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Strategies & Market Trends : Dividend investing for retirement
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To: Steve Felix who wrote (8827)5/1/2011 3:46:21 PM
From: E_K_S  Read Replies (1) of 34328
 
Hi Steve -

I think the point of the exercise is that you have (1) a strategy and (2) you methodically keep implementing it month after month and year after year. This can also be accomplished w/ automatic dividend reinvestment (through DRIP) or w/ the company specific programs that offer a discount w/ reinvestments.

I see that you bought ABT too. I picked some up around $45/share but only 100 shares. This was one of the best buys of the year for a dividend champion. Perhaps JNJ as well below $60.00/share but I missed that one.

So to summarize, portfolio turnover is not really that important but reinvesting the annual dividend income is. It can be automatically reinvested, and/or accumulated as cash reserves and invested as a lump sum on any significant buying opportunity. Periodically, you cull out the nonperforming and loosers and put the proceeds back into dividend achievers or special opportunities.

The last thing I do, is to peel off shares of some of my winners and reinvest the proceeds into other beaten down dividend champions (like ABT) in under performing sectors.

In an IRA I don't have problems re balancing because there is no tax consequence. I do see that I have one or two blow ups in my IRA portfolio (Washington Mutual) that I should have sold but that is where diversification helps.

Overall, your portfolio management strategy seems to be working and it looks like your earned your 3% management fee this year.

EKS
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