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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?


To: Top Of The World Ma who wrote (681)12/15/2021 4:57:57 PM
From: chowder6 Recommendations

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  Respond to of 21841
 
Re: MAP Management

No, I do not intend to equal weight all positions in this portfolio 'at this time'. The time frame to hit the income objective is too short. Once the income objective is achieved, I may then work on equal weight positions, we'll see what the condition of the market is at that time before deciding.

As to next man up, it depends on a few factors, latest earnings results, forward guidance, positive market moving news relating to the company, yield, dividend growth rate or valuation. It can be any combination of these factors.

As to the reason for buying LLY, it's part of the overall strategy. The Middle Age Portfolio (MAP) has a yield of 4.41% and a dividend growth rate of 6.80%. - I would like to keep the yield around 4% if possible while also increasing the dividend growth rate up to 8% for a start. In order to do this, I have to buy a high yield asset like ASG for example and LLY to give me both yield + dividend growth.

ASG has an 8.20% yield and just raised the distribution by 9%.
LLY has a yield of 1.43% and just raised the dividend by 15%.

When you purchase equal amounts of both that gives you a yield of 4.76% and a dividend growth rate of 14.30%.

That dividend growth rate doesn't happen if I focus on O for example with it's 4.39% yield with 3% dividend growth.

I'm looking for high yield + high dividend growth.