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SDS (Seductive Dividend Stocks)
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Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? /... More
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  • Illustrative Comment To "Open Letter To ETF Industry: Create A Better Dividend Growth Product" By David Van Knapp 6 comments
    Sep 11, 2012 11:43 PM

    I'm reading excellent book "The Dividend Investor: A practical guide to building a share portfolio designed to maximise income / Rodney Hobson (2011)" and just found there that probably good DG funds with 27-45 years of DG history indeed exist in UK - more info shown in figures below

    (click to enlarge)

    I investigated City of London Investment Trust (see pictures below).

    (click to enlarge)

    Their fees is ~ 0.35% of assets + performance fee (absolute cap of total fees payable in any one year is 0.63% of average net assets) , yield (8/16/2012) was 4.55% and they indeed have good DG approach.

    UK trusts (which essentially closed-end funds) with long DG histories are listed below

    Company Years dividend growth

    -------------- -------------------------------
    City of London 45
    Bankers Investment Trust 45
    Alliance Trust 44
    Caledonia Investments 44
    Albany Investment Trust 41
    F&C Global Smaller Companies 41
    Foreign & Colonial Investment Trust 40
    Brunner Investment Trust 40
    JP Morgan Claverhouse Investment Trust 38
    Witan Investment Trust 37
    Scottish Mortgage Investment Trust 29
    Merchants Trust 29
    Murray Income 28
    Scottish Investment Trust 28
    Temple Bar 27

    I took info from p. 6 of "The City of London Investment Trust plc - A Guide for Financial Advisers and Investors" May 2012.

    IMO existence of such trusts show that long-term DGI in conjunction with proper money management can be sustainable in time.

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Comments (7)
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  • berloe
    , contributor
    Comments (1618) | Send Message
     
    So where and how do I invest in City of London etc?
    29 Jan 2013, 07:00 PM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (3298) | Send Message
     
    Author’s reply » Well I presume that you are in US.
    As far as I know Fidelity gives such opportunity for US investors but I don't have account there. I contacted directly but they open only for UK residents. Probably some other trusts (see also list at http://bit.ly/PVSkfE) accept US investors but I didn't contact them. Please let us know if you figure out something usable.
    30 Jan 2013, 09:26 AM Reply Like
  • Yashuk
    , contributor
    Comments (2) | Send Message
     
    For US based folks, These funds are called Investment trusts are traded as shares in London market not as ADR american depository receipts. So you would have to use a broker that allows trading in UK shares. Some allow time cost averaging investment at low cost. Risks you need to be aware of are currency and share price can go to premium or discount to NAV. Aitc.co.uk list these class of funds.
    24 Apr 2013, 07:27 PM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (3298) | Send Message
     
    Author’s reply » Thank you, Yashuk!
    I was told that Fidelity might help US investors but they are quite expensive.
    SDS
    25 Apr 2013, 12:38 AM Reply Like
  • Yashuk
    , contributor
    Comments (2) | Send Message
     
    SDS, I face similar cost issue wrt trading US ETFs VIA UK brokers charging 1.5% for currency conversions. Ps the correct web site address is http://www.aic.co.uk, the one stated in my original response is out of date. This US subscription newsletter uses a system of growing dividend payers...http://www.iqtrends.com but historical record varied. Society Generale have F score screened "sustainable" income paying companies they have created a fund from but UK brokers not that helpul in identifying the correct ticker code. The only reference I have is SGQI.
    26 Apr 2013, 03:00 PM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (3298) | Send Message
     
    Author’s reply » WisdomTree created 2 ETFs /DGRW and DGRS/ with "dividend growth" in the fund names based on their home-made DG indexes. Several US companies included in these indexes did NOT increase their dividends in the past. I don't understand why WisdomTree "dividend growth" or any other ETF/MF company do so pure job.

     

    29 July 2013
    29 Jul 2013, 12:01 AM Reply Like
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