Chowder's 'Lost Works'

[EricL]

I'm sure some of you have already seen this post, but for those who haven't, I was contacted late last year by Chowder about presenting some information that Joni had assembled over the years. Joni had saved various blog posts, comments, and other info from Chowder and assembled them into a little PDF book to share with others. Unfortunately she succumbed to cancer and wasn't able to finish the work.

So I put together this article presenting the first part in her series, "Young Folk Portfolio" that I think gives some good information for those first starting out in dividend growth investing, provides a nice foundation for how to manage a new portfolio, and gives a tribute to her and her work in trying to help others.

Chowder's 'Lost Works' Preserved By Longtime Reader Joni Repasch

Enjoy!

[Otter]

I had a first read through of this yesterday on SA, and it's a really great article (have it bookmarked now). Thanks for putting it all together.

I have been guilty of passing up growthy dividend stocks because the valuation was "too high." As an antidote to this, I have worked the Chowder number into my purchase decisions, which helps with assessing value of a DGI stock with low yield (due to share price running high), but high dividend growth that is matched by earnings growth. That said, I still think a valuation can be too high for a purchase, even of a solid dividend payer. BA over $400 is a good example. Sure, I probably wouldn't mind purchasing at $400 if I looked back on it 20 years down the road, but that same capital could likely have been allocated to another solid dividend payer that wasn't as richly valued (like WFC). I suspect WFC will still be around, too big to fail (just like BA), and quite successful in 20 years. No one will remember the current issues with consumer accounts in 5 years, much less 20, just like no one remembers the SEC accounting investigation opened into BA back in 2016, when it was trading for $120/share (last time I bought shares).

The universe of quality DGI stocks is broad. Today's dogs are tomorrow's darlings, and vice-versa.

[EricL]

Just noticed this thread and realized I hadn't posted the update articles.

Chowder's 'Lost Works' - Part II: Older Folks Portfolio

Chowder's 'Lost Works' - Part III: Portfolio Construction And The Valuation Scam

With over 600 comments and counting between the three articles, the series was a nice success. It was a difficult piece to work on, but I'm quite happy with how everything turned out.