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-   -   Any dividend growth investors out there? (http://www.early-retirement.org/forums/f44/any-dividend-growth-investors-out-there-47338.html)

mef623 11-16-2009 01:54 PM

Any dividend growth investors out there?
 
For a portion of my overall portfolio, I'm investing in stocks that not only pay a decent yield but also grow their dividends. Eventually, I expect that portion of my portfolio to become a source of income for me (Obviously, it's a portion of my equity, not fixed-income, portfolio.). Let's face it: dividends are fun.

Any other divvie growth investors out there?

Mike

Danny 11-16-2009 02:32 PM

I'm a big fan of dividends. Can be a good alternative to CDs. - as long as the company doesn't cut it or go out of business! I like a certain utility that delivers to my house (XEL)and also LLY (5.5% and because my dog is named Lily). There is a nice return and also the promise of some growth in the stock prices, plus both nudge the divies up a bit every year lately and will continue to do so GW

mef623 11-16-2009 02:46 PM

Quote:

Originally Posted by Danny (Post 875868)
I'm a big fan of dividends. Can be a good alternative to CDs. - as long as the company doesn't cut it or go out of business! I like a certain utility that delivers to my house (XEL)and also LLY (5.5% and because my dog is named Lily). There is a nice return and also the promise of some growth in the stock prices, plus both nudge the divies up a bit every year lately and will continue to do so GW

I have ABT, OMI and JNJ on the health care side but do need more utes. Nice yield on XEL (I remember it well from when I lived in MSP.) but the company has only grown it at 3% per year. I'm thinking of EXC, although they didn't do their tradition increase in 4Q this year.

Mike

unclemick 11-16-2009 04:01 PM

Down to one file cabinet of DRIP stocks(14) and a few (33) in VG broker.

15% of total portfolio - a hobby, for the hormones. The Norwegian widow isn't talking as much as early ER (the 90's) when dividends were as high as 40% or so of a very frugal income.

heh heh heh - with the recent unpleasantness - may have to do some more shifting deck chairs on the Titanic to boost dividend income. And a happy pssst Wellesley to everyone. :rofl: :rolleyes: :laugh: ;D.

jimnjana 11-16-2009 04:27 PM

I don't have as many positions as unclemick, but in my IRAs I have several. I think you should look at

MLPs, MREITs, shipping stocks, and tobacco stocks to add to your holdings.

Good luck

Jim

CyclingInvestor 11-16-2009 04:31 PM

I am 51, retired 3 years, and keep all funds invested in high quality, decent dividend stocks that I think will continue raising their dividends at a good rate. These dividends fund the 72t withdrawals that I live on. My largest holdings are currently PG, KO, ADP, JNJ, SYY.

Zathras 11-16-2009 07:23 PM

In addition to a number mentioned about, GE, PG and SYY are a few of my other major holdings.
Eventually I plan to live solely on the dividend payouts and let the principal grow year over year.
Do rely almost completely on dividends though you need to be well diversified so when the occasional drop in dividends comes you can absorb the hit and keep moving:)

Dawg52 11-17-2009 06:24 AM

Took a look at my portfolio this morning and I come in at..........15% allocated to dividend stocks. Looks like Unclemick has had an influence on me. But I drive a Trailblazer instead of an Equinox. Heh heh heh....;)

mef623 11-17-2009 07:20 AM

Quote:

Originally Posted by jimnjana (Post 875933)
I don't have as many positions as unclemick, but in my IRAs I have several. I think you should look at

MLPs, MREITs, shipping stocks, and tobacco stocks to add to your holdings.

Good luck

Jim

Quote:

Originally Posted by CyclingInvestor (Post 875937)
I am 51, retired 3 years, and keep all funds invested in high quality, decent dividend stocks that I think will continue raising their dividends at a good rate. These dividends fund the 72t withdrawals that I live on. My largest holdings are currently PG, KO, ADP, JNJ, SYY.

Quote:

Originally Posted by Zathras (Post 876003)
In addition to a number mentioned about, GE, PG and SYY are a few of my other major holdings.
Eventually I plan to live solely on the dividend payouts and let the principal grow year over year.
Do rely almost completely on dividends though you need to be well diversified so when the occasional drop in dividends comes you can absorb the hit and keep moving:)

Glad to see that I'm not alone! I intend to keep this thread pretty activity since it will form the core of my retirement income twenty years from now.

Due to some conflicts, I don't invest in consumer dividend stocks directly but handle those through an ETF. Jimnjana, I love the MLPs but can't do too many of those since I'm big on diversification and they tend to be oil and gas. I do own KMP, though.

I'm targeting 30 stocks in the dividend portfolio and keep them roughly in the same percentages as the dividend contribution within the S&P. I'm not exactly worried that people are going to stop buying toothpaste, but I have enough of my portfolio in equities that I don't want to overload any particular sector.

ADP is a favorite and is exactly the type of stock I'm looking for: It already has a nice dividend but it continues to grow that dividend at an above average rate. I have a few "lower yield but faster growers," such as CHRW and OMI. I've also got a few "higher yield but slower growers," such as LEG and CVX. Overall, I think it will average out well.

Mike

unclemick 11-17-2009 09:31 AM

Pssst Wellesley - :laugh::laugh::laugh: - I periodically check their top ten stock holdings to keep my shopping list up to date.

Also recently since Vanguard came out with a mutual fund tracking Mergent's Dividend Achievers(in ancient times bought the annual book) have been checking their stock holdings. Aka Vanguard Dividend Appreciation Index, inception 2006.

Also have been known to lurk at Morningstar Income & Dividend Investing.

Alas with some success over time in the market(16 yrs of ER) my Target Retirement is the lead sled dog carrying the load. I have neglected cleaning up the dog poo in the yard - leftover odd DRIP shares, spinoffs, dividend cut stocks I haven't sold to avoid taxes and just plain bought some and never followed up.

Like cleaning out the basement - I need to shape up that part of portfolio - soon - er - one of these days.

heh heh heh - ;D Effectively helped ER in the early days and allowed my IRA to compound longer. Sin of sins, my dividend stocks are in the taxable portion of the portfolio. But I am lefthanded INTJ. :rolleyes: :coolsmiley:.

MasterBlaster 11-17-2009 09:38 AM

Did any of you dividend investors have much in financial stocks? They had tended to pay very good dividends but took a real bath in the recent downturn ?

Who would have known that all of those household name stocks would turn sour.

FIREd 11-17-2009 09:45 AM

I only own mutual funds but my equity portfolio is still heavily tilted towards dividend-paying stocks. I indirectly own many of the stocks mentioned above. My goal is to create a diversified dividend income stream, live solely on these dividends and allow the principal to continue compounding. My portfolio currently yields about 3.5%.

FinanceDude 11-17-2009 10:04 AM

I am a big fan of dividends, and always will be. I would keep in mind that a lot of international stocks have healthy dividends too, so don't rule those out......:)

Zathras 11-17-2009 10:41 AM

Quote:

Originally Posted by MasterBlaster (Post 876134)
Did any of you dividend investors have much in financial stocks? They had tended to pay very good dividends but took a real bath in the recent downturn ?

Who would have known that all of those household name stocks would turn sour.

Yes, I had some.
Some of the ones I had got wiped out, some I sold when the writting was on the wall but before they canceled their dividends or really went south.
However, overall I ended up flat in my income flow as other dividends continued to grow. And due to continueing to buy, my income stream is 40% higher than it was last March.

Diversification is again key. If I were all in on financial stocks I would have taken a mighty beating. Luckily financials were not that big a peice of the pie.

REWahoo 11-17-2009 10:48 AM

Quote:

Originally Posted by MasterBlaster (Post 876134)
Did any of you dividend investors have much in financial stocks? They had tended to pay very good dividends but took a real bath in the recent downturn ?

You mean like this? http://www.early-retirement.org/foru...tml#post774732

Dawg52 11-17-2009 11:01 AM

Quote:

Originally Posted by FinanceDude (Post 876141)
I am a big fan of dividends, and always will be. I would keep in mind that a lot of international stocks have healthy dividends too, so don't rule those out......:)

Throw us a bone or two.

http://www.early-retirement.org/atta...c78f5d2e76.gif

rsingh6675 11-17-2009 11:43 AM

Which Dividend Funds?
 
Which dividend paying funds are in your portfolio?
I have AWF, AFB. These are closed end funds.

DeborahB 11-17-2009 11:56 AM

I'm nearing retirement - 6 - 9 months from now. I had been a very aggressive mutual fund investor. Since the market crash, and since I was nearing retirement, I have started moving money from stock funds into dividend paying stocks. I also have a few short-term maturity bonds that I bought at a good price, that I will keep to maturity.

Most of my dividend paying stocks have appreciated because I bought when the whole market was lower. But I bought them for the cash flow... Right now I'm re-investing the cash in more dividend paying stocks, but when I retire I'll need them for income.

I've got a variety of utility and other stocks that are paying me around 7% on average (not bad in these times). CD rates are so low now that I can't tie up my money that way - not enough return. I have to take some risk.

And I am the not-proud owner of a CIT bond that should have paid off 1 day after they declared bankruptcy... :hide: I'm waiting to see what happens. You win some, you lose some. I've won more than I've lost.

DeborahB 11-17-2009 12:03 PM

Here are some in my portfolio: BPO, EDE, EPR, OLN, RAI, FGP, GE. This should in no way be considered an endorsement or advice to buy them.

FinanceDude 11-17-2009 12:52 PM

Quote:

Originally Posted by Dawg52 (Post 876162)

I like ETFs, as most of you know. 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.

I like DOL and IXP. Again, YMMV, and remember to read carefully my nifty signature below........ ;)


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