unclemick
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I ladder my hobby stocks- (remember I'm INTJ, left handed, 80% balanced index, and fond of De Gaul and the Norwegian widow). With that disclaimer - here's what I do.
Since 1994, using then Moody's now Mergent's Handbook of Dividend Achiever's pick four or five stocks every 1-3 years and buy using Moneypaper to get DRIP plans. I use div + div growth, long record of div and a low/no cost DRIP as pick criteria. Give them 7-10 years to compound divs/div growth and keep the ones that yield over 7% in div or total return on money invested. Sell every 1-3 years the ones that don't make the cut. Also DCA some and buy on dips - which muddies the water a little. I know of no easy way to put 'math power' to evaluate this method because of spin off/merger/survivorship AND what would I compare it to - ? a value fund index?.
Any - wise - just a fun hobby, but it has creaped up to 25-30% of my taxable income stream (no SS or IRA takeout yet). My barkpark notes say I haven't beat my balanced index over ten years. ? Any thoughts on how to set up an analysis of the technique? Remember - I'm selling some laggards and suffering mergers along the way - so take out has been lumpy?
Since 1994, using then Moody's now Mergent's Handbook of Dividend Achiever's pick four or five stocks every 1-3 years and buy using Moneypaper to get DRIP plans. I use div + div growth, long record of div and a low/no cost DRIP as pick criteria. Give them 7-10 years to compound divs/div growth and keep the ones that yield over 7% in div or total return on money invested. Sell every 1-3 years the ones that don't make the cut. Also DCA some and buy on dips - which muddies the water a little. I know of no easy way to put 'math power' to evaluate this method because of spin off/merger/survivorship AND what would I compare it to - ? a value fund index?.
Any - wise - just a fun hobby, but it has creaped up to 25-30% of my taxable income stream (no SS or IRA takeout yet). My barkpark notes say I haven't beat my balanced index over ten years. ? Any thoughts on how to set up an analysis of the technique? Remember - I'm selling some laggards and suffering mergers along the way - so take out has been lumpy?