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I'm completely with you, Horace. T's dividend growth is paltry, but a 5 percent yield, even if barely growing, is nothing to sneeze at. You could buy JNJ today, and even if you generously assume 8 percent dividend growth for JNJ, and it would STILL be the year 2021 before your yield on cost on those JNJ shares reached the 5 percent mark that you can get from T today.
I've still got decades to go before retirement, so over those long time horizons, it might be better to emphasize dividend growth a little over initial yield. But only if you had to choose. I like having some of both in my portfolio!
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If you have decades to go I'd be searching for dividend growth because it more of a what can you do for me in the future than what can you do for me now situation. I think people get entirely too hung up on yield, especially younger guys with time on their side.
KMI has a 4.2% yield and last raise was 12.5%, CAT, WAG, PM, WEC, LMT, CVX all with double digit raises.
CAT is interesting, decent 2.9% yield, good dividend growth, somewhat volatile though. But I just have to figure a position somewhere in the low-mid $80's will make me happy in the future.
PSX is also interesting. I got my shares from the spinoff and added more shortly after at $31, and again last spring at $60 when it pulled back from $70. They raised the dividend from $0.80>>$1.00>>$1.25 in less than a year, hopefully get another raise around the first of the year. PSX has been up and down the last few months but seems to get good support in the mid $50's. I thought of selling it when it hit $66 a couple months ago and moving to a higher yield but I couldn't find enough reason to justify the trade. We'll see.
DRI yields 4.4% and has doubled their dividend in 3 years. I'm not sure why but I'm a little leery of it.
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I also got some PSX from the spinoff, and I'm glad I held on to them. I wish I had bought a pile more in the 30s as you did! COP still registers near the top of my list too.
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I guess August is a relatively slow month for dividend payouts (at least among the stocks I own), but the 15th brought a few small gifts:
AAPL – 0.157 brand new shares
ARCP – 1.150 brand new shares
PG – 0.790 brand new shares
Those dividends add $156.95 to my net worth, and about $4.83 to my annual income stream.
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(08-16-2013, 04:21 PM)Kerim Wrote: I guess August is a relatively slow month for dividend payouts (at least among the stocks I own), but the 15th brought a few small gifts:
AAPL – 0.157 brand new shares
ARCP – 1.150 brand new shares
PG – 0.790 brand new shares
Those dividends add $156.95 to my net worth, and about $4.83 to my annual income stream.
I got to reinvest my OHI, O and AAPL at a discount yesterday as well!
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(08-17-2013, 01:08 PM)EricL Wrote: I got to reinvest my OHI, O and AAPL at a discount yesterday as well!
Hey Eric! I know it may be silly, but this thread is turning out to be a lot of fun for me. Each time I post, I am usually only talking about a few dollars and a few new fractional shares, but each of those small quarterly events really is the snowball effect in action. When we talk about "the magic of compounding" we usually look at a decades long snapshot of how small sums transform into large ones. But it is each of these little events that add up to that "magic." I am finding it fun and fascinating to watch.
Nice work on the O and OHI -- those are good REITs. I've got NLY and ARCP and am underwater on both, sadly.
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(08-17-2013, 01:27 PM)Kerim Wrote: (08-17-2013, 01:08 PM)EricL Wrote: I got to reinvest my OHI, O and AAPL at a discount yesterday as well!
Hey Eric! I know it may be silly, but this thread is turning out to be a lot of fun for me. Each time I post, I am usually only talking about a few dollars and a few new fractional shares, but each of those small quarterly events really is the snowball effect in action. When we talk about "the magic of compounding" we usually look at a decades long snapshot of how small sums transform into large ones. But it is each of these little events that add up to that "magic." I am finding it fun and fascinating to watch.
Nice work on the O and OHI -- those are good REITs. I've got NLY and ARCP and am underwater on both, sadly.
I finished building my 50 position DGI portfolio at the end of March and have a spreadsheet set up to track all of my dividend reinvestments. I love watching as announced dividend increases and compounding of reinvested shares increases my income quarter by quarter.
For REITs I am long OHI, O and DLR in my 401k and recently added ARCP in an IRA account. Have STAG on my watch list as well.
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Eric, I'm a spreadsheet guy, tell me a little about your spreadsheets like what you track and the formulas you use. What metrics do you find important or interesting enough to track?
I've been keeping spreadsheets for over 10 years. At first they were very simple, hardly more than an account statement. But they have morphed into a tool that throws off a lot of info I find pertinent.
I am not especially knowledgeable about excel, but over the years I've learned a few things from trial and error, and from many young engineers that worked for me. Man those guys can make a spreadsheet do anything and they make it look easy. Are you one of those guys?
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08-18-2013, 01:26 PM
(This post was last modified: 08-18-2013, 01:28 PM by EricL.)
With my spreadsheet I mainly just track the cost basis, dividend yield, yield on cost and total returns on the main sheet. Then I have a tab set up for all of my reinvested dividend shares, another tab tracking the dollar value of dividends received for each holding and a final tab for my transactions.
I have a separate spreadsheet set up where I enter information for dividend increases, splits and other important info for each of my stocks.
I also have a portfolio with the holdings entered into Yahoo Finance and Seeking Alpha so I can get news on the companies and track the fundamentals.
When doing my research I focus on historical earnings and dividend growth, projected earnings, debt load and shareholder friendliness of the company. I use Fastgraphs.com, David Fish's CCC list http://dripinvesting.org/Tools/Tools.asp and Robert Allen Schwartz's dividend CAGR site http://www.tessellation.com/dividends/streaks.html to research.
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I used those sources before and track many of the same things you. Good stuff to know.
Once I learned to use conditional formatting spreadsheets really got fun for me. I've set up buy zones; I plug in a price where I think I should get interested in a stock, whether it be to buy more or just check things out. If the current price falls below my "get interested" price, the cell highlights green. It's like a wake up call. I do the same on the upside too, only I use the analysts' one year target price. I have it set so that if a stock gets within 2% of the estimate, the cell goes red, and I know I should give it a little extra attention.
Hehehehe, it delights me to no end knowing I can make a spreadsheet do that. I'm sure it's pretty basic stuff, but they didn't have excel went I went to college, so I'm a hack but I can get a few things done.
I also look at what next year's income will be, percent of the total income a stock throws off, how much it costs me to hold cash compared to a 3.5% dividend stock, the difference between the current yield and your yield on cost and some other things.
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Count me in on this one -- I'm a spreadsheet junkie as well!
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09-12-2013, 06:17 PM
(This post was last modified: 09-12-2013, 10:02 PM by Kerim.)
Wow. After what felt like a long quiet stretch, the start of September has brought a wealth of happy moments in this dividend growth investor’s life! Here’s the haul I find in my brokerage account:
TGT – 0.167 new shares
JNJ – 2.021 new shares
PFE – 1.839 new shares
WFC – 0.719 new shares
INTC – 7.684 new shares
PSX – 0.275 new shares
COP – 2.430 new shares
AFL – 0.613 new shares
F – 1.224 new shares
Together, those dividends add $676.30 to my net worth, and about $23.52 to my annual income stream.
And of course don’t forget about the extra special happy moments that stocks like MO and PM have provided recently with their healthy dividend raises!
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