(02-05-2021, 10:22 AM)ChadR Wrote: My dividend income was up 9% for 2020.  With it basically on auto pilot this year, I was happy especially considering the dividend cuts that occurred.  Barely missed my goal of $12,000 in dividend received for 2020.

(02-05-2021, 11:09 AM)fenders53 Wrote: Glad you are starting new threads for us, and your first year dividend performance is excellent.  My results will be a little hard to interpret, though I believe Crimsonghost understands my game and can connect the dots.  I have many sources of income. Unfortunately I don't see where Waterhouse separate option transaction income from capital appreciation.  I just know what my average and quite consistent monthly option income is.  

I had a short term goal of maximum income.  Secure extra cash beyond my pensions for first two years of real retirement.  Those funds were secured late 2020 and gradually transitioning a more growthy portfolio.  But for 2020 it was VERY income focused.

-2020 dividends down 35%
-2020 income from selling puts is up 50%, and it was already over 2X my annual dividend income in 2019.  Now it's over 3X and consistent.
-My stock market FCF was up about 35% for 2020.  My intent for 2021 is to dial that back about 5% with a little more focus on growth.  I've learned that gradual adjustments to the plan are usually prudent.

Moral of story is it's not difficult to exceed dividend income by a margin.  There will definitely be a capital appreciation penalty for doing so in a strong bull market.

(02-05-2021, 02:53 PM)ken-do-nim Wrote:

(02-05-2021, 10:22 AM)ChadR Wrote: My dividend income was up 9% for 2020.  With it basically on auto pilot this year, I was happy especially considering the dividend cuts that occurred.  Barely missed my goal of $12,000 in dividend received for 2020.

Nice!

(02-05-2021, 11:09 AM)fenders53 Wrote: Glad you are starting new threads for us, and your first year dividend performance is excellent.  My results will be a little hard to interpret, though I believe Crimsonghost understands my game and can connect the dots.  I have many sources of income. Unfortunately I don't see where Waterhouse separate option transaction income from capital appreciation.  I just know what my average and quite consistent monthly option income is.  

I had a short term goal of maximum income.  Secure extra cash beyond my pensions for first two years of real retirement.  Those funds were secured late 2020 and gradually transitioning a more growthy portfolio.  But for 2020 it was VERY income focused.

-2020 dividends down 35%
-2020 income from selling puts is up 50%, and it was already over 2X my annual dividend income in 2019.  Now it's over 3X and consistent.
-My stock market FCF was up about 35% for 2020.  My intent for 2021 is to dial that back about 5% with a little more focus on growth.  I've learned that gradual adjustments to the plan are usually prudent.

Moral of story is it's not difficult to exceed dividend income by a margin.  There will definitely be a capital appreciation penalty for doing so in a strong bull market.

I have to admit most of what you and crimsonghost practice is way, way over my head.  I don't know what "selling a put" is, what FCF stands for, how to trade options, and some of the things you've mentioned in other threads.  But I think that's okay.  I'm just a buy-and-hold guy.

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

(02-06-2021, 07:59 AM)ken-do-nim Wrote:

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

I see your point; I'll probably dive into learning options some day.

I have to admit, about 6-7 years ago I had a portfolio built with the trendy stocks of the day - Tesla, Amazon, Netflix, eBay, etc. and at the time; this was before they took off like rockets, they weren't doing much, so I got bored and sold them all.  Ugh, I know.  Had I just stayed the course...

(02-06-2021, 11:11 AM)fenders53 Wrote:

(02-06-2021, 07:59 AM)ken-do-nim Wrote:

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

I see your point; I'll probably dive into learning options some day.

I have to admit, about 6-7 years ago I had a portfolio built with the trendy stocks of the day - Tesla, Amazon, Netflix, eBay, etc. and at the time; this was before they took off like rockets, they weren't doing much, so I got bored and sold them all.  Ugh, I know.  Had I just stayed the course...

It takes considerable capital to do what I do in a meaningful way.  It requires $5K to even learn how to do it.  This is a DGI forum and that should be significant part of your plan if you converse here often.  I know the busy thread sounds like Vegas more other than it doesn't.  Almost everyone here has a DGI port as well.  I know all the option traders do.  I am guessing "Option Trader" sounds kinda risky to you doesn't it?  That's probably because 80% of option traders mostly use it for gambling purposes.  I prefer to be the house.  I will never get rich quick with options because I understand the game well enough.  The gamblers bets have already financed my first few years of retirement cash needs and it didn't take too long.  They are funding a new truck now by financing my growthy port.  I'll need that to pull the future boat that is already secured through buy and hold (for 20 years!).  I can be patient too.  Back to the point, I diversify in every way I can.  Sectors of course and a few different investing styles I am comfortable enough through experience.  I never stop learning, but becoming more diverse is making this easier every year.  I get the impression a lot of folks think they have this thing figured out but their sample size is mostly the longest bull market in history.  It gives a false sense of security.