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Author: psamtani One star, 50 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8740  
Subject: My DG Portfolio - Work in Progress Date: 2/20/2013 10:12 PM
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Hello there,

I'm in the process of converting the bulk of my portfolio to a more conservative DGI strategy (in preparation for an early retirement).

I've been a lurker on this board for many months and I've read through articles from Seeking Alpha posted by TMFMurph, including several by DVK and others. I've also studied the CCC lists updated by Dave Fish every month (very helpful and very generous of him to continuously post this information).

I've come up with a list of 18 DG stocks which I believe can make a good foundation for my "retirement" portfolio:

AFL
MO
CVX
KO
EPD
HAS
INTC
JNJ
KMB
KMP
MCD
MSFT
PEP
PG
SXL
SYY
TGH
WEC

I already own some of the above in various amounts (KO, MSFT, INTC, PEP, JNJ, HAS, AFL, MO), and since they're stable dividend growers, I thought it would make sense to keep and add to these positions. I've also included TGH and WEC on the list because I have small positions in these from my subscription to Income Investor and I don't mind adding to them knowing that they're covered by II and that they're also on David Fish's CCC list.

The average yield for the above basket of stocks is approximately 3.6%. I'm comfortable with this provided the yield keeps pace with inflation and hopefully grows faster over time. My priority is quality over chasing yield. I plan to build equal positions in all of the above over the course of a year or two and hold for at least 10 years or more. I want to sleep well at night knowing that if I had to turn off my computer screen, I could look back in 10 years and see that this basket of stocks maintained if not meaningfully exceeded its original cost value. Not that I intend to "set it and forget it", but I want to avoid active trading other than reinvesting dividends that I don't need to spend in any given year. I don't mind a few comparably aggressive DG stocks in the mix (as my time horizon should flatten risk over time), but overall, I want to build a portfolio with less volatility and with a very high probability of growing dividends for decades to come.

I still plan on maintaining a portfolio of growth stocks for fun, but it will gradually become a smaller percentage while the above DGI portfolio becomes my primary income stream for retirement.

I'd very much appreciate any comments on the above basket of stocks (or any others I should consider given the goals I've described; I'm happy to have a basket of 25 DG stocks or more).

Thank you for your time and feedback!

psamtani
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