07-12-2013, 12:56 PM
Projecting dividend increases is interesting.
I tend to use the last dividend increase as my yardstick.
My reasoning is that the next dividend increase is more likely to be closer to the last, rather than the 3 or 5 year average. That is certainly debatable though, and in the end probably doesn't matter much since it's just for fun anyway. Still it's nice knowing you'll probably have X-amount more income next year.
And you can feel pretty confident about your projections if you stick to the good stuff. Some of the stocks people cram their portfolios with amazes me, all this ultra high yield interest rate sensitive stuff. It's like the opposite of playing high flying tech stocks except it's the same. I would love to have a portfolio that yields 8%-12% but that is way outside of my comfort zone, especially now. And it's just not a reasonable expectation, IMO. I mean it's really not.
Personal circumstances dictate how one invests; it's all good and none of my business anyway. <<sanctimonious @hole routine shutting down...>>
I tend to use the last dividend increase as my yardstick.
My reasoning is that the next dividend increase is more likely to be closer to the last, rather than the 3 or 5 year average. That is certainly debatable though, and in the end probably doesn't matter much since it's just for fun anyway. Still it's nice knowing you'll probably have X-amount more income next year.
And you can feel pretty confident about your projections if you stick to the good stuff. Some of the stocks people cram their portfolios with amazes me, all this ultra high yield interest rate sensitive stuff. It's like the opposite of playing high flying tech stocks except it's the same. I would love to have a portfolio that yields 8%-12% but that is way outside of my comfort zone, especially now. And it's just not a reasonable expectation, IMO. I mean it's really not.
Personal circumstances dictate how one invests; it's all good and none of my business anyway. <<sanctimonious @hole routine shutting down...>>