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Old 04-28-2011, 08:37 PM   #21
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All common stocks. I feel they offer more over the long term than preferreds - 3% dividends growing at 8% vs 6-8% dividends with no growth for similar high quality companies.
I hear you. My friend says that he doesn't care about growth so that is why he does preferred and never sells or cares about anything but the dividends. He's happy so that's all that matters.
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Old 05-04-2011, 10:46 PM   #22
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The stocks I purchase for dividend income are blue chips giving around 3 to 4% dividends and since I buy them low, I have not yet sold any of them. The fluctuations in their share price do not worry me much. Having said that, I am currently reviewing my portfolio to add stocks paying 6 to 8% dividend but I want to read up more on this before I start purchasing. It will be like part of my "mad cap" fund and will be like a small percentage of my portfolio and I won't need to rely on the dividends for my income.
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Old 05-10-2011, 09:03 PM   #23
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I live on dividend income waiting for SS to kick in. I'll take it at 62 next year. I own a few stocks but mostly I own junk bonds funds. I own mutual funds instead of ETFs. I want a manager buying and selling and don't begrudge that extra expense of the mutual fund. I've also found high yield mutual funds to be more stable than ETFs although I own a little DHF and PHT. The stars for me have been JAHYX, MWHYX and STHTX. Portfolio was up about 13% last year and took the dividends. You can see when my portfolio is charted against the Dow or S and P 500. It wasn't quite there in long run but there wasn't the volatility. I sleep well at night but I check prices every morning.

I'd sell the funds if I saw a 5% loss. JNK use to irritate me and got out of it. People jump in and out of that ETF around the xdate like clockwork. The volatility I do have in my portfolio comes from the few blue chip dividend stocks I own. Took a big gulp when I saw Chevron down 6% last week. Plan to sell it and take the Long Term gain.
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Old 06-29-2011, 06:35 PM   #24
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I hold mostly energy stocks in my portfolio, giving about 3% dividends yield on average. ( RDS-B, CVX, STO )

Like some of you, I write covered calls a few times a year, usually going out about 2-3 months, and taking into account any ex-div dates during that time frame. Using this technique, I hope to derive another 1-2% return in addition to the dividend each year.

Although the price of the stock itself does not affect this money stream, I, too, feel concerned at large drops especially when the macroeconomic situation is so uncertain these days. The debt burden, out of control spending in the US, problems in Greece, Europe, the Middle east, et al, all serve to keep the market off balance with the possibility of sudden and significant declines when bad news breaks.

Just need to do what we can to minimize our risks.
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Old 06-29-2011, 09:03 PM   #25
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The "Dividend Growth Investor" blogger has interesting thoughts on various companies every week. Here are two of their posts on building a core portfolio and the risks of the style:
Dividend Growth Investor: Is your dividend income riskier than expected?

Dividend Growth Investor: 16 Core Dividend Stocks for your income portfolio
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Old 06-29-2011, 10:37 PM   #26
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Doug,

Thanks for the links on the Dividend growth investor. Ive already bookmarked it for future use.

I am hoping that one day soon, DW & I will sell our home here in CA and move to Oahu. Probably contact you offline to get some local knowledge and advice on real estate.

I was in Pearl Harbor on Dec 7th, 2010, to see my son re-enlist on the rear deck of the USS Missouri. He's an E-5 stationed at Schofield, already done one tour in Afghanistan.

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Old 06-30-2011, 12:39 PM   #27
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Thanks for the links on the Dividend growth investor. Ive already bookmarked it for future use.
I wish I'd seen that blog during my hyperactive stock-picking trader days. I much prefer this approach.

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I am hoping that one day soon, DW & I will sell our home here in CA and move to Oahu. Probably contact you offline to get some local knowledge and advice on real estate.
Anytime. A good place to start is George Stott's newsletter at Stott.com. He retired from submarines in 1975 and now he's largely turned his real estate business over to his family, but he still writes a good monthly summary about Oahu real estate. Spouse and I are real-estate junkies so we have a number of contacts for questions.

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I was in Pearl Harbor on Dec 7th, 2010, to see my son re-enlist on the rear deck of the USS Missouri. He's an E-5 stationed at Schofield, already done one tour in Afghanistan.
Must've been quite a crowd! That was the "grand re-opening" of the USS ARIZONA Memorial new visitor's center. Hope you got reserved parking...

The pocket guide is shipping this week, and when I get my copies I'm going to donate a book and some guides to Schofield's SGT Yano library. One of this board's posters has also donated copies of the book to be handed out to servicemembers. If your son is willing to review it and spread the word then he's welcome to contact me for his free copy. We live a few miles away from Schofield so I can meet him anywhere for the handoff.
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Old 06-30-2011, 02:44 PM   #28
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Doug, thanks for the offer of the book. My son is not exactly the most responsible guy when it comes to managing finances, but he should benefit from it.

Right now, he is going to NC to train for representing the US Army ( beach volleyball ) at the 2011 CISM World Military Games in Rio De Janerio. I'll have him contact you when he returns, can you PM me your phone number?

Thanks for your willingness to help us out. I am excited about the possibility of moving to "paradise", and will be very grateful for your guidance & advice, especially about real estate.

Coolius
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Old 07-01-2011, 08:36 PM   #29
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First of all I would hardly ever consider a common equity paying more than 5% dividend. A high dividend is a sign that the dividend is not secure or there is little prospect of growth(or both). Like Cycling ,I tend to be in the 3-3.5% yield range. Minimal rebalancing as this would cause tax since all my positions are above the cost base. Buying more positions as excess funds become available. All I really care about are the dividends. These are starting to increase nicely now. Don't really understand why someone would feel the need to use an ETF for dividend investing. Diversification would seem to be less a concern when investing in these well established co's. Why pay away 50bp's of yield(Canada) when it is easy to do it yourself? More tax efficient too.
I have to disagree with you on this one. I look for continual increases in payouts and buy when there seems to be no reason for the price to be depressed. Lately I purchased MSFT, INTC & PBI and sold the first 2 after 2 & 4 weeks for 7%

My other buys have been TOT (bought 4 times in the last year & sold 3 times, making 10-15% each trade plus dividends)...divy is 5-6%

I have NLY which doesn't go up much, but who cares at 14% divy?

BMY just popped and still pays 5%; I'm up like 15% on this one...

ABT has raised their dividend often, so has T & INTC in the past year; sold INTC 2 times in 6 months for 20% & 7% gains.

Look for down on their luck or cycles in companies and the divy's will hold up their stock price (in most cases, not all, e.g. CSCO).

I also own DUK; 5% divy & I'm up 10% in about 4 months.
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Old 08-05-2011, 08:04 PM   #30
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Well, the past few days were like WWIII from a financial perspective.

Thursday seemed bad enough, and the only bad hits were from my Oil & Gas majors, my preferred shares seemed OK.

This morning, woke up to see them down about 4-6% on average, and well below par value. Some hedge fund must have felt the need to dump shares indiscriminately, and dump they did, down to about 2008 levels.

But, I consider my preferred shares to be like an ultra long CD, with a maturity value of $25. Thus far, I have received enough in dividends to look on them as having been acquired at par and now enjoy 6-7% annual dividends.

Now, my Oil & Gas majors ( CVX, COP, RDS.B, LINE ) - that was bloody.
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