Quote:
Originally Posted by toy71camaro
Speaking of that... I just spent the last few hours documenting all my dividend stocks out of my paper "folder" and into Excel.
One of the things im starting to track is my "Yield on Cost". With the 2 of my core holdings increasing their Div % today, started to now track what the YOC is too.
So being the geek I am, I setup a spreadsheet to calculate my YOC and my Dividend payments each time i get one (i have to manually input the payment info, but it carries it over to various forms and adds it up for me so i can see my yearly dividend payouts).
At this point, my overall average YOC is 3.95% at this time. Not great, but not horrible. Its up from 3.88 last year, thanks to the two that announced increases today. It gives me a spot to keep track of my YOC for my 9 core (investing 102) stocks, and my total payout for each year.
I need to find something to offset that ~4% and get it up a bit this year.  |
The OFFSET is the growth in share price -- which is what gives you TOTAL RETURN. Do not discount this fact. Chasing YIELD only will have you being real upset with yourself and your account when we DO - and yes we will - get a correction. 4% dividend is good --- and coupled with growth -- it should be 9 or 10% a year. HUGE in this low interest rate environment.
Some of my core holdings are already UP 8 and 9% this year. Dude -- that's a whole years "growth" expectation in 6 weeks!! Will it last?? I'd love to think so -- but I also know why there are AVERAGES.... and if I hold on to the 8 or 9% to finish up the year - I'll be a happy man. So that means that at some point we're going to look like yo-yo's.... it can't just keep going up up up. Now that's not saying it can't go up 20% - but then my guess is we don't hold on to all of that. Love to.... but don't spend it.
