All posts by DGIfortheDIY

Top 100 Blogs For Dividend Investors…Guess Who Is #25?

It was a busy Tuesday in the Landis household, as I had my first day back at work after Christmas vacation, and with my son’s 5th birthday coming up tomorrow, we needed to make a Costco run to pick up some supplies for his big day.

After making the trek through the store with my two sons in tow, getting the loot loaded into the mini-van, and then freezing my ears off filling gas in sub-zero wind chills, I got a nice surprise when I checked my phone and saw an alert from Twitter.

Enclosed was a message from Lewys Thomas and a link to his blog post highlighting his picks as the Top 100 Blogs For Dividend Investors That Will Drive Returns. To my surprise, he called me out as #25 on the list, along the likes of some of my favorite authors including: Brad Thomas, Jason Fieber, Chuck Carnevale, and Mr. Money Mustache.

To say that I feel honored to be mentioned among them is quite an understatement. Never in my wildest dreams did I think my passion for investing, and interest in sharing my thoughts on it, would earn me notoriety or any sort of following. It was simply a way for me to continue learning about the market and hopefully make a few bucks a month to pay for my fantasy sports habit.

Now, nearly four years after penning my first piece, I have over 3,000 followers on Seeking Alpha, 99 published articles that have generated a half-million pages views, and this sparkling new website. All I’ve ever wanted to do was share my passion about the stock market with others, and I am humbled and ecstatic that people value my work.

I’m hopeful that this website can live up to my dream for it (and the ranking bestowed to it by Lewys), and that it can prove useful to others trying to build up the courage to start their own portfolios.

We all start from scratch, here’s to continued learning and making the most of what we’re blessed with!

Best wishes,

Eric

 

Education Center Added

Just giving a quick update that I have begun construction of an “Education Center” that will cover some of the basic questions of Dividend Growth Investing.

Thus far I have the topics “Portfolio Weighting“, “Dividend Reinvestment“, and “Yield Vs. Growth“.

I am also planning on adding “Stock Selection” and “Portfolio Construction” pages, but thought I’d also open it up to readers as well to see if they can think of other important topics that should be covered.

As of now I am just populating these different topics with articles that I have personally written, but as time goes on I also plan to add articles from other authors from Seeking Alpha and other sites as I come across them.

Do you have any MUST READ articles in your bookmarks that you think would be worthwhile to others? If so, please share in the comments below and I will consider them for addition.

Thanks, and Happy New Year!

Eric

2017’s Top Ten Utilities For Dividend Growth And Income

My latest coverage of the utility sector was posted on Seeking Alpha, highlighting my Top Ten picks for 2017.

The sector as a whole remains quite expensive on a historical basis, with 27 of the 30 companies trading at least 10% above my “fair value” estimate. Nonetheless, there are still a few companies worth a look, especially for those looking investors looking specifically for income.

For quick reference, here is the list of the Top Ten, as well as the valuation and projection spreadsheets from the article.

A list of my top ten utility stocks for dividend growth and income for 2017.
Valuation Spreadsheet
Income and total return projections.

Finally, here is the article:

2017’s Top Ten Utility Stocks For Dividend Growth And Income

 

Chowder’s Investing Words Of Wisdom

For those new to dividend growth investing, the name “Chowder” may not mean much to you. However, for any regular visitor to the “dividends and income” section of Seeking Alpha, he is one of the most well-known and well-respected members of the site.

His no-nonsense, straightforward approach to investing has guided many novice investors along their way, and with a comment total now approaching 15,000 posts, he has certainly made his impact well known.

He has been in prime form of late, and I thought it would be worthwhile to highlight a few of the comments he’s recently made.

On Christmas Day, he made a comment about fund managers and what advantage individual investors have over them, because they have different goals with their portfolios:

I was reading an article by Cramer yesterday who had some success as a stock broker in selecting companies and decided he was good enough to start his own fund. He stated he wasn’t prepared for the performance demands of running a fund. He quickly learned that if he wanted a portfolio to perform in the short term, which most people investing in funds require, then he had to start taking daily action as opposed to sitting idle while a good long term investment took a beating short term.

His favorite company was Heinz, but he couldn’t treat Heinz as an investor would normally do, buy more shares when the price corrected. He had to try and determine what the short term buy and sell points were.

The enemy of the fund manager, and why they have such a hard time at beating the S&P 500 consistently, is sector rotation. Everyone is chasing short term performance as opposed to simply building good long term positions and letting performance come to them in time. All it takes is a little discipline and patience.

People have difficulty in accepting the simplicity of the process.

Chowder used to have his Series 6 license, so he knows a thing or two about mutual funds.  I thought this comment was a good one, and is a big reason I’ve decided to become a DIY investor and build my own personal mutual fund and not rely on “professionals” to do it for me. By taking control of my investments, there are no worries about whether the fund is being run with my best interests in mind, because I’m doing it myself.

Just today, he followed with another comment about not chasing growth and trying to beat the market, but rather focus on high quality stocks trading at a discount to fair value:

I have commented many times on SA over the past year and there are a handful of comments that I think are critical to one’s mindset if they wish to become a better investor and this comment is one of them.

Stop chasing growth!

Stop allowing your fears to prevent you from buying high quality companies facing headwinds.

High quality companies earned the high quality rating because they have a history of overcoming adversity. You can’t allow yourself to be afraid of buying quality at discount prices. 

People have a tendency, myself included, of wanting to buy when the outlook is hunky dory. This isn’t always the best approach. I try to balance my buys between companies expected to show earnings growth and companies facing adversity.

At the beginning of 2016 people questioned my purchases in CAT, DE, IBM and CVX for example. Nobody, and I mean nobody was predicting they would outperform the market over the next year, myself included. However, my job is to buy quality and I do not let headwinds get in the way of it, which had me buying companies last January that others were avoiding.

Check out these performance stats coming off the January lows:

CAT has rebounded 72% off the January lows. … You heard that right! 72%! … Back in January they hit a low of $54.80, now at $94.28 while I type, and they still aren’t projecting earnings growth.
IBM has rebounded 47.7%
DE has rebounded 50.7%
CVX has rebounded 65.0%
EMR has rebounded 43.5%

And these are just some of the positions we hold across various accounts.

Now I realize nobody is going to catch the bottom, but that’s a wide profit range where opportunities presented themselves to buy.

So, as I look forward in 2017, I’ll still look to add companies with great earnings expectations, but I will also look to add to high quality companies facing headwinds. I’ll continue to look for a balance between the two.

I bolded what I see as the most important lesson, focus on quality and ignore the noise! Amen Chowder!

Today you can pick up shares of AbbVie Inc. (ABBV) at a forward PE of just 11.3 and a yield over 4%. Gilead (GILD) trades at a forward PE under 7, and is generating $4B+ in cash every quarter. CVS Health (CVS) trades  at a forward PE of just 13.5 while yielding over 2.5% for the first time in a long time. I’ve added to both CVS and ABBV in recent weeks, GILD may be up soon as well.

For more of Chowder’s musings, check out CHOWDER’S INVESTING WORDS OF WISDOM, PART II.

 

About D.G.I. For The D.I.Y.

Hello, this is Eric Landis, creator of DGIfortheDIY.com.  I am a professional engineer who has developed a passion for investing in the stock market. As a result, I’ve decided to share my thoughts on the subject, first on Seeking Alpha, and now with a personal investment website.

I’m in my late 30’s, married, and have three kids of age 5 and under. In that respect, I think I’m in a similar situation to many other investors out there who want to save for retirement and my kids’ education, and to do so in an intelligent and conservative manner.

As one would expect, with a growing family I don’t have much for extra cash to invest in the market, but I’m still able to scrap together enough for a $500 investment in my retirement account every few months. My experience shows that even with just a few hundred dollars a month, you can still be successful in building a portfolio of individual companies.

When I first started investing in individual stocks I didn’t have a plan or method of stock selection, and as a result ended up with a hodgepodge of “hot” and “story” stocks as well as speculative energy and materials companies. Needless to say, that didn’t turn out all that well for me.

However, in early 2013 I came across Seeking Alpha and began reading about the Dividend Growth Investing strategy, or DGI for short. Soon later I sold out of my mutual funds and speculative stocks and jumped headfirst into the world of dividend paying companies, and built a 50 stock portfolio that I continue to write about to this day.

D.G.I. for the D.I.Y. is my attempt to share what I have learned about investing in dividend growth companies, and to teach others who are interested in taking control of their portfolios to focus on the growing income stream that they can provide.

My goal is to create a site chocked full of info about the top dividend growth companies in the market, and a resource base where investors can learn about some of the important metrics they should be looking at when selecting them for their portfolios.

Thanks for reading, and Happy Investing!

Eric

A Summary Of The Top 45 Holdings Of Dividend ETFs

I thought I would share what I thought was an excellent article put together by FerdiS [DivGro] and published on Seeking Alpha last week.

Top Holdings Of Dividend ETFs collected data of the Top 25 holdings from 27 different ETFs and provided a breakdown of the most held dividend growth stocks from the bunch. Even further, he also broke down the weighting of each company among the ETFs and also provided a sector by sector summary of the companies.

The discussion that followed the article in the comments section is also well worth reading as many of the other popular Seeking Alpha authors weighed in.

Looking at the breakdown, I currently own 17 of the top 30, and have many of the others on my watch lists. So this was a positive confirmation for me that I am on the right track with my selections.

Well done Ferdi!

Watch List Archive Is Now Populated

Hello all!

I’ve been burning the midnight oil and am  beginning to make progress on getting content added to the site. Tonight I finished creating an archive of the different sector-based watch list articles that I’ve published on Seeking Alpha. These can be found under the “Watch Lists” pull-down menu at the top of the site.

Additionally, I populated the “My Portfolio” section with links to all of the quarterly updates for my public DGI portfolio.

Next up I plan to begin putting together a list of articles covering the “DGI Basics” such as dividend reinvestment, portfolio construction, sector weighting, and yield vs. growth.

I also hope to add several more sites under the “DGI Resources” section. If anyone has a favorite website they feel is a “must-have” for that section, I’d love to hear about it.

Merry Christmas!

Eric

Photo by Pexels.com

 

Hello world!

Greetings!

Welcome to D.G.I. for the D.I.Y., a new blog dedicated to Do-It-Yourself, Dividend Growth Investors.

In the coming days and weeks I will be adding content to the site and work towards building a library of information relevant to the Dividend Growth Investing methodology.

Some content I look forward to sharing are my personal, sector-based watch lists covering the best dividend paying companies in the stock market. I also plan to create an organized outlay of some of the articles I’ve written about on DGI.

I will also create an index of my favorite educational articles from some of the top writers on Seeking Alpha and elsewhere, as well as links to some of my favorite sites I use in my own research.

Finally, I hope to write frequent updates about dividend news from some of my favorite stocks, and share my ideas on possible good buys in the market.

I’m excited about the potential for this site, and hope it comes close to meeting my expectations. My goal is to create the “go-to” site for self-directed individuals interested in learning about Dividend Growth Investing.

Best wishes,

Eric