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Old 12-03-2009, 06:57 PM   #41
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As for dividend growth stocks, my list is: MO, PM, KO, PEP, JNJ, ABT, PG, PSEC, AOD, BP, CVX, XOM, GE, WFC, MCD, WMT, GIS, MMM, EMR, SO, DUK, PAYX, SYY, MSFT, INTC, T, and JPM.

Get in at a good price and DRIP it. Do it in a Roth or IRA if u can.
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Old 12-09-2009, 09:33 AM   #42
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Drips: BP, KO, MSFT, PEP, YUM, MO, KFT, PM.
Other high-yielders include DEO, MCD, WGL, DUK, SJT, FAX, STD and DBSDY.

MCD share price hardly budged during the '08 meltdown.
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Old 12-09-2009, 09:57 AM   #43
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Why would you not Drip MCD? I got in at 55 and and going to get more when it pushes down there again. I will drip this all the way, even in the high 60's and 70's.
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Old 12-09-2009, 10:26 AM   #44
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Why would you not Drip MCD? I got in at 55 and and going to get more when it pushes down there again. I will drip this all the way, even in the high 60's and 70's.
It's been a good investment. I dripped MCD for years before moving it to TDAmeritrade - it is one of my largest holdings now and I like the portfolio to be somewhat balanced. All my accounts auto-reinvest dividends.
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Old 12-20-2009, 07:36 AM   #45
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Is anyone buying financials with hopes of growing dividends in the years to come? I'm considering adding WFC and JPM to my dividend growth income portfolio (albeit a small portion of the portfolio). I know it will take a few years for this to pay off but with the yield on cost, plus capital appreciation, will be significant
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Old 12-20-2009, 09:46 AM   #46
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I'm not, but it isn't a bad idea. As you say, the capital appreciation (as long as the company survives) and dividend growth should be significant.
For me, there are still a few too many unknowns involved, so I am sticking with non-financials for any new purchases.
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Old 12-27-2009, 09:06 AM   #47
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My top 4 holdings for current and future dividend income and income growth are:
1. XOM - inital yeild only ~ 2.5% but EPS growth will be huge; room to raise payout
2. PM - almost 5% right now and huge EPS growth potential; 65% of EPS to dividend
3. MO - a great buy at 7% yield, it will continue to pay and pay
4. CVX - like XOM but with higher initial yield at ~ 3.5%

Buy on the dips and DRIP it. Stay consistent with this or any similar strategy and you will have a steady cash flow soon enough.
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Old 12-27-2009, 09:26 AM   #48
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Is anyone buying financials with hopes of growing dividends in the years to come? I'm considering adding WFC and JPM to my dividend growth income portfolio (albeit a small portion of the portfolio). I know it will take a few years for this to pay off but with the yield on cost, plus capital appreciation, will be significant
I have a small position in NYB, they recently announced a deal buying assets from FDIC, this bank has had a tremendous growth record up until a few years ago. IMO FDIC asset sales of failed banks (not the toxic assets, i'm talking about the branch banks and assoc consumer bank accounts) is the area that healthy banks will be feeding on for the next three to five years. NYB is well positioned to participate in additional FDIC deals.

Jim
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Old 12-27-2009, 09:29 AM   #49
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I forgot to mention NYB pays a buck a share divy, they are up over 20% since the recent deal and subsequent stock sale. Stock is rising because most analysts now believe no dividend cut is likely.
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Does anyone own---
Old 12-27-2009, 09:36 AM   #50
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Does anyone own---

Does anyone own-----
LINE (9% Div)
CODI (10.5% Div)
PDLI (14.4% Div)
OTT (11.2% Div)
NLY (16.5% Div)
GOOD (11.5% Div)
Please add more to this list.
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Old 12-29-2009, 08:51 AM   #51
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Two big caveats for foreign dividends are they are usually taxed at marginal rates so they are better in an IRA or other qualified money accounts, and you are of course subject to currency rate risk.
.......
A caveat to your caveat (caveat squared?)
A Roth IRA does NOT allow a mechanism to apply foreign tax credits so be careful there

I don't like funds - not open, closed, or ETFs - I want all the mistakes to be my own thank you!

my top 15
AFL
JNJ
INTC
GE
PG
SYY
EPD
MSFT
GWW
MO
UTX
PAYX
NLY
CVX
MMM

Those 15 are yielding about 4% right now (simple weighted avg) and, as a group can easily raise their divs by 7% a year.

Broke my own rule and did not sell GE when it cut it's dividend. Another rule = drop a stock if it doesn't raise it's dividend in a 2 year period has MSFT on the chopping block but I suspect they'll raise.

I also juice the returns by buying additional shares and writing covered calls to span an ex-div date.
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Old 12-29-2009, 09:49 AM   #52
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I thought Mr. Softee (MSFT) just raised his dividend last year.
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Old 12-29-2009, 11:35 AM   #53
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I thought Mr. Softee (MSFT) just raised his dividend last year.
MSFT "normally" raises in Nov (payable in Dec). They didn't do that this year (2009).

Like a lot of companies I think they will play a semantics game and raise it on the 5th,6th, 7th, or 8th quarter - this way they can still "say" they raised their dividend every year.
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Old 12-31-2009, 08:56 AM   #54
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This is my first post. Sorry if it repeats others. Seems to me that a good strategy is to invest in dividend paying stocks because the divs grow (usually) over time offsetting the ravages of inflation. Also the taxes on dividends are lower than interest and even capital gains(at least in my Country-Canada).I have just retired and will be able to live nicely on my portfolio dividends and pension. No need to draw principal for the forseeable future. Portfolio is 100% equity all in very large well established Canadian companies. Only one minor case of dividends cut in the last year. Current yield about 3.75% I have little fear of cuts in the future. Dividends on my portfolio have historically grown by 5-8% over last 30 years. As a cushion I have 2 years expenses in cash. What do you think? Am I missing something?
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Old 12-31-2009, 09:11 AM   #55
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This is my first post. Sorry if it repeats others. Seems to me that a good strategy is to invest in dividend paying stocks because the divs grow (usually) over time offsetting the ravages of inflation. Also the taxes on dividends are lower than interest and even capital gains(at least in my Country-Canada).I have just retired and will be able to live nicely on my portfolio dividends and pension. No need to draw principal for the forseeable future. Portfolio is 100% equity all in very large well established Canadian companies. Only one minor case of dividends cut in the last year. Current yield about 3.75% I have little fear of cuts in the future. Dividends on my portfolio have historically grown by 5-8% over last 30 years. As a cushion I have 2 years expenses in cash. What do you think? Am I missing something?
Hi, and welcome to the Early Retirement Forum.

Often/usually new retirees prefer to lower their risk through diversification, including fixed income investments such as bonds, CD's, REITs, and so on in their portfolio and many of us limit equities to less than half of our portfolio.

I am also a new retiree and probably will not withdraw any more than my dividends. At least, in 2010 my planned withdrawals will equal my 2009 dividends. The asset allocation that I personally prefer is 45:55 (stocks:fixed). This asset allocation served me well during the economic woes of 2008-2009.
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Old 12-31-2009, 09:45 AM   #56
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Thanks for the reply. I understand asset allocation benefits, but believe in my case the tax , yield, and inflation advantages outweigh them. Without principal drawdowns for the foreseeable future I believe I can maximize my retirement finances this way. Perhaps more importantly, having a generous pension that equals about half my spending requirements seems like a fixed income stream to me and I view this as a fixed income replacement. If the market declines I don't really care very much as long as dividends are maintained. My portfolio is only down about 10% since it's peak and dividends are intact. I expect they will start growing again by the end of 2010. More thoughts are very welcome.
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Old 12-31-2009, 12:25 PM   #57
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This is my first post. Sorry if it repeats others. Seems to me that a good strategy is to invest in dividend paying stocks because the divs grow (usually) over time offsetting the ravages of inflation. Also the taxes on dividends are lower than interest and even capital gains(at least in my Country-Canada).I have just retired and will be able to live nicely on my portfolio dividends and pension. No need to draw principal for the forseeable future. Portfolio is 100% equity all in very large well established Canadian companies. Only one minor case of dividends cut in the last year. Current yield about 3.75% I have little fear of cuts in the future. Dividends on my portfolio have historically grown by 5-8% over last 30 years. As a cushion I have 2 years expenses in cash. What do you think? Am I missing something?
That's my strategy. I concentrate less on current yield and more on growth. I've got about 15 years before retirement (I'm 37.), so I'm happy to wait it out.

Mike
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Old 12-31-2009, 12:43 PM   #58
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Good for you. When I was your age I hadn't even started saving for retirement. At 37 you should be primarily into equities. Obviously growth is your current objective and you should probably consider DRIP's to get the compounding effect of growth over an extended period.
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Old 12-31-2009, 01:04 PM   #59
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Danmar, at this stage you should be focused on disaster proofing your finances more than anything else. So what if oil prices crash and take the Canadian economy down? No doubt 5 minutes thought would yield several other disaster scenarios for an all Canuck equity portfolio.
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Old 12-31-2009, 01:51 PM   #60
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Agree but we have been through a disaster in the past 18 months and my portfolio held up although some sleepless nights for sure. As it turns out we could live solely off my pension which I haven't started to draw yet. Taxes and inflation will eat away the fixed income portion (in my case the pension) but I expect the dividends to increase and offset inflation. Eventually your gov't will need to drastically raise rates or endure much higher inflation. Higher taxes too probably. Fixed income will be in for a rough ride I think. Your advice is welcome-thanks. PS Don't have any oil co's and Canada is more than oil.
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