My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review

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Includes: AFL, APD, ARLP, AVA, BA, BBL, BDX, BIP, BPL, CBRL, CINF, COP, CSX, CVX, D, DE, DEO, DLR, DRI, EMR, FLIC, GD, GE, HAS, HRS, ITW, JNJ, KMI, LLL, LMT, MCD, MDT, MSFT, NHI, NLY, NSC, NUS, NVS, O, OHI, OKE, PAA, PAYX, PEP, PG, PTY, QCOM, RTN, SDY, SO, SPY, SYY, TGT, TUP, UGI, UTX, VDIGX, WEC, WFC, WMT, WPC, WPZ
by: The Part-time Investor
Summary

By using simple, easy-to-follow criteria, I believe you can create a successful DGI portfolio.

My portfolio outperformed all of the suggested benchmarks this year and over the past two years.

By focusing on dividend growth, I believe my portfolio will continue to outperform on both a total return and a dividend income basis.

Every time I write a portfolio update, I try to highlight a lesson I have learned over the previous three months. The main reason I write these updates is so that I can review, in my own mind, what happened, what moves I made (or did not make) and why I did what I did, and so that others can make suggestions or criticisms concerning how I am managing my portfolio. It is mainly a learning experience for me, but hopefully also for others. But in this update, I wish to review not so much a lesson I learned, as much as a reinforcement of one of the most important benefits of dividend growth investing. And that is the way that DGI helps an investor to hold steady and not make any panicked moves during volatile times.

Some of the most powerful aspects about DGI, in my opinion, are the psychological aspects. When practicing DGI, you look at investing and the market in a different way than how those practicing other forms of investing look at them. As a DGIer, I focus on the dividends I am collecting and the growth of those dividends, not on the changes in the stock prices. So when there are drastic changes in the prices, up or down, I can comfortably sit by and do nothing, while others might be tempted to sell, either to take profits during up markets, or to minimize losses during down markets. As a DGIer, I can easily ignore the volatility, since I know that no matter what, my dividends are going to keep coming in. As someone said (Buffett maybe? I don't really know), "Time in the market is more important than timing the market." This ability to stay invested, to not bounce in and out of the market, is one of the most important factors in investing success, and one of the reasons why DGI works so well.

This past month has been a perfect example of this. As is typical of many DGI portfolios, mine has many energy-related stocks - oil producers, MLPs, etc. The prices of these stocks fell quite dramatically recently as oil prices fell. I was certainly aware of these price drops, and even followed them, but at no point was I tempted to even consider selling any of these stocks. They all pay me a nice dividend, they have all raised their dividend in the past year, and I expect they will all raise their dividends again next year. So why would I sell them? If anything, I would buy more of them, as from my point of view they were all on sale. And in fact, that is what I did, but I'll get to that later. My point is that psychologically, I am quite well prepared to ride out this weak energy market, just as I am prepared to ride out market weakness caused by any reason, since my focus is on the dividends, not the stock prices. I can sleep well at night knowing that each of these companies will continue to deposit more money in my account every three months, regardless of what happens to their stock price.

This mindset is one of the many reasons why I believe that DGI is the best form of investing, at least for me.

Having said that, allow me to present my 2014 year-end portfolio update, and how I used the drop in the price of the energy stocks to add more shares.

Review of Third-Quarter Contributions and Dividends

These are the total dividends I received over the past three months, and the comparison (in parenthesis) to the same months during 2013:

Oct. $1,660.79 ($958.47) (+73.28%)

Nov. $2,656.63 ($2292.72) (+15.87%)

Dec. $3,037.53 ($2346.54) (+29.45%)

Total dividends collected in the fourth quarter - $7,354.95.

Total fourth-quarter 401K contributions added to the account - $14,375.02.

In addition, I turned 50 in November, and therefore I was allowed to add another $1000 to my Roth IRA (for a total yearly contribution of $6500).

So the total funds available for investment this past quarter was $22,492.32.32

The K.I.S.S. System

Over the past year and a half, I have been developing and refining my Keep It Simple, Stupid (K.I.S.S.) system for creating a dividend growth portfolio. The system I developed has been discussed in my previous updates, but as a quick summary, my criteria for buying stocks are as follows:

For Purchase of Regular stocks

  • The stock is on the Dividend Champions, Contenders and Challengers (CCC) list (as compiled by David Fish)
  • The Yield >3%
  • The Payout ratio < 60%
  • The Chowder Number >12%
  • A Quality Rating of A- or better from S&P
  • F.A.S.T. Graph shows a 10-year uptrend in earnings
  • F.A.S.T. Graph shows that the stock is not overvalued.

Recently, I increased my yield cut-off from 2.5% to 3%. I just turned 50, and as the time I have for dividend growth and compounding to work its magic is decreasing, I feel that I need to begin a transition to higher-yielding stocks. Since I'm getting closer to retirement, I don't have as much time as I once did to depend on low-yielding stocks with higher dividend growth. This doesn't mean I am going to sell my lower-yielding, higher-dividend growth stocks presently in my portfolio, but I will limit my new purchases to stocks yielding at least 3%.

For Purchase of MLPs, REITs, utilities and telecoms (High Yielders)

  • The stock is on CCC list
  • Yield > 4%
  • Chowder Number > 8%
  • DGR for all time periods (1-yr., 3-yr., 5-yr. and 10-yr.) at least 3.5%.
  • F.A.S.T. Graph shows a 10-year uptrend (or for the life of the company, if less than 10 years) in Funds From Operations (FFO).
  • F.A.S.T. Graph shows that the stock is not overvalued.

My criteria for selling a stock are also very simple. I will sell if the stock cuts its dividend.

Sales

None of my stocks cut their dividend, so I sold no stocks this quarter.

Mergers

I received 707.586 shares of KMI for the 284.754 shares of KMR I owned.

Walgreen's (formerly WAG) is now Walgreen's Alliance Boots (NASDAQ:WBA). All share data is otherwise the same.

Purchases

NONE

PAAY and Reinvesting

I presently have 60 stocks in my portfolio, and I decided that was enough for the time being. So I did not make any new purchases. Instead, I used all my available cash to reinvest in my most undervalued positions. This is where PAAY comes in. I discussed how I use PAAY in this article. Please note that I use PAAY only to rank the companies already in my portfolio for purposes of reinvesting my dividends, not for new purchases. This quarter, the following companies were my highest-ranking stocks by PAAY, and therefore the most undervalued (not in any particular order): ONEOK (NYSE:OKE), Tupperware (NYSE:TUP), Plains All American (NYSE:PAA), PIMCO Corporate & Income Fund (NYSE:PTY), BHP Billiton (NYSE:BBL), Emerson Electric (NYSE:EMR), Deere (NYSE:DE), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX), AFLAC (NYSE:AFL), Qualcomm (NASDAQ:QCOM), Boeing (NYSE:BA) and Williams Partners (NYSE:WPZ).

Therefore, I used my available funds to buy the following amount of these 12 stocks:

Stock

Shares

Price

Comm

Cost

ONEOK

55

$53.32

$18.74

$3,051.38

Tupperware

25

$67.13

$0.75

$1,679.00

Qualcomm

23

$72.69

$0.69

$1,672.56

Plains All American

33

$50.72

$0.99

$1,674.75

Emerson

27

$63.11

$0.81

$1,704.78

Deere

20

$88.29

$0.60

$1,766.40

BHP Billiton

36

$47.12

$1.08

$1,697.40

ConocoPhillips

26

$65.88

$0.78

$1,713.66

Chevron

16

$108.94

$0.48

$1,743.52

AFLAC

28

$59.41

$0.84

$1,664.32

Boeing

13

$130.74

$0.39

$1,700.01

Williams Partners

37

$46.14

$1.11

$1,708.29

* Most of the OKE was bought in my Optionsxpress account, which is why the commission was so much higher than my other purchases.

So as you can see, I took advantage of the drop in the stock prices of many of my energy companies to add more shares. A total of almost $11,600 was reinvested into these energy stocks. The rest was invested into 6 other companies that also seem to be undervalued. OKE received more funds because I felt it was significantly undervalued, more so than the others.

I also received the following shares of some of my stocks due to DRIP plans in my Optionsxpress account:

Stock

Shares

General Electric (NYSE:GE)

3.01

Alliance Resources (NASDAQ:ARLP)

4.233

Annaly Capital Mgmt. (NYSE:NLY)

17.985

Avista (NYSE:AVA)

3.999

ONEOK

2.913

Wells Fargo (NYSE:WFC)

.437

Following these transactions, this is the present composition of my portfolio (as of 12/31/14):

Company

Shares

Price

Market Value

Dividend

Estimated Ann. Inc. ($)

Curr. Yield

% Port

AFLAC Inc.

245

$61.09

$14,967.05

$1.56

$382.20

2.55%

1.45%

Air Products & Chemicals Inc. (NYSE:APD)

111

$144.23

$16,009.53

$3.08

$341.88

2.14%

1.55%

Alliance Resource Partners LP

371.069

$43.05

$15,974.52

$2.55

$946.23

5.92%

1.55%

Avista Corp.

530.303

$35.35

$18,746.21

$1.27

$673.48

3.59%

1.82%

Boeing Co.

130

$129.98

$16,897.40

$2.92

$379.60

2.25%

1.64%

BHP Billiton PLC

210

$43.00

$9,030.00

$2.48

$520.80

5.77%

0.88%

Becton, Dickinson & Co. (NYSE:BDX)

137

$139.16

$19,064.92

$2.40

$328.80

1.72%

1.85%

Brookfield Infrastructure Part. (NYSE:BIP)

381

$41.87

$15,952.47

$1.92

$731.52

4.59%

1.55%

Buckeye Partners, L. P. (NYSE:BPL)

195

$75.66

$14,753.70

$4.50

$877.50

5.95%

1.43%

Cracker Barrel Old Country (NASDAQ:CBRL)

183

$140.76

$25,759.08

$4.00

$732.00

2.84%

2.50%

Cincinnati Financial Corp. (NASDAQ:CINF)

310

$51.83

$16,067.30

$1.76

$545.60

3.40%

1.56%

ConocoPhillips

223

$69.06

$15,400.38

$2.92

$651.16

4.23%

1.49%

CSX Corp. (NYSE:CSX)

560

$36.23

$20,288.80

$0.64

$358.40

1.77%

1.97%

Chevron Corp.

148

$112.18

$16,602.64

$4.28

$633.44

3.82%

1.61%

Dominion Resources Inc. VA New (NYSE:D)

219

$76.90

$16,841.10

$2.40

$525.60

3.12%

1.63%

Deere & Co.

140

$88.47

$12,385.80

$2.40

$336.00

2.71%

1.20%

Diageo plc ADS (NYSE:DEO)

62

$114.09

$7,073.58

$4.32

$267.84

3.79%

0.69%

Digital Realty Trust Inc. (NYSE:DLR)

281

$66.30

$18,630.30

$3.32

$932.92

5.01%

1.81%

Darden Restaurants, Inc. (NYSE:DRI)

303

$58.63

$17,764.89

$2.20

$666.60

3.75%

1.72%

Emerson Electric Co.

188

$61.73

$11,605.24

$1.88

$353.44

3.05%

1.13%

First Long Island Corp. (NASDAQ:FLIC)

629

$28.37

$17,844.73

$0.75

$471.75

2.64%

1.73%

General Dynamics Corp. (NYSE:GD)

162

$137.62

$22,294.44

$2.48

$401.76

1.80%

2.16%

General Electric Co.

585.141

$25.27

$14,786.51

$0.88

$514.92

3.48%

1.43%

Hasbro Inc. (NASDAQ:HAS)

300

$54.99

$16,497.00

$1.72

$516.00

3.13%

1.60%

Harris Corp Del (NYSE:HRS)

253

$71.82

$18,170.46

$1.88

$475.64

2.62%

1.76%

Illinois Tool Works Inc. (NYSE:ITW)

157

$94.70

$14,867.90

$1.94

$304.58

2.05%

1.44%

Johnson & Johnson (NYSE:JNJ)

159

$104.57

$16,626.63

$2.80

$445.20

2.68%

1.61%

Kinder Morgan Inc. Del Com (NYSE:KMI)

707.586

$42.31

$29,937.96

$1.76

$1,245.35

4.16%

2.90%

L-3 Communications Holdings (NYSE:LLL)

146

$126.21

$18,426.66

$2.40

$350.40

1.90%

1.79%

Lockheed Martin Corp. (NYSE:LMT)

144

$192.57

$27,730.08

$6.00

$864.00

3.12%

2.69%

McDonald's Corp. (NYSE:MCD)

128

$93.70

$11,993.60

$3.40

$435.20

3.63%

1.16%

Medtronic Inc. (NYSE:MDT)

261

$72.20

$18,844.20

$1.22

$318.42

1.69%

1.83%

Microsoft Corporation (NASDAQ:MSFT)

495

$46.45

$22,992.75

$1.24

$613.80

2.67%

2.23%

National Health Investors, Inc. (NYSE:NHI)

242

$69.96

$16,930.32

$3.08

$745.36

4.40%

1.64%

Annaly Cap. Mgmt

1215.828

10.81

$13,143.10

$1.20

$1,458.99

11.10%

1.27%

Norfolk Southern Corp. (NYSE:NSC)

174

$109.61

$19,072.14

$2.28

$396.72

2.08%

1.85%

NU Skin Enterprises Inc. (NYSE:NUS)

352

$43.70

$15,382.40

$1.38

$485.76

3.16%

1.49%

Novartis AG ADS (NYSE:NVS)

200

$92.66

$18,532.00

$2.72

$544.00

2.94%

1.80%

Realty Income Corporation (NYSE:O)

369

$47.71

$17,604.99

$2.20

$811.80

4.61%

1.71%

Omega Healthcare (NYSE:OHI)

449

$39.07

$17,542.43

$2.08

$933.92

5.32%

1.70%

ONEOK Inc.

333.271

$49.79

$16,593.56

$2.36

$786.52

4.74%

1.61%

Plains All American Pipeline LP

320

$51.32

$16,422.40

$2.64

$844.80

5.14%

1.59%

Paychex Inc. (NASDAQ:PAYX)

438

$46.17

$20,222.46

$1.52

$665.76

3.29%

1.96%

Pepsico Inc. (NYSE:PEP)

162

$94.56

$15,318.72

$2.62

$424.44

2.77%

1.49%

Procter & Gamble Co. (NYSE:PG)

166

$91.09

$15,120.94

$2.57

$426.62

2.82%

1.47%

PIMCO Corp & Inc. Oppor.

879

$15.90

$13,976.10

$1.38

$1,213.02

8.68%

1.36%

Qualcomm Incorporated

175

$74.33

$13,007.75

$1.68

$294.00

2.26%

1.26%

Raytheon Co. (NYSE:RTN)

198

$108.17

$21,417.66

$2.42

$479.16

2.24%

2.08%

Southern Co. (NYSE:SO)

341

$49.11

$16,746.51

$2.10

$716.10

4.28%

1.62%

Sysco Corp. (NYSE:SYY)

372

$39.69

$14,764.68

$1.20

$446.40

3.02%

1.43%

Target Corp. (NYSE:TGT)

249

$75.91

$18,901.59

$2.08

$517.92

2.74%

1.83%

Tupperware Corporation

205

$63.00

$12,915.00

$2.72

$557.60

4.32%

1.25%

UGI Corp. (NYSE:UGI)

568

$37.98

$21,572.64

$0.87

$494.16

2.29%

2.09%

United Technologies Corp. (NYSE:UTX)

108

$115.00

$12,420.00

$2.36

$254.88

2.05%

1.20%

Walgreen Co. (WBA)

229

$76.20

$17,449.80

$1.35

$309.15

1.77%

1.69%

Wisconsin Energy Corporation (NYSE:WEC)

336

$52.74

$17,720.64

$1.69

$567.84

3.20%

1.72%

Wells Fargo

245.468

54.82

$13,456.56

$1.40

$343.66

2.55%

1.30%

Wal-Mart Stores Inc. (NYSE:WMT)

184

$85.88

$15,801.92

$1.92

$353.28

2.24%

1.53%

WP Carey (NYSE:WPC)

239

$70.10

$16,753.90

$3.76

$898.64

5.36%

1.62%

Williams Partners LP

295

$44.75

$13,201.25

$3.71

$1,094.45

8.29%

1.28%

Cash

$786.16

$1.00

$786.16

0

Total

$1,013,605.46

$35,206.98

3.47%

Results and Year-End Portfolio Review

My portfolio's value has increased this year from $805,869.81 to $1,014,388.81. This includes cash contributions for the whole year of $70,709.42. Using the Excel XIRR function, this comes out to an annual return of 15.92%.

Even though it has been suggested by some that it is foolish for a DGIer to do so, I compare my K.I.S.S. portfolio to benchmarks for two reasons. I want to know that the efforts I am putting into running my own portfolio are worthwhile. If I'm not doing as well as these benchmarks, then it would make more sense for me to simply buy SPY or SDY and save the effort I'm putting into my portfolio. Secondly, one of the reasons I post my portfolio for all to see is so that others can learn how well DGI can work. I believe that DGI will deliver superior results, both in terms of total income AND total return over the long term. But in order to get people unfamiliar with DGI to believe that DGI can be successful, I have to show them the results compared to what they could otherwise be doing. By showing my results compared to some common benchmarks, I can demonstrate how effective DGI can be.

Based on articles written and comments made on SA, I have chosen to use three different entities as my benchmarks; the SPDR S&P 500 Trust ETF (NYSEARCA:SPY), the SPDR S&P Dividend ETF (NYSEARCA:SDY), and the Vanguard Dividend Growth Fund (MUTF:VDIGX). By using these benchmarks I can compare my portfolio to the market as a whole, to a dividend growth ETF, and a dividend growth mutual fund. These are the indices most often mentioned on SA as the ones that DGIers should be putting their money into by those who don't believe that individuals can beat an index. If I can't beat any of these indices over the long term, or at least come pretty close to them, then it would make more sense to just put my money into one of them.

To make the comparisons accurate, I run three paper portfolios made up of each of the three indices above. For each of these portfolios, whenever I have cash contributions put into my real-life account, I also put the same amount into the paper portfolios and "buy" more shares of the individual indices. And when SPY, SDY, or VDIGX pays a dividend, it gets reinvested into more paper shares, just like I reinvest my real-life dividends in my portfolio. As far as I can tell, this is the most accurate way I have to compare their performances.

Here are the results for the past two years. These are annual returns, for my K.I.S.S. portfolio and the three indices, that were all generated using the Excel XIRR function.

Portfolio

2013

2014

Total

K.I.S.S.

29.44%

15.92%

22.06%

SPY

29.16%

13.57%

20.65%

SDY

28.99%

14.01%

19.91%

VDIGX

29.01%

11.98%

19.69%

Since it is the income that is most important to many dividend growth investors, I think it is important to compare the dividend income of my portfolio to the income from the three benchmarks.

K.I.S.S. - $29,255.99

SPY - $17,702.19

SDY - $44,244.29*

VDIGX - $31,936.77*

(*Much of this is from short- and long-term capital gains, not dividends, but it still affects the results.)

Stock Returns and DGR

The following is a chart showing all of the stocks I own, the return they achieved this year (not including dividend reinvestment), and the dividend growth rate of each over the past year. (Data as of close on December 31st) (The returns are taken from Dividend Channel)

Stock

Return

DGR

Stock

Return

DGR

Stock

Return

DGR

Stock

Return

DGR

Stock

Return

DGR

AFL

-5.11%

5.41%

CSX

30.48%

6.67%

HRS

7.48%

11.90%

NUS

-67.35%

15.00%

SO

25.81%

3.55%

APD

32.19%

8.45%

CVX

-6.24%

7.00%

ITW

16.01%

15.48%

NVS

21.16%

7.47%

SYY

13.75%

3.45%

ARLP

18.55%

8.32%

D

24.72%

6.57%

JNJ

17.91%

6.06%

O

33.60%

2.05%

TGT

23.16%

20.93%

AVA

31.50%

4.26%

DE

0.58%

17.65%

KMI

22.56%

8.97%

OHI

39.01%

8.60%

TUP

-29.31%

9.68%

BA

-2.76%

24.66%

DEO

-9.89%

12.38%

LLL

22.39%

9.09%

OKE

-3.07%

43.58%

UGI

43.44%

15.71%

BBL

-25.28%

5.08%

DLR

40.73%

6.41%

LMT

35.59%

12.78%

PAA

4.56%

9.68%

UTX

4.33%

0.00%

BDX

29.55%

10.09%

DRI

14.08%

0.00%

MCD

0.59%

4.94%

PAYX

5.70%

8.57%

WAG

36.60%

7.14%

BIP

12.86%

11.63%

EMR

-8.83%

9.30%

MDT

28.22%

8.93%

PEP

18.26%

15.32%

WEC

32.36%

1.83%

BPL

15.03%

4.73%

FLIC

2.64%

7.90%

NHI

32.49%

4.76%

PG

16.25%

6.91%

WFC

24.77%

16.67%

CBRL

31.91%

33.33%

GD

47.80%

10.71%

MSFT

28.09%

10.71%

PTY

2.96%

31.84%

WPC

21.32%

16.82%

CINF

4.16%

4.76%

GE

-4.87%

4.55%

NLY

19.98%

0.00%

QCOM

3.57%

20.00%

WPZ

-3.52%

6.65%

COP

3.04%

5.80%

HAS

3.87%

7.50%

NSC

22.47%

5.56%

RTN

23.88%

10.00%

WMT

11.27%

2.13%

The average DGR for all of these stocks is 10.10%. But that is just a mathematical average of all 60 stocks. Because of reinvestments, new contributions, and new purchases, it's difficult to calculate the exact number for my portfolio. But if I look at the weighted value of all of the stocks in my portfolio at the beginning of the year (ignoring the ones I bought during the year and reinvestments I've made), the dividend growth of my portfolio is closer to 10.43%.

Dividends

During 2014, I collected $29,493.64 in dividends. This is an increase of 33.056% over 2013. The amount of dividends I expect to collect in the next 12 months (ED12) is $35,206.95, a 2.87% increase over the ED12 when I did my update last quarter. The present yield of my portfolio is 3.47%.

The dividends I collected for each of the past 12 months are as follows (with a comparison to the same month last year):

  • Jan. $1,611.88 ($1751.06) (-8.6%)
  • Feb. $2,479.61 ($1192.11) (+108%)
  • Mar. $3,238.59 ($2117.01) (+53%)
  • Apr. $1,449.47 ($1,959.17) (-26.02%)
  • May $2,553.38 ($2,059.03) (+24.01%)
  • June $3,168.23 ($2,037.02) (+55.53%)
  • July $1,456.37 ($517.25) (+181.56%)
  • Aug. $2,609.60 ($2312.70) (+12.84%)
  • Sept. $3,571.56 ($2443.57) (+46.16%)
  • Oct. $1,660.79 ($958.47) (+73.28%)
  • Nov. $2,656.63 ($2292.72) (+15.87%)
  • Dec. $3,037.53 ($2346.54) (+29.45%)

Conclusion

I have been thrilled my results over the past two years. Both in terms of the actual results I have achieved, but also in that, so far, I have beaten the benchmarks. And this has been during a very strong bull market, during which I would have expected that my portfolio would have underperformed the market. I am quite pleased and proud of these results, even though I know that two years is a very short time period and that it is the long-term results that will really matter.

Besides beating on total return, I have also beaten SPY and VDIGX in terms of income produced. However, SDY did produce more income than my portfolio this year. SDY paid a very large dividend this past month (I think a large part of it was capital gains distribution?), and that is what was responsible for most of the income it paid. But it is BOTH income and total return that are important to me, so I still feel like my portfolio is performing better than SDY, since my returns has been better by about 2.5% per year. A few more years' worth of data will give more information.

My yield has been falling due to the excellent capital appreciation my portfolio has achieved. When the market eventually cools off, and with the continued dividend growth that I expect from my portfolio, I'm sure that I'll see my yield increase over time. And the actual dollar amount of the dividend will certainly continue to increase. As I get closer to retirement (at least 15 years away), I hope to get the yield closer to 4%.

As I mentioned earlier in the article, as gas prices dropped by almost 50%, most of my energy-related stocks fell as well. Had I been a capital appreciation investor, I may have been very tempted to sell them to cut my losses. But DGI has taught me to have a long-term focus, and for that focus to be on the dividend. I know that gas prices will someday go back up, and so will the prices of my energy stocks. More importantly, while waiting for that to happen, I will continue to collect dividends from those stocks, and most likely those dividends will increase over the years. And as the dividends increase, if the prices stay low, it will just give me even more opportunities to buy more shares of undervalued stocks. So the thought of selling any of those stocks never even occurred to me, and never will, unless they cut their dividends. And I'm already enjoying some of the benefits of my patience, as I was able to buy shares at depressed prices (which means I will collect even more dividends), and those prices have already started to move back up a little bit.

So my plan going forward is to continue to focus on the dividends and to follow my simple K.I.S.S. rules. They have been working very well so far. I believe my results continue to support my hypothesis: that by using simple, straightforward, easy-to-understand criteria for buying and selling, and by using the hard work of other people (Thank you David Fish (CCC list), Chuck Carnevale (F.A.S.T. Graphs), S&P and all the wonderful SA contributors I have learned from!), that someone can achieve excellent investment results without having to put an inordinate amount of time into the process.

Thank you for reading my article. I welcome your comments and criticisms.

Disclosure: The author is long PEP, WMT, WAG, AFL, BA, MSFT, TGT, QCOM, LMT, CVX, COP, GE, JNJ, PG, KMI, MCD. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am long all the stocks mentioned in this article.