    Accurate forecasting down to the day bills come due is not really what I had in mind, and if it's (in your opinion) necessary to delve into such a high level of detail as a prerequisite to using this method of DGI, what makes 'random walk' DGI stock selection any different?

    To paraphrase Heinlein, "Budgeting is."

    It's something you've got to do whether you get paid daily, weekly, monthly, quarterly, or annually. The method I was taught, and what I've put into practice is simply an attempt to ensure (based on my known spending habits) not run out of cash before I run out of time before the next payday. One less thing to worry about, fret over, or feel fettered by in retirement surely can't hurt.
    May 25, 2013. 03:34 AM | 1 Like Like |Link to Comment