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  • Enhanced Income Strategy For VF Corporation - Update 4 [View article]
    Good luck! I'll be waiting patiently.
    Feb 19 08:23 AM | Likes Like |Link to Comment
  • Market Strategies - The Philosophy [View instapost]
    Ha, thanks for sharing. I hope there actually is someone getting you those beers, though, or you've probably been dying for a drink for quite some time! I'll look into this guy. So far, your leads that I've chased re: TA and SBI have been interesting. Dare I say I trust an anonymous stranger on the internet...
    Feb 19 08:22 AM | 1 Like Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Actually, while I was thinking about this scenario earlier, I realized that my number was off. When I sorted the list of growth rates in excel, it put all the n/a's at the bottom. The median of those with actual 10-year growth was 9.6, a little closer to expected reality. Further, if I added all the n/a's to the beginning of the list, the median is then 6.7, right in your range.

    I think your cash-flow funding plan sounds about right. That seems to be the most efficient way to take advantage of both classes.

    I would definitely rather run these scenarios on whatever it is that uses algorithms, but I have no idea how I would even begin that. I enjoy math, but I stop after the four basic functions! And if it has anything to do with computer programming, it's a foreign language, and I don't have the time right now to learn a new one. If I learn any new language, it will be Spanish. I hope that doesn't come off sounding racist or anything. But both where my job is located and where I live has a high Spanish population, and it would definitely help relate to the folks I live with a bit better. But that's neither here nor there.
    Feb 19 12:23 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I do like food while I'm thinking. VWEHX seemed completely outperformed by SPY on all time frames back to 2000 (I used google finance). I was surprised, though, that it outperformed HYG and JNK so matter-of-factly.

    I've actually been thinking recently to liquidate my two small positions in CEFs in an IRA and purchase some DG stock (since I got interested in investing/finance, and realized my bathroom is overrun by PG, I've always wanted to own a piece of them!) and just let it run for the next 35 years. But I guess I can leave them for now and purchase straight equity the next time I feel like I need to contribute to it.

    Another thought I'm having is that I like buying in chunks of 100 shares, in order to take advantage of option writing. My main concern with that is what it will do to my allocations, and I haven't yet decided if it's worth the few points of premiums to take on that much more risk by limiting the number of different positions (because I will be more concentrated stretching for the 100 share cost).
    Feb 19 12:11 AM | Likes Like |Link to Comment
  • Market Strategies - The Philosophy [View instapost]
    At the risk of sounding extremely naive, who or what is this Percy?
    Feb 18 10:38 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    You are correct. Additionally, I have assumed that the stock price does not fluctuate at all. Clearly an unrealistic assumption, but one which I am not savvy enough to overcome in excel.

    As my comment above, I originally had a paragraph of assumptions written, which I left out for some reason. I think there were 2 (maybe 3) more; let's see if the rest will be brought up, in which case this will be the last time I leave out my assumptions ; )
    Feb 18 08:24 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I concur. I have a bad habit of planning, planning, and over-planning. It bugs my wife a lot, but I don't like going into a situation where I could've, would've, should've known better. Just trying to get the kinks out before it counts!
    Feb 18 08:21 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I completely understand why you dislike this sort of "analysis," if it qualifies as such. I am close with people who swear by high yield. For whatever reason, it has worked for these people very successfully.

    Fortunately for me, though, I'm very interested in the markets and investments long before I have the ability to throw my cash after my wild ideas. This way, I get to investigate all sorts of scenarios before it's go time. Anyway, I am surprised that, even in the stable environment that is the article's assumptions, the DG stocks "performed" significantly better. This is following all of the new information I've found regarding the strength of building "my own compound machine," and it is helping with my paradigm shift to a safer, more stable game plan.

    So, notwithstanding the lack of realism contained therein, the article is helping (me, at least) to realize on what I should focus. On top of the unilateral exercise, I get intelligent feedback! I'm hoping it's a recipe for success ; )
    Feb 18 08:19 PM | 1 Like Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Thank you for your input.

    I have to admit, I did not perform DD regarding ETY. An article was recently written (on SA) about it touting it as the one to buy this year, so I figured if/when I decide to buy into a CEF, it will be the first I look into. However, I also noticed that the distributions, NAV, and market price keep falling. As noted above, I was hoping to avoid using real securities in the article, because the whole premise entirely theoretical (for better or for worse)- it's merely intended to see the broad picture. One must look deeper into all facts related to his situation and investment options.

    But, not even considering your point yet, I ran into the following conundrum. Why should I bother putting money into any CEF (even one with stellar/stable performance) if I really intend to let it sit for longer than any "normal" dividend growth stock would return higher? Would it only be for the possibility that I need more income sooner? The amount that I will be putting in, at the beginning at least, will likely not warrant withdrawing the income from anyway.
    Feb 18 08:02 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]

    Thank you for pointing that out. I completely agree with you. In fact, in the original draft, I had a paragraph delineating my assumptions, including the one you mentioned. I had to scrap that article because it didn't deal with specific equities. In that one, I took the average of each of the three CCC lists and compared them to a random equity that may pay 9%. SA didn't like the fact that I didn't reference any real equities, though, and I had to rewrite the article. That being said, I probably should have left in the paragraph referred to, but I incorrectly assumed it would be obvious and of little value.

    As the "youngster" that I am, I personally have difficulty imagining anything maintaining high performance (or any stable performance, for that matter) for such long periods. What I am working toward is convincing myself that equities (specifically dividend growth) actually can. But of course, there is risk as to many aspects that relate to and effect performance, and it was negligent of me to not be more specific.

    I appreciate your dropping a line. There are a group of SA members who I have come to respect (more than the rest) and look forward to reading their contributions, be it in articles, blogs, or comments. You are in my group.
    Feb 18 07:54 PM | 2 Likes Like |Link to Comment
  • Market Strategies - The Philosophy [View instapost]
    Can you imagine sitting in the cabin of a plane and the pilot gets on the radio and says, "Welcome aboard. It looks like we don't have enough gas in the plane, but I think if we just go for it, we'll make it." NOBODY's going to stay on that plane. So why should we?
    Feb 18 03:52 PM | 2 Likes Like |Link to Comment
  • Market Strategies - The Philosophy [View instapost]
    Are you reading the copy with Zwieg's commentary? I'm not commenting whether he's a source to be reckoned with, but he brings facts proving Graham's ideas 60 years later. Phenomenal.

    And chowder, thanks for another good one!
    Feb 18 03:50 PM | 1 Like Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Just this morning, I read basically your exact point in Single Best Investment- a certain amount of dividend growth is essential, but there is the inherent uncertainty of the maintenance of such growth (more than continued dividends).

    Lowell went on to add that even if you can find a company that grows at a high, consistent rate, it can take so long for it to surpass a higher yield/slower growth company, only adding to the strength of your (and Lowell's own) point.

    Thanks for the feedback, and from what I've seen of your site, it looks to be very helpful. I plan on spending significant time checking it out once I get more serious about initiating positions.
    Feb 18 03:29 PM | 1 Like Like |Link to Comment
  • Establishing A Core Portfolio [View instapost]

    I don't know if you've read chowder's other posts, nor do I know your policy on opening links posted by strangers, but I posted a link to a pdf of SBI on another of chowder's instablogs here entitled "dividend growth investing- getting your mind right." There are definitely certain advantages to having it on your computer, and saving the ten bucks, but that's each person's call obviously.
    Feb 18 09:30 AM | 1 Like Like |Link to Comment
  • Procter & Gamble: A Great Company, But A Bit Expensive At Current Valuations. [View article]
    Good point. Thank G-d, little debt. My wife has approximately 13k in loans. We're making monthly payments on it, and actually this morning I started with another "principal only" payment, which I hope to do at least once a month.

    From these same "close people," it came recommended to not blow 13k paying the debt off at once, taking 2 considerations into account. First, and the lesser, is the tax deduction makes the interest payments too burdensome. Second, having a sum of 13k is not so easy to come by, whereas paying $193/month is very doable. If the situation were reversed, so to speak, and I pay the loan off, and then try to contribute the $193 to an invest-able sum of 13k, it would take several years to add to that amount, and it would require a lot of discipline (although it shouldn't require much more discipline, since in either case it can be auto-debited!).

    Other than that: debt-free; we're sitting on cash (13k+a little); and the "post-practice funds" sitting with a wealth manager or whatever he calls himself nowadays (for some reason, it's assumed by all parties involved that this money will stay there and be available for the down payment, notwithstanding or not really caring about any decrease in principal).
    Feb 15 11:28 AM | Likes Like |Link to Comment