Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
DGI For The DIY
(04-08-2020, 10:08 AM)EricL Wrote:
(04-03-2020, 12:18 PM)fenders53 Wrote:
(04-03-2020, 11:37 AM)Otter Wrote: Just bought some 7/17/20 USO 5.50 Puts. Will sell on the first down leg for oil, as this recent 38.5% run up in just a few days seems a tiny bit overdone.

I may blindly follow you.  There is nothing at all rational about the move up.  Demand outlook has changed exactly zero and that will matter soon enough.

(04-08-2020, 10:04 AM)fenders53 Wrote: Good update.  Looks like you are hanging in there with the income.  This may be your most challenging yer for a long time.  I think you'll be mostly out of the woods on potential dividend cuts in the next 60 days.  You can make another trade or two, but no self-respecting DGI guy wants to disrupt his yield on cost by starting over lol.  Smile  

Now on to more important things.  GO TWINS!!!!  Baseball is my sport.  I had accommodations booked for home opening weekend.  Not many things I look more forward to than sitting in Target Field watching the Bomba Squad.  They are so much fun to watch with all that pop in their bats.  I am hoping against hope they can salvage over half of the season.  Some games in AZ would be better than nothing, but it won't be the same.

I hear ya on the Bomba Squad. It was such a great off-season, and this team was looking special. It would be such a shame if there is no season when for the first time in a long time, the Twins are legit WS contenders.
You messed up telling me you are a Twins fan.  Now I have to fight to not take all your posts off-topic lol.  My wife and I will be doing our part to stimulate the Minnesota economy when it's a little safer.  I think the last half of the season still happens.  If you disagree please keep those thoughts to yourself lol.
Reply
Been a Twins fan my whole life. Remember listening to Herb and John on the radio at night calling games as I went to bed.

Never knew how lucky I was as a kid in '87 and '91!
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply
(04-08-2020, 01:09 PM)EricL Wrote: Been a Twins fan my whole life. Remember listening to Herb and John on the radio at night calling games as I went to bed.

Never knew how lucky I was as a kid in '87 and '91!
I was a Reds fan as a boy.  I lived so far away and eventually had to find a closer team to love.  I was lucky as well.  My mother took me to Wrigley to see Reds-Cubs games.  I got to see Pete Rose, Johnny Bench, Joe Morgan, Tony Perez.  Some memorable Cubs as well like Fergie Jenkins, Bruce Sutter, Harry Caray of course.  Raised my daughter on Mauer, Morneau, Hunter,Santans, Liriano.

My sisters bro-inlaw was the pitching coach for the Diamondbacks, Angels, D-Rays until about a year ago.  He was a relief pitcher for the Angels for about four seasons.  Pitched against that '91 Twins team actually.  He coached with Joe Maddon for a decade in the Angel's minor league system.  That's how he got his MLB chance.    

I've always loved baseball.
Reply
My quarterly portfolio update was published on Seeking Alpha earlier today.

Saw a 19.1% drop in portfolio value since year's end, but dividend income increased by 11.8% over Q4 and by 9.6% over Q1 of 2019.

DGI For The DIY: Q1 2020 Dividend Portfolio Update

Had some discussion at the end about a few trades I'm considering.

Enjoy!
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply
The trade decisions you are contemplating or already executed seem rational to me with your goal in mind.

-CBRL dividend will be gone at least for quarters and growth rate may be lackluster for years. A special dividend won't surprise me but that will likely be years. away.

-OXY had to go. It doesn't matter that they may recover. Risk reward should be present in every retirement port, and it's just not their if you are objective. It"s not like you will miss the oil ride since you depoyed the funds to CVX and EOG.

-I think IBM is just going to keep being IBM for the long-term.

-An ABT trim may be good as long as you catch it up high. I would never tell anyone to sell ABT completely, but the Fastgraphs chart don't lie right now. BMY seems like a good destination for the proceeds from an income perspective, and perhaps even SP appreciation over the next few years. Pharma is tough to predict other than trusting the company. We never know who will have the next blockbuster,or just a few too many busts 3-5 years from now.

-I've just not been a fan of WFC for a long time. I see other banks I prefer. I'll leave you alone on that one. I know you don't want to give up that WFC Div.

I think your annual income growth goal will become more challenging going forward, but a goal is never a bad idea. Best of luck to you as always.
Reply
Thanks for sharing your thoughts fenders.

I can see why people wouldn't be a fan of WFC, but I think its a good value here, and being able to pick it up at a near 7% yield is a heck of a deal. It announced its next dividend payment yesterday, so if it was going to cut, that would have been the time to do it. I bought today to get it ahead of the May 7 ex-div.

Decided to hold IBM until ex-div next week, and then will likely sell and move the proceeds into AVGO and BMY.

I agree that the income growth goal could be difficult to maintain. Which is partly the reason for some of these moves. Re-balancing is part of my approach, as I can sell off overweight stocks that have run up and are trading at lofty valuations, and then use the proceeds to add to underweight stocks that are trading at fair value and offering higher yields.

Got a 10% raise from AWK this morning, and will hopefully be getting one from AMP yet this week as well. KMI announced a 5% raise, which coupled with dividend reinvestment at a 6.7% yield gives double-digit income growth as well.

Will be interesting to see what AAPL does. It is due for an increase announcement as well.

Best,

Eric
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply
(04-29-2020, 11:52 AM)EricL Wrote: Thanks for sharing your thoughts fenders.

I can see why people wouldn't be a fan of WFC, but I think its a good value here, and being able to pick it up at a near 7% yield is a heck of a deal. It announced its next dividend payment yesterday, so if it was going to cut, that would have been the time to do it. I bought today to get it ahead of the May 7 ex-div.

Decided to hold IBM until ex-div next week, and then will likely sell and move the proceeds into AVGO and BMY.

I agree that the income growth goal could be difficult to maintain. Which is partly the reason for some of these moves. Re-balancing is part of my approach, as I can sell off overweight stocks that have run up and are trading at lofty valuations, and then use the proceeds to add to underweight stocks that are trading at fair value and offering higher yields.

Got a 10% raise from AWK this morning, and will hopefully be getting one from AMP yet this week as well. KMI announced a 5% raise, which coupled with dividend reinvestment at a 6.7% yield gives double-digit income growth as well.

Will be interesting to see what AAPL does. It is due for an increase announcement as well.

Best,

Eric

I will enjoy that AWK raise as well.  One of a few stocks you put me on to.  The reality is WFC is probably shenanigan safer now.  Smile  They know they messed up, they are on the radar and consumers forget the news in a year or two.  I closed a rental property sale last week.  My attorney and I chatted it up some about stocks.  He knows my port is large and the only stock he asked my opinion of is WFC lol.  I told him you gotta love that Div and left it there.  You and I don't need to agree on every stock.  It's just an investment, not something important like disagreeing on baseball teams.  Smile  It's my belief it's beneficial if we raise concerns to each other on this forum.   

I only bring up the income goal because I don't want you to over-react to missing an arbitrary goal.  It's a lofty one long term.  SA will get over it lol.  Maybe you'll only get 8% some years, and 12% others.  I wouldn't let it drive my every decision.  That said I'll drop a Div cutter in a heartbeat.  It fails to support the strategy.  It's rare when you don't get a better chance to get back in later at a better price if you desire to.
Reply
Wrote up a post last night about portfolio weighting. What it means, how to calculate it, and how it can be useful for your portfolio.

I'm going to try to do a few of these types of posts for a beginner's section for investors.

Education Center: Portfolio Weighting

Please let me know if you can think of any topics that would be helpful for people or if you think something else should be added to the post.

I plan on updating and expanding on the dividend reinvestment page in the next week or two.
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply
(05-01-2020, 08:30 AM)EricL Wrote: Wrote up a post last night about portfolio weighting. What it means, how to calculate it, and how it can be useful for your portfolio.

I'm going to try to do a few of these types of posts for a beginner's section for investors.

Education Center: Portfolio Weighting

Please let me know if you can think of any topics that would be helpful for people or if you think something else should be added to the post.

I plan on updating and expanding on the dividend reinvestment page in the next week or two.
I have a few suggestions I know you would do very well with.  I'd be happy to give it some feedback before you publish.  Not that you need to answer to me, but we have slightly different tolerances for risk, and your balance sheet abilities are above average.  Anyway, I know these would help new investors.....

1.  Yield traps.  All but the complete novice knows that 15-20% Div from a commodity or financial is nothing but trouble at some point.  The opposite extreme is a fake income investment like Apple or Visa with their token divs.  Dividend investors want some yield NOW.  Explain how the 3% yielder might be better than the 6% after risk and Div growth is factored in.  The early signs your Div is too high.  Should a dividend investor immediately sell when a company cuts or suspends the Div?  That is going to hit most everyone with a lot of stocks in their port.   

2.  Credit ratings 101.  A new Div investor does not want to be confined to AA and better companies.  Few of us do actually.  Where's the line?  What does it mean to be junk or on the verge of junk when the economy goes south.  Things change fast and recent examples are  plentiful.               

Those are the two most important topics that come to mind.
Reply
(05-01-2020, 09:49 AM)fenders53 Wrote:
(05-01-2020, 08:30 AM)EricL Wrote: Wrote up a post last night about portfolio weighting. What it means, how to calculate it, and how it can be useful for your portfolio.

I'm going to try to do a few of these types of posts for a beginner's section for investors.

Education Center: Portfolio Weighting

Please let me know if you can think of any topics that would be helpful for people or if you think something else should be added to the post.

I plan on updating and expanding on the dividend reinvestment page in the next week or two.
I have a few suggestions I know you would do very well with.  I'd be happy to give it some feedback before you publish.  Not that you need to answer to me, but we have slightly different tolerances for risk, and your balance sheet abilities are above average.  Anyway, I know these would help new investors.....

1.  Yield traps.  All but the complete novice knows that 15-20% Div from a commodity or financial is nothing but trouble at some point.  The opposite extreme is a fake income investment like Apple or Visa with their token divs.  Dividend investors want some yield NOW.  Explain how the 3% yielder might be better than the 6% after risk and Div growth is factored in.  The early signs your Div is too high.  Should a dividend investor immediately sell when a company cuts or suspends the Div?  That is going to hit most everyone with a lot of stocks in their port.   

2.  Credit ratings 101.  A new Div investor does not want to be confined to AA and better companies.  Few of us do actually.  Where's the line?  What does it mean to be junk or on the verge of junk when the economy goes south.  Things change fast and recent examples are  plentiful.               

Those are the two most important topics that come to mind.

Some good ideas there. Yield traps are a big one. I don't know how many times in the last two years I warned people not to buy airlines and car companies because the yields aren't guaranteed in a cyclical business.

Credit ratings are interesting, but I'm not sure how sophisticated a post I could give on that one. I just look at S&P ratings and debt, and stay away from the ones with lower than BBB credit ratings.
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply




Users browsing this thread: 6 Guest(s)