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Thread: Actual Dividend Growth Portfolio

  1. #61
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    At this point, we have invested $1100. Our expected income stream as of today is the last figure. Earning $82.29 and (if we were in withdrawal phase, which we are not) we would withdraw 75% of earnings, or $61.72.

    I am specifically trying to get away from the notion of "what is dollar value of portfolio" and focus on what the stream of income it produces.

    This is my daughters portfolio. MY actual portfolio (and I am in withdrawal mode) is heavily weighted with REITS. And they have been getting slammed for a couple months. They've lost a lot of $$ value. Yet, my dividend income is still going up because these temporary price changes do not affect the stocks ability to pay their dividends.

    I calculate Yield on Original Cost which over time should get better and better. I may include that from now on.

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  3. #62
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    I'm a little behind on posting Septembers results. September was our quarterly purchase month and we purchased 7 more shares of O (Realty Income Inc).\\

    Code:
    Date	Yearly Dividend Income	Yearly Withdrawal	
    8/31/2012	$5.40	$4.05	Purchased 3 shares of MAIN
    9/28/2012	$10.80	$8.10	Purchased 3 shares of MAIN
    10/31/2012	$16.20	$12.15	Purchased 3 shares of MAIN
    11/16/2012	$16.26	$12.20	MAIN Dividend
    12/15/2012	$16.34	$12.26	MAIN Dividend
    12/18/2012	$28.94	$21.71	Purchased 7 shares of MAIN
    1/16/2012	$29.02	$21.77	MAIN Dividend
    1/23/2013	$29.33	$22.00	Main Special Dividend
    2/15/2013	$29.47	$22.10	MAIN Dividend
    3/16/1013	$30.59	$22.94	MAIN Dividend
    3/27/2013	$63.59	$47.69	Bought 25 shares PSEC
    4/16/2013	$63.74	$47.81	MAIN Dividend
    5/16/2013	$63.89	$47.92	MAIN Dividend
    5/24/2013	$64.23	$48.17	PSEC Dividend
    6/10/2013	$79.42	$59.57	Bought 7 shares O
    6/14/2013	$79.59	$59.69	MAIN Dividend
    6/20/2013	$79.94	$59.96	PSEC Dividend
    7/15/2013	$80.10	$60.08	MAIN Dividend
    7/15/2013	$80.16	$60.12	O Dividend
    7/18/2013	$80.50	$60.38	PSEC Dividend
    7/26/2013	$80.70	$60.53	MAIN Special Dividend
    8/14/2013	$81.72	$61.29	Main Increases Dividend
    8/15/2013	$81.89	$61.42	Main Dividend
    8/15/2013	$81.95	$61.46	O Dividend
    8/22/2013	$82.29	$61.72	PSEC Dividend
    9/16/2013	$82.46	$61.85	MAIN Dividend
    9/16/2013	$82.53	$61.90	O Dividend
    9/19/2013	$82.86	$62.15	PSEC Dividend
    9/27/2013	$98.05	$73.54	Bought 7 Shares of O
    So with out purchase our yearly income is now closing in on $100 at $98.06 which at 75% withdrawal at retirement would be $73.54 a year.

    Here's a look at the portfolio as of today.

    Code:
    		
    
    TickerPrice  	Div	Shares	Income	Cost	        Value	       Yield    	YOC	        Net PPS
    MAIN	$30.88	1.92	17.074	$32.78	$490.83	$527.25	6.22%	6.68%	$28.75
    PSEC	$11.17	1.32	26.278	$34.69	$277.20	$293.53	11.82%	12.51%	$10.55
    O	$40.65	2.17	14.091	$30.58	$610.15	$572.80	5.34%	5.01%	$43.30
    									
    									
    				$98.05	$1,378.18	$1,393.57
    Even with code symbols couldn't get it to line up. But as of today we are slightly ahead. Gains on first 2 makes up for deficit on third. But as I say, I don't sweat those. They'll take care of themselves. In the long run they'll all be ahead. The important thing is the ever growing income stream.
    Last edited by JaxRed; 10-12-2013 at 11:11 AM.

  4. #63
    Viva la Rolen kaldaniels's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by JaxRed View Post
    At this point, we have invested $1100. Our expected income stream as of today is the last figure. Earning $82.29 and (if we were in withdrawal phase, which we are not) we would withdraw 75% of earnings, or $61.72.

    I am specifically trying to get away from the notion of "what is dollar value of portfolio" and focus on what the stream of income it produces.

    This is my daughters portfolio. MY actual portfolio (and I am in withdrawal mode) is heavily weighted with REITS. And they have been getting slammed for a couple months. They've lost a lot of $$ value. Yet, my dividend income is still going up because these temporary price changes do not affect the stocks ability to pay their dividends.

    I calculate Yield on Original Cost which over time should get better and better. I may include that from now on.
    I understand getting away from the dollar amount and focusing on your estimated future income stream, that's fair.

    But the amount invested to get your income stream is a relevant figure if you ask me.

    I'm not wanting to be critical - I enjoy your updates.

  5. #64
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    Re: Actual Dividend Growth Portfolio

    I was looking back today at the dividend history of some ADP stock I bought in 2004 and saw that the dividend has increased 245% since I bought the stock. Believe me, I didn't buy/don't own enough for that to mean anything, but it just reinforced for me the fact that I really like this strategy.

  6. #65
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    A few people have brought up that dividends are not guaranteed. Which they are not. Nothing in the stock market is. But it's as close to a sure thing as you can get (when taken in aggregate).

    Take a look at this chart that shows dividend growth of the S&P 500 over last 60 years.

    http://pages.stern.nyu.edu/~%20adamo...ile/spearn.htm

    And the S&P isn't even a Dividend weighted average.

    AT&T doesn't raise their dividend much these days, but they pay 5%. If you hold it 10 years, you've already gotten 1/2 your money back.

  7. #66
    Waitin til next year bucksfan2's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by Boston Red View Post
    I was looking back today at the dividend history of some ADP stock I bought in 2004 and saw that the dividend has increased 245% since I bought the stock. Believe me, I didn't buy/don't own enough for that to mean anything, but it just reinforced for me the fact that I really like this strategy.
    UPS was the first stock I ever bought. I had graduated from college with a Transportation and Logistics degree and thought that they were a good company. I did a little research of my own, called up a broker my family uses and bought it. My first dividend was roughly $.28 back in 2004. I held the stock through the big increase in gas prices, the downturn, the challenging economic times, and was looking at it the other day and the stock now pays a $.62 dividend. It shocked me when I looked back and realized how much they had increased their payout.

    It is one of those things where in the present you don't see much of a payoff but when you look back 10 years its pretty shocking.

  8. #67
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    Re: Actual Dividend Growth Portfolio

    Have you ever considered using an ETF like DVY?

  9. #68
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by BuckeyeRed27 View Post
    Have you ever considered using an ETF like DVY?
    If you are talking to me, I don't have much interest in an ETF or mutual Fund. I know you posted in an earlier thread that regular folks can't pick well so leave it to the pros. I don't subscribe to that.

    Besides being "fun", I don't want to pay expense ratios of .5% or similar. If you have a $200,000 account that's $1,000 in fees you are paying a year.

  10. #69
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by JaxRed View Post
    If you are talking to me, I don't have much interest in an ETF or mutual Fund. I know you posted in an earlier thread that regular folks can't pick well so leave it to the pros. I don't subscribe to that.

    Besides being "fun", I don't want to pay expense ratios of .5% or similar. If you have a $200,000 account that's $1,000 in fees you are paying a year.
    Sure, but DYV has 100 holdings of diversification. You have 3. If you bought 100 holdings at $10 a trade, you just paid $1,000. This fund actually has an expense ration of .4% so it would be less than that. You also have to rebalance now and then and make new purchases if you are buying each month like you are, so by my math you probably come out ahead.

    I like to "subscribe" to what I call a core and explore philosphy. No matter what you think the market isn't set up for the average guy to win, but I do agree that researching and buying some stocks is fun and can help portfolio performance if done properly. I like to take about 20-25% of my funds (my explore) and do something like what you are doing and then I put the rest (my core) into longer term professionally managed investments like ETFs or funds. I feel it allows for greater portfolio diversification, better long term performance and doesn't punish me as badly if my picks were wrong.

  11. #70
    Waitin til next year bucksfan2's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by BuckeyeRed27 View Post
    Sure, but DYV has 100 holdings of diversification. You have 3. If you bought 100 holdings at $10 a trade, you just paid $1,000. This fund actually has an expense ration of .4% so it would be less than that. You also have to rebalance now and then and make new purchases if you are buying each month like you are, so by my math you probably come out ahead.

    I like to "subscribe" to what I call a core and explore philosphy. No matter what you think the market isn't set up for the average guy to win, but I do agree that researching and buying some stocks is fun and can help portfolio performance if done properly. I like to take about 20-25% of my funds (my explore) and do something like what you are doing and then I put the rest (my core) into longer term professionally managed investments like ETFs or funds. I feel it allows for greater portfolio diversification, better long term performance and doesn't punish me as badly if my picks were wrong.
    When it comes to yield I wonder if an all encompassing ETF is the way to go. I own VIG mostly because it fits my investment style. But I noticed that of its top 10 holdings VIG's payout is lower than all 10's dividends. Granted two are very small differences, but differences none the less. Now granted that is ~40% of the funds holdings, but if you are looking for yield, you may be able to pick 10-15 stocks you like better. With online brokerage fees pretty low nowadays, you can rebalance fairly cheaply.

    I am not suggesting doing this nor do I think it is the best method, just something I have noticed.

  12. #71
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by BuckeyeRed27 View Post
    Sure, but DYV has 100 holdings of diversification. You have 3. If you bought 100 holdings at $10 a trade, you just paid $1,000. This fund actually has an expense ration of .4% so it would be less than that. You also have to rebalance now and then and make new purchases if you are buying each month like you are, so by my math you probably come out ahead.

    I like to "subscribe" to what I call a core and explore philosphy. No matter what you think the market isn't set up for the average guy to win, but I do agree that researching and buying some stocks is fun and can help portfolio performance if done properly. I like to take about 20-25% of my funds (my explore) and do something like what you are doing and then I put the rest (my core) into longer term professionally managed investments like ETFs or funds. I feel it allows for greater portfolio diversification, better long term performance and doesn't punish me as badly if my picks were wrong.
    . First of all my commissions are $5.00 not $10, so it's half of what you estimated and the 4% is every year on all of your assets, and my $5 is only on new transactions. So even if bought every month it would be $60.

    I believe with a Dividend Growth Philosophy the market IS built for an average guy to win.

    So, we'll agree to disagree....respectfully....
    Last edited by JaxRed; 10-28-2013 at 11:08 PM.

  13. #72
    Viva la Rolen kaldaniels's Avatar
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    Re: Actual Dividend Growth Portfolio

    My stomach couldn't take my retirement being tied up in just a handful of companies.

    I'd gladly pay the .4% expenses. Each investor is different though so I respect the other side.

  14. #73
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by JaxRed View Post
    . First of all my commissions are $5.00 not $10, so it's half of what you estimated and the 4% is every year on all of your assets, and my $5 is only on new transactions. So even if bought every month it would be $60.

    I believe with a Dividend Growth Philosophy the market IS built for an average guy to win.

    So, we'll agree to disagree....respectfully....
    Right $60 per stock. I just generally believe that your strategy doesn't lend itself to enough long term diversification. I think it's a perfectly reasonable strategy to use for a portion of your assets, but for a large portfolio would be a little reckless. I don't mean to come off as disrespectful and that wasn't my intention if I did. I do this for a living and the biggest mistake clients make is being under diversified.

  15. #74
    A Little to the Left Redsfaithful's Avatar
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    Re: Actual Dividend Growth Portfolio

    My expense ratio on my biggest retirement holding (Vanguard's 500 index fund) is .05%.

    I wouldn't pay .4% if I could avoid it. That really adds up over time.
    We are all in the gutter, but some of us are looking at the stars.
    --Oscar Wilde

  16. #75
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    Re: Actual Dividend Growth Portfolio

    "The "average manager" of an investment trust cannot consistently beat the average return of the market because in effect that would mean that the stock market experts as a whole could beat themselves- a logical contradiction." -Benjamin Graham

    There is a VERY small percentage of people out there who can beat the market average over time. As for the rest? They have a good racket going, I'll leave it at that.
    Last edited by Bob Sheed; 10-29-2013 at 10:13 AM.
    "And why do false truths persist, getting passed down the decades as if they were fact? It comes back to the same point: People believe things that are wrong because, individually, people rarely investigate their own beliefs, particularly when what they believe makes sense intuitively. Even more so when those around them agree with them." -K.F.


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