US Dividends Aristocrats thread

[Mr. Wood]

why pay money to fake and half fk course sellers when things are available for free

Retirement investing is ultimately about replacing your working income with a passive income stream.
And the reality of inflation means that income stream can't just be static, it must be perpetually growing.
To build a perpetually growing income stream, you must invest in a reasonably diversified basket of income securities that have the following characteristics:
1. Pay dividends (create income), the higher the yield the better
2. Are likely to grow their payments, the faster the better
3. Are priced at or below fair value, to protect your principle
4. Have safe dividends, so you are likely to see stable or better income during a recession

Said another way, retirement investments should be safe, growing income
securities trading at or below fair value. And they should be combined intelligently to reduce exposure to any one security or sector.

 

[Mr. Wood]

continue quote:

The benefits of diversification decline significantly after just 12 to 18 holdings. Additionally, there are actually disadvantages to being extremely
diversified. When over diversified, you have more money in your 50th or 100th or 200th best idea instead of investing that money into your current best idea.

“Diversification is a protection against ignorance. It makes very little
sense for those who know what they’re doing.”
- Warren Buffett

Overall, we believe a portfolio of 20 to 30 high quality income stocks spread out reasonably over different sectors provides a compelling balance between the benefits of diversification and the benefits of concentration.

What will determine your portfolio's success in building a perpetually growing
retirement income stream is the actual securities you decide to invest in.

 

[Mr. Wood]

https://seekingalpha.com/article/2944126-the-dividend-aristocrats-and-maximum-drawdowns

 

[Mr. Wood]

https://www.proshares.com/funds/nobl.html

Fundamentals as of 3/29/19
Total Number of Companies 57
Price/Earnings Ratio 18.82
Price/Book Ratio 3.71
Dividend Yield (%) 2.46
Average Index Market Capitalization $76.35 billion

Top 10 Index Companies Weight
Roper Technologies Inc. 1.98%
Air Products & Chemicals Inc. 1.97%
McCormick & Co. Inc. 1.96%
Lowe's Cos. Inc. 1.93%
Automatic Data Processing 1.92%
Dover Corp. 1.91%
Genuine Parts Co. 1.89%
Ecolab Inc. 1.88%
Brown-Forman Corp.-Class B 1.87%
Stanley Black & Decker Inc. 1.86%

Index Sector Weightings Weight
Industrials 23.20%
Consumer Staples 22.42%
Financials 12.03%
Materials 10.88%
Consumer Discretionary 10.70%
Health Care 10.08%
Energy 3.58%
Information Technology 1.92%
Utilities 1.76%
Real Estate 1.76%
Communication Services 1.66%

 

[Mr. Wood]

NOBL is very heavily weighted towards "old" technology. it does not hav the faangs or bat or the darlings of today investment.
becos to be a NOBL, it has to be large cap as well as increase dividends over last 25years.

will it 500% or 1000% like fb or amzn? unlikely.
but will the world stop drinking coke or stop using machineries? maybe oso unlikely.

 

[Mr. Wood]

May 2019 Dividend Aristocrats Performance

The Dividend Aristocrats as measured by the Dividend Aristocrats ETF (NOBL) outperformed The S&P 500 ETF (SPY) on a relative basis in May of 2019.
• NOBL generated total returns of -4.3% in May of 2019
• SPY generated total returns of -5.7% in May of 2019

While The Dividend Aristocrats outperformed on a relative basis, it was a hollow victory as they generated total returns of negative 4.3 percentage points.

Performance between these 2 ETFs for the first 5 months of fiscal 2019 is below:
• NOBL has generated total returns of 8.0% through May
• SPY generated total returns of 10.6% through May

The Dividend Aristocrats as a group tend to outperform the market during declines, and slightly underperform during bull markets.

The Dividend Aristocrats have historically outperformed the market over the long run

I dunno if any "gurus" (aka trading course sellers) will tell the truth.
when make money, is it consistent and sustainable?

 

[Mr. Wood]

https://www.suredividend.com/dividend-aristocrats-list/

shameless promoting

Spoiler

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http://www.signup.suredividend.com/?ref=29922a27d9

 

[Mr. Wood]

Updated on 31May. share price has increase about 40c since the report. so have to do some adjustment on the valuation.

Top Insurance Company #1: Old Republic International (ORI)

Old Republic has the longest dividend growth streak on this list. It has raised its shareholder payout for the past 38 years. The company has paid uninterrupted dividends to shareholders for 78 years. Shares currently yield 3.6%, the highest yield on this list.

Old Republic was founded in 1923 and today trades with a market capitalization of $6.7 billion. This makes the company the smallest insurer on this list. Old Republic markets, underwrites and provides risk management services for a variety of general and title insurances.

The company has a diversified customer base, made up of many different industry groups. Over the years, Old Republic has reduced its exposure to housing, financial and energy industries while increasing its exposure to transportation and general industry

This has helped the company to improve its business over time. Old Republic reported financial results for the first quarter on 4/25/2019. The company earned $0.40 per share, $0.02 above the average estimate. Earnings were flat year-over-year. Revenue grew 2.3% to $1.5 billion, $22 million above estimates.

Net premiums and fees earned grew 2.1% while net investment income grew 5.9%. General insurance grew 5.1%, which was partially offset by declines of 1.4% in title insurance and 12.3% in corporate. Book value per share grew 13% from the first quarter of 2018.

Shares of Old Republic are estimated to earn $1.90 per share this year, representing 2.2% growth from a year ago. The company has only posted a profit since 2013. Since then, earnings have grown at a rate of 7% annually. We expect this growth rate to continue over the next five years.

Old Republic’s stock trades for nearly $23 at the moment. Using expected earnings-per-share for 2019, the price-to-earnings ratio is 12.1. We have a targeted price-to-earnings ratio of 12.5, which is slightly below the six-year average ratio of 14. This helps to account for the lack in profitability of the early years of the last 10-year period. If this target comes to fruition, valuation would add 0.7% to annual returns through 2024.

Total returns would be as follows:

7% earnings-per-share growth
3.6% dividend yield
0.7% multiple expansion

Old Republic is expected to return 11.3% per year through 2024. While the company’s history is slightly uneven compared to the other stocks on this list, shares of Old Republic offer substantially higher yield. There is also a chance of slight multiple expansion over the next five years. For the investor with a slightly higher risk tolerance, Old Republic could prove to be a good purchase at current levels.

i wanna be like Warren Buffett, buy insurance company for the cash float

 

[Mr. Wood]

Walmart is going to start delivering groceries inside shoppers’ homes

KEY POINTS
Walmart this fall will start delivering groceries inside shoppers’ homes.

It will first test this option in three cities: Kansas City, Missouri, Pittsburgh and Vero Beach, Florida.

It said it will “learn and scale” in-home delivery from there.

Walmart’s e-commerce chief, Marc Lore, said “there’s incredibly high perceived value” with in-home delivery, since the retailer is saving people time spent organizing the fridge.

game changer?
maybe not. consumers can still buy many other stuff on amazon.
price war, maybe. but anyway looks good for consumers.

 

[Mr. Wood]

free analysis ET

 

[Mr. Wood]

free analysis WD

 

[Mr. Wood]

free analysis UVV

 

[Perisher]

Good thread, perseverance will pay off.

 

[Mr. Wood]

Good thread, perseverance will pay off.

gam xia support

 

[Mr. Wood]

free DIS analysis

 

[Mr. Wood]

iShares Launches Megatrend ETF Suite Designed to Capture Five Transformational Long-Term Trends

 

[Mr. Wood]

sorry a week late this post

 

[Mr. Wood]

free analysis GPS

recommendation: hold

 

[Mr. Wood]

free analysis LB

recommendation: hold

 

[Mr. Wood]

free analysis KSS

recommendation: buy