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My start to my 3%-4.5% dividend returns.
Old 08-20-2012, 02:18 PM   #1
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My start to my 3%-4.5% dividend returns.

Ok so I sold off 160 acres of my 560 acres of Nebraska dry farm land.
So here's the start of my up to 10 dividend paying stocks I've been thinking about. I'm looking to buy stocks that pay quarterly dividends.

Dow Chemical, Div yield 4.24%
I will buy 1000 shares. Currently trading at $30.16

I don't really have a question just looking for others input, in the next few weeks I'm going to research other stocks to figure out where to statch this cash.

I Don't really know what to ask but I do know what I would like to achieve.

I'll tell you my story just ask, we all have a story to tell..
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Old 08-20-2012, 02:35 PM   #2
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Hmmm - back in my DRIP dividend stock days, I looked at Wellesley, Wellington top ten stock holdings and bought The Handbook of Dividend Achievers for stock ideas. Did the classic utes, telephone, big oil, food and pharma. Also REITs and rails.

Target Retirement now(lifecycle) but I still look at Vanguard's income and dividend oriented funds to see what they are holding.

heh heh heh -
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Old 08-20-2012, 02:43 PM   #3
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Rather than take individual stock risk, why not invest in a dividend ETF/fund? There are a few ETFs and funds from Vanguard that charge very little and you get instant diversification.
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Old 08-20-2012, 04:27 PM   #4
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Well I guess I should of said for now I'm going to do dividend reinventing. I don't need the money to live off of I have a $84k day job + $55k in rental income.
I'm toying with the thought of NOT working but my wife and 5 kids want me to have some sort of silly plan, they think they need to know what I'm going to be doing all day. Silly family....

I'm looking at the ETF's now. I'm going to push $150k into this. We have no debt, we raise most of our food.

Thanks.

Maybe I should be asking do I have enough to stop working and pay my own health insurance premiums and raise 5 kids with a SAHM, homeschooling. When I put pen to paper I'm thinking I'm on easy street if I want to live off of mids $50k'ish income.

I get very restless sitting around doing nothing, I have to have stuff to do.
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Old 08-20-2012, 05:10 PM   #5
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I'm guessing that you are in your late 40's or early 50's and your family thinks you are too young to retire. Why not take some time OFF (maybe a month or more) to figure out if you really want to quit working or reduce the number of hours you want to work.

Regarding Dividend investing, Mutual Funds or ETF that invest in Dividend paying stocks is a good way to diversify. If you can invest in 10+ stocks, I would suggest investing equal amounts in each to diversify your portfolio. I would also recommend that you be wary of stocks paying more than 4% in dividend income because the stocks that have very high yields are trading at low price for a reason. To learn more about Dividend Investing, you may visit www.morningstar.com or AAII.com. They each also have "Dividend Investing" newsletter that you can subscribe to inexpensively.
Please feel free to contact me if you want to share ideas. I'm also an individual investor who after having setting up a dividend paying stock portfolio am working to build a growth portfolio.
All the Best!
Rick
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Old 08-20-2012, 07:23 PM   #6
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44 years old, Ok I'm looking at these ETF's wow there are a lot of them. What's a good one? Will it return 3.6%+? Or I'm I dreaming?
Heck my return on the farm ground was out of this world, maybe I should kept it... I wanted to take some money off the table and pay off my other farms and move closer to a bigger town for the kids. It's all good we all feel good about it.
Yes I'l be paying some capital gains, oh well.


Thanks
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Old 08-20-2012, 07:34 PM   #7
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Well I guess I should of said for now I'm going to do dividend reinventing.
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Old 08-21-2012, 12:48 AM   #8
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44 years old, Ok I'm looking at these ETF's wow there are a lot of them. What's a good one? Will it return 3.6%+? Or I'm I dreaming?
Heck my return on the farm ground was out of this world, maybe I should kept it... I wanted to take some money off the table and pay off my other farms and move closer to a bigger town for the kids. It's all good we all feel good about it.
Yes I'l be paying some capital gains, oh well.


Thanks
I think no one who owns farmland should sell it for securities unless there is some intrinsic problem with the farm. If you want to spend more time in Arizona, just rent the land or do shares on your crops.

Ag commodities will do better than stocks for a very long time. Not every year, but overall.

Ha
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Old 08-21-2012, 06:34 AM   #9
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I think no one who owns farmland should sell it for securities unless there is some intrinsic problem with the farm. If you want to spend more time in Arizona, just rent the land or do shares on your crops.

Ag commodities will do better than stocks for a very long time. Not every year, but overall.

Ha
Jeremy Grantham at GMO has been writing on this for the past year. Anyone interested should read his quarterly newsletters.
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Old 08-21-2012, 10:30 AM   #10
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Rather than take individual stock risk, why not invest in a dividend ETF/fund? There are a few ETFs and funds from Vanguard that charge very little and you get instant diversification.
+1. If I wanted dividends I'd invest in one or more equity or balanced funds (with low expense ratios) designed to spin off income through dividends or other. There's tons of them. Why buy 10 individual equities? While you can undoubtedly find 10 funds currently paying higher dividends than a fund (and that could change too), you expose yourself to more volatility of principal risk/capital losses.
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Old 08-21-2012, 11:09 AM   #11
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The dividend champions list is a good tool. It list stocks with long history of raising dividends.

The DRiP Investing Resource Center - Tools

Sometimes you can let the volatility work for you. I put in limit orders to buy at some crazy price ( say 20% below current price ) and just wait. When the computers go crazy, like the flash crash in 2010, I was able to pick up nice dividend payers at bargain prices.
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Old 08-21-2012, 12:14 PM   #12
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... Why buy 10 individual equities? While you can undoubtedly find 10 funds currently paying higher dividends than a fund (and that could change too), you expose yourself to more volatility of principal risk/capital losses.
Why?
Lower fees.
Probably lower tax issues, you have no control over a funds choices to sell stocks which may result in taxes for you.

Dividend fund are good, I just think if you are willing to put the time into it, individual dividend payers are better.
10 might be a little small of a group, but probably is enough to give a decent level of diversification.
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Old 08-21-2012, 12:16 PM   #13
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What is SAHM? And are you going to send any of the kids to college?

Has anyone characterized the valuations of farm land as anything like a bubble? What happens to the value of the land with the record heat and drought?

It wasn't so long ago that farmers were suppose to be in trouble. Land valuations seems to have eliminated that worry but things tend to go in cycles.
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Old 08-21-2012, 01:38 PM   #14
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I get very restless sitting around doing nothing, I have to have stuff to do.
I'd follow my heart if I were you and try something new! It sounds like financially, you're all set, so: "What are you waiting for?"

As far as dividend paying stocks, I'm a firm believer in purchasing individual stocks over funds. In fact, I'd go so far as to say that I think funds are promoted by brokerage firms as ways for them to "soak" lazy investors.
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Old 08-21-2012, 02:07 PM   #15
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I don't think taking some winnings off the table on farmland is a bad idea.

As for dividend investing, be aware that there are lots of people fishing in the same pond. Unless you are willing to put a lot of time and energy into it, I would suggest a fund rather than individual stocks. If you do want to chase individual stocks, read some of cyclinginvestor's posts. He has been doing this for a very long time and apparently quite successfully.
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Old 08-23-2012, 08:48 AM   #16
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Wow thanks for all of the replies.

Well a SAHM would be an "Say at home Mom", we (she) home schools our 5 kids. Yes we are coaching them on trade school or 4 years schools. We will help them along, 2 of them are running a Sheep wool product business and goat milk product business, in the pass they have made over $1200.00 gross sales but they never make enough product, they all ways sale out.

On the farm land sales, I bought the ground 10.5 years ago for $120k sold it for $640k the best cash rents on the farm ground was only $21k. Yes GREAT return on my initial investment but......We wanted to sell and move closer to a bigger town for the kids. I have 2 1099's being sent, I'll shelter $300k on 1 1099 then pay capital gains on the rest. I ranched it myself working full time off the place that was the only way a new "start up city boy" could make it work. That was really hard and stressful work/money worries. I never went into major hock, but I'm not going to miss it. we still live in the country still have hay ground to hay for the critters, however I'm out of the beef business except for a family critter.

We still own 400 acres of farm ground producing over $50k in rental income.
Right or wrong on selling the ground, for us it was the best thing selling the home quarter. I'm thinking 99.99% of you folks would of done the same think.

I'll include an ETF as well but I'm going to go to the heavy side of individual stocks, mostly energy maybe VZ. I'd do some bonds as well.

Thanks....
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Old 08-23-2012, 10:07 AM   #17
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$50k a month or a year for 400 acres?
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Old 08-23-2012, 10:09 AM   #18
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Yearly gross income..
Wow $600k a year for rental income...I would be "king cock"...yes?
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Old 08-23-2012, 10:58 AM   #19
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The last I heard sovereign Greek 10 year bonds were yielding over 24%.

Roll the dice and ......
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Old 08-23-2012, 11:39 AM   #20
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