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Thread: Actual Dividend Growth Portfolio

  1. #31
    Member medford's Avatar
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    Re: Actual Dividend Growth Portfolio

    I've had Plum Creek Timber on my 'watch' list for as long as I can remember, however I've never purchased any. either didn't have money to add, or it was a little higher than i would have liked.

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  3. #32
    Waitin til next year bucksfan2's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by medford View Post
    I've had Plum Creek Timber on my 'watch' list for as long as I can remember, however I've never purchased any. either didn't have money to add, or it was a little higher than i would have liked.
    I don't really worry about something being a "little higher" than I would have liked. As long as everything seems reasonable I don't fret over a couple of percent. Too many times I have had my eyes on something that was a little too expensive only to see it continue to climb.

    Just looked at PCL again and saw that 37 P/E and know how you feel. Thats a high P/E for a dividend paying stock. The thing is if I went strictly by that I would have never gotten into VZ (which is one of my favorite stocks around) because it carries a 40+ P/E. I guess the way I look at thing with cheap trades you can get in and out of stocks much easier. I am young and if I make an impulse buy at a high price I can get out quickly, have time on my side, and can tax loss harvest the losses if need be.

  4. #33
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Well, since I am going to wait 3 months to complete our next purchase of stocks in order to reduce commission cost, and we got our first dividend, November's "in the books".

    8/31/2012 $4.05
    9/28/2012 $8.10
    10/31/2012 $12.15
    11/16/2012 $12.20

    So without any purchases, and with a very bad market, our income stream increased. In addition, we got a pleasant surprise. MAIN declared their regular (unchanged) dividend for the Jan-Mar quarter of .15 a share. But they also announced a special (one-time) dividend of .35 a share in January.
    Last edited by JaxRed; 11-17-2012 at 11:12 AM.

  5. #34
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    OK, change of plans. I decided to make our next purchase of stock in December rather than January for 3 reasons

    1. If I'm going to purchase quarterly it just seems more 'normal' to have the quarter coincide with the calendar quarter. So we'll do 3 months next time and have the quarter end in March. And with this purchase of 2 months worth of stock ($100 per month) we'll end in December.

    2. MAIN is having a special dividend in January. Just makes sense to buy now to take advantage of that. Ex-Dividend is 1/2/2013 and market is closed on 1/1/2013 so you need to buy in December.

    3. MAIN just had a secondary offering which lowered the price a bit, so bought now to take (a little) advantage of that.

    On Dec 15th we had another dividend/reinvestment and this time it resulted in an increase in monthly dividends of .06. Last month it was .05. The compounding is starting !!

    And then today we were able to buy 7 more shares, bringing us to a total of 16.08 shares of MAIN.

    And our income per year without touching principle has gone to $21.71 !

    Date Yearly Withdrawal
    8/31/2012 $4.05
    9/28/2012 $8.10
    10/31/2012 $12.15
    11/16/2012 $12.20
    12/15/2012 $12.26
    12/18/2012 $21.71

    When we purchase again in March, I'll be buying something else besides MAIN as we start to diversify.
    Last edited by JaxRed; 12-18-2012 at 08:37 PM.

  6. #35
    Custodial Engineer Bob Sheed's Avatar
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    Re: Actual Dividend Growth Portfolio

    I have been following this thread and wanted to say thanks for posting!

    I am curious though... If I am understanding, taxes on Dividends are about to go from 19% to 47%. Is this true? And if so, does that affect your strategy at all?
    "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.

  7. #36
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    My daughter's account is a Roth, so it's all tax-free. (I expect that to change in the future as tax-hungry politicians realize how much they could grab)

  8. #37
    Member medford's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by JaxRed View Post
    My daughter's account is a Roth, so it's all tax-free. (I expect that to change in the future as tax-hungry politicians realize how much they could grab)
    Sadly, I think you're correct.

  9. #38
    Custodial Engineer Bob Sheed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by Bob Sheed View Post
    I have been following this thread and wanted to say thanks for posting!

    I am curious though... If I am understanding, taxes on Dividends are about to go from 19% to 47%. Is this true? And if so, does that affect your strategy at all?
    UPDATE: Turns out taxes of dividends remains the same, unless you are making over 400k single 450k jointly.

    "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.

  10. #39
    Custodial Engineer Bob Sheed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by JaxRed View Post
    My daughter's account is a Roth, so it's all tax-free. (I expect that to change in the future as tax-hungry politicians realize how much they could grab)
    So you can setup a Roth IRA that allows you to pick and choose which stocks you want to be included in it?
    "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.

  11. #40
    Member medford's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by Bob Sheed View Post
    So you can setup a Roth IRA that allows you to pick and choose which stocks you want to be included in it?
    yes,

    the roth is similar to any regular investment account in terms of what options you have to invest (bonds, stocks, mutual funds, etc..) All money is taxed upfront (where a 401(k) is all pre-tax investments) then your money is free to grow tax-free until retirement.

  12. #41
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Generally you have to ask to set up a Brokerage Roth Account. I did my daughter's at Tradeking all online and it was pretty painless.

  13. #42
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    January's transactions are complete. No purchases. We are waiting till March. But we received our regular monthly dividend and a special dividend in January. Bumped our future yearly withdrawal (without touching principle) to an even $22.00

    8/31/2012 $4.05
    9/28/2012 $8.10
    10/31/2012 $12.15
    11/16/2012 $12.20
    12/15/2012 $12.26
    12/18/2012 $21.71
    1/16/2012 $21.77
    1/23/2013 $22.00

  14. #43
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Well, February's transactions are complete. Again no purchases till end of March.

    8/31/2012 $4.05
    9/28/2012 $8.10
    10/31/2012 $12.15
    11/16/2012 $12.20
    12/15/2012 $12.26
    12/18/2012 $21.71
    1/16/2012 $21.77
    1/23/2013 $22.00
    2/15/2013 $22.10

    The monthly increase has now jumped to .10c In the beginning it was .05, then in December it hit .06, but thanks to the special dividend in January, it's jumped to .10 a month.

    This also marks the 6 month point in the Portfolio. It's jumped from $0 to $22.10. So yearly it should be $44.20. Extrapolate that out 20 years and now you are talking about an extra $884 a year in income. But it will go higher. Because of the compounding.

    All at $100 a month.

  15. #44
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    Re: Actual Dividend Growth Portfolio

    Jaxred......maybe you do this for a living but have you thought about doing this for members of reds zone? If I am going to pay someone I would just assume pay someone from this site who is a fellow fan of the Reds......I know there is a lot of crap that gets involved when people invest money via your opinions but I say it's worth a shot......I know I would consider it......

    The hardest part about going through an investor is you just never know if you can trust them or not....not saying we are automatically supposed to trust you but your no different than someone from a firm that I don't know,...,ay be you just give the advice and we do the investing on our own and just pay you to tell us what to do....there are hundreds of people just like you that understand this game and know how to invest.......then there are millions of people just like me that have 100% no idea of how to do it....I don't even understand half of the words in your posts, let alone trying to read this thread and the other investment thread on RZ so me trying to invest my money would be like me trying to ace a Chinese algebra class.

  16. #45
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    No, I'm a database guy (and part time at that as I'm retiring). And there are many many hoops to jump thru to be a financial planner.

    But the best way to do this is to just try it on a small scale. My first introduction to stocks was when I turned 21 my parents bought me like 5 shares of a Dayton company called Dayco. (I'm from Dayton) I remember seeing stock listings in the paper. So looked up Dayco and I saw it said 16.

    I literally didn't even know they meant 16 dollars.

    Medford gave you some solid financial advice, but if you followed his plan to the letter, you'd NEVER get started investing (or it would be so far away it would seem like forever).

    So you said you could invest $100 a month. Just try it one time. It's a learning experience. You really don't need to pay anyone to do this.

    There's an online brokerage company we used called TradeKing. It was very easy (and $0 cost) to sign up for an Roth IRA brokerage account. If I remember correctly we did everything online. You had to scan your driver's license I think and upload it. They have online chat during normal business hours to talk you thru things.

    https://www.tradeking.com

    There are probably plenty of others that are great but I am familiar with them. Once the account is set up you can just mail them a check. (there are other ways also)

    I would recommend buying a stock called Realty Income Incorporated. Their symbol is O. They are an incredibly conservative investment. And they pay dividends monthly, so you get some immediate feedback every month. It sells for $44.46 a share so with a $4.95 commission you could (just) buy 2 shares.

    Feel free to send me an IM and I'll give you my email address and I'll answer any questions you may have.


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