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Author: NajdorfSicilian Big funky green star, 20000 posts Feste Award Nominee! Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21596  
Subject: Blue-chip growing divy payers Date: 1/18/2013 2:00 PM
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So, I built this portfolio in Feb-Mar 2009. But I thought it would be more interesting to check the 3-year performance: 2010-2012 - since not everyone would be smart/lucky enough to buy at the bottom like I did.

So, like 2 dozen names, the usual suspects: ABT, ADP, CLX, KO, ED, DOV, PEP, LLY, EMR, JNJ, MCD, KMB, PG, PFE, PPG, MMM, VFC, etc.
[No banks.]


3 year performance has been 13.9%, almost exactly 300 bps CAGR over the S+P.


Sometimes the simplest ideas really are the best. I haven't measured the vol, but it's clearly going to be less than the market.
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Author: TheBullet Big red star, 1000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15973 of 21596
Subject: Re: Blue-chip growing divy payers Date: 1/18/2013 2:18 PM
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Sometimes the simplest ideas really are the best. I haven't measured the vol, but it's clearly going to be less than the market.

FWIW, I was doing a presentation for a new fund for newbie-type HNWs, and I included the BRK.A Total Return for the last six years, Jan 2007-Dec 2012.

The monthly Std. Dev, and annualized std dev. were somewhat surprising, exactly equal to the MSCI World Index.

Spoiler below for those who might want to have a stab at the monthly and annualised standard deviation of monthly returns...























Monthly SD 5.61%
Annualised SD 19.42%

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Author: LeKitKat Big gold star, 5000 posts Top Favorite Fools Feste Award Nominee! Feste Award Winner! Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15982 of 21596
Subject: Re: Blue-chip growing divy payers Date: 1/18/2013 11:17 PM
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this is interesting

I did the same thing in August 2010--bought a lot of the same usual suspects you did There are 12 stocks and three preferreds in banks in the portfolio for a total of 15 positions. The criteria was they had to pay no less than 3.5% yields and they had to be what I considered a good deal. Most of these big blue chips were insanely cheap at the time.

The portfolio has appreciated by 36% in 29 months after paying out all the dividends every month--principal has been kept intact

This has been a real lesson in how to construct a portfolio ignoring all the investor favorites. it might have done better with Netflix Amazon Apple Google and Chipotle, but it has served its purpose generating income with remarkably low volatility and unexpected price appreciation.

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Author: NajdorfSicilian Big funky green star, 20000 posts Feste Award Nominee! Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15983 of 21596
Subject: Re: Blue-chip growing divy payers Date: 1/19/2013 1:47 AM
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I did not have a hard and fast rule for div yield in 2009, but I think they were all over 2% and likely over 2.5% at the time. Many of them were 3% or more but not all.

Some like ED, TEG, were/are big div payers. Although TEG has not raised their divy since then, over 5% seems plenty good to me.

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Author: MisterFungi Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15986 of 21596
Subject: Re: Blue-chip growing divy payers Date: 1/19/2013 4:20 AM
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<...Sometimes the simplest ideas really are the best.>

Absolutely! One of my best stocks over the past couple of years has been, of all things, HNZ.

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Author: MisterFungi Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16343 of 21596
Subject: Re: Blue-chip growing divy payers Date: 2/14/2013 1:03 PM
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One of my best stocks over the past couple of years has been, of all things, HNZ.

Bingo! Buffett to acquire Heinz at 20% premium to yesterday's price.

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Author: NajdorfSicilian Big funky green star, 20000 posts Feste Award Nominee! Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19760 of 21596
Subject: Re: Blue-chip growing divy payers Date: 5/12/2014 4:58 PM
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So, like 2 dozen names, the usual suspects: ABT, ADP, CLX, KO, ED, DOV, PEP, LLY, EMR, JNJ, MCD, KMB, PG, PFE, PPG, MMM, VFC, etc.

3 year performance has been 13.9%, almost exactly 300 bps CAGR over the S+P.

Sometimes the simplest ideas really are the best. I haven't measured the vol, but it's clearly going to be less than the market.



Updated 15 months later, 3-yr CAGR now 16.5%, or 270 bps over the S+P. [also includes any spinoffs]


N.B. I added to the names in 2011 and a little bit more a year ago.

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