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A List That Generates Income
Old 03-26-2016, 07:35 AM   #21
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A List That Generates Income

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Old 03-14-2017, 11:19 AM   #22
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I looked these up just now and it generated a 30.4% XIRR!

List on Yahoo

I checked the dividends over the past year, and most of them held-up. The OP dividend calculated to be $21,713 and dividends came in at $19,614, so 90% of the projection. Doesn't include RAS-B and RSO-B just because I didn't want to fiddle with those oddballs.

Ticker &nbspiv12mo todayprice shares
PFN 0.96 9.7 800
PFL 1.08 10.77 1000
PCI 0.164 20.46 500
PHT 1 9.61 600
PTY 1.6 15.19 700
RAS-PB 0 22.5 500
RSO-PB 0 22.95 600
DMO 2.82 23.63 400
TCRD 1.29 9.61 800
CYS 1.01 7.46 1100
IVR 1.6 14.81 800
SFL 1.8 14.23 950
PHK 1.192 8.35 1400
NCV 0.78 6.41 2720
PSEC 0.996 9.18 2000
MITT 0.95 17.31 800
AINV 0.7 6.39 2150
NRZ 1.84 16.53 900

The XIRR was -180046 on 3/23/2016, then 19614 spread evenly from 4/1/2016 to 3/1/2017, then +today's prices times shares, so 210840.
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Old 03-13-2018, 10:49 AM   #23
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Turned out to be a darn good list: 43.8% XIRR after 2 years!! In the mean time, the S&P 500 had an XIRR of 19.5%.

Not only did the items in the list come through on dividends, they also had a whole bunch of price appreciation.

The original post, two years ago, suggested a dividend yield of 13.3%. Using the $180K initial investment, the yield was 13.1% the first year and 12.5% the next year ($23.6K and $22.5K, respectively, March to March).

Because of the price appreciation, the yield looks lower as calculated against today's pricing, but the payouts hung in there at the $23K level, similar to the historical values reported in the original post.

Maybe this was just a fluke for the kind of market we've had in the last two years, but boy, this list far exceeded my expectations. Don't tell ERD50 that dividend stocks "worked"

If you want to check my math:
https://drive.google.com/file/d/1RUv...ew?usp=sharing
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Old 03-13-2018, 12:00 PM   #24
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Originally Posted by sengsational View Post
I did a quick look, if I understand correctly, take a look at formula in Column S. Will change your XIRR on the list significantly.
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Old 03-13-2018, 12:25 PM   #25
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You can also get the same rate of return if you find two different stocks that pay around 6.7%, and have ex-dates staggered so you can swap the entire $180K back and forth between them.

But, that's also a bit risky...
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Old 03-13-2018, 01:33 PM   #26
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Quote:
Originally Posted by sengsational View Post
Turned out to be a darn good list: 43.8% XIRR after 2 years!! In the mean time, the S&P 500 had an XIRR of 19.5%.

Not only did the items in the list come through on dividends, they also had a whole bunch of price appreciation.

The original post, two years ago, suggested a dividend yield of 13.3%. Using the $180K initial investment, the yield was 13.1% the first year and 12.5% the next year ($23.6K and $22.5K, respectively, March to March).

Because of the price appreciation, the yield looks lower as calculated against today's pricing, but the payouts hung in there at the $23K level, similar to the historical values reported in the original post.

Maybe this was just a fluke for the kind of market we've had in the last two years, but boy, this list far exceeded my expectations. Don't tell ERD50 that dividend stocks "worked"

If you want to check my math:
https://drive.google.com/file/d/1RUv...ew?usp=sharing
Quote:
Originally Posted by bobandsherry View Post
I did a quick look, if I understand correctly, take a look at formula in Column S. Will change your XIRR on the list significantly.
Yes, math is off. Those pesky relative vs absolute addresses! Looks like COL S should be:

" =+R3*$B3 "

Well, I was going to say that any group of stocks ought to be expected to outperform ~ 50% of the time, but in this case, if I did my math right, I see:

7.25% Total Return for your "list", using simple (2018Val+Divs)/2017Val

While for SPY, I get:

18.50%

Sorry, no cigar for you, not even close. But it might "work" next year. Or the year after, or maybe...

-ERD50
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Old 03-15-2018, 02:33 PM   #27
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Quote:
Originally Posted by ERD50 View Post
Yes, math is off. Those pesky relative vs absolute addresses! Looks like COL S should be:" =+R3*$B3 "
Thanks for checking my math (I updated the spreadsheet).

The XIRR now comes out to 19.9%. That aligns with $23K in growth, and $23.5K and $22.5K in dividends, divided by the starting value, divided by 2 to annualize over the two years [(23.6 + 23.5 + 22.5) / 180 / 2 = 0.193]

That's a much more comfortable answer, to me, anyway, as I would not expect that high level of price appreciation on stocks like these.

So much ado about nothing. The list ("the" list, not "my" list ) kept up with the S&P 500. And the S&P 500 probably has a lower beta.
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Old 03-27-2018, 08:06 PM   #28
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NRZ is predicted to do well in a rising interest rate scenario.
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