02-05-2015, 11:17 AM
(This post was last modified: 02-05-2015, 04:33 PM by hendi_alex.)
Dividend Growth investing is a strategy. So while most discussion here should center around dividend growth investing, that doesn't mean that there is little room for lively debate centering on things such as where value can be found. What weighting should DG investing hold in one's portfolio? What alternate strategies are working for an investor? Constantly questioning the premises related to DG investing, etc.
Some folks may think that DG is the holy grail of investing and may employ the strategy for 100% of their portfolio. Others may subscribe to something like age based allocations and may use DG strategies for the common stock portion of the portfolio. Still others may employ a variety of strategies in their stock portfolio. I'm of the latter group, shooting for about 50% of my portfolio to include longer term positions that are held primarily for their dividend stream and about 50% for more active trading. My dividend investments are split between higher yield low growth and lower yield higher growth stocks, but nothing that pays less than 4%(usually 5%) makes the cut. Consequently most DG types of stocks that come from lists such as Dividend Aristocrats have been excluded. When the next brutal market collapse hits, I will definitely restructure to include as much as 50% of those higher quality tickers in the dividend portion of the portfolio.
While I see the value of DG investing, it seems to have more relevance to investors who are in the early to middle phase of accumulation. Since I'm retired, I'm more interested in generating a current income stream and have no patience for waiting on dividend increases to move a sub 3% yielding stock up to a 4%+ yield. The break even between that and buying a current 5% yielding low growth investment is just too far out into the future.
I enjoy reading the info that is shared on this board and am constantly adding to my tracking list as ideas are shares. Also, I'm constantly reviewing my methods and without shame steal any useful ideas that I may be able to employ.
Some folks may think that DG is the holy grail of investing and may employ the strategy for 100% of their portfolio. Others may subscribe to something like age based allocations and may use DG strategies for the common stock portion of the portfolio. Still others may employ a variety of strategies in their stock portfolio. I'm of the latter group, shooting for about 50% of my portfolio to include longer term positions that are held primarily for their dividend stream and about 50% for more active trading. My dividend investments are split between higher yield low growth and lower yield higher growth stocks, but nothing that pays less than 4%(usually 5%) makes the cut. Consequently most DG types of stocks that come from lists such as Dividend Aristocrats have been excluded. When the next brutal market collapse hits, I will definitely restructure to include as much as 50% of those higher quality tickers in the dividend portion of the portfolio.
While I see the value of DG investing, it seems to have more relevance to investors who are in the early to middle phase of accumulation. Since I'm retired, I'm more interested in generating a current income stream and have no patience for waiting on dividend increases to move a sub 3% yielding stock up to a 4%+ yield. The break even between that and buying a current 5% yielding low growth investment is just too far out into the future.
I enjoy reading the info that is shared on this board and am constantly adding to my tracking list as ideas are shares. Also, I'm constantly reviewing my methods and without shame steal any useful ideas that I may be able to employ.
Alex