Hmmm…pues la verdad, no se muy bien que pensar
100% of our stocks are DG stocks or ETFs (SCHD and SPHD).
Overall breakdown:
Cash & equivalents: 16%
Target-date fund: 17%
Bonds: 1%
DGI stocks & ETFs: 66%
The cash is largely from us having “retired” some money from the rat-race at the beginning of 2018 and 2019. It’s in MM funds and CDs, and it’s a combination of emergency fund and anticipated spending money. When I need to add cash to our checking account, that’s usually where I get it.
The target-date fund is my wife’s old 401(k) that we’ve never rolled over, because we’re oddly satisfied with the way it’s performed. It’s our last toe in the water of conventional MPT investing.
Dave
Dave vende BA y compra MMM y ENB.
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Análisis de SPG
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"My portfolios have their share of high-yield-slow-growth companies.
If you look at your portfolio from the income end of the lens, what can you do to improve your cash flow? (I don’t mean the average cashflow of the companies you own. I mean the cash flow of your investing business.) Answer: Buy shares in a company whose current yield is higher than your portfolio’s overall yield.
Example: I recently got fed up with Boeing. So I sold it right out of my portfolio. With the money I received, I bought shares in MMM (3.3% yield) and ENB (5.7%). Both yield more than BA. And with BA’s recent dividend freeze, one can say they are both faster growers too, even if that’s only temporary. Bottom line: My portfolio’s annual income went up a couple hundred bucks a year.
I’ believe that there are many dimensions along which you can diversify besides the traditional sectors and industries. Two of those dimensions are yield and DGR. Mix 'em up. So a well-rounded portfolio has some low-yield-fast-growth stocks, some mid-yield-mid-growth, and some high-yield-slow-growth. I think the individual investing business is sounder with a variety of income streams.
And if you’re accumulating, you’re reinvesting the dividends. The larger dividends drive faster growth in the income stream than the DGRs of the individual stocks. It’s the difference between investOR returns and investMENT returns. Your investment business counts investOR returns.
Dave"
[…]
""“The larger dividends drive faster growth in the income stream than the DGRs of the individual stocks.” What’s this mean?"<<
It’s the math of things based on reinvesting the dividends.
Say a stock yields 4% and has dividend growth of “only” 5% per year.
The investment’s DGR is 5%.
But if you reinvest the dividends, in Year 1 you get that 5% + 4% more, because you reinvest 4% of the original amount you spent, and that purchases 4% more shares. If you originally bought 100 shares, after Year 1 you own 104 shares.
So your investor DGR (i.e., the growth in dividend money that lands in your portfolio) is 9% in Year 1.
I left out timing issues and price changes to illustrate the point. Real numbers will vary based on price changes and the like. But the basic math is real. You can create a simple table of Year 1 - 10 results to get a look at it. Commonly to do that, assume the price changes at the same rate as the dividends (i.e., 5% per year). That will make it a little more realistic, although of course no one can predict the future, so price changes and dividend increases are speculative.
The best way to see this in action is in a real portfolio. In my public Dividend Growth Portfolio, my dividend income in 2019 will be up 11% over 2018. Only 4 out of 26 stocks had DGRs that high. The “overage” came from the shares purchased with reinvested dividends, plus a couple of stock swaps like the Boeing swap that I described earlier.
Dave"
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Empresa más que interesante la que nos trae el amigo David esta semana: GD
Me tienta darle un mordisco
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"Summary
I’m bullish on high-quality dividend growth stocks for 2020.
Define what “performance” means to you, then pick investments that will help you optimize that goal.
Think long term."
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Interesante comentario sobre la inversión “pasiva”
You can’t understand an index fund unless you understand the underlying index. The ETF itself will just say that it replicates the index, which sounds passive. As an investor, you just buy the ETF, which sounds passive.
The activity comes from the index, and believe me, many of them are not all that passive. But you have to look at the index’s rules to identify what is going on.
The ETF fact sheet usually won’t tell you squat. But they will identify the index. Put that exact name into Google, and voila, you will find the index’s documentation.
It can be eye-opening, and I suggest that every ETF investor do that at least once. Find out how they select stocks; how often they rebalance; how it’s weighted; what can get a stock kicked out of the index; what the rules are for replacing a stock that gets kicked out; how often the index committee meets (there is always a committee); and so on.
You may come away with a different view of “passive investing.”
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15 enero.
“I sold VTR today and replaced it with ENB and TXN in my public DG Portfolio. Article should be out on DTA later this week. If I could think of any more acronyms, I would shove them in here somewhere.
Dave”.
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Tambien vendió BA para comprar ENB y MMM. Esta acumulando ENB.
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Me sorprende más lo de TXN, no parece ser un chollo ahora mismo.
Imagino que la encuadrará dentro del grupo de empresas “extremely high quality” por las que está dispuesto a pagar hasta un 10% más de lo que el calcula como “fair value”
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Sí, llama la atención lo de TXN. Tampoco parece muy barata ENB después de pasar mucho tiempo en niveles de 35$.
Da que pensar.
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En octubre le salía fair price de 43. Morningstar ke daba 47$.
Ahora con un incremento del dividendo del 9%, se supone que el precio sube. Estará por los 50?
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Me parece bastante mas cara TXN que ENB, pero sus crecimientos de dividendos, si son sostenibles, atraen y mucho.
Despues de lo que ha subido el SP 500 en 2019 y el 3% que lleva en 10 dias de 2020 cuesta encontrar todavia valores baratos. Pero la subida de ENB tampoco me parece una exageracion.
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Puede que tengáis razón con ENB, pero después de tenerla en 32 y recargar en 38, ahora se me hace cara. Es lo de siempre, todo ha subido.
La tengo entre las candidatas para la cartera familiar, pero no me termino de decidir. Mientras tanto, sigue subiendo.
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Un mercado asi, que no para de subir, es dificil para poder construir cartera, evidentemente, pero es que ademas te deja con posiciones a medio construir o muy pequeñas. Es lo que hay.
De todas formas, este mercado subiendo cada dia es insostenible y algun dia tiene que corregir, no digo que un 30%, y corregira.
Sera ese el momento para volver a entrar. Ocurrira que igual las empresas no llegan a nuestros precios de compra, ENB igual no vuelve a acercarse a esos 32, pero despues de estar ahora a 40, si baja a 36 tampoco seria mala compra.
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Yo compré ENB a 32 y amplié a 40. Antes era un chollo pero sigo viéndola a un precio decente para la RPD y el DGR que tiene.
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Hay un término que oí de un grupo DGI denominado “porno DGI” y que se refiere a aquellas acciones con un CAGR +10% de media durante + 20 años.
Adivinas que dos acciones están dentro de ese grupo??? ENB y TXN.
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MDT posiblemente sea otra de las “Porno DGI”, debería mirar su CAGR a 20 años.
En mi watchlist sólo tengo hasta 10 años pero así a simple vista podría haber más candidatas.
De hecho confirmadas hay 4: ENB y TXN que hemos comentado. BATS e IMB en UK y en junio se incorpora la quinta REE
Otras probables a falta de comprobar datos: MMM, AOS, GD, HRL, ITW, LOW, MDT, NEE y TROW.
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