How A Blue-Chip Dividend Strategy Can Fail [View article]
I think that many of the DG investors on SA wouldn't buy those blue chip stocks at the excessive valuations of the 70s...the question is, would we have the courage to sell, or would we continue to hold?
which bears the question...Tim, or anyone else--how overvalued does one of your core stocks have to get before you're willing to sell some or all of it? when it hits a certain PE relative to historic PE levels?
while I can see the importance of not overweighting any one position, I'm not sure I see the harm in underweighting positions. I see a lot of investors bringing underweight positions up to parity just because they like all their percentages to be equal. but if an underweighted stock I own becomes overvalued before I can buy more of it, I'd rather open a new position in an undervalued stock. so my portfolio may not look pretty--some of my 50+ positions have a 4% weighting, while others take up .5%, but I'm not stressed about adding to the smaller positions until they present a good buy.
What To Do With Your Overvalued Blue-Chip Stocks [View article]
Tim--do you believe this applies to any non-dividend growth stocks as well? for example, I sold COST last year because I believed to be overvalued, and it was yielding as much as I wanted anyway. Is there a case to be made that a stock like COST with ever increasing earnings and a solid business plan is worth holding onto even if it becomes overvalued?
My Mad Method: What Next To Buy And Why - February, 2013 [View article]
JD--
Thanks as always for sharing your purchases and sales...it's always great to follow a real, live portfolio and the thought process that went into it. I'm sure it's a lot of work posting these details, sharing your spreadsheet, and answering all of our questions, but please know it's truly appreciated! I also bought some LMT recently and HRS today...also having grown tired of waiting for defense stocks to go more on sale. I bought small positions, so if they drop more in price, I am happy to deploy more cash. Does your "too high" Delta reading of HRS mean that you think it's still overvalued?
Also, a question about your Mad Method process. Do you manually select a watchlist of stocks that you want, then apply your Mad Method to it? Or do you use your Mad Method to actually create a watchlist of stocks?
The reason why I ask is that it seems that you've sold some of the stocks that were originally high on your list. (I don't mean the pruned stocks, but positions you've sold off entirely) So I'm wondering if that has caused you to refine your method along the way, so that such stocks wouldn't make it onto your list in the first place?
Stephen--Fidelity will also give you up to 200 free trades for a year if you open a new account with a certain balance ($50-100k). Great, flexible customer service--they may extend the trades beyond the expiration date or split them between IRA and taxable accounts as you choose. At no extra charge, I've gone into my local office and met with my rep, and I can email her at any time with questions, and I always hear back from her the same day.
That being said, I hear Interactive Brokers has $1 trades (with some nominal extra monthly fee), which is tempting. But it all depends how much you buy/sell stocks.
Chowder--I am also a Fidelity investor. so would you and I get the same share price for dividend reinvestment, or could it possibly be slightly different? not that it really matters, but curious. I've never checked on my HCN and OHI discounts either...do you know if that's automatic?
One thing I've noticed with Fidelity dividend reinvestment is that you need to choose that option for the particular stock a few days before the ex-dividend date, or it will deposit it as cash. It becomes an issue when you purchase a new stock the day before the ex-dividend date in order to capture the dividend, and you're not able to select the divvy reinvestment option in time. I've missed out on a couple DRIPS that way.
kudos to your plan! I'm not sure why people correlate risk tolerance with age...I'm several years younger than you, and also don't wish to take on too much risk with a portfolio weighted towards high beta stocks. the people that are successful with riskier stocks are constantly researching, monitoring, and trading those kinds of stocks...they're not buy and hold investments. frankly, most of us young people have full-time careers to attend to.
btw, have you considered not weighting each sector equally? just a thought...
yes, GD's yield is around 3%--on yahoo too. I agree that shares of defense stocks may very well take a dip in the next month or two. but I will hopefully pick up some at a discount rate.
my AAPL holding on the other hand is at a full allotment right now, and unfortunately a bit underwater. I'm curious what other AAPL owners who bought in the past year, but my plan is to hold til Dec 2013 and then perhaps sell it off to offset gains.
Why REIT Dividends Are Not A Mirage [View article]
would a secondary offering be a negative if it started occurring with increasing frequency? case in point, PSEC (not an REIT, but a BDC) issued a secondary offering July 2012, and again in Nov 2012. I avoided this stock because each time the share price dropped like a rock, and didn't want to be a shareholder if they continued issuing secondary offerings every few months.
How A Blue-Chip Dividend Strategy Can Fail [View article]
which bears the question...Tim, or anyone else--how overvalued does one of your core stocks have to get before you're willing to sell some or all of it? when it hits a certain PE relative to historic PE levels?
Managing Your Portfolio - Weightings [View instapost]
What To Do With Your Overvalued Blue-Chip Stocks [View article]
My Mad Method: What Next To Buy And Why - February, 2013 [View article]
Thanks as always for sharing your purchases and sales...it's always great to follow a real, live portfolio and the thought process that went into it. I'm sure it's a lot of work posting these details, sharing your spreadsheet, and answering all of our questions, but please know it's truly appreciated! I also bought some LMT recently and HRS today...also having grown tired of waiting for defense stocks to go more on sale. I bought small positions, so if they drop more in price, I am happy to deploy more cash. Does your "too high" Delta reading of HRS mean that you think it's still overvalued?
Also, a question about your Mad Method process. Do you manually select a watchlist of stocks that you want, then apply your Mad Method to it? Or do you use your Mad Method to actually create a watchlist of stocks?
The reason why I ask is that it seems that you've sold some of the stocks that were originally high on your list. (I don't mean the pruned stocks, but positions you've sold off entirely) So I'm wondering if that has caused you to refine your method along the way, so that such stocks wouldn't make it onto your list in the first place?
Desperately Seeking Yield Through Equities Redux: Part 4 - Telecom Stocks [View article]
Caterpillar Inc. Is Worth A Lot More Than Its Current Price [View article]
Dividend Reinvestment - Yes Or No? [View instapost]
That being said, I hear Interactive Brokers has $1 trades (with some nominal extra monthly fee), which is tempting. But it all depends how much you buy/sell stocks.
Dividend Reinvestment - Yes Or No? [View instapost]
Dividend Reinvestment - Yes Or No? [View instapost]
One thing I've noticed with Fidelity dividend reinvestment is that you need to choose that option for the particular stock a few days before the ex-dividend date, or it will deposit it as cash. It becomes an issue when you purchase a new stock the day before the ex-dividend date in order to capture the dividend, and you're not able to select the divvy reinvestment option in time. I've missed out on a couple DRIPS that way.
Equal Sector Weights Dividend Growth Portfolio - Quarterly Update March 2013 [View article]
btw, have you considered not weighting each sector equally? just a thought...
Ross: Stellar Company With High Dividend Growth Now Back In Undervalued Territory [View article]
Which Of The 7 Top Basic Materials Companies Is Most Attractive To Dividend Investors? [View article]
btw, where would you say APD fits into the scheme of things?
Apple: Too Cheap To Ignore? [View article]
my AAPL holding on the other hand is at a full allotment right now, and unfortunately a bit underwater. I'm curious what other AAPL owners who bought in the past year, but my plan is to hold til Dec 2013 and then perhaps sell it off to offset gains.
Dividend Challengers Smackdown XXXVI [View article]
Why REIT Dividends Are Not A Mirage [View article]