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  • Dividend Growth Investing: Reflections On What I've Learned, Part 2 [View article]
    Not Bob, but a reply.... Not too long ago I had to take over my little portfolio because our CFA quit the biz, and I knew NOTHING about what I had to handle. At the time the holdings were things like IWM, GILD, ATW, GLW. Even having no experience, I could still see that the ETFs were just market trackers and I decided I could never build wealth with those. Likewise, I could see that although the price fluctuated with my stocks, I still had the same number of them that I started with. A rookie like me would never be able to 'sell at the top' and 'buy at the bottom'. I was not willing to wait another 20 years, have the same number of shares (not counting splits and such), and hoping the price was higher than purchase.

    So after learning what I could esp reading SA articles, I decided income/dividend producing stocks were the way to go. I used the little bull run in 2009-2010 to get out of most of my holdings and into co's such as PM, IBM, MCD as well as lower initial yield but higher div growth rate like CMI and CHD, I added a few others like LINE and MMP for high yield. Now I am growing my share count on a quarterly basis.

    So as to your question about thoughts on a youngster doing this -- I set aside a little in a trading account (like I did with Zecco). I turned 5k into 2.2k in almost no time at all. I was consumed with watching the price all the time, when to buy, when to sell. Life suffered, work suffered. Didnt take me long to realize thats not the way *I* want to spend my time/life. Take that same 5k and buy something like PM or MCD (which I have told my nephews to do) and input the values into a DRIP calculator and see just how much that will turn into in 30 years. And thats essentially hands off, let it run investing. I expect my nephews will not listen to me, like I did not listen to my dads advice years ago. And in 10 years they will say, just like I say -- i wish I would have listened to my dad and I would have a LOT more money.

    People much smarter than me will respond but I will at least tell you the DG method/portfolio works great for me. Just having a plan is a great start.

    Best of luck
    Jun 29 09:35 AM | 7 Likes Like |Link to Comment
  • The Best Dividend Growers, Part 13: AmerisourceBergen [View article]
    I'm 47 and the plan is to hold indefinitely. If it runs up insanely such that the current yield always stays low, I'll be delighted with the cap apprec. If it falls back and yield goes up as a result, I'll gladly take those >10% increases for as long as they will give them.

    Since I have another 15-20 years to go, I am drawn to these low yield/hi DGR stocks. Dont need income now but hope these are tomorrows div champs.

    Long CMI, FLS, CHD, MA, V, IBM, UNP that fits this category.
    May 23 01:33 PM | 2 Likes Like |Link to Comment
  • IBM will save millions starting next year - and perhaps start a trend - as it shifts to contributing to employee 401(k) accounts just once a year, Dec. 31. Those who leave the company before Dec. 15 will not qualify for a match. For employees - besides being induced not to leave the company mid-year - the move dilutes the dollar-cost-averaging power of contributions. Expect the government to have its say on the change. [View news story]
    Actually this is something that would drive you away from the company (as an employee). Years of negligible (or no) pay increases, no bonuses, and now no 401k match which is essentially the last straw. What is the employee incentive anymore? I have my own work ethic and I will continue to do a job and do it well....but my mind is now focused only on opportunities outside the company.
    Dec 8 09:30 AM | 2 Likes Like |Link to Comment
  • MarkWest Continues Its Rapid Growth [View article]
    I picked up some MMP in Aug 2011 based on your article about 'Breaking Down Alerian Index' and its has done me well...up about 26%. Plan on some MWE and WMB if I can get out of a few bad positions, thanks largely to your analysis. I appreciate it.
    Jun 29 04:26 PM | 2 Likes Like |Link to Comment
  • Why Are Upstream MLPs Moving Towards Monthly Dividends? [View article]
    I dont think thats quite true. In a simplistic example, I have 100 shares in which I get 10 cents for. I drip that $10 and get 1 more share. In the second month, I get 10 cents for 101 shares, $10.10 and I buy another share. In the 3rd month I get 10 cents for 102 shares, or $10.20.

    So instead of recv $30 in 3 months I got $30.30 when I dripped. I imagine this is the accelerated compounding he mentioned.

    If not dripping, then point taken.
    Dec 9 07:59 PM | 1 Like Like |Link to Comment
  • Church & Dwight: A Solid Growth/Dividend Investment In 2013 [View article]
    While I do understand waiting on the entry point one feels is fair, I also see the potential for missing out on weeks/months of gains. When I decided I like CHD, I picked up 75 shares in 03/12 @ 48.26 and doubled down in 05/12 @ 54.3. I dont really know what fair value was when I bought. I did know that they have a great div growth rate and a stable product and thats what I really wanted from them. I didn't want to let $5/share be the difference between me owning the company for 20 years or potentially 14-15 (as I waited for a price I want...if I get it). Since I am a DGI I want to start my compounding machine as early as possible.

    I faced this same issue with ARG. I really liked it at $83 but wanted in at $80. Then I regretted not getting in when I saw it go up to $90. I finally dipped in for a half position last month at $92. Now its up to $98. Kicking myself for missing out on $10/sh increase. I almost felt paralyzed by analysis.
    Feb 19 03:49 PM | 1 Like Like |Link to Comment
  • Church & Dwight: A Solid Growth/Dividend Investment In 2013 [View article]
    I hold about 175 shares at blended price/shr @ 52.02. Have already seen a 15% cap increase in value along with the recent 16% div increase. Plan to hold this CHD 'tree' for 20 more years and reap its fruits. Thanks for the article.
    Feb 19 02:40 PM | 1 Like Like |Link to Comment
  • A Low Beta, High Dividend Growth Rate Portfolio With 3.4% Yield And 20% DGR [View article]
    I have a mix of low yield, hi DGRs (CHD, ARG, FLS, CMI, RAVN) to go along with my MCDs and PMs. Hoping that with at least 20 years before retirement these will do me well. Glad to see some of mine on your list.
    Jan 28 08:20 AM | 1 Like Like |Link to Comment
  • The Best Dividend Growers, Part 13: AmerisourceBergen [View article]
    Long ABC @ 46.35. Initially drawn to the DGR being so high, which I knew couldn't continue...but half of their 5yr DGR would still be over 20%. Their last increase of about 12% a little disappointing but its still 12%! I dont really view this as an income stock with the lower yield but am certainly hanging on. Only wish I had added more back at end of April when it was down to ~$63. Its still a little under FV but needs to come back before I add.
    May 23 12:22 PM | Likes Like |Link to Comment
  • Establishing A Core Portfolio [View instapost]
    Thx for your response. I seem to be drawn to those hi DGR, low initl yields. I also have CMI, ARG and IBM that fit this mold. In my simplistic way of thinking (1) there must be some capital apprec to yield <2.0% after 10 yrs of 20ish% DGR (ARG example) which i am not going to argue with, and (2) the Champions and Contenders of tomorrow are some of the Contenders and Challengers of today. I hope to get lucky and hit on a few.

    Thanks for challenging my views on what I am trying to accomplish.
    Feb 4 02:16 PM | Likes Like |Link to Comment
  • Establishing A Core Portfolio [View instapost]
    Does length to retirement play any factor in choice? For example I hold CHD with its low intial yield (1.6%) but quite high DGR. I have about 20 years before retirement. I am willing to sacrifice initial yield for that DGR, although I know it will not likely maintain that high %....simply because I have time to wait.
    Feb 4 08:35 AM | Likes Like |Link to Comment