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(04-27-2021, 08:22 AM)EricL Wrote: (04-26-2021, 10:07 PM)EricL Wrote: My thoughts on growth vs. income.
High Dividend Growth Stocks
If I had to do it over again with my public portfolio I'd go more with the 1-2% yielders and less with the 4-6% yielders.
Let capital gains build with the higher growth stocks and save the higher yielders until I need the income at retirement.
Fortunately, I've had a good mix of both so I've generated some nice capital gains in stocks. I've learned a lot in the eight years since I started the project, which was the whole reason for doing it in the first place.
Here are two more articles I wrote on Seeking Alpha talking about high growth vs. high yield.
High Yield Or High Growth: Which Belongs In Your Portfolio?
High Yield Or High Growth? Real World Vs. ‘The Matrix’
Those are quality articles Eric, and I enjoyed the comments section. You've remained consistent in your approach. I know you enjoy your spec port, but you haven't lost your focus of the big picture fundamental valuations. I like your investment style because it reminds me of the process we used when I was in an investment club as a young man. And you often sound like Chuck Junior lol. That lonely voice nobody wants to hear until it matters. 
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05-03-2021, 01:50 PM
(This post was last modified: 05-03-2021, 01:50 PM by EricL.)
Portfolio is up over 1% on the day and broke the $110k mark for the first time ever!
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(05-03-2021, 01:50 PM)EricL Wrote: Portfolio is up over 1% on the day and broke the $110k mark for the first time ever!
Hooray!!!!!!!!!!!!!!!!
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Awesome Eric. Especially with the growing income.
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An update on my parent's situation. They closed on the sale of their house in early June and moved to a townhome here a few weeks ago to be close to us and the grandkids.
My dad decided that they will take some of the proceeds from the sale and invest around $75,000 in stocks over the next several months.
We ended up going to all stocks to get the dividend income a bit higher. I made a list of 15 for them, figuring roughly $5k per position when the portfolio is built out.
Here were the fifteen I picked for a watch list, which has an average yield of slightly over 4%.
MO/PM, CVX/XOM, ABBV/BMY/MRK, LMT/WSO, AVGO, VZ, O, AEP/SRE/WEC.
For the first five stocks, my Dad picked ABBV, AVGO, MO, O, and XOM and then a few shares of BX with the cash that was left.
I think this is a good base to start building his income portfolio. I'll update again when he picks the next five for purchase.
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I like his choices. All great income stocks and at worst fairly valued which is not an easy feat right now. As much as I love UTEs I'd hold off until he can get a better yield
Good choices and he should be happy with the income. Except for the UTEs, all are fairly priced to undervalued in my opinion.
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As it turned out waiting a while to get this started wasn't all that much of a disadvantage. You'll probably get a chance for the next installment at at least a small discount by fall. A Covid surge or inflation scare sale is certainly possible. Maybe add a few more stocks to the watch list soon? For a port like this I would want no more than two stocks from a sector. I know the goal is income but nobody wants to watch a new portfolio lose a bunch of share price value the first six months and we never know when our sector thesis is going to fail for a year or more. I'd hope for a dip in consumer staples.
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I was just about to ask where your update was but I see the website is updated. Looks like you are chugging along towards the 10% income growth goal this year. It's going to remain challenging but now that you are pooling dividends I like your chances better. In any event it's a good goal because it is difficult.
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(07-30-2021, 07:45 AM)fenders53 Wrote: I was just about to ask where your update was but I see the website is updated. Looks like you are chugging along towards the 10% income growth goal this year. It's going to remain challenging but now that you are pooling dividends I like your chances better. In any event it's a good goal because it is difficult.
For those interested, here is the link to my latest update.
Dividend Growth Digest
The portfolio is doing well, but I'm not sure yet if I'll make the double-digit income growth. I'm finding that while I really enjoy the flexibility that pooling dividends gives me and the freedom to buy what I want, it is actually having a negative impact on my income growth.
I'm pooling dividends from the likes of 5%+ yielders CVX, KMI, XOM, T, OHI, and MO and reinvesting those dividends into other ideas yielding 2-3%, so the reinvestment effect on income is roughly halved. I still have 5 months left so there's time to make it up, but I'm trending more towards 9% growth right now.
The upside is those reinvestment dollars are generally going into higher growth names. So while I may end up missing my income mark, I'll probably end up better in total portfolio growth, which can be converted to income down the road.
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07-30-2021, 08:53 AM
(This post was last modified: 07-30-2021, 09:23 AM by fenders53.)
(07-30-2021, 08:22 AM)EricL Wrote: (07-30-2021, 07:45 AM)fenders53 Wrote: I was just about to ask where your update was but I see the website is updated. Looks like you are chugging along towards the 10% income growth goal this year. It's going to remain challenging but now that you are pooling dividends I like your chances better. In any event it's a good goal because it is difficult.
For those interested, here is the link to my latest update.
Dividend Growth Digest
The portfolio is doing well, but I'm not sure yet if I'll make the double-digit income growth. I'm finding that while I really enjoy the flexibility that pooling dividends gives me and the freedom to buy what I want, it is actually having a negative impact on my income growth.
I'm pooling dividends from the likes of 5%+ yielders CVX, KMI, XOM, T, OHI, and MO and reinvesting those dividends into other ideas yielding 2-3%, so the reinvestment effect on income is roughly halved. I still have 5 months left so there's time to make it up, but I'm trending more towards 9% growth right now.
The upside is those reinvestment dollars are generally going into higher growth names. So while I may end up missing my income mark, I'll probably end up better in total portfolio growth, which can be converted to income down the road.
So why not just put it all into FANG now and buy some MO in 20 years? Did you even hear what you just typed? 
I'm kidding of course, but I do kinda smell early stage quitting on this project. I told you about three years ago I believe there will be years you are going to miss. A 20+ stock port is just not going to average 10% forever if you can't add new money. Add to that the fact your highest yielders are no longer quality DGI. They are however quality income stocks. Maybe revisit the 10% growth goal? I'm busting your chops but I retired early because I invested in growth for decades. You have another port for that. With no new money I think 8% is more achievable. Most growthy stocks that pay a div can hit that, or very close. Only a recession will put that on hold for a year now and then.
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(07-30-2021, 08:53 AM)fenders53 Wrote: (07-30-2021, 08:22 AM)EricL Wrote: (07-30-2021, 07:45 AM)fenders53 Wrote: I was just about to ask where your update was but I see the website is updated. Looks like you are chugging along towards the 10% income growth goal this year. It's going to remain challenging but now that you are pooling dividends I like your chances better. In any event it's a good goal because it is difficult.
For those interested, here is the link to my latest update.
Dividend Growth Digest
The portfolio is doing well, but I'm not sure yet if I'll make the double-digit income growth. I'm finding that while I really enjoy the flexibility that pooling dividends gives me and the freedom to buy what I want, it is actually having a negative impact on my income growth.
I'm pooling dividends from the likes of 5%+ yielders CVX, KMI, XOM, T, OHI, and MO and reinvesting those dividends into other ideas yielding 2-3%, so the reinvestment effect on income is roughly halved. I still have 5 months left so there's time to make it up, but I'm trending more towards 9% growth right now.
The upside is those reinvestment dollars are generally going into higher growth names. So while I may end up missing my income mark, I'll probably end up better in total portfolio growth, which can be converted to income down the road.
So why not just put it all into FANG now and buy some MO in 20 years? Did you even hear what you just typed?
It's nothing provocative, it's simply math.
A 7% yielding stock growing at 2% is nearly assured to have smaller capital gains over the next 20 years than a stock yielding 2% and growing at 12%. Reinvesting dividends from this higher yielding stock into lower yielding stocks drops my income growth in the near-term, but should result in bigger capital gains down the road.
I'm not planning to sell those higher yielders now as they are providing nice funds to build out my portfolio, but in hindsight, I probably should have focused more on the 1-2% yielding stocks rather than the 4-6% yielders when I built the portfolio.
I own Facebook, Amazon, and Google as well in my trading account. Still no Netflix though...
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