06-09-2015, 01:59 PM
Sorry...couldn't resist....
But am I being sacrilegious to our DGI faith?
There have been several articles floating about debating the fallout from a Fed interest rate hike. The closest to home being "folks bailing from dividend stocks in pursuit of safer vehicles..."
Of late there have also been a few in the DGI fold discussing....gasp....Growth plays...(egads Rob! Bite your tongue!)
In truth I have always been fond of a little growth. Don't we in fact try to have our cake and eat it too with quality "dividend growth" stocks? We're just adding the criteria of dividend growth. Many of us would not cherish stocks that lost a great deal of value even if their dividends increased regularly.
Ages ago Chuck Carnevale had suggested that up to a 10% pure growth investment was acceptable to the DGI'er.
In our situation I am slowly believing that we are getting close to having enough income...I think. It's still a philosophical shift in progress. This has led me to consider bumping up our pure growth component to almost 20% of our portfolio. Many of these companies actually pay dividends below 1.5% so they are in reality "both, and" stocks (GILD for example). In fact roughly one third of the Dividend Champion, Contender, Challenger list yields less that 2.0% (which doesn't make them growth stocks by any means).
Currently I'm listening to these pundits and their talk of folks deserting dividend stocks and thinking that I might cushion any price blows with some healthy appreciation. And as some of my pseudo growth companies are exhibiting dividend growth, albeit at currently low yields, I don't think I'm really shooting myself in the foot.
So have I lost my way? Any of you spicing things up with growth? What criteria do you consider when selecting a pure growth play?
I still come back to this chart(this version from Dreyfus) and think I should stick with what works:
Untitled.pdf (Size: 93.5 KB / Downloads: 9)
Cheers!
Rob
But am I being sacrilegious to our DGI faith?
There have been several articles floating about debating the fallout from a Fed interest rate hike. The closest to home being "folks bailing from dividend stocks in pursuit of safer vehicles..."
Of late there have also been a few in the DGI fold discussing....gasp....Growth plays...(egads Rob! Bite your tongue!)
In truth I have always been fond of a little growth. Don't we in fact try to have our cake and eat it too with quality "dividend growth" stocks? We're just adding the criteria of dividend growth. Many of us would not cherish stocks that lost a great deal of value even if their dividends increased regularly.
Ages ago Chuck Carnevale had suggested that up to a 10% pure growth investment was acceptable to the DGI'er.
In our situation I am slowly believing that we are getting close to having enough income...I think. It's still a philosophical shift in progress. This has led me to consider bumping up our pure growth component to almost 20% of our portfolio. Many of these companies actually pay dividends below 1.5% so they are in reality "both, and" stocks (GILD for example). In fact roughly one third of the Dividend Champion, Contender, Challenger list yields less that 2.0% (which doesn't make them growth stocks by any means).
Currently I'm listening to these pundits and their talk of folks deserting dividend stocks and thinking that I might cushion any price blows with some healthy appreciation. And as some of my pseudo growth companies are exhibiting dividend growth, albeit at currently low yields, I don't think I'm really shooting myself in the foot.
So have I lost my way? Any of you spicing things up with growth? What criteria do you consider when selecting a pure growth play?
I still come back to this chart(this version from Dreyfus) and think I should stick with what works:
Untitled.pdf (Size: 93.5 KB / Downloads: 9)
Cheers!
Rob
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
Frederick Buechner