Wednesday, March 18, 2015

Dividend Growth Checkup - Part II

Earlier this month I checked up on the overall dividend growth rate for my portfolio and you can find that article here. I like to take quarterly or annual looks at the organic dividend growth rate for my portfolio to get a "big picture" view of how the companies I own performed in regards to dividend growth as a whole. I was quite pleased with my portfolio since the overall, 1-year, 3-year, 5-year, and 10-year organic dividend growth rates were all above 11%, except the 5-year at 9.88%.

 I don't expect to be able to keep an average 10% growth rate for decades on end, unless I want to constantly change my portfolio around, which would trigger capital gains taxes. It's encouraging to see the growth rates well above my projection of 5% organic growth so there's a built in margin of safety in my projections. A dividend growth rate higher than my 5% level would allow me to reach my crossover point sooner.

Continue reading this article at Seeking Alpha. 

4 comments:

  1. Found you via DGIs blog. Like the choice of BP in the current environment!

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    1. FV,

      Ive got a couple more companies id like to add to my portfolio but I hope to just keep building positions up this year. If my income wasnt tied to the E&P side of the energy sector I'd be loading up on more oil majors. I really like XOM he with the 3.2% yield.

      Thanks for stopping by!

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  2. 11% is pretty good. I am far too lazy to calculate my own lol.

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    1. A-G,

      The overall growth is solid but I expect it to trend down. If I can average 7% for the next 10-20 years I'll be perfectly happy because my projections are run off of 5% annual growth.

      Its a bit of upfront work but once its set up its really easy to maintain. I like to keep track of it because it gives me both a big and small picture view of my portfolio.

      Thanks for stopping by!

      Delete