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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.
  • Portfolio Examples Using $250,000 0 comments
    Feb 16, 2014 10:46 PM

    CAGR is an adjusted, consensus forwad Compound Annual Growth Rate for the dividend or distribution. LTM = Last Twelve months. The calculation is the Q1-14 dividend minus the Q1-13 dividend - with that calculation dividend by the Q1-13 dividend.

    Here is the data requested by a number of readers of my last article:

    A 60s example Plan B - ten years 250,000

      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% 24999 1305 1344 1385 1426 1469 1513 1558 1605 1653 1703 1754
    OHI 6.11 4.00% 9.09% 24999 1528 1589 1653 1719 1788 1859 1934 2011 2091 2175 2262
    MLPs
    EPD 4.13 6.00% 6.15% 24998 1032 1094 1160 1229 1303 1381 1464 1552 1645 1744 1849
    MMP 3.24 8.50% 14.95% 25004 811 880 955 1036 1124 1220 1323 1436 1558 1690 1834
    VNR 8.29 3.50% 3.75% 24999 2072 2145 2220 2297 2378 2461 2547 2636 2729 2824 2923
    Consumer Staples
    CL 2.17 8.00% 9.68% 24997 542 586 633 683 738 797 861 930 1004 1084 1171
    GIS 3.05 7.50% 15.15% 25000 762 819 880 946 1017 1093 1175 1264 1358 1460 1570
    SJM 2.53 8.00% 11.54% 25000 632 682 737 796 859 928 1002 1083 1169 1263 1364
    BDCs
    ARCC 8.26 1.00% 0.00% 25001 2064 2085 2106 2127 2148 2169 2191 2213 2235 2258 2280
    HTGY 6.73 0.00% 0.00% 24999 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683

    Total Income 249996 12431 12907 13410 13942 14507 15105 15739 16412 17126 17884 18689

    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 - 250,000

      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% 24999 1305 1344 1385 1426 1469 1513 1558 1605 1653 1703 1754
    OHI 6.11 4.00% 9.09% 24999 1528 1589 1653 1719 1788 1859 1934 2011 2091 2175 2262
    MLPs
    EPD 4.13 6.00% 6.15% 24998 1032 1094 1160 1229 1303 1381 1464 1552 1645 1744 1849
    EEP 7.85 2.00% 0.00% 25001 1963 2002 2042 2083 2125 2167 2211 2255 2300 2346 2393
    VNR 8.29 3.50% 3.75% 24999 2072 2145 2220 2297 2378 2461 2547 2636 2729 2824 2923
    Consumer Staples
    CL 2.17 8.00% 9.68% 24997 542 586 633 683 738 797 861 930 1004 1084 1171
    GIS 3.05 7.50% 15.15% 25000 762 819 880 946 1017 1093 1175 1264 1358 1460 1570
    SJM 2.53 8.00% 11.54% 25000 632 682 737 796 859 928 1002 1083 1169 1263 1364
    BDCs
    ARCC 8.26 1.00% 0.00% 25001 2064 2085 2106 2127 2148 2169 2191 2213 2235 2258 2280
    HTGY 6.73 0.00% 0.00% 24999 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683

    Total Income 249993 13583 14029 14497 14990 15507 16052 16626 17231 17868 18539 19248

    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 - 250,000

      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% 24999 1305 1344 1385 1426 1469 1513 1558 1605 1653 1703 1754
    OHI 6.11 4.00% 9.09% 24999 1528 1589 1653 1719 1788 1859 1934 2011 2091 2175 2262
    MLPs
    EPD 4.13 6.00% 6.15% 24998 1032 1094 1160 1229 1303 1381 1464 1552 1645 1744 1849
    EEP 7.85 2.00% 0.00% 25001 1963 2002 2042 2083 2125 2167 2211 2255 2300 2346 2393
    VNR 8.29 3.50% 3.75% 24999 2072 2145 2220 2297 2378 2461 2547 2636 2729 2824 2923
    Bank Preferred
    JPM-D 6.40 0.00% 0.00% 25000 1601 1601 1601 1601 1601 1601 1601 1601 1601 1601 1601
    USB-O 5.93 0.00% 0.00% 25001 1484 1484 1484 1484 1484 1484 1484 1484 1484 1484 1484
    WFC-O 5.76 0.00% 0.00% 25000 1440 1440 1440 1440 1440 1440 1440 1440 1440 1440 1440
    BDCs
    ARCC 8.26 1.00% 0.00% 25001 2064 2085 2106 2127 2148 2169 2191 2213 2235 2258 2280
    HTGY 6.73 0.00% 0.00% 24999 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683 1683

    Total Income 249997 16172 16466 16772 17089 17417 17758 18112 18479 18861 19257 19668

    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.
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