Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-29-2010, 10:56 AM   #61
Thinks s/he gets paid by the post
DblDoc's Avatar
Join Date: Aug 2007
Posts: 1,224
Originally Posted by clifp View Post
I am also a fan of the M* dividend newsletter, after a few dumb investments early on, I think Josh has really redeemed himself. Overall I am impressed that a 200K portfolio that started in 2005 and 2006 is up 20% with superior performance and lower volatility than the S&P especially during 2008 (losing 24% vs 37% for the S&P).

I have about 40% of my portfolio in dividend stocks 15% in bonds, 30% in index funds and healthy chunk of Berkshire and couple other random stocks.

A significant chunk of the M* Dividend newsletter are master limited partnerships in the energy sector, they don't seem highly correlated with domestic large caps, and in fact seemed to behave more like bonds in this last year. Same story with REITs. He also has a couple of foreign dividend stocks Diageo and UK utility National Grid. Still you are right there are a lot of dividend payers are large cap companies in slow growth business.

However, I don't see a real problem if your individual dividend issues are big cap, increase your AA of small and mid cap ETF, or reduced or eliminate your S&P funds. Even following Josh advice pretty regularly my overall porftfolio is pretty balanced other than overweight in the energy sectors (and formerly finance ) and less foreign stocks than seems to be popular.

Finally, I should add that to me the benefits of a dividend approach vs total return are much larger during retirement than during the accumulation phase. In the accumulation phase I am living off of my paycheck. So there isn't a obvious place to spend the dividends you get. In retirement, first of all I have more time to research individual stocks (it is my new job) and secondly the dividend are my paycheck!.
This kind of comparison needs to be banned. No one, and I mean no one ever advocates a 100% allocation to the "S & P 500" so using it as a "benchmark" is a straw man argument .


At 54% of FIRE target
DblDoc is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Help me build a dividend stock portfolio JockStrap FIRE and Money 26 11-04-2008 05:20 PM
Ultimate Dividend Playbook; Dividend Harvest Portfolio FUEGO FIRE and Money 22 08-12-2008 11:16 AM
High Dividend Portfolio vs Portfolio Diversified Across Asset Classes ScaredtoQuit FIRE and Money 36 01-12-2007 12:24 PM
Building Higher Yield Fixed Income Portfolio DFW_M5 FIRE and Money 1 11-08-2003 12:01 PM


All times are GMT -6. The time now is 01:51 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.