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re: Dividend stocks and DRIPs as a long term investment vehicle

Posted on 6/23/13 at 7:30 pm to
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 6/23/13 at 7:30 pm to
Blindly follow? I just laid out a total return of a DRIP over a 33 year period, that wasn't a small sample size i just pulled out of my arse.

Take the "ETF" XLP someone mentioned, its a consumer staples ETF with a 2.78% dividend, its top 10 holdings equate 60% of the portfolio.

Procter & Gamble -13.59%
Coca-Cola Co- 9.93%
Philip Morris - 9.71%
Wal-Mart Stores Inc - 8.11%
CVS Caremark Corp - 4.73%
Pepsi - 4.63%
Altria Group Inc. - 4.25%
Colgate-Palmolive - 3.41%
Costco Wholesale Corp - 3.23%
Mondelez International - 3.2%

First off mondelez and PM are spinoffs of the old altria along with kraft. Secondly you physically have access to what percent of the ETF is what, why would you not mimic that for free if your looking for "ETF" exposure. Like I said for most of you today the fee looks like nothing at .18% but just wait till you get to that $3-$4M level if you ever get there which alot of people did by buying coke,MO,Xom 30 years ago. When you get to that level its silly to pay a few thousand a year to buy stuff you can buy on your own

60% of that fund is 10 stocks....why not mimic it without paying for that expert advice thats all i advocate.
This post was edited on 6/23/13 at 7:31 pm
Posted by saintforlife1
Member since Jul 2012
1321 posts
Posted on 6/23/13 at 7:32 pm to
quote:

ThaBigFella

Love your posts Big Fella. But you need to reply to the right person in the thread. It has tripped me up a couple of times already.
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 6/23/13 at 7:55 pm to
quote:

60% of that fund is 10 stocks....why not mimic it without paying for that expert advice thats all i advocate.


Because if I want to add to each position I'm out $100. I rather just pay the fees at this point. It cheaper to me, and most other people, to utilize the ETF.

Saintforlife- SDY contains 60 stocks that have all increased their dividend every year for the last 25 years. Not necessarily a recommendation, but a good place to start.
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 6/23/13 at 7:59 pm to
VDC

Contains (63%)
1 Procter & Gamble Co.
2 Coca-Cola Co.
3 Philip Morris International Inc.
4 Wal-Mart Stores Inc.
5 PepsiCo Inc.
6 Altria Group Inc.
7 CVS Caremark Corp.
8 Colgate-Palmolive Co.
9 Mondelez International Inc.
10 Costco Wholesale Corp

Yearly dividend of 2.82%(last 2 yields)

I'm assuming this is not as lucrative as holding each of these funds individually, but is also less risky.

Am I on the right thinking track?
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