Power of Dividend Growth 2011 (and beyond)

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AltaRed
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Re: Power of Dividend Growth 2011 (and beyond)

Post by AltaRed » 11 Oct 2017 12:22

This tread (being dividend growth) is talking specifically about equity itself and so that became the focus.

Equity is the area that takes the most management. Equities are not static. They have to be monitored on a fairly constant basis for a variety of reasons that can materially impact valuations. FI doesn't really take any material effort in my opinion and so it gets shunted to the side. Thus whether equity is 30%, 60% or 100% of one's portfolio, I still don't see why one would necessarily change the number of holdings in their equity allocation. In my opinion, unless one wants to spend an awful lot of time working on their portfolios, it does not make sense to 'run a personalized mutual fund'.

Added: To reinforce why I say FI doesn't take much time.....I have about 10-12 holdings in my FI allocation....all based on about a 6 (maybe 7) year ladder. One of my corporate bonds got called yesterday. I just happened to see that by chance when I checked my accounts today. Otherwise it might have sat in cash for a week or more. Simple decision: Go to the FI tab, select Corporates, select 6-10 years grouping (to get 2023/2024), select A or BBB, and look at the 20 or so offerings and pick one (but not REITs). A total of 15 minutes spent to re-invest the proceeds.
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Taggart
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Re: Power of Dividend Growth 2011 (and beyond)

Post by Taggart » 11 Oct 2017 15:44

We're all different, but personally I don't spend anymore time on the portfolio of dividend growth stocks than I do on our indexed portfolios. I've been running it this way on automatic for many years now. No big deal.

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AltaRed
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Re: Power of Dividend Growth 2011 (and beyond)

Post by AltaRed » 11 Oct 2017 20:54

Taggart wrote:
11 Oct 2017 15:44
We're all different, but personally I don't spend anymore time on the portfolio of dividend growth stocks than I do on our indexed portfolios. I've been running it this way on automatic for many years now. No big deal.
It appears I conduct more oversight on my equities than some. Probably once every 4-6 weeks I look to see what valuation trends are in place for my holdings, and I selectively look at news items related to my holdings that pop up in Quicken et al. I also tend to look at MD&A highlights every now and then, albeit not every quarter. I only look at FI when something matures.
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BRIAN5000
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Re: Power of Dividend Growth 2011 (and beyond)

Post by BRIAN5000 » 12 Oct 2017 14:56

Thus whether equity is 30%, 60% or 100% of one's portfolio, I still don't see why one would necessarily change the number of holdings in their equity allocation.
Not what I'm saying surely you must understand that.

Three all Canadian portfolios all shown using the same conventions, I think.

Top 24 stocks only XIU, My Portfolio (Dumb Beta) and Mawer Canadian Equity. All stocks in green are contained in XIU. I wish I had long term accurate performance numbers.

Mawer states - The Fund invests primarily in securities of larger capitalization Canadian companies. .....Investors seeking long-term, above average growth who can tolerate equity volatility. Medium to high risk. Mer @ 1.2%

The stated intention of my portfolio - 25% more income, 25% less volatility, compared to XIU chance to meet or if lucky beat the XIU index. Mer now about zero
three portfolios 2.png
“Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a
little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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AltaRed
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Re: Power of Dividend Growth 2011 (and beyond)

Post by AltaRed » 12 Oct 2017 15:54

I do get what you are saying Brian and you can beat the index with a 'high graded' index emulation. I accept that. So can many others with a smaller number of positions across a number of sectors while at the same time, avoiding small weightings that don't really move the needle. It's a matter of diminishing 'impact' as you extend the tail past a certain point, e.g. less than 1% weighting (as an example). I'll leave it at that. We all do what seems to work best for each of us.
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Profit not Prophet
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Re: Power of Dividend Growth 2011 (and beyond)

Post by Profit not Prophet » 11 Nov 2017 09:39

Really really off topic but wanted to say how sloppy the Financial Post is. The story linked above for art has a photo that is almost 4000x6000 pixels and comes in at over 7 megs. Crazy. We used to get files out at under 100k. :) Rant off. :)

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