Showing posts with label VIG. Show all posts
Showing posts with label VIG. Show all posts

Friday, April 17, 2015

Invest Early

Look at these model portfolios and tell me what you think.  

I think they reveal that you can pick stocks using a strict formula or you can invest in a quality ETF and get close to the same results.

But what it really tells me is that you should start as soon as you can.

Consistent investing over time; persistence, duration,  these are the qualities of a well developed income investment portfolio.

Notice that none of these portfolios include reinvesting dividends, or investing the cash created from buy outs or additional income created from covered calls.   

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Saturday, November 29, 2014

VIG and SDY Beat 2014 Dividend Machines but not 2013 Dividend Machines

Live by the dividend; die by the dividend.   While the 2014 Dividend Machine Portfolio delivers more income for income investors, the recent slide of oil prices took a toll on energy stocks Chevron, symbol CVX, and Conoco Phillips,symbol COP.    See the comparisons in the table below of year to date performance of two low cost ETF's that concentrate on dividends; VIG and SDY.

I personally would not sell.   If you have cash to invest, you might consider adding to CVX and/or COP.    COP  has a PE of only 9.   Both have healthy dividend yields.  CVX's dividend yield 3.72% with a five year dividend growth rate of 11.47% .  COP's dividend yield is 4.12% with a 5 year dividend growth rate of 9.2%.    Both have good balance sheets.   Chevron's D/E ratio is .13 according to MSN Money and COP's is .35.

You see the biggest question is will these dividends continue and will their annual increases continue.  If the past five years is any indicator of future performance, CVX and COP are bargains.

Using Dividend Machine criteria to pick stocks for the income producing portion of your portfolio is still a good strategy.   This is demonstrated by looking at the 2013 Dividend Machine Portfolio.  Stocks have been on a tear lately and it is not surprising that buying in 2013 provides more gain than buying in 2014.   Take a look at the 2013 Dividend Machine portfolio comparison with VIG and SDY in 2013.

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Sunday, November 2, 2014

Dividend Machine Stocks for 2014

The table below presents the results of the stocks picked so far for the 2014 Dividend Machine Portfolio.   An equal dollar amount was theoretically invested in the low cost dividend ETF's known as SDY and VIG.   SDY concentrates on high dividend stocks and VIG concentrates on stocks that increase their dividiends.     Results of all three portfolios, SDY, VIG and 2014 Dividend Machines are presented below.

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