Comments on Dividend Growth Investor: Dividend Portfolio Investing for monthly income

Ethan,Thanks for noticing that. I will fix it :-)D...

2008-12-14T11:54:00.000-08:00

Ethan,

Thanks for noticing that. I will fix it :-)

DGI

"If we start out with $30,000 dividend equally..."...

2008-12-13T22:56:00.000-08:00

"If we start out with $30,000 dividend equally..." Dividends on the brain? :p

Cheers.

Ethan

I never said that one should sacrifice quality in ...

2008-12-12T06:37:00.000-08:00

I never said that one should sacrifice quality in order to create a monthly income stream.

However if you want to receive monthly dividends, it's nice to know that you have options.

Furthermore sometimes, if you haven't experienced something, it's tough to make a judgement. If none of the above people lives off of their dividend income stream, then we don't really know how they would personally feel about looking at their income on a quarterly basis as opposed to monthly.

I personally don't mind getting dividends even on an annual rate, but I do realize some readers would like to be able to construct portfolios for monthly income.

I agree with Jeff and MG. Rather than focusing on ...

2008-12-11T18:03:00.000-08:00

I agree with Jeff and MG. Rather than focusing on monthly stream, it is important to focus on quality (even if different schedule).

I fully agree with Jeff. This type of stratgegy i...

2008-12-06T08:25:00.000-08:00

I fully agree with Jeff. This type of stratgegy is not necessary.

Senior Investor,I would have to read the book that...

2008-12-05T09:31:00.000-08:00

Senior Investor,

I would have to read the book that you are referencing. It seems however that you are overweighting Realty Income in your portfolio. Furthermore I doubt that 13 stocks provide enough diversification. If you had it equally weighted then the dividend cuts from BAC and C took a larger part of your retirement income than if they had a lower weighting.

I am considering publishing a list of "The Best Dividend Stocks" and publishing my dividend portfolio holdings soon. I am also thinking about working on a list of dividend stocks with monthly payment ( excluding CEF's and other funds)

Monevator,

That's an interesting idea. I usually let my dividends accumulate in cash, and then I purchase new shares in any stock that I want. I only reinvest automatically any mutual funds that I have and O.
I am not sure however whether a 6 month savings account should be part of your target fixed income allocaiton or not? If you have a 25-50% allocation to bonds ,then probably you don't need 6 months in savings, or do you?

I've got to agree with Jeff that the best approach...

2008-12-05T01:37:00.000-08:00

I've got to agree with Jeff that the best approach is to direct the dividends to a decent savings account (if such a thing is about in this new era of 0% interest) and then take out a monthly income from there.

I'd start the savings account up six months ahead of requiring income, too.

This will smooth your income, and also make you less vulnerable to a dividend cut.

I've set up a portfolio based on the book "The Sto...

2008-12-04T17:26:00.000-08:00

I've set up a portfolio based on the book "The Stockopoly Plan" by Charles M. O'Melia. His basic idea is that with 13 stocks paying every different week in a quarter you can have a weekly income for life. My portfolio is as follows:
KFT, HNZ, 0 & GE
T, UVV, O & C
PNW, HON, O, BAC & PEP.
I am looking to replace C, which will no longer pay a dividend. O pays a monthly dividend. A neat idea would be for readers to supply ideas for the best weekly income portfolio possible.

Jeff,Thanks for your input. The thing however is t...

2008-12-04T07:53:00.000-08:00

Jeff,

Thanks for your input. The thing however is that most good quality dividend stocks do have different payment cycles so it is possible to smooth the monthly dividend income.
Waiting to receive all your dividends in a quarter and then dividing the amount in three for each month is something that I would do too when I live off my dividends. Some investors however want to structure their portfolios in a way that they receive dividend income every month.

I don't like the idea of investing perhaps sub-opt...

2008-12-04T07:22:00.000-08:00

I don't like the idea of investing perhaps sub-optimally in order to smooth out your monthly income stream from dividends. It's better to dump all your dividends into a high-yield savings account, and withdraw from that. If the savings account starts with a balance equal to 3 months dividends, it doesn't matter how your payments are distributed within the quarter.