All Is Quiet in Gravyville
I wish I had some exciting new purchases to write about, but I’ve got nothing. I haven’t made a purchase since mid-May. I may be experiencing a crisis of confidence in myself, or it may be that I’ve become uncomfortable with valuations. Perhaps a little of both. The overriding concern for me is the fact that I’m dealing with our retirement funds. In that my wife and I are already retired, there is no going back for a do-over.
Keeping It Simple, But Not Too Simple
My stock studies (lately an exercise in frustration) have been given a lower priority while I contemplate what I can do to better my decision making process. In reviewing many different approaches to evaluating a stock, some thoughts are starting to gel. The hope is to develop a process that is straightforward and easy to execute, while being reasonably diligent.
Don’t get me wrong. I’m doing okay, but I feel like I can do better. Prior to retirement, I concocted a retirement income projection spreadsheet to review with my financial guru. As to our dividend income projection, I missed the target last year by about $100. Not bad at all. Through June of this year, we are just slightly above the halfway mark for the 2015 income projection. Basically, right on target.
I do think though that my approach has been a little haphazard at times and I need to develop a more consistent way of doing things. One method that has caught my eye is used by David Van Knapp. He is among those on the Seeking Alpha website that I hold in high esteem. He has his own website, Sensible Stocks, and he writes DGI articles for Daily Trade Alert. His evaluations, in part, tend to involve color coded spreadsheets that make sense to me. I’m evaluating which of his criteria I want to use (probably all).
I also want to determine what other criteria is important to me. I have been following Part-time Investor, another author on Seeking Alpha. He/She (not really sure) is developing and reporting on a Keep It Simple, Stupid (“KISS”) portfolio. I suspect I will incorporate at least some of these strategies in my game plan. Keeping it simple is important to me.
This will be a work in progress for some time to come, and I don’t plan to stop buying stocks until it is “finished”. After all, it will probably never be finished. My hope is to establish an initial method that I am comfortable with and then use it consistently in evaluations and on this blog. Hopefully, it will generate a lot of feedback and can be refined over time.
What about you? What are your favorite methods of evaluating dividend growth stocks?
Year over year dividend comparison for June 2015
- Dividend income for June was 58.2% above last year’s monthly total (and a record month)
- On a YTD basis through June, dividend income was 46% above last year.
Stock Sales For May
Dividend Increases for June ( I love pay raises)
- PepsiCo (PEP) bumped up their dividend by 7.25%, ex-div June 3.
2015 YTD forward dividend income (through June)
- Stock purchases have added 9.92% to our dividend income
- Dividend increases have added 3.75% to our dividend income
- Stock sales have decreased forward income by 5.71%
- Overall, our YTD forward dividend income increase is 7.96%.
Best wishes and happy investing!