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Debthedivestor

Debthedivestor
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  • Dividend Champions For March 2014 [View article]
    David

    Thank you for your meticulous and incredibly timely work to provide the CCC list each month. I use it to improve the quality of my portfolio and grow my income stream. Gotta admit that it is a thrill to see more and more of my holdings on the CCC list. Kudos.
    Mar 6 02:53 AM | 1 Like Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Rokgpsman

    Thanks for your thoughtful post and suggestions. I think that I have learned a valuable lesson from my experience. I thought APPL would bounce back, not necessarily to 705 but at least give me a nice short term profit. We all know that did not happen. Now, after 1 year, I am up just 4%. I'm not going to kick myself - just won't fall under the same spell again. From now on, I am going to stick to the steady process you described so well. My portfolio yield is still under 4% but increasing with each new acquisition and announced dividend increase. Love today's KO announcement! I also need to pay attention to beta. Bob, would you mind sharing how you calculate beta for your portfolio? I am learning more about how to use David Fish CCC list and understanding all the wonderful technical information it contains but have to admit that a big part is still a mystery. Oh well, one thing at a time.
    Feb 21 08:15 AM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Scott

    Thanks for your suggestion. I will be selling some IBM which has a lower yield and replacing it with something with higher yield. I am pretty sure I will also trim some APPL. I agree that it is best to identify a replacement stock before one sells the original position. I usually have more on my shopping list than spending money. This website and wonderful contributors have taught me to purchase stocks at no higher than fair value so I have a built in "safety net". I use FastGraphs and Morningstar to identify fair value.
    Feb 21 02:10 AM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Eric

    Thanks for your response and thoughtful questions. The positions are held in an IRA so no tax consequences. I plan to trim the IBM and APPL positions to be consistent with other holdings. Dividends are currently being reinvested because the shares are significantly undervalued. The dividends from these two are not high enough on their own to put into another position given the $7/trade that Vanguard charges.

    I am not comfortable missing out on capital appreciation because the shares are so undervalued. My problem is similar to many others. I have never experienced a time when I was unable to find a stock to purchase - my problem has been not having cash to fund the purchase.

    Thanks for your help!
    Feb 21 02:10 AM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Maybenot

    Thanks for your post. I am going to take yours and Bob's advice and write out my investment plan this weekend. Thanks for your encouragement and kind words. I'll stay in touch.
    Feb 21 02:09 AM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Emerald

    Thanks for sharing your thoughts. I agree that Apple is a solid dividend player. When I bought the stock in Dec 2012, I was not looking at valuation like I do now. The current yield is below my 3% desired level, but since I purchased at just over $500, I thought I was getting a good deal. In the past year, it has not done much, other than raise the dividend 15% which was great. I am now trying to limit risk through equal weighting my positions and appreciate your advice about max 2-3%. I am actively researching how I will reinvest the funds when I reduce the position. I need to grow dividend income and overall portfolio value over the next 10 years. Seeking Alpha and wonderful contributors have been so helpful and I have learned so much. Thanks for your help! I will keep you posted!
    Feb 21 12:56 AM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Bob, Rose, Maybe

    Thanks for sharing your thoughts. I am in the process of putting my portfolio plan in writing. Sharing your detailed plan has been a big help towards this goal. I know from my past missteps how easy it is to get side tracked if the goal and process are not clearly identified. I guess we chalk it up to experience and move on. As I get closer to retirement (hopefully in 10 years), the missteps can have a greater impact.

    Good points about the tech positions. One of the things that I have discovered as a result of practicing such a straightforward process is that I don't always understand a company as well as I thought I did. Writing out a paragraph about what the company does makes this so clear. The overweight ties up resources that could be better allocated but will not act until I have a clear idea of how I will use the funds. On the other hand, the companies have offered great dividend increases. My plan is do an analysis using David Van Knapp's screening system from his EBook and then listen to the conference calls again. I'm going to put it down on paper and see how things shake out.

    Rose, I'm not a techie either but I do love APPL products. It seems to be coming back in favor - MSNBC no longer seems to be bashing it on a daily basis. Maybe, I have thought about MSFT, but didn't want to add to tech when I am already so overweight. I like the MSFT dividend and will watch to see what happens with the new CEO.

    Bob, I really appreciate how you document your reasoning and process of managing your portfolio. It is very encouraging and I am so glad to see how well you are doing. I'll keep you posted on my progress. Thanks to everyone for the encouragement and feedback.
    Feb 16 12:57 PM | Likes Like |Link to Comment
  • My Fourth Quarter Portfolio Review [View article]
    Hi Bob and welcome back. I have missed you and eagerly read your portfolio update. Tanks for sharing and for your help with my portfolio construction. Congratulations on your success.

    When I took control of my portfolio from my financial advisor in late 2012 he told me that dividend growth investing could never work. I just smiled and thanked him for his time. I moved my accounts to Vanguard and logged into Seeking Alpha. My former father in law lived on his dividend income until he passed away in the 90's. Dividend growth investing is not a new concept - it has stood the test of time and works quite well!!!

    Your posts have given me a lot to think about. I also use David Fish CCC list to identify future purchases, Chuck Carnevale's Fast Graphs to help me know when to pull the trigger and David Van Knapp's Top 40 EBook to help me learn how to analyze and track my positions. I highly recommend these tools to increase one's investment success.

    We have 17 stocks in common: COP, CVX, JNJ, KMB, KMI and KMR (instead of KMP), KO, KRFT, LEG, MCD, MO, O, PG, SO, WEC, WM, and WPC. I have flirted with purchasing OHI given its attractive yield, good fundamentals and popularity with DGI. I just can't get past the idea that I believe people want to stay in their home with "home care providers" rather than move to care facility if it is at all possible. I wonder how this would affect a stock like OHI? Any thoughts you (or anyone else) care to share?

    In late January, I sold my HD when it was at 82 and replaced it with JNJ. That grew my dividend income by $50. On the dip, I sold shares in IBM and purchased PG, COP and more KO. This trade grew my dividend income over $200/year.

    I have a couple of challenges. My portfolio is overweight in two companies (AAPL 13% and IBM 15%) that I have had for a while. Although my basis is very low in these two stocks, I have not trimmed except for the above purchase because they are both significantly undervalued. The overweight has caused additional volatility that I'd like to reduce. The second challenge is my portfolio yield is 3.47%, significantly affected by the legacy positions that both yield in low 2%. Any thoughts?

    The portfolio is held in an IRA. I currently reinvest all dividends to earn the extra layer of compounding.

    Some of my other favorites are DOV (will be spinning off Knowles), GILD (no dividend), DUK, KIM, CSCO and GE. KIM, CSCO and GE are harder to love, but appear to have turned things around and may be breaking out soon. Your thoughts?

    Thanks and great to have you back!
    Feb 15 05:25 AM | 5 Likes Like |Link to Comment
  • Why I Support Chuck Carnevale's Preference For Valuation [View article]
    DGI Guy - I've read your article a couple of times and still ask the question "Is this a serious article?"

    I agree with you that "purchasing at sound valuation gives the greatest opportunity for investors to make a fair return..."

    You seem to infer that WMT, PEP and PG are overvalued at current prices. I use Chuck Carnevale's excellent Fast Graphs and agree that these securities are currently overvalued.

    What I don't understand is the statement "I currently am sitting on a higher percent of cash than I would like, but I cannot find any investment that I feel represents the characteristics that I am looking for in investments." You don't appear to define the characteristics that you are looking for.

    Perhaps, you need to change your perspective. Instead of looking at what you won't do, focus on what you will do. What investments appears to be fairly valued? What is your criteria to determine fair value? If you can articulate this criteria, you can then make purchase decisions. May I suggest you review David Fish' excellent list of Dividend Champions, Contenders and Challengers for possible purchase candidates.

    It is costly to sit on the sidelines as you are missing out on receiving dividend income, price appreciation of the stock and the compounding that dividend reinvestment brings over time. I am not sure what your investment/retirement timeline is, but I am of the opinion that there are always opportunities to purchase fairly valued securities. Remember, investing early is also extremely important to the growth of a retirement portfolio. Once time has passed it is gone, we can't get it back.

    I have followed the comments from Hilo and CKent which identify stocks that are currently undervalued. You respond with "I agree, these stocks are on my watch list" and "Under-investing on Irrational fear describes me to a T". This appears to be very passive, not the comment of someone who intends to make a purchase now.

    It seems as though there may be other reasons for your inaction. Maybe you should ask yourself, "what is really stopping me from investing?"

    No disrespect intended - just an observation.

    Good luck!
    Dec 7 09:46 AM | 5 Likes Like |Link to Comment
  • The Importance Of Pricing And Valuation In Dividend Investing [View article]
    Hi Dividend Growth Investor

    Thanks for the well written article. I share the concerns about MSFT and INTC due to decline in PC market and uncertainty of impact of Ballmer departure. I looked at INTC about a year ago, but didn't like the inventory/sales issues, despite the good yield. Lack of movement of inventory in tech companies is a killer because the technology changes too quickly. Also, my DG portion is weighted with AAPL and IBM positions, so I will pass on investing in MSFT or INTC. With that said, good luck to all investors.

    I like your 4 picks at the end of the article and currently hold a small position in MCD. I sold WMT about a year ago at a nice return from my original purchase in 2005. My DGI plan includes buying stocks with at least 3% yield. Since WMT and TGT do not fit this plan, I will not take positions in these companies for now.

    I have been following COP, JNJ, PG, PEP, CL, WEC with intention to purchase as funds are available at good entry points. These companies are all on David Fish's CCC list and I believe present good long term growth and income. I like to purchase more shares of one security rather than equally weighing positions in several securities, as other DGI appear to do.

    Since I am in my fifties and started my DGI plan late, I am a believer in waiting to purchase the desired stock with a specific price point in mind. Buying in at the right price results in accelerated returns.

    Since finding SA about 9 months ago, I have embraced the DGI philosophy and am opportunistically moving my portfolio to all DG stocks using David Fish's wonderful CCC list and research ideas learned from other SAs. Some of the members that I follow include David Fish, David Van Knapp, Bob Wells, Brad Thomas, Bret Jensen, Regarded Solutions, Chowder, Doug Le Duc, and, of course, you. Thanks to the SA community for your generosity, the opportunity to learn from you, and the intelligence and transparency of your posts.

    Happy Labor Day to all and best of luck!
    Sep 1 08:08 AM | 1 Like Like |Link to Comment
  • A Young Investor's DGI Plan And Portfolio [View article]
    Erik

    Congratulations on your upcoming marriage and well written article. Nice job!

    I am about a dozen years from retirement and wish that I had put into practice the well-conceived plan that you have outlined. Can't change the past but I am on the path now and grateful to so many Seeking Alpha contributors for sharing their investment plan and experiences.

    I hold many, but not all, of the securities that you mention and follow David Fish's fantastic CCC dividend spreadsheet each month. I agree with earlier post that you want to carefully evaluate selling a security that spins-off or splits shares. Many times this is associated with increased shareholder value because of growth in the new company and increases in dividends. However, if you think that you can do better with another security, go for it.

    You commented that you have 100 commission free trades per year, reset annually. Please identify the brokerage.

    Good luck!!
    Aug 25 09:42 PM | 1 Like Like |Link to Comment
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