Dividend Growth Investing

[_Jay_]

Yo this is what I'm talking about! Jay I appreciate this. This is exactly what I wanted/thinking of when I first started investing. What do you consider being "long" in a company. I invested in a couple of the companies you mentioned above, but I stopped because I wasn't disciplined (lost like $200 in the first week or so) but I'm ready to start back. Should I invest more in them or put money into other companies.

when I first started out (and to this day), when I'm unsure of a term, I hit Investopedia.com (s/o to Sion):

What is a 'Long (or Long Position)'

A long (or long position) is the buying of a security such as a stock, commodity or currency with the expectation the asset will rise in value. In the context of options, it is the buying of an options contract. A long position is the opposite of a short (or short position).

Buying a call (or put) options contract from an options writer entitles you the right, not the obligation, to buy (or sell) a specific commodity or asset for a specified amount at a specified date.

BREAKING DOWN 'Long (or Long Position)'

With a long position investment, the investor purchases a commodity and owns it with the expectation the price is going to rise. He normally has no plan to sell the commodity in the near future. A key component of long position investment is the ownership of the stock or bond. This contrasts with the short position investment, where an investor does not own the stock but borrows it with the expectation of selling it and then repurchasing it at a lower price. A key difference between a long position and a short position in investments is what the investor expects to happen to the price of a commodity.
http://www.investopedia.com/terms/l/long.asp

TL,DR version: when u purchase a share/shares and hold on to them in the near term, expecting them to go up in value.

once you've actually got a brokerage account, it'll automatically show u stocks that you're "long" on...

when u lost the money...what did u do, sell your shares?

as far as whether u should invest in the same companies versus different companies...that kinda depends on what you're investing for...are u investing for dividends only? are u just tyna beef up your portfolio, and you're considering buying/selling shares in the future? the answer to both is, depends on the companies you're looking at, and their current valuations right now...are they lower than before? or are the companies u have not purchased at lower valuations than the ones you've sold in the past?

 

[_Jay_]

yeah, I'm prolly done with getting any new REITs.

Healthcare Partners (HCP) are cutting their dividend. They were previously considered a a Dividend Champion, having over 30 years of rising dividends. That ends this month, after HCP spun off a company, as well as had some legal issues.

Their previous dividends were .575/share. After cutting the dividend, the new payout is .37/share. honestly not bad, but far less juicy than their previous dividend payouts...

Since the new dividend isn't bad, (the .37/share yield is at 5.13%), I'm not planning on selling my current shares...however, with that being said, I have no plans on purchasing anymore...

Not all of my companies are Dividend Champions, Dividend Aristocrats, or Dividend Kings...but a stable dividend is why I'm even doing this in the first place, so there's no room for companies whose dividends aren't continually growing. I have no plans of selling shares at this time, but also have no plans of purchasing more.

 

[King Erauno]

dope thread. i was looking to see the benefits of buying stocks that pay out monthly as well. i got a long list of stocks that do this.. will post these later (once i remember what i did with the list)

 

[EmM HoLLa.]

Dope shit Jay..

 

[King Erauno]

My nigga sent me this list over a year ago. going to have to do some legwork and see if theyre still paying out monthly and how much

all the MONTHLY DIVIDEND stock market symbols that I have complied that I know of that's been in the market for awhile.... that's if you want to invest of course...

SYMBOL COMPANY NAME LAST PRICE

ACG ALLIANCEBERNSTEIN INCOME FUND INC 7.84

ACP AVENUE INCOME CREDIT STRATEGIES FUND 15.3232

AFB ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND 13.43

AFT APOLLO SENIOR FLOATING RATE FUND INC. 18.32

AGC Advent Claymore Convertible Securities and Income Fund 6.9099

AGD ALPINE GLOBAL DYNAMIC DIVIDEND FUND 10.56

ARCP American Realty Capital Properties, Inc. 9.12

ARK BLACKROCK SENIOR HIGH INCOME FUND, INC. 3.91

AVK Advent Claymore Convertible Securities and Income Fund 17.35

AWF ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND INC 12.629

AWP ALPINE GLOBAL PREMIER PROPERTIES FUND 7

BBD Banco Bradesco Sa 11.01

BGX BLACKSTONE / GSO LONG-SHORT CREDIT INCOME FUND 16.35

BLW BLACKROCK LTD DURATION INCOME TRUST 16.2148

BNA BLACKROCK INCOME OPPORTUNITY TRUST INC. 10.38

BSP AMERICAN STRATEGIC INCOME PORTFOLIO INC II 8.91

CGO CALAMOS GLOBAL TOTAL RETURN FUND 14.03

CHI CALAMOS CONVERTIBLE OPPORTUNITIES & INCOME FUND 13.11

CLM CORNERSTONE STRATEGIC VALUE FUND INC 21.81

CSP AMERICAN STRATEGIC INCOME PORTFOLIO INC III 7.4

CSQ CALAMOS STRATEGIC TOTAL RETURN FUND 11.52

DHG DWS HIGH INCOME OPPORTUNITIES FUND, INC. 14.79

DNP Duff & Phelps Utilities Income, Inc. 10.83

EHI WESTERN ASSET GLOBAL HIGH INCOME FUND INC. 11.25

EOI EATON VANCE ENHANCED EQUITY INCOME FUND 13.95

EOS EATON VANCE ENHANCED EQUITY INCOME FUND II 14.39

ERC WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND 13.55

ESD WESTERN ASSET EMERGING MARKETS DEBT FUND INC. 16.33

ETG EATON VANCE TAX ADVANTAGED GLOBAL DIVIDEND INCOME FUND 17.52

ETO EATON VANCE TAX-ADVANTAGED GLOBAL DIVIDEND OPPORTUNITIES FUND 25.37

FAM FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND 11.71

FAX ABERDEEN ASIA-PACIFIC INCOME FUND INC 5.49

FHY FIRST TRUST STRATEGIC HIGH INCOME FUND II 14.24

FSC Fifth Street Finance Corporation 7.15

FSD FIRST TRUST HIGH INCOME LONG/SHORT FUND 16.66

GDF WESTERN ASSET GLOBAL PARTNERS INCOME FUND INC. 9.79

GDO WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC. 18.2532

GDV GABELLI DIVIDEND & INCOME TRUST 21.55

GGN GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST BY GABELLI 7.32

GLAD Gladstone Capital Corporation 8.885

GUT GABELLI UTILITY TRUST 7.21

HAV HELIOS ADVANTAGE INCOME FUND, INC. 8.88

HHY HELIOS HIGH YIELD FUND 8.969

HIO WESTERN ASSET HIGH INCOME OPPORTUNITY FUND INC. 5.39

HIX WESTERN ASSET HIGH INCOME FUND II INC. 8.18

HMH HELIOS MULTI-SECTOR HIGH INCOME FUND, INC. 6.04

IID ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND 8.42

IRC Inland Real Estate Corporation 10.64

JHP NUVEEN QUALITY PREFERRED INCOME FUND 3 8.7099

JPC NUVEEN PREFERRED INCOME OPPORTUNITIES FUND 9.74

JPS Nuveen Quality Preferred Income Fund 2 9.29

JTP NUVEEN QUALITY PREFERRED INCOME FUND 8.6

KHI DWS HIGH INCOME TRUST 9.09

KMM DWS MULTI-MARKET INCOME TRUST 8.53

KST DWS STRATEGIC INCOME TRUST 11.71

LOR LAZARD WORLD DIVIDEND & INCOME FUND, INC. 13.06

MFV MFS SPECIAL VALUE TRUST 6.52

MGF MFS GOVERNMENT MARKETS INCOME TRUST 5.67

MHY WESTERN ASSET MANAGED HIGH INCOME FUND INC. 5.19

MIN MFS INTERMEDIATE INCOME TRUST 4.85

NCV AGIC Convertible & Income Fund 9.16

NCZ AGIC Convertible & Income Fund II 8.39

PCF PUTNAM HIGH INCOME SECURITIES FUND 8.22

PCM PCM FUND, INC. 10.58

PCN PIMCO CORPORATE & INCOME STRATEGY FUND 15.32

PDT JOHN HANCOCK PREMIUM DIVIDEND FUND 14.11

PFL PIMCO INCOME STRATEGY FUND 11.41

PFN PIMCO INCOME STRATEGY FUND II 10.16

PFO FLAHERTY & CRUMRINE PREFERRED INCOME OPPORTUNITY FUND INC 12.63

PGH Pengrowth Energy Corporation 3.42

PHF PACHOLDER HIGH YIELD FUND INC 7.37

PHK PIMCO HIGH INCOME FUND 11.88

PHT PIONEER HIGH INCOME TRUST 13.03

PIM PUTNAM MASTER INTERMEDIATE INCOME TRUST 4.83

PSEC Prospect Capital Corporation 8.56

PSF COHEN & STEERS SELECT PREFERRED & INCOME FUND, INC. 26.59

PTY PIMCO CORPORATE & INCOME OPPORTUNITY FUND 15.74

RCS PIMCO STRATEGIC GLOBAL GOVERNMENT FUND INC 9.3

SBW WESTERN ASSET WORLDWIDE INCOME FUND INC. 11.67

SLA American Select Portfolio, Inc. 10.66

STB Student Transportation Inc 5.7

TLI LMP CORPORATE LOAN FUND INC. 11.3

VLT INVESCO HIGH INCOME TRUST II 15.19

VTA INVESCO DYNAMIC CREDIT OPPORTUNITIES FUND 12.17

WSR Whitestone REIT 15.51

 

[_Jay_]

just added another Dividend Aristocrat to the stable, CL Colgate-Palmolive :+1:

 

[2stepz_ahead]

i got a long few paragraph mega wall of text im about to send to jay.....

you ready bruh

 

[EmM HoLLa.]

@"king erauno" is that a diversified list or just all the stock you know of?

 

[King Erauno]

@"king erauno" is that a diversified list or just all the stock you know of?

@"EmM HoLLa. got it from a buddy of mine, its the stock that he knew of at the time

 

[killap]

I got something for yall I'll be back after work to post

What kind of shift they got you working @sion? It's been 5 days lol

 

[traestar]

Ok here we go guys, sorry this took so long, most of them I actually had to research to make sure they were ok. If any of you decide to invest in any of them I would still recommend taking them to your local financial adviser to get a second opinion.

REITS/stocks that pay HIGH and consistent monthly dividends



Morguard REIT
http://www.morningstar.com/stocks/xtse/mrt.un/quote.html -- 6.86% (0.5 p/b)

Morguard North American REIT
http://www.morningstar.com/stocks/xtse/mrg.un/quote.html -- 4.55% (0.6 p/b)

Canadian Apartment Properties Real Estate Investment Trust
http://www.morningstar.com/stocks/XTSE/CAR.UN/quote.html -- 4.08% (1.0 p/b)

Pure Multi-Family REIT LP
http://www.morningstar.com/stocks/XTSX/RUF.UN/quote.html -- 6.56% (0.5 p/b)

Milestone Apartments REIT
http://www.morningstar.com/stocks/XTSE/MST.UN/quote.html -- 3.91% (1.0 p/b)

Boardwalk Real Estate Investment Trust
http://www.morningstar.com/stocks/XTSE/BEI.UN/quote.html -- 5.06% (0.7 p/b)

Cominar Real Estate Investment Trust
http://www.morningstar.com/stocks/XTSE/CUF.UN/quote.html -- 10.17% (0.7 p/b)

Nobel REIT
http://www.morningstar.com/stocks/XTSX/NEL.UN/quote.html -- 6.11% (0.7 p/b)

Automotive Properties Real Estate Investment Trust
http://www.morningstar.com/stocks/XTSE/APR.UN/quote.html -- 7.66% (1.1 p/b)

H&R Real Estate Investment Trust
http://www.morningstar.com/stocks/XTSE/HR.UN/quote.html -- 6.14% (0.9 p/b)

The links precede with the dividend yield and the price to book value (p/b), the p/b represents the discount to it's actual value so 1.0 would be fair value, anything less than that is cheap. So 0.5 p/b means the company is at a 50% discount that means if it's yielding 6.86% at 0.5 p/b you're actually getting a yield of 13.72% , this is dope because if the company rises to it's par value you can also get an additional 50% in stock appreciation.

The drawback with these companies tho ? Well many of them are REITs (real estate investment trusts) and in Canada there's a housing bubble. This fear is also priced into the stock price (hence the discounts) so be aware that it is possible that a crash is eminent and if it occurs you could see many of these companies go to half the current price or to zero (bankrupt). I tried to find the ones who had the financials and history of continual dividends. Btw all of these companies appear to be Canadian which means you may have to ask your broker if you can buy stocks in Canadian dollar (MOST brokerages and trading platforms should allow North American companies). Since you guys are using US dollars, keep in mind the Canadian dollar is weaker to yours so the good thing is you're also getting to buy these companies for an additional 30% off because of the currency. See sometimes boxing day happens on the stock market LOLOLOLOL.

Oh yeah and once more to remind yall - all of those companies pay monthly dividends.

hmm thanks Sion

 

[_Jay_]

since the last time I posted in here, I've purchased more shares of Coke (KO) and Disney (DIS)...their shares haven't been at "great" valuations, but I've been able to average down, from the prices I originally initiated positions in...

but today, I initiated a position in a new company: VF Corporation (VFC)...another Dividend Champion, known for their Vans, Jansport, Wrangler, Lee, and Timberland brands...

 

[_Jay_]

ok, this is what I've been waiting on...

at the moment, some months are better than others...eventually, when I've copped more shares of other companies, I'll be be able to get around that, and make my dividend payouts a lil more consistent. right now, January, April, July, and October are my "slow" months for dividends. that'll change tho.

but now it's February. and for February alone, I've got dividends coming from:

Apple

Colgate-Palmolive

General Mills

Hasbro

Healthcare Partners (HCP)

Starbucks

AT&T

I haven't nailed down the exact dates yet, but it's likely that I'll be gettin dividend payments for each week of February...and the work's already done, so Iont have to lift a finger to get it. chea

 

[_Jay_]

^^ I was incorrect on that post...HCP changed their payout date to March, so I'm NOT getting dividends every week in February : / ah well

on a brighter note, Hasbro HAS kicked so much azz with their earnings that the stock went up like 12% on Monday alone...Iont really sweat unrealized capital gains, being as I'm planning on holding the stock forever, but the increase DOES look good in the ol portfolio...

 

[_Jay_]

yeah, I'm prolly done with getting any new REITs.

^^ looks like I was incorrect on that as well...just added a new position in Realty Income Corp (O), another REIT, to my portfolio.

Realty Income trademarked themselves as "The Monthly Dividend Company," due to the fact that they pay dividends every month, as opposed to every quarter.

it's also a Dividend Aristocrat...caint lie tho, I overpaid for it. however, I plan on rectifying that by averaging down as I purchase more shares. mad at myself for a lack of patience, but Imma handle it. in the meanwhile, I won't ever have to sweat "slow" months anymore, dividend-wise.

 

[_Jay_]

months like these (March) are truly what I'm striving for...one day, I hope to receive dividends like this for EVERY month. for now, I'll just have to be content in receiving dividends from 9 different companies and 3 Vanguard funds:



AFL Aflac

HCP Healthcare Partners

SO Southern Company

EMR Emerson

WBA Walgreens

ADM Archer Daniels Midland

HSY Hershey

O Realty Income

VFC VF Corporation

VGK Vanguard FTSE Europe

VOO Vanguard 500 Index Fund

VT Vanguard Total World Stock

^^that's just for one month. I'm gonna receive payouts from those same companies 3 other times this year...and sooner or later, the dividends themselves will increase too. dividends...time in the market, not timing the market.

Chea

 

[Qiv_Owan]

How much time do u need to be invested in a company to receive dividends?

 

[_Jay_]

How much time do u need to be invested in a company to receive dividends?

it depends on the date u purchase the shares, versus the company's next dividend ex-date. an ex-date is the date that one has to own shares by. purchasing and selling must occur by this date. the pay-date is the date that the dividends get distributed. sounds complicated, really easy:

if u own shares on or before the 15th of the month, if the ex-date is the 16th*, u get the dividends. if u purchase shares on the 16th or after, u have to wait for the next dividend pay-date.

*for example

dividends are distributed differently per company, but in general most companies involved with dividend growth investing make payouts every 90 days or so. latest ex and payout dates are public info, hit morningstar.com, go directly through your brokerage, google, whatever...it's info u learn while you're vetting your companies.

most companies pay dividends quarterly: Johnson & Johnson JNJ

some pay twice a year: Disney DIS

some pay monthly: Realty Income O

^^technically Disney's not a dividend growth company, but it's a welcome addition to most portfolios, and pays a dividend twice a year.

 

[KillaCham]

I just finished a finance course and I'm ready to put my money into something. This thread def has my eyes.

 

[_Jay_]

sooo...this thread's dedicated to dividend growth investing, but not all of my company shares are in dividend producing stocks. with that said, just purchased several shares of First Solar Inc. (FSLR)

I've been checking out this company for a good few months now. honestly came across it while doing my homework for Solar City (one of Elon Musk's companies). while doing so, I came across this gem. in a nutshell, the growth for renewable energy has already shifted into higher gear, but companies that are into solar have certain considerations to keep in mind. with that said, First Solar is a leader in the solar energy sector, and have managed to differentiate themselves from other solar companies...both P/E and book value are saying "bargain," even though I'm a little concerned about cashflow...

since this company doesn't produce dividends, I consider it a speculative stock in my portfolio. if I have to sell it in the future, it'll be after 3 years (so it can be considered a long term holding, and I won't be taxed as much). I'd love for it to be massively successful, and even produce dividends one day, but IF that happens, it won't be in the near future, and I'm coo with that.