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Dividend Growth Portfolio - Objective: Retire by 50
#21
(08-29-2015, 05:42 AM)Rasec Wrote: As a junior investor, what did I learn from the most recent sell-off:

3) Always have money available and ready to deploy in your broker account, having to wait 3 days for the money to land was rather painful.

Having a margin account really helps with this. No need to make sure you have cash at the brokerage account as long as you have cash somewhere. You can just use the margin and send money to the broker afterwards to fund the account back to normal.
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#22
(08-29-2015, 10:20 AM)crimsonghost747 Wrote:
(08-29-2015, 05:42 AM)Rasec Wrote: As a junior investor, what did I learn from the most recent sell-off:

3) Always have money available and ready to deploy in your broker account, having to wait 3 days for the money to land was rather painful.

Having a margin account really helps with this. No need to make sure you have cash at the brokerage account as long as you have cash somewhere. You can just use the margin and send money to the broker afterwards to fund the account back to normal.

I use E*Trade. I do a direct transfer from my checking account to my ROTH and the money is available to invest instantly. Margin accounts are not allowed in retirement accounts (per E*Trade). You might want to look into tying your checking account to your brokerage account. This will get rid of the 3 day waiting period.
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#23
I wasn't aware of margin accounts, I just checked and Vanguard does offer that option. I need to investigate further. Thanks for the tip!
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#24
(08-31-2015, 05:20 PM)Rasec Wrote: I wasn't aware of margin accounts, I just checked and Vanguard does offer that option. I need to investigate further. Thanks for the tip!


If you use Vanguard, you can simply link an account (checking or savings) and transfer the money to Vanguard. When I transfer money, before I can click back to "Balances and Holdings" in my Brokerage account, the money is available to use for trading. You will have to wait a few days if you want to withdraw it.
Margin Accounts must be popular. A lot of people go broke using them.
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#25
Went shopping last night taking the lows from Friday, opened new positions on:

MO
UTX
OHI
DOW
AFL

And bought more shares of:
XOM
CVX
PG
JNJ

I'm still looking around for more opportunities, trying to evaluate some options.
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#26
After a few recent additions to my portfolio, the most recent one being Merck bought at a discount today, here's what my portfolio looks like:

[Image: vMc0xsU.png]

[Image: bl6eCoS.png]

Technology is missing out but I work for a tech company (which doesn't pay dividends) and have equity there that balances out my leverage in the sector, so not too worried about it being at 0. I would like to grow on basic materials and utilities though.

My yield is currently 4.3% (excluding CEFs), YOC is slightly lower.
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#27
Looking good Rasec.

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#28
Hey everyone, I'm looking for ideas on the sectors where I'm under leveraged:

This is my current situation.
[Image: SiudQZQ.png]


As you can see I'm under penetrated in a few segments: Basic Materials, Financial and Utilities. You'll probably also find it weird I merged Telecoms with Tech but has I noted before I work in the tech industry and I have (non DGI ) equity there, so not too concerned with Tech .

What are your top players in these segments, your battle horses? I'll do my own analysis but I would love to know your opinions. I keep being attracted by companies in the Energy or Consumer/industrial Goods sectors.

Right now, my holdings in these sectors are:

Basic Materials: Dow Chemical
Financial: Aflac
Utilities: Consolidated Edison


I'm not obsessed with perfect leveraging but would love to put some interesting companies in my watch list.
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#29
Some other names for ideas.

Materials: Air Products (APD), Airgas (ARG), International Paper (IP), Monsanto (MON), Praxair (PX)
Financials: Blackrock (BLK), T. Rowe Price (TROW), Ameriprise (AMP), Wells Fargo (WFC), Eaton Vance (EV), Paychex (PAYX), Prosperity Bancshares (PB)
Utilities: Dominion Resources (D), SCANA Corp. (SCG), Xcel Energy (XEL), Southern Co. (SO), Vectren Corp (VVC), Wisconsin Energy (WEC), American Electric (AEP)
My Blog: DGIfortheDIY.com
Seeking Alpha Author Page 
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#30
Financials: There are a lot of very undervalued companies - these should be easy to pick. Canadian banks are trading at very attractive valuations, but the problem for US-based investors is that the Cdn$ has taken a hit, so your dividends when converted to US$ will be a bit depressed due to currency conversion rates. The only US bank that I own is WFC - havent looked at the valuation in a while. Alternatives in financials are asset managers - like BEN, TROW etc which are popular with DGIs these days. Insurance companies should do well if interest rates rise. My top pick here was CB until a few months ago when it was bought out by ACE. I havent looked at ACE yet, but I believe it is a Swiss ADR and I dont want to pay the 35%(?) div withholding taxes on it, so I might avoid it. I am considering Cdn insurance companies instead such as MFC and SLF which have a huge exposure to US and Asian markets, but you will again have teh problems with currency conversion rates working against you.

Basic Materials: DOW is near the top of my list as well. I also like fertilizers and own AGU. Gold (and other mining) stocks are severly beaten down, lot of them down 80-90% from their peaks. I believe if a whole sector is down 80-90% from its peak, it deserves a second look. It might a bit too early to get into gold, but I am never too good to timing, so I might look at which companies have good assets and start initiating. I own IAMGold in this space, which cut dividends a couple of years ago, but the fundamentals are still good - and I continue to hold it. They are still one of the most efficient companies in the sector running pretty lean for a while now. (this is the only company that doesnt pay dividends in my portfolio currently).

Utilities: I think there are better picks than ED. Eric had a good article about his top 10 picks a few months ago. Have a look: http://seekingalpha.com/article/3265285-...and-income
One subsector I recommend looking into are the water utilities - valuations are still a bit stretched, but good to keep them on the watchlist. Top of my list are AWK and WTR.
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