DGI For The DIY

[EricL]

(10-18-2020, 07:49 AM)ken-do-nim Wrote: Hi Eric, glad your family is recovering.

I'm just catching up on your DGI blog, and I'm a bit surprised your dividend portfolio doesn't have any of the high dividend producing REITs like NLY or ORC.  Have you ever thought about adding them?

Sorry I didn't respond earlier, just noticed your post.

I don't invest in REITs like NLY or ORC because neither are dividend growth stocks. They both produce income, but do so at the expense of capital appreciation, and both have paid declining dividends over their histories.

NLY is paying roughly the same dividend it did in 2005, and ORC is paying less than half of what it did in 2014.

Look at the long-term charts for both of them. You are losing money despite getting paid a double-digit dividend yield.

   

   

I invest in companies with the intention of holding for decades, so I want to buy companies that are growing both earnings and dividend payouts to me. I focus more on the growth of the dividend than the current dividend.