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  • Your Guide To The Best And Worst Stocks In The Dow [View article]
    Or if you want to add another variable, pick 10 highest yielders and pick the lowest payout ratios ( don't have multi decade stats for this combination unfortunately ) but Dale Roberts has provided a graph ( exhibit 2 ) here:

    That's probably all of the performance tweaking that you need to do on a 30 stock large Cap universe because additional screening variables would reduce the number/diversification down further.
    Sep 12 03:16 PM | Likes Like |Link to Comment
  • Your Guide To The Best And Worst Stocks In The Dow [View article]
    Just buy the 10 highest yielders at the beginning of the year and repeat every year. Pretty simple. 12.8% CAGR since 1958 (which matches the highest quintile of portfolios of the dividend champions ) ...
    Sep 11 09:40 PM | 5 Likes Like |Link to Comment
  • Indicators Of Overvalued U.S. Equities [View article]
    Sep 10 04:18 PM | Likes Like |Link to Comment
  • Yield On Cost: A Vitally Important Consideration For Retired Investors [View article]
    The right hand column below is the dividend income divided by the portfolio value. It will would be interesting to see if that figure stays within the 2.6 - 3.69% range +/-. Because as shown in the article, if dividends grow at 10.2% and portfolio value grows at 8%, then in 167 years, the dividend payout will be equal to the portfolio value ( that number will = 100% ).

    2005 3,000,000 80,000
    2006 3,381,700 88,800 2.63%
    2007 3,710,991 105100 2.83%
    2008 3,921,058 134050 3.42%
    2009 3,370,644 124513 3.69%
    2010 3,921,058 134000 3.42%
    2011 4,367,720 147000 3.37%
    2012 4,539,210 161280 3.55%
    2013 5,542,057 174271 3.14%
    Sep 9 05:49 PM | 1 Like Like |Link to Comment
  • The Attempt To Draw Mom And Pop Investor Into A Risky Market At Its Top [View article]
    continuous loop of information:

    Bypass all of that with systematic approach
    Sep 8 01:09 PM | 1 Like Like |Link to Comment
  • Allocation Or Stock Selection - An Example [View instapost]
    As ETFs accrue further historical performance and dividend payout ratios continue to decrease at the expense of companies opting to repurchase shares, methods like the Naïve Graham allocation strategy will make more sense to investors as a compliment and diversification to holding exclusive dividend growth and income portfolios.
    Sep 7 11:29 PM | Likes Like |Link to Comment
  • 9 Dividend Aristocrats Reward Investors [View article]
    We've been researching this topic. We think that the "late starters" need growth and possibly small cap value "styles" in their portfolios if they want to accumulate enough for a decent lifestyle.
    Aug 26 11:56 AM | Likes Like |Link to Comment
  • This Bubble Is 'Beyond 1929 And 2007' [View article]
    Actually, "risk off" can be applied when ( amongst a combination of other components ) the S&P500 > than it's 40 year CAGR for 2 consecutive years. Components 1 and 2 here:

    2012 and 2013 fit this profile = 2014 risk off
    Aug 25 01:19 PM | Likes Like |Link to Comment
  • Even More Ammunition For This 5-Year Bull Market [View article]
    If anyone can use AAII sentiment surveys in a precise and empirical way in determining the direction for the stock market, more power to them !
    Aug 25 01:04 PM | Likes Like |Link to Comment
  • Buybacks Vs. Dividends: PowerShares BuyBack Achievers Portfolio Comes Out On Top [View article]
    Thanks for "new" insightful research ... related article
    Aug 20 07:59 PM | Likes Like |Link to Comment
  • Retirement Strategy: How Dividend Income Grows To Staggering Levels By Reinvesting And Compounding [View article]
    Yes, and it all equates to total return. Accumulating the most $ total return (within your risk tolerance and preferably in a tax deferred account), whether it be with MLP's, growth stocks, futures, quality dividend stocks, small caps, emerging market stocks, precious metals, etc., in your accumulation phase up into the withdrawal phase of retirement, is the goal. The gains accumulated via these means (if other than quality dividend stocks), can then be applied towards purchasing a portfolio of quality dividend stocks with the attendant income stream. Armed with the knowledge that an average historical total return for a well diversified dividend growth portfolio is between 10% and 12% (includes the "staggering growth" that results from reinvestment) can lend perspective in weighing returns via other options in getting to that goal.
    Aug 18 09:39 PM | Likes Like |Link to Comment
  • Dividends Matter, But Not For The Reason You Think [View article]
    Diversification can also mean holding other stock universes that can ultimately provide more total return in the future than "quality" dividend growth stocks exclusively. Investor "A" with $1+ million and secure pension and employment within 5 - 10 years of retirement, will have different goals from investor "B" who has gotten a "late start" in asset accumulation with, say, less than $100K and no pension. Investor "B" investing exclusively in a large portfolio of dividend growth stocks ( represented by DRIPX fund with 63 stocks ) at 10% CAGR probably won't make up the asset accumulation shortfall easily within 20 years. By diversifying into a Small cap ETF with a proven methodolgy and low fee structure (NYSEARCA:VBR) and a growth ETF (NASDAQ: with same, investor "B" can get further towards their goals.
    The links below shows various stock portfolio universes and corresponding compound annual growth rates. "Dividend growth favorites" represents CAGR of a highest optimal return for a 10 stock dividend growth stock portfolio. DRIPX is a "real time" fund representing a more realistic portfolio of 63 quality dividend growth stocks and corresponding CAGR with inception in 1999. As we can see, over various time frames, the DRIPX garners about 60% of the highest optimal DG portfolio and performs at the lower end of the 3 universes.
    As the different styles go in and out of favor, the diversification would cover the market "favoritism" and provide a higher CAGR.

    If investor "B" were more "intrepid", then they could use empirically derived tactical asset allocation with risk mitigation in the same manner here:
    Aug 16 06:25 PM | 1 Like Like |Link to Comment
  • Dividends Don't Matter In Retirement Either [View article]
    Maybe it could become a new cognitive bias; "Dividends as free money illusion"
    Aug 13 11:33 AM | 1 Like Like |Link to Comment
  • Retirement Strategy: The Absurdity Of Believing That Dividends Don't Matter In Retirement [View article]
    That chart has been used numerous times. It really should be annotated with CAGR. 10.5% - 11.5% CAR seems to be about the return that has been norm in these articles depending on what/ # of stocks are in the portfolio. Now back in 1972, if you would have bought and held 10 of the "survivor" stocks that happen to be DG "favorites", the return would be 14+%.
    Aug 13 11:22 AM | Likes Like |Link to Comment
  • Retirement Strategy: The Absurdity Of Believing That Dividends Don't Matter In Retirement [View article]
    Yes, but even the ex-div date stock price adjustment is debated in these articles / comments !
    Aug 12 01:28 PM | Likes Like |Link to Comment