Great thoughts... I am also about at least 15 years out from retirement at 60 years of age. I am also trying to balance DG and Current yield. I have a decent portfolio size....is it ever big enough LOL And I am almost up to 36 different Div paying stocks. I try to mix the types to some extent. I do own YUM, WAG and am about to buy TGT with it continuing to fall, but I also have PM, T and MO
so i guess my portfolio is a blend of both schools of thought??
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Sounds like you have a nice group of stocks. I own all you mentioned except YUM. I've owned it before and probably still should.
I must really have it out for T and I own the stock. When I look at the expected dividend performance and what it'll do over the years I can't figure out why I own it. Maybe because it's a sure thing. Even YUM at 1.8% yield crushes T if you've got 15 years before you need the money. Same with LEG. I've been buying a little of that and now I'm wondering why because it's worse than T!!
As a long term holder of MO all I can say is similar DG to KO and twice the yield. Who doesn't want to do that?
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MO, PM, and LMT are three good ones although I don't know if LMT will be a hold forever stock like MO. It might though and I'm counting on it.
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09-02-2013, 08:58 AM
(This post was last modified: 09-02-2013, 09:00 AM by Ok Red.)
"Yield Diversity" is a good term, Kerim. Safe to say that as I get closer to the time I want to use my dividend stream as my income stream the less likely it will be that I will enter a new position that yields 1.48%, as I just did.
Horace, I actually hail from Connecticut. My handle is actually a term from my days as a military diver; it works well on discussion boards because it's not a common screen name.
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I start the screening with Fish's CCC list and only use the champions list.
I then look for sales, stocks whose yield is at an upper end of their historical range.
Quick, easy to understand and as importantly easy to execute.
Good luck to all.
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Red,
Maybe being younger, I just have a better understanding of what some of these companies are, but some of them are pretty large and well known.
ACN - Accenture - largest consulting company in the world
V - Visa - need I say more?
MSFT - Microsoft - ditto above
TJX - TJ Maxx, Marshalls - discount retailer
TXN - Texas Instrument - semiconductor
RTN - Raytheon - # 4 of the defense companies, but more into surveillance vs making bombs
Robert Allan Schwartz from Seeking Alpha keeps a great website up about the ability to raise a divdend X% over Y years. Only one company has done 8%+ increases each and every year for 20 years. Not average, but every year. You would never guess but it is one of the dollar stores. The point is once you have a well established culture of paying a dividend and increasing the dividend every year, the range is fairly consistent of increase in earnings year over year will be the increase in dividend year over year on a percentage basis. You just can't increase a dividend 20%/year ad infinitum if your EPS is only growing 5%. So, the new guys on the block are trying to find that sweet spot of how much can we increase the dividend per year while retaining enough money for the business to grow? That's why you tend to see much higher DGR on the Challenger list vs the Champions but may have lower starting yields.
Last company, HFC - Holly Frontier - oil and gas company. I own it and the reason why is the special dividend that is not reported. For 10 quarters in a row, they have paid a special dividend of $.50 along with their regular, increasing dividend. It is "special" so yes, it can be changed at any time, but $2 per year gives a nice extra boost on the DRIP cycle.
Best of luck.
DD
