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surfgeezer

surfgeezer
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  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    How important is Income and Income growth? Easy choice for me as I will be 59 1/2 in less than two years and able to spend income from Roth, although I will probably just quit reinvesting half my Income in my taxable and bump the lifestyle while the body still works fairly well. Long KMI and about to get longer with KMP and EPB conversion.
    Personally I like qualified div in my taxable and ordinary in Roth. Look at MLPL, actually interest income.
    Oct 24 01:18 AM | Likes Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    AP-"There are dozens of reasons that a "I'll never sell" investing theory won't work."- LOL. Well I retired @ 45 using that "failed" reasoning. STILL have not sold a Real Estate Rental. I retired based on CASH FLOW or just as easily stated as Yield on my Investments.


    "What will you do when you are very happy with your yield on total cost but you look around and find that your current yield" - I don't DRIP crappy yields, you are confused. I take the excellent YOC cash and buy GOOD YIELDS- INCREASING my PORTFOLIO's YOC, and importantly my retirement Income.


    YOC is a VERY good way to ignore herd opinion on price on bad days.


    MY yield is what I income I get/bought it for cash. The divvy reinvestment depends on many things. For ANY new buys I look at the Chowder rule of yield when buying AND Div Growth Rate. Deciding to ring a profit and sell all or a piece also depends on many things. DGR being the largest, after I buy. YOC helps identify the strongest parts of your Income stream, and Income stream is where MY attention is focused. Sure Cap gains help, they just are no where near my primary motivator. Personally, I have sold more shares of companies I wish I had not, than purchased shares I wish I had not. As Chowder says make sure you are not harvesting flowers to plant weeds. I like very high yield and there just are not that many flowers.

    Nothing better than on those very red days we had to get a div increase or a share add and watch REAL INCOME spin UP, while others fret the unreal Cap Value/ opinion of others.
    Oct 24 01:05 AM | 1 Like Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    Working even better with stocks <;-). Can't add square feet with each rent in RE.
    Oct 23 10:34 PM | 1 Like Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    R-"But why go through all the math when instead we can look at the Chowder number column in your spreadsheet? ;-)" because the company's expectations of DGR change, it shows history for perspective and as David said current progress. For me and my spreadsheet the actual punching in a Div&Dist increase or share adds is shown instantly. Also, say for a string of DRIP'd shares added each payout you can see the difference price makes on shares bought. If current yield is low it may be time to boost YOC, or if DGR is still high, leaving shares alone and putting cash else where. It just helps evaluate past performance a little bit, to help evaluate the portfolios.
    Oct 23 10:30 PM | 1 Like Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    R- your way of doing things is how it is already done by most brokerages. My yield from the money I am investing is my main concern and just about the only reason I even have money in stocks. So, because it is so important to me at a portfolio level, I break that income into a lot of different perspectives on a spreadsheet. For both positions and entire portfolio. In fact at portfolio level I look at both total current positions yield and money invested at brokerage yield, and that gets broken down to show net money ( less interest costs ) on my unlevered cash or basically my down payment or cash on cash in Real Estate terms.


    It is a biz to me. That biz is Income. I look at those flows from many angles to gain insight, not just a single brokerage statement view, very much like any other biz.
    I look at my portfolio as herding cash cows, I find it important to know which cow is doing what from a how much cash is being generated for the cash used. It is just one of several including % of total cash used for buys, % of total income. I have some that are basically " house money"- ie. All my original cash is now withdrawn as profit, yet the income pumps strong. No real way to even make that fit YOC, but still I find important. Far MORE important than the unreal price changes everyone else seems to fret over more. But Income is what I fret over, not price gain.
    Oct 23 10:12 PM | Likes Like |Link to Comment
  • Solving The Mystery Of 10 By 10 - How Does A Dividend Growth Investor Get From Point A To Point B? [View article]
    I just keep track of both by doing the total dollars I put in each position and their totals and also the total cash I have put into the brokerage/total Income. If you have made money on buys and sells the Cash on Cash will be higher than the Total positions yield. I use options ( selling Puts mostly ) and I find the COC helpful to see how well they are doing over time also.
    I consider both to be my primary goals as my Taxable portfolio is basically my retirement side biz, like my landlord. It determines lifestyle and reinvestment rates.
    Oct 23 03:05 AM | Likes Like |Link to Comment
  • Solving The Mystery Of 10 By 10 - How Does A Dividend Growth Investor Get From Point A To Point B? [View article]
    DF-"The problem with a compound formula is that there are too many variables for a single formula when what you really want is to simplify. "
    So agree. The " Chowder Rule" of yield + DGR is very important to me and greatly simplified the process of buying. Along with diversity of course.

    Although many DGI advocates abhor a divvy cut, a 10% yield on buy, even with a Div&Dist cut, can still keep chugging the 10% YOC if it is DRIP'd in some way.

    If Income is your primary goal, yield at buy matters the most. DGR is secondary. DGR absolutely helps the price appreciation very well, but unreal gains stay unreal if you truly are a buy and hold DGI Investor.
    Oct 23 02:49 AM | 1 Like Like |Link to Comment
  • Solving The Mystery Of 10 By 10 - How Does A Dividend Growth Investor Get From Point A To Point B? [View article]
    I keep a separate spreadsheet dedicated to this Yield metric.

    Since I am currently retired and also vary leverage, I find it important to keep track of cash invested and the yield it recieves. Pretty easy to keep track of current positions, just (shares X divs)/ buy costs. You could even total those positions. If however you rotate or take some profit and reinvest or like you say add cash, I find it important to also show a what is called Cash on Cash Metric in Real Estate investing. Showing the Income from the portfolio on the cash you have invested. Currently in taxable my YOC for total current position's is 8.43% in taxable and 10.77% for all including IRA's. The COC for the portfolio's is 10.77% taxable, and 13.19% all accounts including IRA's. I seldom sell, in my taxable, so the Real Cap gains being less and the relatively new leverage increase are both reasons the COC is lower in my taxable account.


    Love that Dave showed this metric. It is my most important. Would just add it is also mathematically correct to say if you get a current 10% yield on initial buy, any stocks DRIP'd are also growing Income 10%. I also use a portfolio wide/ selective buying, like Dave, for my DRIP.


    Yield matters.
    That same 10% yielder could even CUT divvy's and grow Income very good with a DRIP. Extrapolate out the gray area on graph.


    Just saying, yields matters the same as DGR when it comes to Income growth and hitting Income goals.
    Oct 23 02:16 AM | 3 Likes Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    I use YOC as one of my most important metrics. Certainly put far more value in that info than the unreal gains and losses reflected so strongly in my statements or daily "returns".

    But then again I invest in stocks like I do in Real Estate, landlord model. I actually think in terms of YOC ( and track with Yield spread sheet ) for each position. I also track that YOC on my portfolio's. Taxable currently 8.43% for current positions, 10.77% on the portfolio. Total portfolio including IRA's 10.77% and 13.19% respectively.
    Difference being sales of positions.

    Again, because I use leverage I consider the portfolio's an important number because it is my " yield spread" profit on the Interest cost of the leverage.


    I run my portfolio like a biz. That biz IS yield spread.
    Oct 23 01:14 AM | 4 Likes Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    It is the same meaning as the well established Cash on Cash in leveraged Real Estate. Meaning the yield on initial cash down payment. Why I use it in my stocks, also leveraged for net "rents"/ Income.
    Oct 23 12:51 AM | 3 Likes Like |Link to Comment
  • A Realistic Path To A 10% Yield On Cost In 5 Years [View article]
    R- yes, the way you suggest is how an accountant and your brokerage already lists costs. The importance is looking at your holding thru different lenses. It helps differentiate between pure buying and selling for profit, shows a more accurate unrealized Total Return. Total Return is a term I have a problem with, since I seldom sell, but I recognize others use it as another lens that many look at.
    Oct 23 12:44 AM | 1 Like Like |Link to Comment
  • Retirement Investing For Income ONLY: Doing It The Right Way [View article]
    Well, late to this party. Looking forward to the rest of articles. Love this approach personally. Hopefully I can pick up some tricks.
    Oct 22 01:54 AM | Likes Like |Link to Comment
  • Retirement Investing For Income ONLY: Doing It The Right Way [View article]
    I do agree yield is not necessarily a good indication of risk, and fundamentals about the Income should be a priority. Also agree with Chowder and would add for many Income oriented securities Funds From Operation are more important than earnings.
    Oct 22 01:48 AM | Likes Like |Link to Comment
  • Retirement Investing For Income ONLY: Doing It The Right Way [View article]
    AT-"why on Earth wouldn't you decide to invest in the one with the lowest valuation? " as an Income investor I would ask the same thing but replace " valuation " with "yield", and add if you have bought at the yield you want, why sweat the price?

    Sure we all want best yield/price at buy, but by getting yield up front you have very little reason to worry about boosting it with Capital Gains., is I believe the point. That lack of worry is a VERY good benefit.

    I do sell and harvest CG, it just is not why I buy. There is a wide spectrum between that and a pure price play that disregards divs entirely.
    Oct 22 01:24 AM | Likes Like |Link to Comment
  • Retirement Investing For Income ONLY: Doing It The Right Way [View article]
    V- the author is not presenting only two or even contrasting only two investment choices. All investments need to be looked at from several different angle's and I believe the layout of this and future article's is not limiting or misleading anyone.

    Your comment was an attack without substance and factually untrue. If you disagree state why instead of attacking the author and insulting the readers.
    Oct 22 01:00 AM | 1 Like Like |Link to Comment
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