I just started my DG portfolio in 2011. Goal is an increasing income stream that I can use for expenses and to beat inflation in retirement. Currently hold(largest to smallest):
AFL
DLR
WMT
AAPL
LO
NSC
KO
PEP
MCD
WAG
MSFT
XOM
WFC
INTC
SO
LEG
HRS
EMR
PG
PM
COP
JNJ
MO
CVX
PSX
This year I sold WM and would like to get back into it when it becomes reasonable again. I don't feel like I can follow more than 25 stocks so I wont be adding any new positions(might move down to 20 eventually). Just watching and waiting to add to my existing positions at good prices.
I'm not american but the only ones I'd question are:
Apple - short dividend history. Not sure they can continue the growth they've had.
SO - didnt know this one
COP - no dividend increase in a long time
PSX - if this is Phillip it seem to have a short dividend history
The rest are a nice list of good dividend growth stocks. Hold those, add when value priced, re-invest the dividends, and DON'T SELL.
If you have a long investment time frame, I'd consider, if its an option for you, to transfer the shares to the companies (or agents) that offer both DRIP & Optional Share Purchase. That way you will eliminate all commissions and fees on additional purchases and get the max on div reinestments.
You'd have to check the companies policies as some may charge small fees, but some may also offer discounts on div reinvest.
(10-01-2013, 07:38 PM)cannew Wrote: I'm not american but the only ones I'd question are:
Apple - short dividend history. Not sure they can continue the growth they've had.
SO - didnt know this one
COP - no dividend increase in a long time
PSX - if this is Phillip it seem to have a short dividend history
The rest are a nice list of good dividend growth stocks. Hold those, add when value priced, re-invest the dividends, and DON'T SELL.
If you have a long investment time frame, I'd consider, if its an option for you, to transfer the shares to the companies (or agents) that offer both DRIP & Optional Share Purchase. That way you will eliminate all commissions and fees on additional purchases and get the max on div reinestments.
You'd have to check the companies policies as some may charge small fees, but some may also offer discounts on div reinvest.
AAPL does have a short dividend history but tons of cash, I see no reason they wont keep increasing it as long as people keep lining up for their Iphones and they come out with new products.
SO is a utility company.
COP increased their dividend last quarter. http://www.nasdaq.com/symbol/cop/dividend-history
The reason they did not increase it last year, they had the spin off of psx. They kept their dividend the same and you got the additional PSX dividend, so in my book that's as good as an increase.
PSX I got in the spin off from COP and haven't sold it yet since they have been raising the dividend nicely.
I actually hold some of my WMT in their drip program but prefer online brokers. I like being able to see everything in real time and they give me free dividend reinvestments.
I think you have a great start, many good names on the list.
I own AFL, DLR, WMT, AAPL, LO, NSC, MCD, WAG, MSFT, WFC, PM, COP, MO, CVX and PSX.
I used to own LEG but sold it off after recent disappointing earnings and I didn't like how the dividend growth has slowed recently. Bought PM with the proceeds.
Also used to own INTC but sold it after they also announced disappointing earnings and lowered guidance along with no recent dividend increase. Bought IBM with the proceeds.
Have also considered PEP and KO but went with DPS instead.
I also agree it is a fine list of stocks. Love to see AFL right there at the top. Really wish I had bought a lot more of that one when I was getting in.
(10-01-2013, 08:45 PM)EricL Wrote: I think you have a great start, many good names on the list.
I own AFL, DLR, WMT, AAPL, LO, NSC, MCD, WAG, MSFT, WFC, PM, COP, MO, CVX and PSX.
I used to own LEG but sold it off after recent disappointing earnings and I didn't like how the dividend growth has slowed recently. Bought PM with the proceeds.
Also used to own INTC but sold it after they also announced disappointing earnings and lowered guidance along with no recent dividend increase. Bought IBM with the proceeds.
Have also considered PEP and KO but went with DPS instead.
I agree on INTC. It used to be one of my largest holdings, sold off half when they didn't increase the dividend. If they don't increase q1 2014 i'm out.
(10-01-2013, 09:04 PM)Kerim Wrote: I also agree it is a fine list of stocks. Love to see AFL right there at the top. Really wish I had bought a lot more of that one when I was getting in.
Thanks. I wish I'd bought more AFL in the lower 40s, when I first bought as well but I bought the last batch @ 58. I still feel it is a good value around there. I'm hoping for a larger div increase out of them this year. It should be announced soon. Long live the duck!
(10-02-2013, 08:25 AM)fiveoh Wrote: I'm hoping for a larger div increase out of them this year. It should be announced soon. Long live the duck!
Add me to the list of people who hope AFL gets a little more generous with the dividend. I think they can comfortably increase the payout ratio a bit with no worries.
03-06-2014, 10:17 AM (This post was last modified: 03-06-2014, 10:24 AM by fiveoh.)
I decided to post a little more in depth info on my portfolio to see if I could get some more suggestions/comments to bring my lagging portfolio up. My portfolio since inception vs the S&P total return.
S&P ME
2011 3.19 4.85( timeframe only since portfolio started)
2012 15.96 14.71
2013 32.39 28.35
2014 1.76 -.27
Although I did beat the index in 2011, I was just starting out and didn't really have enough positions to make a good comparison.
I've also attached my current portfolio with weighted %.
One thing that I failed to bring up. Do you have a business plan for your portfolio?
Is your goal simply to beat the S&P? Every year? Over a period of "x" years?
Build a reliable income stream?
Grow your income at a certain annual % rate?
Provide a certain # of income in the coming year?
Are you investing only in DGI stocks or are you also looking for capital gains type plays?
Do you have any set requirements for financial stability of the companies you are investing in?
Any requirements for historical dividend growth rates, aka, the "chowder rule"?
Are there any sectors (staples, energy, financial, utilities, discretionary, materials, tech, healthcare, etc.) or investment types (stocks, bonds, MLP's, REIT's, BDC's, preferred's) that you prefer or tend to avoid?
Is this a taxable account or a shielded retirement account?
I think answering those types of questions will be helpful to you in creating a strategy. Its hard to build a portfolio without knowing what the goals of the portfolio are.
(03-06-2014, 10:41 AM)EricL Wrote: One thing that I failed to bring up. Do you have a business plan for your portfolio?
Is your goal simply to beat the S&P? Every year? Over a period of "x" years?
Build a reliable income stream?
Grow your income at a certain annual % rate?
Provide a certain # of income in the coming year?
Are you investing only in DGI stocks or are you also looking for capital gains type plays?
Do you have any set requirements for financial stability of the companies you are investing in?
Any requirements for historical dividend growth rates, aka, the "chowder rule"?
Are there any sectors (staples, energy, financial, utilities, discretionary, materials, tech, healthcare, etc.) or investment types (stocks, bonds, MLP's, REIT's, BDC's, preferred's) that you prefer or tend to avoid?
Is this a taxable account or a shielded retirement account?
I think answering those types of questions will be helpful to you in creating a strategy. Its hard to build a portfolio without knowing what the goals of the portfolio are.
Very good questions. I have thought about some of them and have answers to most of them. At this point I guess I am questioning if my "business plan" is the best way to accomplish my ultimate goal or not. Did you want me to answer them, or just giving me food for thought?
At the beginning of the thread you stated:
"Goal is an increasing income stream that I can use for expenses and to beat inflation in retirement."
If your goal is still the same you are accomplishing your goal. If your goal is different now in that you are trying to beat the S&P then maybe you aren't.
Personally I think trying to chase the S&P returns is a fool's errand and isn't really relevant, especially in a short time frame. I think if you get to 5 years in and you are continuing to lag it may be time to look more closely at your holdings and see if you need to make changes.
With the numbers you've given, you really aren't far off from total returns over the period, maybe just a couple percent behind. As I said in the other thread, that is understandable as we are in a big bull market and you have many slower growing companies. I think in the long run you'll be just fine. Continue to dollar cost average in and buy things that are at fair valuations and let dividend compounding continue to do its thing.
(03-06-2014, 11:05 AM)EricL Wrote: Mostly food for thought.
At the beginning of the thread you stated:
"Goal is an increasing income stream that I can use for expenses and to beat inflation in retirement."
If your goal is still the same you are accomplishing your goal. If your goal is different now in that you are trying to beat the S&P then maybe you aren't.
Personally I think trying to chase the S&P returns is a fool's errand and isn't really relevant, especially in a short time frame. I think if you get to 5 years in and you are continuing to lag it may be time to look more closely at your holdings and see if you need to make changes.
With the numbers you've given, you really aren't far off from total returns over the period, maybe just a couple percent behind. As I said in the other thread, that is understandable as we are in a big bull market and you have many slower growing companies. I think in the long run you'll be just fine. Continue to dollar cost average in and buy things that are at fair valuations and let dividend compounding continue to do its thing.
Hope the discussion helps!
Yes, that's still my overall goal. I appreciate the input/advice/encouragement!
