Saturday, January 30, 2021. Hey, I like charting. I took a couple of hours to look at some 1,800 charts. Here’s what I did. I sorted my entire database by dividend yield, highest at the top. I then charted mere LINES for some 15 1/2 years of price data, if there was that much, and for historical dividend payout. I then just began to click down through these charts, looking for the smoothest upwardly trending issues, that pretty much demonstrated at least a triple in price and in dividend over that period of time.
From out of those 1,800 charts, I saw what I thought were some 30 really good ideas, some of which were totally awesome! (that’s just 1.67% of all the stocks I looked at) Now, I already own nearly every one of those 30… There are a few I don’t have. But, I’m likely to sell something I no longer care so much for, that I might add at least 2, if not 3 or all 4 of these others. Why sell anything? I don’t want any MORE stocks than I now have, which is right around 50. I’m not going to add another idea, without first deciding what I would not mind in the least kicking out, in order to put something I think is better in its place. A gardener will do this very same kind of thing in their garden beds.
So, here’s what I found, and almost certainly also own. Do your own homework, and determine how any might work for you. I’ve personally got 36 years of market experience, and was a broker for 17 of those. And, I’ll just tell you right now… what I am doing here, NO broker would EVER do for their clients. NEVER!
You do this, and you’ll beat whatever anyone’s broker would tell you, because they can’t even consider putting their clients into such issues as they might want to buy them ONCE, and hold them FOREVER. Brokers must earn a commission for each transaction… and, if you’ve never been told this before, they also have, and MUST, meet quotas… which means in order to keep their jobs, they must SELL. Enough of that… You’re already doing the best right thing by being right here. Ready?
Look into, and give serious consideration to the following, which I am listing, from the highest yield, to the lowest, of those I have selected. (Not all meet the criteria I stated above, so I willingly made exceptions for some… as always, its entirely your call.) UTG, EVA, ABBV, APO, a really good idea is O, BST, BSTZ, NSA, BIP, COR, SII for special reasons all its own, FLO, SRE, CCI, LNT, BTG a high-yielding gold miner, LMT, AVGO, BMY, SCHD, DLR, MAA, CMS, SCHV, WEC, AMGN, BIPC, NEP, CVS a genuine turn-around is taking place here, XEL, IIPR and XLP. Right here are some 32 tremendous ideas! You may not like all of them, but you’ll find little reason to pan any of them. Then, there’s this… by even adding some of those ‘others’ you are not as fond of, whatever else they are doing in your portfolio, whether price or dividend wise or maybe both… being only a small fraction of the whole, like no more than 2 or maybe 3% at most, will not much alter the ‘picture’ that is created if you are able to put all in one watchlist and chart the price and dividend as an average of all, as if they were one security or like a mutual fund.
I just charted all the holdings in my wife’s safe-dividend growers account with 10 years of data, and sure enough, the lines are about as smooth as they can be, comprised as they are of all her issues in the account… and, both the price and the dividend payout better than triple in the past 10 years. The average dividend per share was $.89 ten years ago, and is $2.95 today, better than a triple. The price line average for all her stocks was $36.33 ten years back and is $119.97 today, better than a triple. Is that good? How can you know? What has the average of all 500 stocks in the S&P 500 done the past 10 years?
But, what do we see? The average of the issues in the 500, just before this recent inclusion of TSLA and others, which skews the new numbers, rose in price value from $58.46 to $146.03… 3 times $58.46 would be greater than $175. It had not tripled. The average dividend payout 10 years ago was $.83 a share, but is now $1.74 a share, well below a triple, which would be almost $2.50. That’s to not even mention the serious dividend payout cuts and dips during the harder times when a goodly number of companies froze, cut or eliminated their dividend… that would be like getting laid-off in the worst of times… or, more like saying you can stay-on, but you will have to take a pay-cut!
As an added bonus… you want me to check one out, or to justify my reason behind any of these… or, anything else, write me and ask. I’m retired and simply wanting to give it all away for the benefit and blessing of others. It works, just as I explained in my previous post, and will again, when the January statements come in just a few days.