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Started By
Message
Advice on starting a DGR portfolio.
Posted on 12/19/12 at 11:02 pm
Posted on 12/19/12 at 11:02 pm
Say I wanted to start a DGR portfolio hypothetically consisting of.
ADP, AFL, ARCP, CL, CVX, GIS, GCP, T, XOM, INTC, JNJ, KMB, KMP, KO, KRFT, LMT, WM, LO, MCD, MO, DHI, PEP, PG, SO, and WMT.
How does one go about doing this. Do you just buy one at at time? How much of each at a time? If I had 25k would buying 1k of each be a good strategy? Any advice at all on this type (or any type really) of portfolio would be greatly appreciated.
ADP, AFL, ARCP, CL, CVX, GIS, GCP, T, XOM, INTC, JNJ, KMB, KMP, KO, KRFT, LMT, WM, LO, MCD, MO, DHI, PEP, PG, SO, and WMT.
How does one go about doing this. Do you just buy one at at time? How much of each at a time? If I had 25k would buying 1k of each be a good strategy? Any advice at all on this type (or any type really) of portfolio would be greatly appreciated.
4
Posted on 12/20/12 at 12:14 am to WhalingVessel
There is probably a mutual fund that has these stocks or very similar. I am looking at SMVLX, and I have VDIGX which has several of those stocks. And VDAIX. Or Vanguard Wellington. See also the Large Blend MF's at Fidelity, T.Rowe and PIMCO.
Or, open a new account at TDAmeritrade and get sufficient free trades, then divide your stock trades as appropriate.
Or, open a new account at TDAmeritrade and get sufficient free trades, then divide your stock trades as appropriate.
Posted on 12/20/12 at 12:33 am to matthew25
I have an account with CharlesSchwab currently for my banking and RothIRA.
So if I had 10k and wanted to buy 10 of them to start. I could just buy 1000 shares of each of the 10 that I chose to start with?
Could you then put them all in one place (Portfolio) to track them all at the same time, as apposed to keeping up with how each of them is doing individually?
So if I had 10k and wanted to buy 10 of them to start. I could just buy 1000 shares of each of the 10 that I chose to start with?
Could you then put them all in one place (Portfolio) to track them all at the same time, as apposed to keeping up with how each of them is doing individually?
Posted on 12/20/12 at 6:07 am to WhalingVessel
Not really sure what/why you are asking, but yea sure you could do that. Just open a separate account, deposit your money and buy $1,000 of each. However, it would be much more cost efficient to just find an ETF or mutual fund with the same strategy. Commissions are going to eat you up buying 10-25 stocks with only 10k.
Posted on 12/20/12 at 8:23 am to Chris Farley
I would look out for a site offering free trades for the first 30 days if you have that many buys.
Posted on 12/20/12 at 8:47 am to WhalingVessel
I know you said it's hypothetical, but you are way too heavy in the Consumer Goods sector. I follow a dividend growth philosophy (mostly because it allows me to trade options without a conscience) as well, so I know this sector is tempting because there are several VERY good companies in it that pay/grow solid dividends. Try cutting a couple of these out to begin with and focus on fewer stocks in general, then add more later in larger (and relatively equal) chunks if you're ready to do so. Plus, as others said, you'll needlessly pay a lot in broker fees to start out with. Maybe start with 12-15 if you're striving for some form of diversification off the bat.
and DHI for a dividend growth portfolio? odd
and DHI for a dividend growth portfolio? odd
This post was edited on 12/20/12 at 8:55 am
Posted on 12/20/12 at 9:17 am to WhalingVessel
You should look at VIG and VYM for a start. The former is a dividend appreciation ETF and the latter is a high dividend yield ETF. Those two are going to give you exposure to nearly all of the stocks you listed. It'll save you a lot of time and commissions.
Posted on 12/20/12 at 3:46 pm to WhalingVessel
As previously said commissions will eat you up. Look at motifinvesting, I think their model facilitates this a little better than standard online brokers.
Posted on 12/20/12 at 11:20 pm to GrantTheFan
Isn't there a fee, usually around 1%, per year for a mutual fund?
Is the fee for a mutual fund less than the commision cost of buying stocks individually?
If I make 5 trades a year at $9 a piece thats $45. How much is a fee for a mutual fund?
Is the fee for a mutual fund less than the commision cost of buying stocks individually?
If I make 5 trades a year at $9 a piece thats $45. How much is a fee for a mutual fund?
Posted on 12/20/12 at 11:27 pm to WhalingVessel
A lot of Vanguard fee funds are like 0.3%
Posted on 12/20/12 at 11:53 pm to LSUtoOmaha
MF fees at Scott are 17. They are 18 at TDameritrade. Don't believe Vanguard charged me a fee when I went directly to them, and it was >10k.
Posted on 12/21/12 at 12:07 am to matthew25
So it sounds like the boards concensus is to go with something like VDIGX instead of buying 20 individual stocks.
Posted on 12/21/12 at 12:45 am to WhalingVessel
quote:
So it sounds like the boards concensus is to go with something like VDIGX instead of buying 20 individual stocks.
I guess I'll be the dissenter. While I agree that one can't go "wrong" with something like VDIGX or VIG, current yields and, more importantly, dividend growth prospects are likely to be greater by picking a basket of dividend stocks of companies consistently posting solid earnings. For brief explanations on some of the shortcomings I've found with dividend-focused ETFs, see LINK or LINK
If the OP truly wants to be a dividend growth investor, it would short-sighted to pick an inferior (though I admit, effort-free) approach in the name of saving <$100 in broker fees.
Posted on 12/21/12 at 1:58 am to Feed Me Popeyes
quote:This was my thought aswell.
If the OP truly wants to be a dividend growth investor, it would short-sighted to pick an inferior (though I admit, effort-free) approach in the name of saving <$100 in broker fees.
I'm not sure how a $100 initial comission fee (buy $1000 worth of 10 of the stocks at $9 per trade) is commisions eating me alive. Then adding new positions to them say $2000 ($9) at a time.
Is that costing me more than a mutual fund fee? In a mutual fund you may have many companies that are not as good as the 10 you may choose so the positions you have in them wouldn't do you as much good as it would to just have all of you're capital in your selected blue chip stocks.
I don't really know. But "commisions will kill you" doesn't really inform me of anything. If they will does anyone have any data on say 10-15 bluechip DGR stocks vs. VDIGX over the past 10 years. And in which scenerio you would have made more had you invested the same say $50,000 in each?
I also found these articles interesting.
LINK
LINK
This post was edited on 12/21/12 at 3:02 am
Posted on 12/21/12 at 3:08 am to WhalingVessel
quote:
does anyone have any data on say 10-15 bluechip DGR stocks vs. VDIGX over the past 10 years. And in which scenerio you would have made more had you invested the same say $50,000 in each?
Start here LINK
Posted on 12/21/12 at 9:55 am to Feed Me Popeyes
Or you could go with Warren Buffett's top 10: Coke, Wells Fargo, IBM, Am. Exp, P&G, Wal-Mart, USB, Conoco and DirectTV. I believe VIG/VDAIX have similar.
Or look at VYM/VHDYH as poster above suggested.
Or look at VYM/VHDYH as poster above suggested.
Posted on 12/21/12 at 9:11 pm to matthew25
I've seen this comment a couple of times.
"Fund fees come out of the dividend stream. Thus a fund holding stocks that all pay 3% might pay you only 2%. The difference is the fees they deduct before they make their distributions."
If that is the case, seems like having 1/3rd (hypothetically) of my dividends taken away by fees is much worse than the $50 or so a year in commisions for buying new positions in 5 stocks.
"Fund fees come out of the dividend stream. Thus a fund holding stocks that all pay 3% might pay you only 2%. The difference is the fees they deduct before they make their distributions."
If that is the case, seems like having 1/3rd (hypothetically) of my dividends taken away by fees is much worse than the $50 or so a year in commisions for buying new positions in 5 stocks.
Posted on 12/22/12 at 12:25 am to WhalingVessel
You do want low fees, BUT the performance is what matters. Several posters on this site convinced me that a low fee and low return was not good, compared to a higher fee and higher return. Of course, if there is no return, the fees eat you.
I called the stock advisor at Scott and he confirmed that the posted return on the internet has the fees already included.
Moral - do not let fees dissuade you.
I called the stock advisor at Scott and he confirmed that the posted return on the internet has the fees already included.
Moral - do not let fees dissuade you.
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