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The Part-time Investor

 
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  • My Dividend Growth Portfolio Business Plan [View article]
    Connie,

    What you are describing with AAPL is called "Yield on Cost" (YOC). Many people use this when evaluating their portfolio, but I never do. To me (just IMHO) YOC tells you about the past, not the present. I want to know what my stock is doing now as compared to what other stocks could do for me. What I paid for it in the past is not a concern to me.
    Sep 22 09:51 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    dk,

    I'm sure I can't do a better job answering your question than Steve, so I'll just let his answer stand.
    Sep 22 07:16 PM | Likes Like |Link to Comment
  • What Is Risk For A Dividend Growth Investor? [View article]
    sorry djsulli. I hope you'll forgive me. lol
    Sep 20 06:58 PM | 1 Like Like |Link to Comment
  • What Is Risk For A Dividend Growth Investor? [View article]
    Bruce,

    Like what? If not MCD, KO and GIS what do you recommend?
    Sep 20 06:35 PM | 1 Like Like |Link to Comment
  • What Is Risk For A Dividend Growth Investor? [View article]
    I have a question for anyone and everyone willing to give an opinion. What would happen to the prices of DGI stocks if interest rates started going back up to more historically normal rates? Would the prices fall? By how much? Would they just stagnate? Or would they still rise, but at a slower rat than in the past few years? I know nobody knows the answer but I'd like to get as many opinions as possible.

    Same question concerning dividends. Would the DGR of DGI stocks fall if interest rates started to climb? Would the rise in interest rates cause some companies to actually cut their dividends? Not just REITs, but blue chips as well. Again, looking for as many opinions as possible.

    Thanks!
    Sep 20 06:23 PM | Likes Like |Link to Comment
  • What Is Risk For A Dividend Growth Investor? [View article]
    Great article DVK. Thank you very much.
    Sep 20 09:44 AM | 1 Like Like |Link to Comment
  • Utility Investing For Dividend Growth Investors: A Prospective Study [View article]
    Hardog,

    Must have been frustrating for you. But good thing you got out of it and into a good one (SO). Well done.
    Sep 19 11:04 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    Chowder,

    Although DGI is my chosen method, and dividend income is very important to me, I still believe that the total return of my portfolio is the most important goal, at least while in the accumulation pahse. If I invest $100,000 in my DGI portfolio and $100,000 in SPY, and in ten years the DGI portfolio is worth $300,000 but the SPY portfolio is worth $400,000, then IMHO I would have done a poor job managing my DGI portfolio. And this is something that would have been good for me to know before the 10 years was up.

    I am convinced that a well run DGI portfolio will out perform the market, as represented by SPY, both in terms of income and total return. But that doesn't mean that MY DGI portfolio will out perform the market. I need to have some way to know that I am doing well, and that I have, in fact, put together a good DGI portfolio. And in order to do that I need to compare it to a benchmark. I have chosen SPY as a representation of the total market, and SDY as a representation of the DGI market. These may not be the best benchmarks to use, but at least for now they will do.
    Sep 19 08:23 PM | 2 Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    Thanks Chowder,

    "On volume alone, the benchmarks can't keep pace with the volume or value of a dividend growth portfolio. You can under-perform on a relative basis, but you'll outperform on an absolute basis when it comes to amount of dollars in the portfolio."

    Can you elaborate? I'm not sure I understand what you mean by this.

    Thanks
    Sep 19 02:09 PM | Likes Like |Link to Comment
  • Utility Investing For Dividend Growth Investors: A Prospective Study [View article]
    mbn,

    Thanks for your comment. I'll look into doing the telecoms.
    Sep 18 07:40 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    George,

    The 4% I mentioned refers the yield of the entire portfolio. Not the individual stocks. I'm sure I will always have stocks with yields below 3% in my portfolio, but they will be balanced out with stocks with higher yields.
    Sep 18 07:38 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    hxm,

    Please see southieg's (Chowder's) response.
    Sep 18 07:35 PM | 1 Like Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    Bob,

    Thanks for that response. You are, of course, correct on all of those points. But I do consider total return to be one of my goals, so if I am lagging SPY over a long period of time in terms of total return, then I might have to consider changing what I'm doing. I don't believe that will be the case, but I am going to follow SPY and SDY to make sure I'm doing OK.
    Sep 18 07:35 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    Hi Dale,

    You make a good point. In the future I will include a section about benchmarks.

    I do compare myself to bookmarks for the following reason. If I'm significantly trailing the market over the period of a few years then I should probably change what I'm doing. I want to keep things simple, and there is nothing simpler than putting all my funds into SPY. And if that is going to give me better results than my KISS portfolio then that is what I should do. So yes, I do follow a benchmark to measure my success.

    I compare my results to SPY and SDY. So far, over the two year period I have been doing this, I am beating both. This will be shown and updated in my early October portfolio review.
    Sep 18 07:32 PM | Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]
    pvan,

    Thanks for your comment. I appreciate you stopping by.

    Concerning payout ratio, the way I see it is that I want my companies to have a margin of safety in how much they are paying out. If they are paying out 90%, and have a tough year with a decrease in earnings, they may be forced to cut the dividend. I would prefer that even if there is a weak year, they still have enough of a cushion in the payout ratio to continue to pay, and even increase, the dividend.

    I can't argue with your point about understanding the business operations of the company, but I am trying to develop a KISS business plan. I want it to be simple. FOR ME (Just for me!) trying to understand all of the business operations of all my companies is simply too complicated. I would rather just go by the numbers and keep it simple.
    Sep 18 07:21 PM | Likes Like |Link to Comment
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