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Smarty_Pants
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I am an electrical engineer currently employed in the defense industry. I have been a minor partner in a local business for the past eleven years, where I keep the books. I have followed and studied the stock market for over 20 years, developing a trading style which suits my personality. My... More
My blog:
lewrockwell.com
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  • Dividend Portfolio Rebalancing Smarty-Style

    2014 is underway and I sat down to look over my Dividend Growth portfolio to see how things were going.

    As an engineer, I can't seem to leave anything alone if there appears to be a way to make it a little 'better', so it's not unusual for me to make some changes. Truth be told, I could probably make no changes and watch things turn out just fine, but my engineer gene often gets in the way.

    My portfolio is meant to generate and grow income, so that's what I try to optimize.

    After a quick review of my holdings and some possible replacement stocks, I decided to sell some of my lower yielding / slower growing / cyclical stocks and replace them with higher paying / faster growing DGI stocks.

    Here's what I finally settled on:

    SoldSharesValueIncome1 Yr DGR %
    AFL50$3,114.50$74.006.0
    BMY30$1,528.20$43.202.9
    NSC50$4,480.50$108.005.2
    NUE50$2,438.00$74.000.7
    Totals $11,561.20$299.20 
    BoughtSharesValueIncome1 Yr DGR %
    ARLP40$3,080.00$188.009.7
    MSFT80$2,940.00$89.6016.9
    RCI70$2,965.00$114.809.5
    WEC70$2,900.00$109.2020.4
    Totals $11,885.00$501.60 

    As you can see I will have to add roughly $325 in order to complete these transactions and pay taxes on my capital gains in the original shares. In return, I will increase the total income generated by about $200 annually (~80%) and the rate of growth of that income should also increase going forward.

    In a strict dollars and cents analysis, I am paying $325 (plus taxes) now to receive $200 per year forever. That seems like a reasonable deal to me. The faster growth of those payments is icing on the cake.

    Disclosure: I am long AFL, BMY, NSC, NUE.

    Additional disclosure: I will be initiating positions in ARLP, MSFT, RCI WEC shortly. I am not an investment advisor. Do your own due diligence before buying or selling any stocks. You are responsible for your own holdings and I am not.

    Jan 26 11:43 AM | Link | 3 Comments
  • Link To Dividends And Income Page

    Since the Editors at Seeking Alpha have removed the banner link to the Dividends & Income page I post it here for you.

    seekingalpha.com/dashboard/investing_income

    Copy on the link and paste it into your browser. Go to the page, then bookmark the page in your browser so you won't have to rely on the banner link any more.

    Dec 18 6:35 AM | Link | 3 Comments
  • Dividend Aristocrats Vs. S&P 500 Long Term Performance

    ((click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Dec 16 8:54 PM | Link | Comment!
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