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Started By
Message
re: Dividend Growth Investing
Posted on 3/14/24 at 12:15 pm to SquatchDawg
Posted on 3/14/24 at 12:15 pm to SquatchDawg
quote:
SquatchDawg
quote:
I worked up a spreadsheet on this once wondering if compounding and reinvesting dividends would grow into a substantial income.
What assumptions did you use? What were the general outcomes of your theory? Time Frame you modeled, amount of money modeled, yield modeled? Curious to the results of your mock up.
Posted on 3/15/24 at 10:06 pm to JL
quote:
ARCC
PSEC
I have both of those in my Roth's. I'm going to add:
NLY
AGNC
RC
ET
EPD
This post was edited on 3/15/24 at 10:10 pm
Posted on 3/15/24 at 10:30 pm to RingLeader
SVOL
has great dividends
has great dividends
This post was edited on 3/15/24 at 10:31 pm
Posted on 3/16/24 at 10:03 am to slackster
quote:
ARCC is a different story altogether at least
True. I’ve owned ARCC for much longer and I’m pleased with its total return performance.
I don’t believe in staring in the rearview mirror while driving forward, but yeah, in a coulda/woulda/shoulda exercise, I wish that I woulda bought more ARCC and less (or no) PSEC. There is a concern that it could become a self-liquidating concern as it continues to pay a high dividend.
Posted on 3/16/24 at 3:15 pm to Jag_Warrior
quote:
There is a concern that it could become a self-liquidating concern as it continues to pay a high dividend.
It pays a high dividend relative to its current price, but it’s been lower and lower relative to previous purchases. When I think dividend growth investing, I’m looking for, you know, actual dividend growth
Posted on 3/16/24 at 8:58 pm to jizzle6609
quote:
Make sure to time your buys right with this one
What drives all of that volatility besides earnings?
Posted on 3/17/24 at 2:58 pm to ThatsAFactJack
It wasn’t anything special or complicated
IIRC it was really a pretty basic compounding formula with annual amount contributed, stock appreciation % and dividend % as the variables. Line two picked up the new total and did the same thing…and I messed with the assumptions and carried it out however many years. The thought was the compounding of the dividend would juice the growth over time. Also, I was looking at blue chips for security - and they typically don’t have high dividend payouts.
It works but it has to be in a tax deferred program or you get eaten alive by taxes. For me, I was considering post tax money and couldn’t contribute enough to move the needle to make it worth trying as an alternative to standard index investing in a company Roth. I just couldn’t get enough money into it fast enough to where an average 4% or so dividend payout was significant and it would take some time managing.
IIRC it was really a pretty basic compounding formula with annual amount contributed, stock appreciation % and dividend % as the variables. Line two picked up the new total and did the same thing…and I messed with the assumptions and carried it out however many years. The thought was the compounding of the dividend would juice the growth over time. Also, I was looking at blue chips for security - and they typically don’t have high dividend payouts.
It works but it has to be in a tax deferred program or you get eaten alive by taxes. For me, I was considering post tax money and couldn’t contribute enough to move the needle to make it worth trying as an alternative to standard index investing in a company Roth. I just couldn’t get enough money into it fast enough to where an average 4% or so dividend payout was significant and it would take some time managing.
This post was edited on 3/17/24 at 3:00 pm
Posted on 3/17/24 at 3:01 pm to Fat Bastard
quote:
SVOL
My Brokerage doesnt allow me to buy any weed stocks or even SVOL and i have a margin account.
Posted on 3/17/24 at 3:36 pm to JL
JL I have those but I also like ECC. ARR. CLM. ORC. OCCI
Posted on 3/20/24 at 8:55 am to Beessnax
quote:
Make sure to time your buys right with MO.
quote:
What drives all of that volatility besides earnings?
Recently it was rumored that Altria was looking at selling part of its position in under performing Anheuser-Busch. That turned out to be true, as the company announced that it was selling 18% of its stake. Unusual options activity beforehand suggested that something was going on. Then Altria announced that it was increasing its share buyback to $2.4 billion. From that initial rumor until now, the stock has gone up roughly 10%.
I’d been an active put seller when MO was hanging around 40/share. Most of my strikes were in the 39-39.5 range. My aim was (first) to generate premium income as IV was slightly rising, but also to increase my position at prices that I found attractive. Unfortunately, none of those puts were assigned. (sad face)
Posted on 3/21/24 at 7:46 am to FLObserver
quote:
My Brokerage doesnt allow me to buy any weed stocks or even SVOL and i have a margin account.
who the hell are you using? I have vanguard, e-trade and schwab accounts. my SVOL holdings are through schwab.
Posted on 3/22/24 at 5:09 am to Fat Bastard
quote:
who the hell are you using?
Wells Fargo.
If i try and buy SVOL i get this :
Error: This symbol entered cannot be traded.
If i try to trade any weed stocks :
Error: The security entered cannot be traded. Please contact us at the number listed on your statement.
i use them for banking and to much of a hassle to be moving money all over the place. Everything else i can trade though.
Posted on 3/22/24 at 1:37 pm to ThatsAFactJack
Dividend Growth Investing is what got me started in the stock market. I'd definitely suggest watching some PPC Ian videos on youtube. He's super nerdy, but shows you what can happen if you stick with it.
I started investing in 2017 and my annualized dividend income (including 401k and personal accounts) is projected to be right under $9,000 right now.
Be VERY careful with the companies you select. I learned my lesson quite a few times (MPW, Intel, GM, Ford) and no longer chase high yield companies as often. I focus more on dividend growth itself. My largest holdings are:
Visa
Microsoft
Costco
VICI
JPM
NextEra Energy
I started investing in 2017 and my annualized dividend income (including 401k and personal accounts) is projected to be right under $9,000 right now.
Be VERY careful with the companies you select. I learned my lesson quite a few times (MPW, Intel, GM, Ford) and no longer chase high yield companies as often. I focus more on dividend growth itself. My largest holdings are:
Visa
Microsoft
Costco
VICI
JPM
NextEra Energy
Posted on 3/22/24 at 3:48 pm to SouthMSReb
quote:
Visa
Microsoft
Costco
VICI
JPM
NextEra Energy
I own these as well in my Div portfolio. Agree on the risky stuff . I quit chasing yield as well. I have 15 years left until retirement and only own div stocks that are growing their div every year. Most of these are really expensive right now so i try adding on big dips like ACN today.
Posted on 3/22/24 at 3:59 pm to SouthMSReb
There's a vanguard etf called VIG that pretty much mimics this strategy.
This post was edited on 3/22/24 at 4:02 pm
Posted on 3/22/24 at 6:02 pm to FLObserver
quote:
Wells Fargo.
that explains it
Posted on 3/23/24 at 4:42 am to Fat Bastard
quote:
Wells Fargo.
It's basically free brokerage account and if you knew how many trades i made in my non dividend account each year then i consider it even.
Posted on 3/23/24 at 9:17 am to FLObserver
quote:
It's basically free brokerage account and if you knew how many trades i made in my non dividend account each year then i consider it even.
I’m a little confused or maybe I’m misunderstanding. Are you saying that in your non Wells non-dividend investment/trading account that you do pay commissions or fees? Who is that account with?
Just curious because most major brokerages are at zero commissions now on basic equity trades, and only have fees (that they don’t call “commissions” ) on derivative products and some ETFs.
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