Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-30-2016, 11:54 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,587
I have some individual stocks MO, MRK, AEP, O, T, GE. Some ETFs too, SDOG, IDOG, PFF. Some of these I've had for a long time the MO positions have done very well.

Research mainly with Fidelity, someone here is responsible for me getting into O at a great discount. Don't recall who it was but a big thank you.
__________________

__________________
MRG is online now   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 Early-Retirement.org 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!

Old 05-01-2016, 06:51 AM   #22
Recycles dryer sheets
Bryan Barnfellow's Avatar
 
Join Date: Feb 2004
Location: Switzerland
Posts: 338
My wife and I are recently retired (just passed the one year FIRE mark!). We derive 50% of our household income from a taxable stock account holding 20 dividend growth stocks, which are mostly large blue chips (such as MO, PM, PG, JNJ, GE, MSFT, PFE) plus a REIT (HCN) and two BDCs (MAIN and ARCC). The portfolio, which I began constructing in 1998, pays just under 5% annually in current income and grows the dividends about 3-4%/year. The portfolio itself is up about 50% in value, dividends aside. I spend about 5 hours each week keeping track of news, various online forums, etc. monitoring the portfolio and use Josh Peter's Dividend Investor newsletter (Morningstar product) for ideas and alerts.

The other half comes from an annuitized US 403(b) accumulation and a small Swiss pension. These are my bond equivalents. Still to come are US and Swiss Social Security for my wife and me. We have traditional and Roth Iras which we haven't touched as yet. US IRAs are taxable in Switzerland. US dividends are taxed at the full Swiss rate and we pay a "wealth tax" on the total value of our worldwide assets of around 1%. That said, I don't tend to trade much at all.

I like the dividend growth model because I can just spend the dividends and ignore price fluctuations that aren't connected to the long term fundamentals of the companies I hold. I like holding individual stocks because I have control of buying and selling and don't pay anything to Schwab beyond my original purchase/sell fees; that is, no ongoing account maintenance charges or fees. I also can use tax loss selling and balancing against gains as needed.

I worry most about the USD/CHF exchange rate.

-BB
__________________

__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
Bryan Barnfellow is offline   Reply With Quote
Old 05-01-2016, 07:53 AM   #23
Dryer sheet aficionado
 
Join Date: Mar 2015
Posts: 25
I like DVY as we'll but you need to keep an eye on it as it is heavily exposed to utilities. Vym was what I used as a replacement for part of my DVY holdings.


Sent from my iPad using Early Retirement Forum
__________________
thepalmersinking is offline   Reply With Quote
Old 05-01-2016, 10:26 AM   #24
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,152
I have always invested in individual div paying stocks. Portfolio includes about 12 names currently, yields about 4% and these divs represents a little more than half my retirement cash flow. Not as diversified as most would like and heavily concentrated in banks, telcos, and pipelines. All Canadian. Total return over last 20 years is about CAGR of 12%. Growing divs are my inflation hedge. Only had one div cut over this whole period and it was insignificant. Divs typically are growing at about 7-8% per year and up about 75% since the financial crises.

As others have mentioned divs are much less volatile than stock price, make it very easy to plan cash flows, and tend to be paid by well established, large cap companies. I agree that total returns are the key metric, but in my experience div growth stocks are some of the best businesses around and usually provide for a good total return.

Current issue is the increased tax rates on divs for high earners in Canada. Imbedded cap gains are too high to easily shift my stategy at this point.
__________________
Danmar is offline   Reply With Quote
Old 05-01-2016, 02:34 PM   #25
Full time employment: Posting here.
misanman's Avatar
 
Join Date: Apr 2008
Posts: 536
I am a dividend growth investor. Investments currently generate about $58K of dividend income per year. Resources I depend on include: Excel spreadsheet, FastGraphs, David Fish's Dividend Champions, Seeking Alpha, and Josh Peters (Morningstar).

I am currently drawing down IRAs and doing Roth conversions to avoid a future tax torpedo.
__________________
"The best thing about the future is that it happens one day at a time." -- A. Lincoln
misanman is offline   Reply With Quote
Old 05-02-2016, 05:59 AM   #26
gone traveling
 
Join Date: Oct 2007
Posts: 1,135
I don't chase yield. I'm really a total return investor and much prefer the diversification of the SP500 or even broader basket of shares. I simply don't hold individual stocks any longer. I did that for 25 years with more than a few blow ups. Tracking my actual results, I was a fool to do it that way versus broad indexing. Aside higher total returns, I spend less than 1 minute per month on my income strategy.

I collect dividends in cash from 4 ETF's and asset allocation looks like this :

VTI (45%)
VXUS (20%),
VYM (5%)
SPY (20%)
Cash (10%)

The dividend yield is around 2.6%. Not quire enough for my WR of 3.5% but I'm diversified out to the efficient frontier. https://en.m.wikipedia.org/wiki/Efficient_frontier

A monthly sweep to a cash account collects the dividends to cover annual spending and taxes.

Basically a bogleheads lazy portfolio ..
__________________
papadad111 is offline   Reply With Quote
Old 05-02-2016, 05:23 PM   #27
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
I have a 401-k which doesnít offer individual stock selection, a small IRA, & about 90k in company stock (non dividend) so Iím not going to list any of these here.

-Do you invest in individual stocks for dividends? Yes

My Ďmainí account is @ Fidelity. Itís about 480k and is ítaxableí
Iíll list only those holdings.
*Yield & Payout ratio shown*

Apple Computer: 2.43% - 27.00%
American Water Works: 2.02% - 53.00%
Bank Of America: 1.35% - 15.00%
Colgate Palmolive: 2.16% - 56.00%
Cinemark Holdings: 3.05% - 54.00%

Consolidated Comm: 6.34% - 235.00%
Gilead Sciences: 2.11% - 15.00%
Intel Corp: 3.40% - 43.00%
Johnson & Johnson: 2.84% - 49.00%
Kraft Heinz: 2.89% - 78.00%

Kinder Morgan: 2.84% - 72.00%*Taken a real beating on this one over the past year*
Eli Lilly: 2.65% - 57.00%
3M Company: 2.64% - 54.00%
Pinnacle Foods: 2.39% - 48.00%
Verizon: 4.40% - 57.00%

Wisconsin Energy: 3.39% - 68.00%


-If so, any interesting resources you use for research?
I like Ford Equity Research, which is available @ Fidelity. But not neccesarily for a Buy/Sell rating.
What I like best is the simple bar charts they use to show the previous 5 years, & Trailing 12 months EPS. They do the same for Annual Revenues. IMO this cuts through a lot of the fluff.

-What kind of dividend strategy do you employ? (high yield, dividend growth, blend, other etc)
Iíd have to say a blend.

-Do you blend dividend focused etfs/funds into your strategy? Yes

2 ETFís
iShares International Select Dividend: 4.53%
Vanguard Dividend Appreciation: 2.01%

& 2 REITís
National Health Investors Inc: 5.21% - 74.00%
Realty Income Corporation: 3.98% - 83.00%

A somewhat boring portfolio, but that's the way I want it.
__________________
ownyourfuture is offline   Reply With Quote
Old 05-02-2016, 09:30 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Quote:
Originally Posted by MRG View Post
I have some individual stocks MO, MRK, AEP, O, T, GE. Some ETFs too, SDOG, IDOG, PFF. Some of these I've had for a long time the MO positions have done very well.

Research mainly with Fidelity, someone here is responsible for me getting into O at a great discount. Don't recall who it was but a big thank you.
You are welcome!

O is pretty pricey at the moment. I purchased it years ago in my IRA, it's dividends alone enable me to collect my MRDs. That won't last forever as the IRS is fast on my heels.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 05-15-2016, 09:02 AM   #29
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 27
I got tired of getting unexpected mutual fund distributions each year and having to report on tax return.
I now only invest in dividend stocks such as T, BNS, VZ, etc. they have run up a bit lately. Will buy more when price comes done.


Sent from my iPad using Early Retirement Forum
__________________
tcaron20 is offline   Reply With Quote
Old 05-15-2016, 09:23 AM   #30
Full time employment: Posting here.
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 832
Dividends have increased to a little over 700 m on average by focusing on SCHD & dividend aristocrats. Currently reinvesting them but could take if needed. Goal is to get to 1k per month
__________________
gayl is offline   Reply With Quote
Old 05-17-2016, 03:18 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
i am a total return investor no matter how i get it . at the end of the day that is all that matters . getting a x-percent dividend and spending it is no different then just pulling x-percent from a total portfolio that had the same total return . there is really nothing special going on .
__________________
mathjak107 is offline   Reply With Quote
Old 05-18-2016, 04:45 AM   #32
gone traveling
 
Join Date: Oct 2007
Posts: 1,135
Quote:
Originally Posted by mathjak107 View Post
i am a total return investor no matter how i get it . at the end of the day that is all that matters . getting a x-percent dividend and spending it is no different then just pulling x-percent from a total portfolio that had the same total return . there is really nothing special going on .

Except for the tax efficiency of dividends over short term capital gains ...

Taxes. Darn taxes.
__________________
papadad111 is offline   Reply With Quote
Old 05-18-2016, 04:49 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
not really , first of all not all dividends are qualified , where as one can control that in their own portfolio by selling longer term assets to raise cash .. second the distribution of those dividends outside of your control can hurt at times .

like now , i am hoping to get an aca subsidy but whether i do or not is depending on the funds dividend payouts and distributions ,.

i don't know what to expect until the year's end because i am not in control and do have quite a few dividend paying funds .

that aspect is kind of variable on both sides .
__________________
mathjak107 is offline   Reply With Quote
Old 05-18-2016, 07:50 AM   #34
Thinks s/he gets paid by the post
 
Join Date: Jun 2006
Posts: 1,666
Quote:
Originally Posted by mathjak107 View Post
not really , first of all not all dividends are qualified , where as one can control that in their own portfolio by selling longer term assets to raise cash .. second the distribution of those dividends outside of your control can hurt at times .

like now , i am hoping to get an aca subsidy but whether i do or not is depending on the funds dividend payouts and distributions ,.

i don't know what to expect until the year's end because i am not in control and do have quite a few dividend paying funds .

that aspect is kind of variable on both sides .
That is unfortunate and part of the reason I don't use funds.
And yes, if you don't use funds, you have complete control over the dividends being qualified or not.

I understand dividends aren't right for you (more so than other investments). Some people find great success with them and prefer the lower volatility.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
Zathras is offline   Reply With Quote
Old 05-20-2016, 03:59 AM   #35
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,708
Quote:
Originally Posted by Zathras View Post
That is unfortunate and part of the reason I don't use funds.
And yes, if you don't use funds, you have complete control over the dividends being qualified or not.

I understand dividends aren't right for you (more so than other investments). Some people find great success with them and prefer the lower volatility.
+1 - use funds in tax-advantaged, stocks in tax-managed.
__________________
target2019 is offline   Reply With Quote
Old 05-20-2016, 04:04 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
one of the problems is the old rules of thumb were really wrong .

the premise that you keep your income generating stuff like reits and interest bearing stuff in deferred accounts since they are taxed at regular rates and equity's in the taxable account where they get special tax treatment ended up a poor idea .

any distributions and dividends over time that are taxable eventually kill off the tax advantage .

in the mean time you have valuable space in the deferred accounts taken up by things like bonds generating little income .

it should have been the opposite today.

so many things today are linked to retirement income .
__________________
mathjak107 is offline   Reply With Quote
Old 05-20-2016, 04:26 AM   #37
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by mathjak107 View Post

any distributions and dividends over time that are taxable eventually kill off the tax advantage .
How could that be? If I do not trade then almost all dividends are qualified. If I make total income under 90k then they are tax free . Simple as that.

I have nice chunk of dividends from taxable account and maybe only 10% are not qualified. I do not trade just buy and hold and enjoy dividends growing faster then inflation.
__________________
eta2020 is offline   Reply With Quote
Old 05-20-2016, 04:34 AM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
if you can get them tax free that trumps all . other wise fund dividends being taxable and fund turnover are key . even a 1% dividend over a typical accumulation period of 30-40 years will destroy tax savings .

owning index funds may not matter either as they too can have turnover .

kitces did an excellent article on the fact we may have been told wrong .

https://www.kitces.com/blog/asset-lo...-time-horizon/
__________________
mathjak107 is offline   Reply With Quote
Old 05-20-2016, 04:38 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
as you see here even a simple s&p 500 fund or total market fund can have terrible tax implications .

most funds do not own all the s&p 500 stocks or every stock out there so they buy the ones that will help mimic the index and that can require a lot of turnover

__________________
mathjak107 is offline   Reply With Quote
Old 05-20-2016, 04:51 AM   #40
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by mathjak107 View Post
if you can get them tax free that trumps all . other wise fund dividends being taxable and fund turnover are key . even a 1% dividend over a typical accumulation period of 30-40 years will destroy tax savings .

owning index funds may not matter either as they too can have turnover .

kitces did an excellent article on the fact we may have been told wrong .

https://www.kitces.com/blog/asset-lo...-time-horizon/
I checked my taxes for 2015. Having bunch of ETFs like VWO, VIG, SCHD, VXUS, S&P 500, KO, MO, PM, etc etc resulted in about 10% non qualified dividends.

That means for any couple with total income under 91k 90% of my dividends would tax free. I am still working so for me that are taxed at 15%.

But once I am FIRE I can control 401k and IRA withdrawals to remain under 91k and pay 0% taxes on majority of my income if I choose so.
__________________

__________________
eta2020 is offline   Reply With Quote
Reply


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
Equity dividend investing vs equity index investing galeno FIRE and Money 16 01-01-2015 04:51 AM
Suggested growth rate for portfolio growth estimates? doneat54 FIRE and Money 35 10-02-2013 12:03 AM
Emerging and Developing GDP Growth exceeds GDP Growth in Advanced Economies bUU Other topics 3 06-28-2013 12:42 PM
Here Is A Pretty Good Brief In Favor Of Dividend Growth Investing haha FIRE and Money 21 02-09-2012 06:56 PM

 

 
All times are GMT -6. The time now is 05:13 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.