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.
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.
Found you via DGIs blog. Like the choice of BP in the current environment!
ReplyDeleteFV,
DeleteIve 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!
11% is pretty good. I am far too lazy to calculate my own lol.
ReplyDeleteA-G,
DeleteThe 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.
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