50/50 Portfolio; Sept 2016 YOC 10.0% about 3 months before retirement, dividends at 70% of my gross employment income. I created a High Yield Investment dividend generator that contains a 50% weighting between agency mortgage REITs and BDCs.
**** Home of the POT (Portfolio Online Tracking) tool. (See Oct14,May25,Apr24 2016 articles)
My current investment method started January 2014 to concentrate on high yield equities that put more importance on income and less on capital appreciation. Investment purchase is based on each individual stock generating a minimum dividend per year. As long as stocks are generating income to meet or exceed my minimum dividend they will not be added too or removed. Currently all dividends are reinvested back into stocks that require their dividends to be increased to meet my minimum yearly dividend. We will see how this works over the years.
1) The REIT sector consists of residential and commercial property investments. What better way to invest in hundreds of properties without actually owing the physical property.
2) The BDC are Business Development Companies that invest in hundreds of businesses that create products and employment opportunities. Here again the BDC does all the research to lend to businesses and the investor does not have to actually own the physical business.
3) The investment selection is based on this principle; BDCs outperform when markets are going up (positive correlation), and mREITs, outperform when markets are going down (negative correlation). This is based on a research study performed by Wells Fargo titled “The 50/50 Portfolio, Milton Friedman’s Only “Free” Lunch. And runs through an analysis in demonstrating how combining BDCs and Agency mREITs leads to sustainable long-term alpha throughout cycles.
4) Capital gain does not apply to my investment method since this implies the anticipation of buy and hope for price increase in order to sell at a profit. I have already stated the HYBRID method holds investments based on cost basis and dividends per share as the method of yearly appreciation.
5) A bird in the hand is worth 10 in a bush, applies to this investment style. The return I get on my investment is what counts toward the recapture of my initial investment cost. I can calculate how many years it will take before my initial cost will be repaid and that investment now becomes perpetual income. I’m not a trader, just a buy, hold and collector (dividends * shares). I can’t count on capital appreciation since all investments will increase and decrease in any market cycle. Dividends I can count on as payment for investment risk that accumulates over time.
6) Update 20140612, Portfolio Plan; Build a portfolio that generates income 150% of minimum required. Example I need 10K from 30 stocks made up of REITs and BDCs. Diversification is already built into each stock because each one contains hundreds of properties and business, so 30 stocks is plenty. Now to generate 10K minimum income I will establish a 50% margin of error (or income default). So to get 10K minimum I will need 15K of income (10K * 1.5). This means each stock is required to generate at least $500/yr each. I can withstand a 33% hit in the dividends and still meet my 10K minimum requirement. That is 10 stocks can go to zero and the remaining 20 will create my minimum 10K.
7) Update 20140729, I do not invest in individual companies, too risky. The following is the logic behind this statement compared to BDC investments. If I invest in 30 dividend companies, anyone of them may have financial problems and drag down the portfolio very quickly. The Due-Diligence (DD) would take all my time to analyze past performance and make judgments for the future, and current events can tank a stock fast. Every company needs money to run operations and for capital improvements and this is where BDCs come into play. The individual company has to borrow funds and BDCs are there to provide the capital. So the BDC is like a bank to lend money. Each BDC may contain hundreds of separate loans going to hundreds of different companies making the BDC less risky than owning individual companies. If one of the companies that the BDC has a loan with goes bankrupt, the BDC will recover some if not all of the loan monies lent to the failed company, and the BDC will continue with a very small disruption to its bottom line. So in effect owing BDCs that contain hundreds of investments (loans to companies) earning a consistent repayment to principal and interest is safer than just owning an individual low yielding company. When you invest in a BDC or REIT you are investing in the managers that perform the DD by analyzing the companies first before loaning them money to run their business.
Owing 10 or more BDCs is like having investments in thousands of companies with a very low risk of any one individual company causing portfolio damage, while your portfolio grows faster with the high yields from BDCs and REITs.
8) I have developed FREE Excel applications for planning retirement during the accumulation and distribution phase, the links are in my articles, (Dividend Growth Calculator... and Predicting Retirement...) As I develop additional Excel 2010 applications I'll make them available to all SA members. We are all in the same boat trying to achieve a better life in retirement.
On October 31st, 2014, I retired. Turned in the keys to the company car, gave them my computer and my account lists and joined the ranks of those who "slipped off into the sunset." I never thought in retirement that I would be this busy. It's fun. Time with the grandkids, time to perfect my cooking skills, and time to travel and check off the things on my bucket list. I should have done this a long time ago.
Have been investing for myself and my family for over 50 years. Retired sociology professor who also started and sold 3 retail stores over my career in teaching. Since I am retired, i am looking for stocks that pay dividends and offer some growth to keep up with inflation.
Wall Street Breakfast, Seeking Alpha's flagship daily business news summary, is a one-page summary that gives you a rapid overview of the day's key financial news. It's designed for easy readability on the site or by email (including on mobile devices), and is published before 7:00 AM ET every market day.
Wall Street Breakfast readership of over 900,000 includes many from the investment-banking and fund-management industries.
Sign up here to receive the Wall Street Breakfast in your inbox every business day: http://seekingalpha.com/account/email_preferences
Biotechnology professional with a diverse scientific background and detailed knowledge in many therapeutic areas such as monoclonal antibodies, immunotherapies and antivirals. I have a personal interest in finance, investing and global markets. My investing strategy is mainly long-term/retirement and exploring avenues to maximize wealth in retirement. My analysis is focused on stocks and exchange traded funds (ETFs) while exploring niche opportunities such as derivative trading in the form of covered call options. I write opportunistic weekly, bi-weekly and/or monthly out-of-the-money covered call options on an regular basis to augment my portfolio returns and to accumulate a larger cash position to buy during periods of weakness. I also have an interest in personal finance (529 plans, FSAs, HSAs, Roth IRAs, etc.) and serve as a contributor in this area as well. Education: Masters of Science in Molecular and Cellular Biology Bachelor of Science in Biological Sciences
I am a retired engineer with a PhD in Engineering Science (mostly exotic math) together with a Masters in Statistics. I currently manage my website www.superchargeretirementincome.com, where I use my math background to select high-return, low-volatility investments. I also love teaching so I also provide a number of tutorials about all aspects of investing. I am an avid reader and have read just about every book I could find on the stock market. I am still learning so I welcome comments and suggestions. Over the years I have learned that there is no “holy grail”; you cannot receive a good return without taking risks. However, you can choose your investments to reduce risks and those are the kind of investments I like to make. Although financial markets are my passion, engineering is my profession. I have spent the last 30+ years as a program manager at a large aerospace company, working on improving defenses for our U.S. Army customers.
Dave Fish is Executive Editor for The Moneypaper and co-manager (since 1999) of the MP 63 Fund (Symbol: DRIPX), a fund that invests exclusively in companies that offer Direct Investment (or Dividend Reinvestment) Plans. He is also the author of the U.S. Dividend Champions spreadsheet (and PDF), which is updated at the end of each month...and lists companies that have increased their dividend payout for at least 25 consecutive years. (Separate tabs list "Contenders" that have increased their payouts for 10-24 years and "Challengers" that have increased their payouts for 5-9 years.) http://dripinvesting.org/Tools/Tools.asp
Founder and publisher of Mr. Free at 33. Founder of Dividend Mantra. Writer, investor, entrepreneur, introvert, pragmatist, fitness enthusiast, minimalist, humanist, philosopher, urbanist, frugalist, philanthropist.
I just recently caught the investing bug and started taking an active interest in my (presently meager) portfolio in October, 2011. Turns out I'm not too bad at making my own picks, and I really enjoy doing my own research. So far my picks have significantly outperformed those of my high-priced broker (by about 10X). I've only got about 17 years left before I'll have to retire, and I've gotta get a move on if I want to enjoy my Golden Years and not end up having to work as a WalMart greeter on the graveyard shift. Seeking Alpha and The Motley Fool have helped me learn a great deal in a short period of time, but I've got a long way to go. I'm currently focused on building a portfolio of solid, stable dividend growth ... More stocks, with some pure growth (speculative) positions thrown in. At present I have 30 positions that yield an average of 5.3% in dividends. I'm hoping to learn more about options and save enough on the side so I can start playing with trading options; I'm looking forward to actively managing my portfolio in my retirement, and want to get really good at it before then.
Investor with more than 5 years experience trading commodities, gold and silver miners, exploration companies, oil and gas, platinum and other hard assets.
The investment style is part contrarian/value and I actively seek investments in distressed sectors.
I am a medical professional, but I have been studying investing for many years so that I can control my own portfolio. DGI seems to be the best way for me to invest for my retirement while being able to sleep at night.
I have also been successfully trading cash secured puts for extra income. I share my experience on my websites, Tradingcsps.com and my blog Tradingputs.com.
The Parsimony community is made up of thousands of do-it-yourself dividend and income investors working toward one common goal...generating consistent income!
Our strategy is simple:1. Buy great dividend stocks at reasonable prices.2. Enhance income with conservative option strategies.3. Manage risk through diversification and exit strategies.
Our research (which includes dividend stock rankings, single stock Buy Zone reports, stock screens, and model portfolios) will give you all the tools you need to build and monitor your own DIY Dividend Portfolio and super charge that portfolio with conservative option strategies (cover calls and cash-secured puts).
For more information about our subscription services click the links below:
- DIY Dividend Portfolio
- Triple Income Portfolio (stocks + options)
Charles (Chuck) C. Carnevale is the creator of F.A.S.T. Graphs™. Chuck is also co-founder of an investment management firm. He has been working in the securities industry since 1970: he has been a partner with a private NYSE member firm, the President of a NASD firm, Vice President and Regional Marketing Director for a major AMEX listed company, and an Associate Vice President and Investment Consulting Services Coordinator for a major NYSE member firm. Prior to forming his own investment firm, he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.
First, the good stuff. Here's my portfolio ...
Consumer Discretionary: MCD, NKE, SBUX, TGT
Consumer Staples: COST, GIS, KHC, KO, MO, PEP, PG, PM, RAI, WBA
Energy: CVX, KMI, XOM
Health: ABBV, AMGN, GILD, JNJ, MCK
Industrial: BA, DE, EMR, LMT, MMM
REITs: HCN, NNN, O, OHI, VTR
Technology: AAPL, MSFT, QCOM
Telecom: BCE, T, TU, VZ
Utilities: AVA, D, SCG, SO, WEC
ALSO: small stakes in 23 additional companies held in the Dividend Growth 50 portfolio (http://seekingalpha.com/article/2764265-its-new-its-nifty-its-the-dividend-growth-50): ADP, AFL, BAX, BDX, CAT, CL, CLX, COP, GE, GPC, HCP, HSY, IBM, KMB, MKC, NEE, SHPG, SJM, UTX, V, WFC, WMT.
Now, a little about me:
I am a 50-something former sportswriter who was sent on a permanent vacation during the Great Recession. That sucked, but my story is not a sad one. Unlike many folks who lost their jobs, I am not in financial distress, I am not depressed and I am not bored.
My wife is a pediatric nurse with a bullet-proof job and decent benefits. So after supporting her and our two kids (now grown) for most of three decades, the least she can do is support my semi-retired keister!
Because of Roberta's job situation, because we have zero debt (not even mortgage debt), because we no longer have any dependents and because we have been pretty diligent savers over the years, we are comfortable (though nowhere near rich).
Although we hold some funds, bonds and cash, my investing philosophy leans heavily toward Dividend Growth Investing. By early next decade, we want to live entirely off of our income stream, Social Security and pension payments - and therefore will not have to spend down the principal one iota. To accomplish this, we invest mostly in blue-chip companies with long track records of growing dividends. As of mid-2016, we are well ahead of pace to reach our goal.
When not researching investments and writing for Seeking Alpha and other Web sites, I coach middle-school girls basketball at Metrolina Regional Scholars Academy, the top charter school in the Charlotte metro area; in March 2016, we won the first conference championship in school history! I also umpire youth baseball and referee youth basketball.
My wife and I dote on our 5-year-old pup, Simmie, and keep up on the doings of our now-grown kids, Katie and Ben. And we love to cheer on the basketball team of our alma mater, Marquette University, where we both majored in Journalism. Go Warriors! Also big fans of the Carolina Panthers.
I still occasionally post to the blog I initiated in 2007 -- lots of sports stuff, some politics, some personal junk -- at www.TheBaldestTruth.com.
I provide economic analysis, market commentary and company-specific research. My general view is to operate a diversified basket of long-term investments in both equities and fixed income. I have a bachelor's degree in economics from San Diego State University (2007), eight years of publishing experience and over a decade of cumulative investment experience. I have been published in several newspapers and magazines, including The Wall Street Journal and Barron's.
I'm a 65-year-old investor focused on dividends in a Retirement Income Portfolio. I'm not yet in the distribution phase of retirement.
I've been a member of the National Association of Investment Clubs (NAIC) since 1982, which now operates as BetterInvesting.org. For many years as a volunteer I helped lead workshops to teach tools developed by NAIC to educate investors about how to do basic fundamental stock analysis. I continue to have a strong interest in investor education.
NAIC's historic "four principles" have been very helpful to me:
1) invest regularly throughout your lifetime;
2) invest in growth companies;
3) reinvest earnings and profits;
4) diversify by industry and size.
Bill Bengen's "4% Rule" concept inspired me to set a goal to create a retirement income portfolio of individual dividend growth stocks as a way to tap only dividend income from the portfolio as long as possible rather than selling assets.
Helpful mentors and colleagues include:
- Charles Allmon, former columnist for Better Investing, taught me to look for growth stocks
- Ben Graham's The Intelligent Investor taught me the importance of intrinsic value
- Peter Lynch instilled confidence that the average citizen can win in the stock market
- Louis Rukeyser demonstrated how to ask probing questions about market conditions
- Brad Thomas introduced me to a host of real estate investment trusts
- Bob Wells' analytical discipline keeps me focused on dividend growth
- Lowell Miller's The Single Best Investment helped me focus on quality and safety
- David Van Knapp's holistic style of portfolio building helps me see the big picture
- David Fish and Factoids inspire me to keep digging for data
- Chowder reminds me that each buy is the purchase of a business
- BDC Buzz has helped me sift through business development companies
- Tom Konrad opened my mind to alternative energy investments
- George Fisher is a helpful "lookout" scanning the horizon for utility opportunities
- The Seeking Alpha community--both veterans and young contributors.
My goal is to bring exposure to business development companies (BDCs) that finance small to medium sized businesses, typically overlooked by banks. BDCs are an instrument for investors to earn healthy dividends by avoiding double taxation at the corporate level and allowing income to flow directly to each shareholder. Please see website link below for more information. Email: email@example.com Website: www.bdcbuzz.com Newsletter: www.bdcbuzz.com/contact-us.html
PRIMARY OBJECTIVE: ... Income Replacement!
Escape velocity is the speed that an object needs to be traveling to break free of the planet's gravitational pull and leave it without further propulsion.
This portfolio is looking for the point where the income being generated can allow the holder of this portfolio to escape the gravitational pull of the market and economic forces of worrying about share prices.
The objective is to generate enough income from assets that the only selling of shares will become an option, not a necessity to survive. Therefore, with enough income being generated, it minimizes the fear of meaningful market corrections as dividends are based on the number of shares owned, not the share price.
Over the last few years I have worked diligently towards refining several of my favorite and most successful stock options strategies. My hard work and diligence have proven to be a success and now I want to share my ideas and strategies with a limited group of like-minded investors. My options strategies are not “get rich quick” strategies, rather sound options strategies based on three basic ideas - patience, position-sizing, and long-term performance.
After speaking with hundreds of investors, I discovered that the majority of investors were not looking for a ‘get rich quick’ scheme, or a foolproof method of trading options (we all know there isn’t one). What they wanted was a service with established capital preservation goals and historically proven long-term successful investment strategies. They wanted options strategies that would produce consistent, modest gains month after month, year after year. They also wanted to know that unnecessary risks were not being taken, but rather a methodical, tested set of rules were being utilized which would produce long-term gains.
My Options Portfolio was born from the collection of ideas mentioned above. After trading and back-testing almost every known options trading strategy, I fulfilled the requests of the investors and traders I spoke with and have identified several historically proven stock options strategies for long-term success in bull and bear markets. Again, all of my options trading strategies are based on three simple principles: patience, position-sizing, and a focus on long-term performance.
I encourage you to learn more about my stock options strategies by joining my FREE weekly options newsletter. Furthermore, every day in my daily blog I will provide an in-depth look at my trading strategies, including specific trading guidelines as well as the research and back-testing data that went into developing the rules. You will also receive valuable educational tools as well as trading tools regarding the tax-advantages of trading my strategies. Diversify your portfolio, better yet, educate yourself with one of my alternative investment strategies.
Andrew Crowder has been investing in stocks and options for over 15 years. A graduate of the University of Oregon and Northern Arizona University, Andrew’s work experience includes working for the medical division of W.L. Gore and Associates in Flagstaff, AZ, Oppenheimer & Co. in New York City and more recently working as a professional options trader, research analyst and financial columnist for a prominent stock options newsletter and advisory service.
Dale Roberts is an Investment Funds Associate with Tangerine Investment Funds Limited, a subsidiary of Tangerine Bank wholly owned by Scotiabank. My articles are for information purposes only and do not constitute investment advice or an offer or the solicitation of an offer to buy or sell any securities. These articles are my personal opinion and are not those of Tangerine Bank or its subsidiaries. Remember past performance is not guaranteed and may not be repeated. Investment strategies are not suitable for everyone and you should always conduct your own research or speak to a financial advisor.
I spend most of my time reading through annual reports looking for a small-cap stock to feature in my monthly edition of "The Conservative Investor Digest." That is where you can find my best work, and that is where I focus my research. You can become a subscriber here: https://gumroad.com/l/HmqJx
Brad Thomas is a research analyst and he currently writes weekly for Forbes and Seeking Alpha where he maintains research on many publicly-listed REITs. In addition, Thomas is the Senior Analyst at iREIT Forbes and Editor of the Forbes Real Estate Investor, a monthly subscription-based newsletter.
Thomas has also been featured in Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, and Fox Business. He was the #1 contributing analyst on Seeking Alpha in 2014 (as ranked by TipRanks) and he is currently writing a book on the legendary investor Donald Trump.
Thomas has co-authored a book (The Intelligent REIT Investor) that is available on Amazon.
Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College where he played basketball. He resides in South Carolina with his wife and kids.
Awarded a 2015 & 2016 "Top 50 Financial Blogger" by TipRanks.com
- Ranked #44 out of 4,408 bloggers (#106 out of 8,174 overall experts) as of 8/18/15
- Ranked #37 out of 5,383 bloggers (#107 out of 9,507 overall experts) as of 8/18/16
- Follow my ongoing coverage on TerraVia (TVIA): http://seekingalpha.com/articles?filters=tvia,kevin-quon
I am an individual investor and the author of seven eBooks on dividend growth investing. I try to help self-directed individual investors profit from stock investing. I contribute articles and studies to both Seeking Alpha and Daily Trade Alert. I hold an undergraduate degree in physics from Holy Cross College and a JD from Georgetown University. My wife Sue and I live in beautiful Canandaigua, NY.