Factoids'  Instablog

Factoids
  • on Dividend Investing Strategy
Send Message
I am a private investor who has invested in individual stocks for over a decade. I have a BBA from the University of Texas at Austin. I am retired and living off of dividends and distributions from a portfolio of BDCs, consumer staple stocks, MLPs, regional banks and REITs.
  • Dividend Growth - The 750,000 Examples For 3 Portfolios 5 comments
    Feb 16, 2014 9:45 AM

    Due to early reader feedback, here is the data you requested.

    A 60s example Plan B - ten years 750,000

      Current   LTM Div  
    Company Yield CAGR Growth Invested Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
    REITs
    O 5.22 3.00% 19.64% 75000 3915 4033 4154 4278 4407 4539 4675 4815 4960 5109 5262
    OHI 6.11 4.00% 9.09% 75001 4585 4768 4959 5157 5363 5578 5801 6033 6274 6525 6786
    MLPs
    EPD 4.13 6.00% 6.15% 74994 3097 3283 3479 3688 3910 4144 4393 4656 4936 5232 5546
    MMP 3.24 8.50% 14.95% 75020 2433 2640 2865 3108 3372 3659 3970 4307 4674 5071 5502
    VNR 8.29 3.50% 3.75% 75001 6217 6434 6660 6893 7134 7384 7642 7909 8186 8473 8769
    Consumer Staples
    CL 2.17 8.00% 9.68% 74997 1627 1757 1898 2050 2214 2391 2582 2789 3012 3253 3513
    GIS 3.05 7.50% 15.15% 74995 2285 2456 2640 2838 3051 3280 3526 3791 4075 4381 4709
    SJM 2.53 8.00% 11.54% 75000 1895 2047 2211 2387 2578 2785 3007 3248 3508 3789 4092
    BDCs
    ARCC 8.26 1.00% 0.00% 75002 6192 6254 6317 6380 6444 6508 6573 6639 6706 6773 6840
    HTGY 6.73 0.00% 0.00% 74997 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048

    Total Income 750006 37295 38721 40230 41828 43521 45316 47218 49236 51378 53652 56067

    Yield on original dollars   4.97 5.16 5.36 5.58 5.80 6.04 6.30 6.56 6.85 7.15 7.48

    Year over year Growth     3.82 3.90 3.97 4.05 4.12 4.20 4.27 4.35 4.43 4.50

    The average yield is 4.97 and the average CAGR is 4.95.

    A mid-70s example - ten years - 750,000

      Current   LTM Div  
    Company Yield CAGR Growth Invested Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
    REITs
    O 5.22 3.00% 19.64% 75000 3915 4033 4154 4278 4407 4539 4675 4815 4960 5109 5262
    OHI 6.11 4.00% 9.09% 75001 4585 4768 4959 5157 5363 5578 5801 6033 6274 6525 6786
    MLPs
    EPD 4.13 6.00% 6.15% 75001 3097 3283 3480 3689 3910 4144 4393 4657 4936 5232 5546
    EEP 7.85 2.00% 0.00% 75001 5888 6006 6126 6249 6374 6501 6631 6764 6899 7037 7178
    VNR 8.29 3.50% 3.75% 75001 6217 6434 6660 6893 7134 7384 7642 7909 8186 8473 8769
    Consumer Staples
    CL 2.17 8.00% 9.68% 74997 1627 1757 1898 2050 2214 2391 2582 2789 3012 3253 3513
    GIS 3.05 7.50% 15.15% 75000 2285 2456 2641 2839 3052 3280 3526 3791 4075 4381 4709
    SJM 2.53 8.00% 11.54% 75000 1895 2047 2211 2387 2578 2785 3007 3248 3508 3789 4092
    BDCs
    ARCC 8.26 1.00% 0.00% 75000 6192 6254 6317 6380 6444 6508 6573 6639 6705 6772 6840
    HTGY 6.73 0.00% 0.00% 75000 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048

    Total Income 750000 40750 42087 43492 44970 46523 48159 49880 51694 53605 55619 57744

    Yield on original dollars   5.43 5.61 5.80 6.00 6.20 6.42 6.65 6.89 7.15 7.42 7.70

    Year over year Growth     3.28 3.34 3.40 3.46 3.51 3.57 3.64 3.70 3.76 3.82

    The average yield is 5.43 and the average CAGR is 4.30.

    A mid-80s example - ten years - 750,000

      Current   LTM Div  
    Company Yield CAGR Growth Invested Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
    REITs
    O 5.22 3.00% 19.64% 75000 3915 4033 4154 4278 4407 4539 4675 4815 4960 5109 5262
    OHI 6.11 4.00% 9.09% 75001 4585 4768 4959 5157 5363 5578 5801 6033 6274 6525 6786
    MLPs
    EPD 4.13 6.00% 6.15% 75001 3097 3283 3480 3689 3910 4144 4393 4657 4936 5232 5546
    EEP 7.85 2.00% 0.00% 75001 5888 6006 6126 6249 6374 6501 6631 6764 6899 7037 7178
    VNR 8.29 3.50% 3.75% 74998 6217 6434 6659 6892 7134 7383 7642 7909 8186 8472 8769
    Bank Preferred
    JPM-D 6.40 0.00% 0.00% 75000 4803 4803 4803 4803 4803 4803 4803 4803 4803 4803 4803
    USB-O 5.93 0.00% 0.00% 75001 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450
    WFC-O 5.76 0.00% 0.00% 74999 4320 4320 4320 4320 4320 4320 4320 4320 4320 4320 4320
    BDCs
    ARCC 8.26 1.00% 0.00% 75000 6192 6254 6317 6380 6444 6508 6573 6639 6705 6772 6840
    HTGY 6.73 0.00% 0.00% 75000 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048 5048

    Total Income 750002 48516 49400 50316 51267 52253 53276 54337 55439 56583 57770 59003

    Yield on original dollars 6.47 6.59 6.71 6.84 6.97 7.10 7.24 7.39 7.54 7.70 7.87

    Year over year Growth     1.82 1.86 1.89 1.92 1.96 1.99 2.03 2.06 2.10 2.13

    The average yield is 6.47 and the average CAGR is 1.95.

Back To Factoids' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (5)
Track new comments
  • Ginny
    , contributor
    Comments (455) | Send Message
     
    Thanks.
    16 Feb 2014, 04:22 PM Reply Like
  • billbyte
    , contributor
    Comments (170) | Send Message
     
    If future GDP grows at a slower than historical rate, will not 1.) dividend growth slow 2.) or coverage fall ultimately raising risk? Do you look at coverage and risks thereto? If so, an addition to the spreadsheet might be a "risk adjustment." Thoughts?
    16 Feb 2014, 06:47 PM Reply Like
  • Factoids
    , contributor
    Comments (1156) | Send Message
     
    Author’s reply » I generate separate spreadsheets for CAGR assignment and risk or RRR (required rate of return) assignment. But those are in my sector updates - and not with spreadsheet for my existing portfolio.

     

    I try to make spreadsheets with the guide of "one spreadsheet - one story". It takes a village of spreadsheets to do a valuation judgement. The spreadsheets I have provided above are NOT valuation spreadsheets. The above spreadsheets are a collection of data to judge if you portfolio is headed in the right direction. The above spreadsheets are not spreadsheets to aid in stock selection.
    16 Feb 2014, 08:20 PM Reply Like
  • dnpvd51
    , contributor
    Comments (2492) | Send Message
     
    I was interested in O until i saw the PE ratio. Isn't this guy a bit expensive?
    16 Feb 2014, 08:08 PM Reply Like
  • Factoids
    , contributor
    Comments (1156) | Send Message
     
    Author’s reply » dnpvd51 - the correct valuation metric for REITs is the price to FFO and not P/E. I hope you are using "normalized FFO". The projections offered by Yahoo are the used I use - and they use normalized FFO. And no - O is not expensive. O is more or less correctly valued.
    16 Feb 2014, 08:13 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.