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Dividends & Income
Since 1973 (now 40 yrs), Rich has been a self-directed investor (SDI) in stocks, bonds, mutual funds, options, and ETFs. He was sufficiently successful that he was able to retire at age 53 (1995). Since 2008, he invests only in dividend-paying stocks bought at fair value or below, so as to benefit from their attractive total return with lower market volatility.
Strategy & Goals
Best fit--Growth & Income. A long-term investor, of any strategy, is first buying a stock's earnings stream...thus Rich first focuses on EARNINGS--the mother's milk of dividends! It is this distinction that separates Rich from the typical Dividend-Growth Investor, who focuses almost exclusively upon the stock's dividend
Portfolio--about 56 positions
Presently, the portfolio consists only of dividend-paying stocks. The Core Holdings dominate, and favor traditional low-beta dividend-growth stocks found in the Consumer Staples, Healthcare, Utilities, and Telecom sectors, plus selected other stocks having similar "things we must buy" characteristics (pipelines & insurance).
The Non-Core portfolio consists of cyclical, financial, industrial, & Technology stocks from the remaining sectors. Also included are a few REITs & BDCs.
Overall, the total portfolio contains a diversified mix stock characteristics--some having high-yield but low growth; some low-yield buy high dividend growth rates; some having U.S. only income and others having broad international exposure (including some based in other countries).
Rich's goals: #1--wealth preservation and loss mitigation; #2--growth of portfolio value, with dividend income sufficient to exceed his IRA's Required Minimum Distribution.
Rich watches the business cycle, and intents to begin selling-down his non-core positions near its peak, so as to generate cash to re-invest in the bargains to follow.
Rich holds only dividend-paying stocks, but is no cult-member, zealot, or evangelist for dividend-stocks. His experience includes several successful strategies suitable to investors of various ages, interests, and risk profiles. All strategies will have periods of out-performance, and under-performance.
An important objective of any retiree's portfolio is SWAN (sleeping well at night), and toward that end, Rich has identified and implemented a number of techniques to moderate risk. A low-risk portfolio will underperform in bull markets, but will outperform in bear markets...thus he often refers to "the smoother ride" provided by a low-beta dividend-growth stock portfolio.
Until Treasuries rise to +/-4.25%, Rich is comfortable holding only dividend-paying stocks--so long as most are the 'bond-like' stocks with wide moats and marketing products and services essential to daily living.
Rich believes there is no substitute for monitoring each position for any potential problem affecting its earnings, dividend, and valuation. It is also important to stay closely connected to news affecting the U.S. and world economies. Being a self-directed investor requires a considerable investment in TIME. The time devoted to investing represents the critical difference between being a 'saver' and a successful 'investor'. (fortunately, his large-cap wide-moat core stocks require less monitoring than do the cyclicals and other non-core positions).
Rich volunteers in his community, and has served on a number of committees. Having been blessed by years of excellent investment returns, he and his wife have been avid world travelers and have covered 1+ million travel miles to over 50 countries over the last 30+ years (his avatar reflects the Taj Mahal in his sun glasses in 2010). Though a few destinations remain on their 'bucket list', they presently enjoy spending winters in Naples, FL.
Dividend stock ideas & income, Energy stocks, Foreign stocks, Options, REITs, Retirement savings, Stocks - long
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Concern one-day my favorite d-g stocks might mimic the than favorite 'nifty-fifty' stocks of my younger investor days.
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