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  • Balancing The Yield And The Dividend Growth Rate [View article]
    Butterfly,

    I may have screwed up the calculations, I'll review them to see. But I think the basic conclusion of the article would still hold true, that I can include lower yielding stocks in my portfolio if I get a larger DGR from them.
    Feb 10, 2015. 05:34 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Chowder,

    Exactly. I can always make adjustments as necessary. But I have a path laid out, so I can at least know if things are going the way I want them to.
    Feb 10, 2015. 05:29 PM | 1 Like Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Unfortunately I can't move my account. My corporate picked this company.
    Feb 10, 2015. 04:41 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Thanks Chowder and Boom. I will talk to them about this.
    Feb 10, 2015. 04:41 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Rich,

    I appreciate your comment about earning. And I know that dividends come from earnings. But if the earnings decline, causing the dividends to decline (or the growth to slow), then it will become quiet evident. The dividend will tell me the story. That is why I say I focus on the dividend, because in the end it will tell me everything I want to know.

    Take CVX as an example. With oil prices falling I expect that CVX's earning will suffer somewhat. Should I sell the stock? In my opinion, no. Because they still may find a way to support the dividend. If they cut the dividend I will sell it. But I'm not assuming that a fall in earnings will automatically affect the dividend. I just have to wait and see.
    Feb 10, 2015. 04:40 PM | 3 Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Thanks FD
    Feb 10, 2015. 04:34 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Wow. That Aristotle sure spoke good. lol
    Feb 10, 2015. 12:17 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Larry,

    Because it has worked well for me. If it's working I go with it!
    Feb 10, 2015. 12:15 PM | 1 Like Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    RAS,

    Good point!
    Feb 10, 2015. 12:14 PM | 1 Like Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Butterfly,

    Thanks as always for your input. You make many good points. I will address some of them.

    "Is your DGR including the reinvestment of your dividends?" No, it is organic growth of the dividend without reinvestment. And the exact same formulas were used for all the examples, except for the yield and DGR.

    "In a nutshell - I think your approach overly punishes high growth stocks you could purchase NOW due to a methodogical flaw as it gives weight to some FUTURE contributions when what you really want to know is whether you should buy that stock NOW. If you target some income level in 2031 don't buy low yield stocks in 2030 but don't make the mistake not buying them in 2015."

    All money gets invested, including dividends and new contributions. In the initial example, which is my present portfolio, it is invested at a 3.5% yield and a DGR of 10.5%. This is my portfolio NOW. The other examples are what would happen if I invest in the lower yielding higher growth stocks. So both scenarios are investigated. And it shows that the DGR must be much higher with lower yielders to achieve the same results as the high yield low growth portfolio. So I think basically I agree with you, but it also shows how low yielders can be incorporated.
    Feb 10, 2015. 12:13 PM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Andrew,

    All the money is in tax free or deferred accounts. Everything will accumulate tax free until I retire.
    Feb 10, 2015. 11:59 AM | 1 Like Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    RAS,

    I would expect the individual DGRs of the 60 stocks in my portfolio to even out the bumpiness.
    Feb 10, 2015. 11:58 AM | 1 Like Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Craig,

    That is correct. If stock A drops it's DGR to 5% stock B might raise it's to 20%. Over all I may be able to maintain my total DGR. Time will tell.
    Feb 10, 2015. 11:57 AM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    High,

    You may be right. I don't know what my growth rate will be over the next 16 years. I just know that right now it is 10.5%, so that is the information I'm going with. I know that it's unlikely for any one stock to maintain a DGR of 10.5% for long, but a whole portfolio possibly can by fine tuning the holding. I'm not sure why people say I can achieve a DGR of 10.5% this year, but not in year 5 or year 10 or year 15. Why would my DGR be higher this year than other years?

    Now I'm not saying I will mess with my portfolio too much over the years, just to keep the DGR high. I'm just saying I will monitor it and see what happens, and be open to possible changes.
    Feb 10, 2015. 11:56 AM | Likes Like |Link to Comment
  • Balancing The Yield And The Dividend Growth Rate [View article]
    Craig,

    You are right. And that is why I will be monitoring my portfolio to watch for that.
    Feb 10, 2015. 11:47 AM | Likes Like |Link to Comment
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