03-06-2014, 10:26 AM
(This post was last modified: 03-06-2014, 10:27 AM by Dividend Watcher.)
(03-06-2014, 08:23 AM)hendi_alex Wrote: Performance over a small slice of time can be quite misleading, though I would expect the increasing dividend stream of a portfolio of DG stocks to continue over time.
Yeah, forgot to mention that in my haste to get to all the other information. A bull market covers a lot of sins in portfolio value. Screw the portfolio value. Look at the dividend stream. My portfolio is doing something similar but I just haven't sat down and compiled all that info like I did with the wife's portfolio.
Just as an experiment, I went to Yahoo and created a comparison chart of the S&P500 and a few of the stocks I mentioned when talking about the Vanguard fund. They all yield around or a little above the S&P right now yet they are all on the CCC list. I did it over about 10 years because that's what fiveoh thought he had left before he wanted to retire. Looks like FDO was the clinker in the bunch.
(03-06-2014, 09:11 AM)fiveoh Wrote: If my DGI portfolio doesn't match or exceed that, I will have lost money AND potential income.
Good point. I'm not sure the best way to argue that or even if there is a way. For me, I just need to look at the graph above and see there are several ways to beat the S&P and also include growing dividends. The chart doesn't even show anything about the income stream of any of them. To those I listed earlier I'll add TJX, ROST, GWW, maybe FAST and LECO off the top of my head. Would not investing the majority of your portfolio in lower yielding and higher growth and DGR stocks be the thoroughbreds you need to win the race?
I see your point. You have to do what makes sense to you. For me, I know myself. I don't think I can time myself into or out of the market at the appropriate times, I don't like depending on someone else to determine whether I can make the car payment, and I don't have the skill or knowledge to trade around those high yielders like Alex can. He seems to have found a strategy that works for him.
So, after all my hot air, all I can add is I hope you find something that works for you, meets your goals (especially retiring early) and eases your mind.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan