Director at a Fortune 25 company until a major downsizing. With decent financial skills and the gift of time, I retired early (mid 50's), took a break from corporate life, stopped paying for "expert" investment advice (and fees unrelated to performance), and educated myself to self-direct our retirement portfolio. The goal: to live off (reliable and growing) portfolio income and spouse's Social Security. I'm not yet eligible for SS, and we have no pensions. But we contributed faithfully to 401(k) plans, now in rollover IRA's, and contributed after-tax funds to a brokerage account. As of January 2018: 89% equities (>90% investment grade), 3% bonds, 8% cash. Style is primarily Dividend Growth Investing (with a balanced mix of yields and dividend growth rates), but open to complementary approaches that meet goals and provide sleep-well-at-night peace of mind. The intent is to live off the portfolio income (and one social security) and not be forced to sell our underlying investments.Have exceeded that goal each of the past 6 years, and am reinvesting the excess to accelerate compounding. Portfolio-level equity metrics: investment income that exceeds 3/4 of inflation-adjusted annual expenses; blended yield >= 3.75%, 3 year dividend growth rate > 6.5% and portfolio-level beta < .8
Portfolio (Brokerage, IRA, Roth)
- Consumer Staples (15) ADM, CLX, COST, FLO, GIS, HRL, HSY, KHC, KMB, KO, MO, PEP, PM, PG, SJM
- Health Care (7) AMGN, CAH, GILD, JNJ, MDT, MRK, PFE
- Telecom (4) BCE, T, TU, VZ
- Utilities (9) CNP, D, DUK, EXC, LNT, PPL, SO, SRE, WEC
- Consumer Discretionary (2) F, TGT
- Financials (5) CINF, JPM, MFC, MHLD, STWD
- REITs (7) O, NNN, SPG, STOR, VTR, WELL, WPC
- Materials (1) PKG
- Energy (1) XOM
- Industrials (4) CMI, GWW, MMM, SSW
- Technology (6) CSCO, IBM, INTC, QCOM, WDC, WU
- CEF (3) EXG, TPZ, UTG
I am an engineer in late 30's. Been an Index investor throughout my adult life. Recently have started transitioning to Individual stocks (by mid 30's). For the past 2-3 years have been patiently allocating my $$ from index funds to individual dividend growth stocks.
Dividend Growth Investor since 2011.
In July 2013 we moved from a managed account with a mutual fund, stock and bond portfolio to our own Dividend Growth portfolio. I am still evaluating the current portfolio holdings as they fit in our DGI "Plan".
Update: June 2015 I am now fully retired and am following our plan for life long financial independence. Retirement and financial independence are two different life goals and as such should be treated differently. Now when I check our discount brokerage account I now look at the cash being generated rather than the total value. This income generating plan seems to be working just fine as dividends are being used to support our day to day life. We currently have a 4.1% yield, 4.4% YOC and 6% dividend CAGR.
My Father was a DGI for over 70 years and my parents lived off the dividends for over 30+ years showing me the way forward.
I continue to read S/A articles daily and am still learning from the many dedicated authors.
I volunteer my time to our High School First Robotics Team. It is amazing what these students can do over the 6 week build season.
There are certain stocks I will not buy and I like to have stocks of products we use. For example when we pay for gas the dividends from XOM, CVX and COP pays the bill and BCE, RCI and VZ pay for phone and internet. You get the idea. If there was only a good dividend vacation stock... Maybe CNK.
I am long on the following: Comments welcome on my holdings.
Info Technology; AAPL, CSCO, GOOG, GOOGL, MSFT, WU
Telecommunications; BCE, RCI, T, VZ
Financials; AFL, BRK-B, CB, PRU, TMP, USB, ORI
Industrials; CHRW, CSX, DE, EMR, GE, IBM, MMM,
Consumer Discretionary; CNK, DRI, LEG, MCD, SJR
Consumer Staples; CPB, KMB, KRFT, PEP, SYY, PG
Energy; COP, CVX, XOM, RDS.B, KMI, HP
Healthcare; JNJ, MDT, MRK, PFE, SNY
Utilities; D, DUK, PPL, SO, WEC, XEL, SCG
REITs; DLR, HCP, KIM, O, OHI, VTR, WPC, NNN
MLPs; SXL, ARLP, PAA
BDCs; MAIN, PSEC**
CEFs; GOF**' NIO** DMO**
* Being evaluated for sale and reinvestment.
** Speculative 1/3 positions
Oct2013 - Bought DLR on the dip hoping for a bounce.
Oct2013 - Sold EXC at a loss and bought XEL. EXC (left over from my adviser)
Jan2014 - Added ARLP to my wife's IRA, TGH and KRFT to taxable account on Jan dip
Jan2014 - Added VTR by taking the profits from WLP and STJ (left over from my adviser)
Feb 2014 - Added T on a dip at 32 ( I wanted this stock for many years and finally pulled the trigger.)
July 2014 - Sold LOW and AMAT, took profits and added to my SO holding in taxable account.
Sept 2014 - Sold TSCDY and VDC in our taxable account.
Sept 2014 - Sold VDC in my trad IRA and added HCP.
Oct 2014 - bought more XOM on the recent dip.
Dec2014 - bought more CVX and T on the recent dip.
Sold TGH, IBM at slight loss
Dec2014 - will transfer 50% of my 401k to trad. IRA. Let the buying commence.
March 2015 - All 401k money has been transferred to TIRA
Since Jan 1 2015 I have added to the following positions on limit orders to maximize value.
DUK, VZ, O, RDS.B, CVX, EMR, JNJ, VTR, WPC, OHI, HCP, DLR, PEP, T, KMB, RCI, PPL, GE
SCG, MAIN, NNN, PG, PAA, HP, NNN, ORI, (PSEC, NIO)**
Purchased KMI, KO, UTG, JNJ, MAIN and GILD on the Aug 24th "Flash Crash". Great bargains!
Dec 2015 sold BRK-B and WU at a gain to offset the KMI loss.
Jan 2016, Added my TGT, MMM, EMR and SCHD for my wifes IRA.
High Quality, Dividend Growths Stocks with a minimum Yield of 3.00 %.
Rather rarely Stocks with higher growth and low Dividend Yield.
Time horizont: Longterm >20 years
Current holdings: MO, PM, NSRGY, PG, UL, KO, BUD, DEO, GIS, JNJ, XOM, CVX, RDS.A, MCD, SUX, T, VZ, VOD, JNJ, GSK, NVO, QCOM, SAP, O, NGG, SO, MA, V, SBUX
25.10.17 ++ recent action: GE sold, topped up GIS and O with the funds.
I´m 46 years young and dividends are 60 % of my monthly disposable income. The other 40% is coming from propery rentals. I have no working income and no pension. It is only sometimes possible to reinvest a part of the dividend because usually I need them for covering living costs.
My financial situation is similar with retired people when they are very much dependend on the dividends for covering living costs.
Good luck to you all!
After 42 years in the construction industry as an IBEW inside wireman-electrician I feel fortunate to have a pension. I value all the insight from the contributors to this web site! With 300k in IRA's @Vanguard and 30k in joint acct,I hope to attempt some trading and options also. seeking alpha and advice mike