Friday, March 29, 2013

Dividend Growth Portfolio, March 2013

Well after all that excitement in the first 2 months, March was certainly boring. No new purchases, no sales. I did receive a bigger than expected dividend hike from JP Morgan, although I was disappointed Citigroup did not move its dividend at all. The share buyback announcement was good, considering how far below tangible book the shares are trading at, even vs its peers, but I wanted a dividend hike!

How cheap are Citigroup (assuming economy continues to recover) and Bank of America vs its peers and Canada's big 3?

Monday, March 25, 2013

Yield on Cost, the Big Picture

Sometimes, it's easy to feel after so much hard work each year, our investment portfolios are barely going anywhere. This feeling is amplified when you look forwards and back and see how far you are from your goals.

Yield on cost is a good way for dividend growth investors to see meaningful fruits from their labor, as well as track their progress.

If you're unfamiliar with the term 'yield on cost', it simply means the current dividend yield based on your original cost of investment. It is simply the annual dividend divided by your original per share cost.

Here are some yield on costs for investments from several years ago:

Sunday, March 3, 2013

Dividend Growth Portfolio, February 2013

Wow what a year 2013 has been so far. January and February have delivered solid returns for investors. To some degree, it actually scares me how well the stock market has performed. I fear that the exuberance may be too much too soon, perhaps even... irrational?

Nonetheless, it is very difficult, if not impossible, to determine where the market is headed in the short to medium term. What is clear, however, is that we are at or nearing levels unseen since 2007. Levels that also marked a market top in 2000. That should worry you, at least a little bit. Below is a 40 year chart of the S&P 500, and the triple top forming from 1999 to 2013 is quite obvious in the graph.

Friday, March 1, 2013

Sowing the Seeds For Your Dividend Growth Portfolio

A dividend growth portfolio is a lot like an orchard. First you have to plant the seeds.

Then you have to be patient, and take good care of your saplings & young trees.
Eventually the mature trees will bear fruit for you for many years.