(07-30-2021, 08:22 AM)EricL Wrote: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?(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.
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.