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Lowell Herr

 
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  • 9 Dividend Aristocrats Reward Investors [View article]
    Yes, it is total return for all comparisons.

    Lowell
    Sep 3, 2014. 01:41 PM | Likes Like |Link to Comment
  • 9 Dividend Aristocrats Reward Investors [View article]
    Just for interest I ran five-year comparisons of the nine (9) Dividend Aristocrats with VTI. Four fell behind VTI, four performed better than VTI, and one matched VTI.

    Lowell
    Sep 3, 2014. 10:03 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Here is a simple, yet globally diversified portfolio that might appeal to conservative investors. With a little tweaking one could move the yield up to 3%.

    http://bit.ly/1pIb7Nb

    Lowell
    Sep 3, 2014. 08:34 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Bob,

    Thanks for answering my question directly.

    As for a lower pullback, I agree. I've run some correlations using Dividend Aristocrats (DA) and broad index funds and I find it surprising how many times DA stocks carry a rather low correlation with the index fund or index ETF.

    BTW, I've held several DAs in the portfolios I track so I am not a complete naysayer. (g)

    Lowell
    Sep 3, 2014. 07:54 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Bob,

    I agree - you were correct to reject the advice provided by the advisors as they were much too conservative in my opinion. I am not a fan of bonds and I have my own story.

    I was not able to discern your answer to my question as to how long you have been a dividend growth investor. If you prefer not to answer, that is OK.

    Lowell
    http://itawealth.com
    Sep 3, 2014. 07:07 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    BoomBoom,

    If VTSMX is a plausible benchmark for DG stocks then we don't need to worry about its volatility or yield. One comment about volatility. It is generally measured by standard deviation of the or the amount of variation from the mean. As investors, we are only concerned about the variation from the mean to the downside, not variation to the upside. Variation to the upside is what we all desire. One correction. While I am in a saving mode I want the market to decline so I can purchase more shares at a lower price. (vbg)

    As for owning only VTSMX, it provides broad diversification across the U.S. Equities market, but I agree, it still leaves gaping holes in a what one hopes is a well-diversified portfolio.

    Lowell
    Sep 3, 2014. 07:02 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    As well you should be pleased with the results.

    How many years have you been a DGI?

    Lowell
    Sep 2, 2014. 07:47 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    "My, serious, question is why?

    IMO, the standard for a portfolio should be that it meets the needs of the individual."

    Assume I use VTSMX as my benchmark. I want to know if all the effort I spend setting up a DG portfolio is paying off. If the DG portfolio does not exceed the VTSMX index (or some other appropriate benchmark), then what am I doing?

    Lowell
    Sep 2, 2014. 05:17 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Part-time,

    I use SHY as a "circuit breaker" or cutoff ETF. Using three metrics, two performance and volatility I rank the securities. When a stock or ETF under-performs SHY I sell the security. This has worked extremely well in every back test I've run. Now I am testing it going forward.

    Lowell
    Sep 2, 2014. 03:22 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    I should have stated the the Buy and Hold results for the DGI stocks is nothing short of "heart stopping."

    Lowell
    Sep 2, 2014. 01:04 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Bob,

    Here are some possibilities. 1) I would use the VTSMX as one benchmark as it represents the total U.S. Equities market. My DGI portfolio should beat this benchmark. 2) I would check the stocks contained within VYM, VIG, and DVY to see if any of these ETFs include the stocks that make up the DGI portfolio. Forget about percentages at the moment, but see if the DGI stocks are part of these dividend oriented ETF. The ETF that holds the largest number of DGI stocks could be used as a second benchmark.

    One might come very close to coming up with an appropriate benchmark using these suggestions. I find the VTSMX very hard to beat, particularly over the past six years as my portfolio hold investments other than the U.S. Equities. Bonds and international equities have not kept pace with the VTSMX.

    Here is a link to a blog entry I wrote on benchmarking a portfolio. Hope this helps a bit.

    http://bit.ly/1lGjo3r

    Lowell
    Sep 2, 2014. 12:58 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Boomboom,

    " DGI stocks are lower beta than the general S&P500 so it's not accurate to measure against it's index."

    I don't know if it is the lower beta, but I recently ran a study going back to late July 2003 using nine (9) dividend aristocrat stocks. These 9 performed extremely well when compared to the VTSMX index fund. I like the VTSMX index as it is tougher to beat than the S&P 500. The results are just short of "heart stopping" if one applies the SHY cutoff model. Return is improved and volatility is much lower than buying and holding.

    Lowell
    http://itawealth.com
    Sep 2, 2014. 12:45 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Robert,

    "The Portable MBA in Investment" is a collection of essays edited by Peter L. Bernstein. In this book is a long essay by Nancy Jacob, 'Evaluating Investment Performance.' I highly recommend the book and this essay in particular as it points out a series of standard requirements for benchmarking a portfolio and one is that the benchmark be investable.

    Lowell
    Sep 2, 2014. 11:57 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Whatever is the most appropriate index. Is the "S&P Dividend Aristocrat Index" investable?

    Lowell
    Sep 2, 2014. 11:46 AM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call? [View article]
    Giorgiolb,

    The one thing I would add to the "show us your portfolio" is an accurate tracking of an appropriate benchmark. For dividend growth investors the S&P 500 works. Most affordable portfolio tracking software does not include this essential factor.

    Lowell
    http://itawealth.com
    Sep 2, 2014. 07:57 AM | Likes Like |Link to Comment
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