Comments on Dividends4Life: Progress Update - Jan. 2008

Passive Income: I consider inflation when calculat...

2008-02-21T06:08:00.000-06:00

Passive Income: I consider inflation when calculating by total return - it should be in excess of inflation and my required return on capital.

As for predicting YOC, I have a model that simulates my current investments. Obviously the most important input is dividend growth rate.

Best Wishes,
D4L

On predicting YOC:
Making some assumptions, YO...

2008-02-20T23:37:00.000-06:00

On predicting YOC:
Making some assumptions, YOC can be predicted based on MEAN (with variation/std deviation).

Comparison metric is DivPerShare / EarnPerShar.

Let us say Company A, has 10 years of dividend history. Calculate DPS/EPS for each year. This data point could be quaterly-basis or annualized. I would prefer to look at both and see which numbers makes sense.

D4L: For my income-focused investments, I track wh...

2008-02-20T23:05:00.000-06:00

D4L: For my income-focused investments, I track what is called actualized income from the investment. I call it income-focused because, i have some international investment (not same as dividend, but provides regular income on my investment). This is somewhat same as YOC albeit little difference. I did not know of the concept of YOC until I read your blog. Anyways, recently I have been exploring

MG: For me the problem with the YOC goal is my lac...

2008-02-02T18:09:00.000-06:00

MG: For me the problem with the YOC goal is my lack of history makes it difficult to predict. I am confident that once I have several years of history I will be able to model it and better predict it.

To your point, it will definitely be affected by companies dividend policies, but I think I can control the ultimate YOC through stock selection and diversification. It will be easier to

It is difficult to set goals based on YOC, because...

2008-02-02T11:07:00.000-06:00