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  • 52 Fairly Valued REITs For Substantial Total Income For Your Retirement Portfolios [View article]
    << However, there are a few other aspects of REITs that I believe are important for prospective investors to consider and understand. In my opinion, the primary appeal and benefit of REITs are for their superior income-generation potential. >>

    Thanks for another great and highly educational article, Chuck. Perhaps I missed seeing this in the article, but the reason REITs are such appealing income vehicles is per IRS regulations, to maintain their preferred tax status, they must pass at least 90% of their income to unit holders, who in turn pay ordinary income taxes rather than dividend-rate taxes. For this reason, it's beneficial to hold REITs in an IRA or similar tax-deferred account.

    In my view, any portfolio lacking real estate exposure would benefit from buying (at fair value or below) and holding a few quality REITs. While I avoid mREITs (too risky for me), I do own 5 retail and health care eREITs, making up 6.5% of our retirement DG portfolio. Love the steady, generous payouts.

    Long O, NNN, HCP, HCN, OHI

    Nov 25, 2014. 09:10 PM | 3 Likes Like |Link to Comment
  • Is Managing A Large Dividend Growth Stock Portfolio Time-Consuming? [View article]
    Great perspective piece, DM. I found myself nodding in agreement all the way through. Bravo!

    I have a 60 stock DG portfolio, down from a peak of 74 (from casting a rather wide net when getting started with SDI three years ago). The vast majority now are solid, quality, long time CCC dividend payers/growers. So, like you, I don't feel the need to constantly monitor. Maybe 10 hours a week. The free / inexpensive tools and technology at our fingertips are indeed amazing - Seeking Alpha "push" alerts for news and price changes, Morningstar, CCC, Fast Graphs, Value Line - just to name a few. And, like you, this is time and effort I not only enjoy spending but it pays me handsomely, too. What's not to like?

    I wanted to add a few thoughts about your approach from the perspective of the "other side." Being in retirement, post-accumulation (dividends pay 2/3 of our expenses and Social Security pays the rest) means we can't handle much disruption in our income stream. Capital preservation is also important because no new money is being added. Consequently, holding 60 diversified (by industry, yield, dividend growth rate, geography, etc.) positions ranging from 1.5% - 3% means no one "black swan" event will tank our portfolio's overall results. That is essential sleep well at night peace of mind for this retiree.

    I didn't set out to own 60, and frankly, my goal over time is to further concentrate our portfolio. But given our goals, I can't see ever reducing to fewer than 50 positions. Have I merely created an ETF? Maybe. But it's *my* ETF, tailored to our specific income and inflation requirements, risk tolerance, and tax situation, and requiring no ongoing fees or forced sales. If an industry product could do all that, I'd be the first to sign up. :)

    Thanks again for the great article and happy investing to you.

    Nov 24, 2014. 11:19 PM | 5 Likes Like |Link to Comment
  • The Golden Age Of Financial Independence [View article]

    Thanks for this great piece. Everything in your article rings true for me, too.

    I discovered SA (and the generous DGI community) in 2011. A year later I was laid off from a Fortune 15 tech company. This forum, plus the many free/inexpensive tools and unparalleled access to everything an SDI needs, were the push I needed to free myself from funds and paid financial advisers with their mediocre at best performance. It also gave me the confidence to actually retire - in my early 50's. Now we are living off the income generated by our DG portfolio and one social security check. Life is sweet.

    While it did take considerable effort to educate myself and get our retirement income portfolio up and running, now I spend maybe 10 hours a week on it - because I enjoy it and it keeps my mind sharp. The rest of my time I volunteer or consult pro bono at several non-profits.

    Loving this new financial independence phase and beyond grateful for this SA community that helped make it happen.

    Ignore the naysayers and keep up the good work!

    Nov 18, 2014. 01:47 PM | 5 Likes Like |Link to Comment
  • Retirement Strategy: One Basic Flaw Of Dividend Growth Investing [View article]

    I use both 3 and 5 year DGR's, weighted by % of that holding in the portfolio (easily calculated using Excel). My 8.5% DGR is a blend. I mostly use 5 year, as long as the DGR has been fairly stable within that company's historical range (KO, PG, etc.). If DGR has been declining, or there's a "story" suggesting uncertainty with the historical rate, I use 3 year, to be conservative.

    I'm sure there are many ways to track portfolio DGR. This is what works for me.

    Nov 9, 2014. 02:51 PM | 1 Like Like |Link to Comment
  • Do You Have The Patience To Be A Successful Value Investor? [View article]

    Another great reminder to (1) buy quality, waiting for (2) fair valuation, and (3) hold until there's a reason not to, based on company fundamentals and your own goals.

    Wise words to invest by!

    Nov 7, 2014. 09:45 PM | 1 Like Like |Link to Comment
  • Retirement Strategy: One Basic Flaw Of Dividend Growth Investing [View article]
    "I can list hundreds of things that make this boring strategy so appealing to me, but just to name a few:

    I sleep better.
    I understand it.
    It is easy to follow.
    I know my goals."

    Love it, RS. Sums up so succinctly why I am a DGI.

    I own 9 of the 10 stocks in your chart, plus many similar. And sleep very well at night knowing the income from our DG portfolio - a mix of yields averaging about 4% with 8.5% dividend growth - together with one social security check, fully funds our retirement and tames inflation too.

    Keep relaying the message - can't be stated enough. This stuff works!

    Nov 7, 2014. 08:52 PM | 6 Likes Like |Link to Comment
  • Dividend Growth Strategy: Take The Beaten Path Or Road Less Traveled? [View article]

    Great article.

    Being a recent retiree with a 25+ year outlook for my DG portfolio, I follow the "mix it up" strategy, too. But in phases. First, I built the dependable foundation with the Beaten Path stocks (I own 9 of the 10 you list here, and many others). Then I began selectively adding some Road Less Traveled stocks, most recently AAPL, COST and SBUX.

    I still require the latter pay a (growing) divided and just like the Beaten Path stocks, always require quality and fair valuations.

    Thanks for the interesting take.

    Nov 6, 2014. 06:23 PM | 3 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 2: Dividend Growth Investing's Greatest Hits [View article]

    Well, AAPL was selling at $98 just a week or two ago. :)

    But you are correct. I do look at trailing and forward P/E's and not just price, also I use multiple valuation sources, and adjust my buy ranges accordingly. And if the market just happens to tank an entire sector, good and bad companies alike (as oil and tech both experienced recently), I'll add then too.

    Oct 23, 2014. 10:56 PM | Likes Like |Link to Comment
  • The New Nifty Fifty, Part 2: Dividend Growth Investing's Greatest Hits [View article]

    Thank you! Great comment.

    I did some research and plan to open (very small) long positions in AAPL, SBUX and COST in my IRA now, just to get them on the radar.
    Added V to my watch list.

    They are all rated 1 (highest) on Value Line for financial safety, pay (small) dividends currently, and are at reasonable P/E's. Fairly valued, though not screaming bargains.

    As they will hopefully be very long holdings, I can afford to be patient in growing these positions. When lower valuations present themselves on dips or corrections, I plan to DCA down on the starter positions.

    Oct 23, 2014. 07:01 PM | 1 Like Like |Link to Comment
  • The New Nifty Fifty, Part 2: Dividend Growth Investing's Greatest Hits [View article]

    Another outstanding article, and my thanks to all the panelists for sharing not only their Top 10's but the thinking behind their choices.

    While I happily own all 12 of the composite Greatest Hits, they do (per your metaphor) reflect a kind of nostalgic view. It was David Fish's comment - combined with the recent news and generally slowing trajectories of formerly unstoppable champs like KO and MCD - that started me thinking. My DG foundation is in place, but with a 25-plus year retirement timeline, I realized I need to start looking to add some "future greatest hits" (at better valuations, of course) to the mix.

    Great stuff, as always.

    Oct 23, 2014. 10:43 AM | 2 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 1 - Dividend Growth Style [View article]

    Late to this party, so not much to add to your outstanding article (and well-deserved Editors Pick) and equally outstanding comments, all 330-plus of them.

    Proud owner of 33 of the "new nifty fifty", DG style (including 17 of the top 20), plus strong competitors to many others (example, ACN instead of IBM). Also a follower of 9 of your esteemed group of panelists - which, including yourself, comprises pretty much the "brain trust" of the SA DGI community.

    Add my appreciation to those who've commented above. I owe a huge debt of gratitude to you and this community for the success of my own DG journey. Happily living off our (growing) dividends while ignoring market gyrations - except weeks like this, when I had no hesitation deploying some dry powder to top off a few of my own "new nifty fifty" positions, including CVX , XOM, JNJ, VZ and T.

    Rock on!

    Oct 17, 2014. 01:36 PM | 2 Likes Like |Link to Comment
  • Retirement Strategy: Johnson & Johnson Did WHAT Today? [View article]
    I just love how the DG crowd responds to the kind of irrational selling that JNJ experienced this week (along with many other DG stalwarts) on its solid quarterly results. Price down? Time to add!

    Didn't catch JNJ below $96 as some commenters here did, but I was MORE than happy to top off my full position (and cost average up) around $97.

    Oct 15, 2014. 07:18 PM | 3 Likes Like |Link to Comment
  • Omega Healthcare: Another REIT That Should Be Part Of Any Dividend Investors' Portfolio [View article]

    No mention of credit rating?

    I like OHI, but with an S&P rating of BBB- it's below investment grade. For me, at least, that's a speculative play. So I hold only a 50% position in OHI, vs. HCP (BBB+), for example, where I hold a full position.

    I do like this sector and believe the quality health care REITs will do well in the years ahead, despite their sensitivity to interest rate fluctuations.


    Long: OHI, HCP, HCN
    Sep 16, 2014. 02:26 PM | 1 Like Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]

    No big deal. We know what you meant. :)

    It only jumped out at me because VL financial safety rating is in my Plan as the most important (and first) screen I use for our own DG portfolio.

    Sep 15, 2014. 07:47 PM | Likes Like |Link to Comment
  • The 4% Rule Examined [View article]

    LOL. And don't forget "Chowderheads." Proudly consider myself to be one.

    Sep 15, 2014. 07:39 PM | 1 Like Like |Link to Comment