12-12-2021, 10:05 PM
I fellow I have respect for, who posts on SA, wrote a post about groupthink today. I am not going to quote his post, but I am going to post my response to it.
Do you see much groupthink in dividend growth investing groups?
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Many of us have similar goals. A safe, reliable and growing income stream from our equity portfolios.
From there, we branch off. Some have an affinity for very low yield faster dividend growth companies. Some for high yield, lower dividend growth companies. Some for mid-yield mid growth dividend companies. Some for a mix of the three.
I did a portfolio reconstruction program starting in 2018 that was done by late 2019 to early 2020. The goal was to rapidly increase portfolio income. I accomplished that goal. Since then I have worked, in part, on increasing the portfolio's dividend growth. That is also being accomplished.
Do I pay attention to what folks here do? Yes, I do. My sweet spot is mid-yield (roughly 2.5% to 4% yield) with average to very fast dividend growth (5% to 12%+). I get the funds for these investments via two methods, accumulating dividiends from our portfolios, that include higher yield, lower growth companies like VZ, ENB, KMI, PBA and TU (for example) and investing in the sweet spot. The second method was demononstrated by my sale this week of MDU and the purchase of EOG.
Groupthink? Frankly, I do not care. It is goal directed behavior for this 70 year old investor and his wife.
Mid-yield, Safe and Very Safe SSD rated companies that improve our income and income growth. That is my personal sweet spot for the use of funds generated by both methods described in this post.
A couple of companies are currently on what we used to call probation back when Bob Wells was around. CSCO is one of those I have talked about lately, but not the only one. Replacements have been identified and I have written about those, either here or on SI and the Dividend Growth Forum.
I know that some folks tend to follow others in their investments. It is probably a good idea for some. I reject widespread groupthink, though. I think there is too much variety of thought and of investment practice here to provide strong support for that hypothesis. Little sniffs of it from time to time? Sure. Widespread practice. I do not think so.
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Do you see much groupthink in dividend growth investing groups?
+++
Many of us have similar goals. A safe, reliable and growing income stream from our equity portfolios.
From there, we branch off. Some have an affinity for very low yield faster dividend growth companies. Some for high yield, lower dividend growth companies. Some for mid-yield mid growth dividend companies. Some for a mix of the three.
I did a portfolio reconstruction program starting in 2018 that was done by late 2019 to early 2020. The goal was to rapidly increase portfolio income. I accomplished that goal. Since then I have worked, in part, on increasing the portfolio's dividend growth. That is also being accomplished.
Do I pay attention to what folks here do? Yes, I do. My sweet spot is mid-yield (roughly 2.5% to 4% yield) with average to very fast dividend growth (5% to 12%+). I get the funds for these investments via two methods, accumulating dividiends from our portfolios, that include higher yield, lower growth companies like VZ, ENB, KMI, PBA and TU (for example) and investing in the sweet spot. The second method was demononstrated by my sale this week of MDU and the purchase of EOG.
Groupthink? Frankly, I do not care. It is goal directed behavior for this 70 year old investor and his wife.
Mid-yield, Safe and Very Safe SSD rated companies that improve our income and income growth. That is my personal sweet spot for the use of funds generated by both methods described in this post.
A couple of companies are currently on what we used to call probation back when Bob Wells was around. CSCO is one of those I have talked about lately, but not the only one. Replacements have been identified and I have written about those, either here or on SI and the Dividend Growth Forum.
I know that some folks tend to follow others in their investments. It is probably a good idea for some. I reject widespread groupthink, though. I think there is too much variety of thought and of investment practice here to provide strong support for that hypothesis. Little sniffs of it from time to time? Sure. Widespread practice. I do not think so.
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