Dividend Growth Portfolio - Objective: Retire by 50

[Amos]

(11-30-2015, 02:01 PM)Rasec Wrote: Since I joined this party in August, I've been able to build something that is starting to look very interesting:

What is this image showing?
How come the same X% yields different bar heights?

[Rasec]

It's just a matter of rounding decimal places:

[Amos]

Thanks but what is this graph showing (if I may ask)?

[Rasec]

It shows my 25 holdings and the percentages to the total book (if you sum everything it'll give you 100%). You normally see this information as a pie graph but I prefer to see it this way as it allows for an easier check of full vs half position.

So in short, imagine I have $100k on the market, I would have ~$7k on CVX, ~6% on EMR, XOM, JNJ and PG, etc.

[Rasec]

So this is a view of my current portfolio (in green) and what I would like to have in the future. Some might say I'm looking for over-diversification, though I agree it might be the case, it'll also help me sleep better at night knowing there'll always be something in the green when everything else could be in the red! 





I currently own roughly 30 positions and would be happy with 50! From there, the focus would be to grow all my positions. 

In terms of ideal split by sector, I would say I would like something like this:

Larger positions of ~12.5% in Cons. Goods + Energy + Healthcare + Ind. Goods
Smaller positions of ~10% in Cons. Discretionary + Financial + REITs
Back up positions of ~5% in Basic Materials + Tech + Telecoms + Utilities


Ultimate goal is to hit $1M in value! I'm between 10 and 20% of that goal. I want to be there in less than 10 years from last July. 



Please criticize my choices and point any flaws you can see in my strategy.

[kayboy]

(02-08-2016, 06:30 PM)Rasec Wrote: So this is a view of my current portfolio (in green) and what I would like to have in the future. Some might say I'm looking for over-diversification, though I agree it might be the case, it'll also help me sleep better at night knowing there'll always be something in the green when everything else could be in the red! 





I currently own roughly 30 positions and would be happy with 50! From there, the focus would be to grow all my positions. 

In terms of ideal split by sector, I would say I would like something like this:

Larger positions of ~12.5% in Cons. Goods + Energy + Healthcare + Ind. Goods
Smaller positions of ~10% in Cons. Discretionary + Financial + REITs
Back up positions of ~5% in Basic Materials + Tech + Telecoms + Utilities


Ultimate goal is to hit $1M in value! I'm between 10 and 20% of that goal. I want to be there in less than 10 years from last July. 



Please criticize my choices and point any flaws you can see in my strategy.

 1). A million dollars isn't what it used to be.
 2). If you own DOW or DD, you own both since they are set to merge and then, split the company into 3.
 3).  I am holding onto all of my energy positions for the time being, too volatile. Neither a buyer nor seller at this time, the fruit of patience is always sweet.
 4). I really like GIS (would like to see a nice pullback) and AEP, but you look good in the utility sector.
 5). Like my daddy said..."Don't believe anything you read and only half of what you see."

[Dividend Watcher]

Nothing to criticize here, Rasec. You've set a pretty high goal for yourself but you've also been pretty disciplined.

Instead of PSX, if you're look at refiners/mid-stream, you may also want to compare Marathon Petroleum (MPC) or Valero (VLO) here. I haven't researched them so can't tell you if there's a differentiator but some options that popped into my head.

In Healthcare, maybe add AMGN?

In REITs you own a lot of medical. How about some NNN or WPC for retail besides O. Or DLR or AMT? STAG (which I know little about) for manufacturing?

In Consumer Staples how about GIS (over a century of never cutting the dividend) or HRL?

In Industrials, maybe a defense company more than UTX. GD, RTN, LMT?

Just some guesses off the top of my head but you're doing fine without me butting in.

[EricL]

I like your list Rasec, well done.

Some thoughts on other ideas if you are looking for a bit more growth.

DPS or CHD instead of KO and PG, and also really like WBA and CVS for consumer staples.

OXY instead of COP for energy.

AMP, BLK, or TROW for financial.

AMGN, ABBV, BDX for health care.

LMT, HON for industrials.

AAPL for tech.

WEC, VVC, NEE for utilities.

Good luck!

[DividendGarden]

(02-08-2016, 06:30 PM)Rasec Wrote: Some might say I'm looking for over-diversification, though I agree it might be the case, it'll also help me sleep better at night knowing there'll always be something in the green when everything else could be in the red! 

Please criticize my choices and point any flaws you can see in my strategy.

Everyone has their own comfort levels and situations.  I, too, prefer overdiversification, if that's what we call it.  I'm more comfortable owning 50-70 companies than 30, but everyone is different.

[Rasec]

(02-08-2016, 08:15 PM)kayboy Wrote:  1). A million dollars isn't what it used to be.
 2). If you own DOW or DD, you own both since they are set to merge and then, split the company into 3.
 3).  I am holding onto all of my energy positions for the time being, too volatile. Neither a buyer nor seller at this time, the fruit of patience is always sweet.
 4). I really like GIS (would like to see a nice pullback) and AEP, but you look good in the utility sector.
 5). Like my daddy said..."Don't believe anything you read and only half of what you see."

I'm not sure I understand what you mean by 1) and 5) 
Regarding 2), good point, is that still happening? I remember the announcement but haven't heard anything from that after. It's hard to find interesting US based companies in the Basic Materials space.
3) same here, holding on to them, not looking to buy. 

(02-08-2016, 08:21 PM)Dividend Watcher Wrote: Nothing to criticize here, Rasec. You've set a pretty high goal for yourself but you've also been pretty disciplined.

Instead of PSX, if you're look at refiners/mid-stream, you may also want to compare Marathon Petroleum (MPC) or Valero (VLO) here. I haven't researched them so can't tell you if there's a differentiator but some options that popped into my head.

In Healthcare, maybe add AMGN?

In REITs you own a lot of medical. How about some NNN or WPC for retail besides O. Or DLR or AMT? STAG (which I know little about) for manufacturing?

In Consumer Staples how about GIS (over a century of never cutting the dividend) or HRL?

In Industrials, maybe a defense company more than UTX. GD, RTN, LMT?

Just some guesses off the top of my head but you're doing fine without me butting in.

(02-09-2016, 10:57 AM)EricL Wrote: I like your list Rasec, well done.

Some thoughts on other ideas if you are looking for a bit more growth.

DPS or CHD instead of KO and PG, and also really like WBA and CVS for consumer staples.

OXY instead of COP for energy.

AMP, BLK, or TROW for financial.

AMGN, ABBV, BDX for health care.

LMT, HON for industrials.

AAPL for tech.

WEC, VVC, NEE for utilities.

Good luck!

Thanks for the ideas guys, the list of "wants" keeps changing as the market fluctuates, for example I'm getting more interested in KR (specially because I shop and put gas there every week) and the price is getting better by the day (though I need to understand their debt a bit better). 

Until now I've been very focused on yield and I want to start focusing a little bit more on yield growth for my next positions.

[Rasec]

I wrote my 2016 goals down in another thread:

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1 - Max out my 401k by March (yearly bonus comes in Feb and helps get it done)
2 - Invest at least $50k in the stock market, outside 401K (new money, not including dividends)
3 - Achieve minimal goal of $5k in dividends, $6k is stretch goal. - Revised to $7k. 
4 - Visit at least 1 new country, ideally 2 (did 4 new countries in 2015 ).
5 - Do at least one advanced degree/course in Business or Marketing from a top school in the US
6 - Do a small medical surgery I've been delaying for years (it makes the list every year but it never gets done). 

7 - Extra mile, get promoted!

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Because I want to stay loyal and on track to these goals (and because blogging is not for me, not for now at least), here's a 3 month recap into 2016 and how I'm doing versus my goals:

1 - GREEN - Done!! Hurray, and done in Feb when the market was in a huge correction so big wins there! It's all Vanguard Mutual funds btw. 
2 - YELLOW - I've invested $16,163k so far in new securities. On track. 
3 - YELLOW - I honestly should have set a harder target. I'm on track for +$6k by EOY without reinvestments or additional purchases. New revised target is $7k. 
4 - GREEN - Trip scheduled for April, Austria + Slovakia + Hungary
5 - YELLOW - I've applied to a couple places and I'm waiting for confirmation, haven't dedicate my full attention to this, will need to revisit in full force in Q3.
6 - RED - no progress (as somehow expected).
7 - RED - no updates on the topic from anyone on the management team, it'll be very hard. 

[Rasec]

One thing I found interesting is that from my current 34 holdings,

2 pay every month - 6%
4 pay on month 1 of the Q - 12%
9 pay on month 2 of the Q - 26%
19 pay on month 3 of the Q - 56%

Is this normal across the spectrum of div. paying companies? Or did I end up with this biased spread by pure chance?

It's not that I'm looking to live out of the divs anytime soon, just though this was an unexpected distribution.