An Unforced Error on my part

[william the wie]

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

 

[Marion Morrison]

 

[william the wie]

Just read "Dividends don't lie" or just about any investment book with the term Dividends in the title. The two hardest measures to fake are volatility (beta) and yield. According to the calculations by etrade I should be able to reinvest at 12.5%/month and with only 13 issues to keep an eye on I should be able to do so until the share prices rise so high that I can no longer get at least 6% yield and sell the issues off. That is a great return.

 

[Cellblock2429]

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

/----/ I make 6 figures a year trading options. Far less complicated that what you're doing. Good luck.

 

[william the wie]

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

/----/ I make 6 figures a year trading options. Far less complicated that what you're doing. Good luck.

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

/----/ I make 6 figures a year trading options. Far less complicated that what you're doing. Good luck.

I am not neglecting that either but you have to park your money somewhere to act as collateral.

 

[Cellblock2429]

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

/----/ I make 6 figures a year trading options. Far less complicated that what you're doing. Good luck.

Market correlation with individual stocks is @ 90%. I already restrict myself to beta> 1 and either high dividend yield or high dividend growth. But I ran the numbers for issues that are both high yield and high growth and found out that I could reduce my portfolio size. So, I could:

Keep closer track on what was happening with each issue.

Increase my reinvestment rate.

And improve the probability that my issues would reach the lowest dividend classification of two consecutive years with an increasing yield and really pop.

Comments?

/----/ I make 6 figures a year trading options. Far less complicated that what you're doing. Good luck.

I am not neglecting that either but you have to park your money somewhere to act as collateral.

/——/ That is true. For me Cash is King. My return is 17% including the 1.5% in the money market.

 

[william the wie]

Isn't it better to make 15.5% and 30+% for parking your money as collateral and a 5-10% probability on each issue getting into the two consecutive dividend annual increase lists for another 40-50% off the dividend yield ladies of ill repute? So on average you get an extra 2-5% per issue too.

 

[Cellblock2429]

Isn't it better to make 15.5% and 30+% for parking your money as collateral and a 5-10% probability on each issue getting into the two consecutive dividend annual increase lists for another 40-50% off the dividend yield ladies of ill repute? So on average you get an extra 2-5% per issue too.

/——/ In this market that has swung 1,000 points in one day, you could buy into a fund at the wrong moment and it could take too long to recoup the losses. If it works for you great. I’m staying in cash.

 

[william the wie]

The market is scary and it will get scarier. No matter what happens in the mid-terms the Ds are going to go berserk. Criminals are migrating into the Blue Wall and taxpayers are migrating out. That will not end well.

 

[MarathonMike]

William just curious how many dividend stocks do you own currently in your portfolio? I wasn't sure if you said you want to reduce to 13 or if 13 is the number you currently hold. FYI I have 10 DRPs and I've had them so long I just let them ride. Net divy on those 10 is ~4.9%.

 

[william the wie]

William just curious how many dividend stocks do you own currently in your portfolio? I wasn't sure if you said you want to reduce to 13 or if 13 is the number you currently hold. FYI I have 10 DRPs and I've had them so long I just let them ride. Net divy on those 10 is ~4.9%.

It's a bit more complicated than that. Quarterly dividend stocks are more likely to pop in the first quarter as the dividend growth lists come out but for compounding returns they kind of suck. Therefore I want to reduce the number of quarterly issues and increase the number of monthly dividend issues. So, I had 13+ issues and as I sell off the quarterly issues I will have 13 issues again after May 18th when existing options either expire or are exercised against me.

Here's the problem, I was faced with a huge disparity of x dividend dates v. payment dates with quarterly issues. Monthly dividends tend to be more one size fits all because they can't avoid the high Holidays (Sept/Oct) when even the least observant Jews get out of the market nor can monthly dividends avoid Feb and May when Christmas bills and then taxes and retirement payments bite. I think it is much less aggravating to have even the better and best quarterly issues only from Sept. to March and otherwise let my monthly issues compound.

August, Nov, Feb and May gets the company in to two possible problem months. Sept, Dec, March and June one. Jan, April, July and Oct one also. This also affects options revenues as well. Therefore I would prefer to build my base on monthly dividends and only venture into Quarterly, bi-annual and annual dividend zoo when there is a good likelihood of a price pop