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Dividend Investing info
Old 04-19-2016, 03:17 AM   #1
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Dividend Investing info

I ran across this article on dividend investing on Forbes a few days ago, and think it offers good investing advice Forbes Welcome

Are you a dividend investor?
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Old 04-19-2016, 03:45 AM   #2
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Originally Posted by Al18 View Post

Are you a dividend investor?
No, but due to popularity of Dividend Investing when AAII started a "Dividend Investing" portfolio in April 2012 I also followed it by buying all the initial 24 stocks at that time.

Today after 4 years my initial $100K investment in "Dividend Stock Portfolio" has grown to $158K (with all dividends reinvested) while the AAII's dividend investing portfolio has grown to $169K. Obviously my returns are less than AAII's because I have not followed their buy/sell recommendations all the time. The reason I did not buy/sell each time AAII suggested is because I didn't have confidence in all their buy/sell recommendations after the initial portfolio purchases.

I must admit that "Dividend Stock Portfolio" is a lot less volatile compared to the rest of my stock portfolio.
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Old 04-19-2016, 05:22 AM   #3
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I only started investing in dividend stock 3 years ago, and I'm up 26% so far. I have used some of the criteria from the Forbes article above, but not all. Most of my holdings are from the Dividend Aristocrat list - who can argue with 25 years of dividend growth.
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Old 04-19-2016, 07:58 AM   #4
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I am a dividend investor, but understand I cannot pick great stocks that will do great all the time.

I know I cannot allocate individual stocks consistently, and will be under-diversified.
I know when I re-allocate, individual stocks will cause capital gains, and commissions.

I use an S&P ETF. ~2.2% dividend, and the ETF is almost guaranteed to match the market. No commissions, no tax consequences unless I want to sell.

I also buy DVY. ~3.25% dividend. No commissions. Dividend Aristocrats.

I like to worry less. Sleep well. I can study about where the oceans are the clearest, and the beaches the finest. Not some stock chart and analysts opinion that will be wrong and cost me money. And I beat most other investors and money managers.
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Old 04-20-2016, 01:05 AM   #5
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I am a dividend "growth" investor, investing in stocks I think will consistently raise their dividends over time and are not over-valued. I have been doing this since 1993 with my entire portfolio, and would not have been able to retire 9 years ago otherwise.
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Old 04-20-2016, 07:25 AM   #6
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I am a dividend "growth" investor, investing in stocks I think will consistently raise their dividends over time and are not over-valued. I have been doing this since 1993 with my entire portfolio, and would not have been able to retire 9 years ago otherwise.
Same here. I started in 1997. CAGR has been about 12% since then. Retired since 2006 and divs now make up over half of our spending. Pensions the rest. Portfolio is 100% equities. This is a strategy I intend to follow till the end. Don't trade much, maybe 2-3 times a year.
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Old 04-20-2016, 11:37 AM   #7
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Me too. All my after tax equities are large cap dividend paying stocks. Yeah they don't suffer or gain too much with market swings, they just keep cranking out the dough.
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Old 04-20-2016, 12:17 PM   #8
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I'm generally a core and explore/satellite investor with the core portion in passive index funds & etf's (my DC pension doesn't have an etf option) and explore/satellite portion of my portfolio focused on dividend growth stocks.

My plan is to build a tax efficient base income with the dividend yields while hoping to still capture long term growth with the index funds & etfs.

I have to hold Canadian dividend paying equities to take advantage of a generous dividend tax credit. Unfortunately, the share prices of a number of the prototypical Canadian blue chip dividend stocks have taken a notable hit over the last year (due to the trickle down effect of the oil situation among other things) but on the positive, the dividends keeps growing.
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Old 04-20-2016, 12:28 PM   #9
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I'm generally a core and explore/satellite investor with the core portion in passive index funds & etf's (my DC pension doesn't have an etf option) and explore/satellite portion of my portfolio focused on dividend growth stocks.

My plan is to build a tax efficient base income with the dividend yields while hoping to still capture long term growth with the index funds & etfs.

I have to hold Canadian dividend paying equities to take advantage of a generous dividend tax credit. Unfortunately, the share prices of a number of the prototypical Canadian blue chip dividend stocks have taken a notable hit over the last year (due to the trickle down effect of the oil situation among other things) but on the positive, the dividends keeps growing.
Too bad the tax rates on divs have increased so much recently. In Alberta the max marg rate on divs is now 31.7%. Close to 40% in Ontario. Much higher than our U.S. Friends. Turns out that div investing is now not as tax efficient as total return investing in Canada.
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