lucas03 dividend portfolio

[lucas03]

Quote:You probably know which ones?

I don't : Eric mentioned CTL (credit rating), you I think didn't like F. But overall I am not sure, which you don't like and why.

[fenders53]

Tanger, Macy's and Ford are three I would lose. I am looking at this from a DGI long-term perspective. Could they recover? Sure, but the risk reward is not there compared to the dozens of good companies in your port. I don't want to own companies at significant risk of BK with weak credit ratings. I also don't like airlines in a DGI port. It's a heartache waiting to happen if you hold them long enough. I don't know anyone who has ever held an airline stock for decades and was glad they never sold.
I do trade them on the down cycles. They are certainly useful for that purpose.

Bottomline is my opinion is why hold junk in a long-term DGI port? Defend the stocks I mentioned if you like. That's what this forum is about.

[lucas03]

M and F, I just thought they are too cheap and I don't see them going bankrupt that easily. Why don't you like tanger? I think I saw a lot of intestors here buying it as well.

[fenders53]

(07-06-2020, 12:23 PM)lucas03 Wrote: M and F, I just thought they are too cheap and I don't see them going bankrupt that easily. Why don't you like tanger? I think I saw a lot of intestors here buying it as well.

Yes there was a time when many here were buying SKT. I fell out of love with that yield several years ago when the stock was 3X higher.  Retail is a very tough environment in good times, and they were starting to slip well before the Covid crisis.  Maybe somebody here will defend them?  I see no future, for the share price or the dividend.

If you stick around long enough F will pay a Div again if they possibly can.  Not so sure Macy's does anything better than merely stay in business.  We'll see.

[EricL]

(07-06-2020, 12:23 PM)lucas03 Wrote: M and F, I just thought they are too cheap and I don't see them going bankrupt that easily. Why don't you like tanger? I think I saw a lot of intestors here buying it as well.

Just depends on what type of portfolio you want to run. A dividend growth portfolio has the words "dividend" and "growth" in it, so those should be relevant to what you decide to hold.

F, SKT, and M all have suspended their dividends, and all were struggling to produce growth before the pandemic ever hit. I would consider all of them speculative turn-around plays more than DGI type investments right now. CTL is another that has cut the dividend multiple times, has currently frozen it, and has weak financials that will likely lead to another cut down the road. BA may have a hard time growing due to the debt load it's added during the 787-max issues and ongoing crash in worldwide travel.

Being a young investor, I'd focus more on the growth than the yield at this time. Stick to high quality companies with long track records of growth and high credit ratings and you will do well in the long run. You do hold some of these already in your portfolio, AAPL, ABBV, DG, MA, NEE, NKE, SBUX, V for example. The hard part now is most of those high-quality companies trade at very high valuations.

This pandemic is teaching all of us lessons about investing. The important thing is to learn from the mistakes and keep growing as an investor so we can hopefully avoid them again in the future.

Best of luck!

Eric

[fenders53]

I hope it goes without saying but to be clear Lucas I'm not trying to pick on your port to entertain myself. I've owned plenty of dogs through the decades. Some I've held for years when deep down I knew I should have moved on. Eric and I are telling you basically the same thing. You are young. Fill your port with high quality. Now and then you may have to pick a few weeds.

[lucas03]

(07-06-2020, 09:39 PM)fenders53 Wrote: I hope it goes without saying but to be clear Lucas I'm not trying to pick on your port to entertain myself.  I've owned plenty of dogs through the decades.  Some I've held for years when deep down I knew I should have moved on.  Eric and I are telling you basically the same thing.  You are young.  Fill your port with high quality.   Now and then you may have to pick a few weeds.

yes, it goes without saying I am really glad for both your inputs, not only in this thread. Thanks a lot

[fenders53]

Keep us posted on your new additions, and go find some under the radar tech stocks. I could use a few myself. Unfortunately they won't likely pay a dividend.

[lucas03]

Quote:Unfortunately they won't likely pay a dividend.

yep, that is kind of problem, as my plan is to live of dividends : But having a small side portfolio with growth stocks cant hurt I guess

[fenders53]

(07-07-2020, 08:17 AM)lucas03 Wrote:

Quote:Unfortunately they won't likely pay a dividend.

yep, that is kind of problem, as my plan is to live of dividends : But having a small side portfolio with growth stocks cant hurt I guess

Most of us here have a few growth stocks that pay no dividend, or a dividend so small it barely counts as a dividend stock.  It's not a bad plan to diversify IMO.  Dividend, or growth investing could go out of style for ten years in a row.  While I don't consider that likely, the market shows us something we never expected every now and then.  The pandemic and near zero interest rates would be a great example of that.  I make minor adjustments to my investment strategy every few years it seems.  For new purchases anyway.

[lucas03]

just bought 4 shares of INTC

[fenders53]

(08-11-2020, 11:11 AM)lucas03 Wrote: just bought 4 shares of INTC

On my radar.  IMO this should look like a reasonable entry point within a few years.