I like to open each year on Seeking Alpha with a report on my public demonstration Dividend Growth Portfolio [DGP]. I keep it out in the open so that people can see how one person (me) executes a dividend growth strategy and what its results are. It is important to emphasize the primary goal of this portfolio. It is to produce reliable growing dividends. In the words of its Constitution: "The goal of the Dividend Growth Portfolio is to generate a steadily increasing stream of dividends paid by excellent, low-risk companies. The numerical target is for the portfolio to deliver 10 percent yield on cost within 10 years of inception. I am more interested in the ability of this portfolio to produce income than its sheer size."
With 2013 in the books, this portfolio had a terrific year. Dividends received in 2013 exceeded 2012's by 18% to $2582, and its YOC increased from 4.7% to 5.5%. Because no new money is added to the DGP, all of the progress toward the goal comes from dividend increases, dividend reinvestments, and portfolio management. With compounding, a 17% CAGR is entirely achievable. The actual increase in 2013 was 18%. I am fully aware that there are dividend ETFs, such as SDY, that have delivered greater total return since the DGP began. However, the mission of the DGP is to generate reliable and increasing dividends. Its current yield is about 4.0%, compared to SDY's current yield of around 2.2%. Furthermore, SDY's distributions have not been reliable in terms of amount or growth.
Source: Seeking Alpha
Related Articles:
- 6 Healthcare Stocks With Growing Dividends Yeilding In Excess of 2%
- Why We Are Dividend Growth Investors
- 6 Dividend Growth Stocks With Very Little Debt
- What Determines A Dividend Stock's Yield
- Warren Buffett's Secret To 50% Returns
Snowball Down A Hill: My Dividend Growth Portfolio
Posted by D4L | Sunday, February 09, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.