But as a dividend growth investor, I am more interested in the announcement of the stock split, dividend raise and the buyback plan.
But as a dividend growth investor, I am more interested in the announcement of the stock split, dividend raise and the buyback plan.
• The biggest concern with the 4% rule is that you will run out of money when you most need it. You shouldn’t accept the possibility of running out of money when there is another strategy that can almost guarantee you never run out of money.
• Following the 4% rule requires you sell more of your investments when they are undervalued and sell less when they are overvalued. When investing, this is the exact opposite of what you want to be doing. There is a better way in which you will be making smarter investment decisions.
• If you want to leave an inheritance behind, the 4% rule reduces quite drastically the amount you will be able to pass on. Why work so hard your entire life creating a nest egg and then not be able to leave anything behind to your loved ones? There is another strategy that will have your family thanking the heavens that you were such a financially astute investor.
Why Read This Book?
Financial education and planning for your retirement is an important aspect of life that is missing from the education system. The onus is left on you, as an individual, to teach yourself on how to plan for the long term and build an investment portfolio to provide during the golden years of your lives. Books like the one in question are a great way for people to get introduced to the idea of long term planning and think about investments and take matter into their hands instead of hoping that the government would take care of their retirement via pensions.
This is an easy book to read and understand. The book also provides a chapter -by-chapter exercise to follow and work out the numbers for each reader’s case. The reader is walked-thru with the  whole planning process of determining estimates, creating shortlists of stocks and which metrics to use, account types, asset allocation with extra notes on a balanced portfolios, emergency funds, when to sell stocks etc. Dan Mac also importantly notes that the maintenance of the retirement plan involves minor adjustments as a life-long process. The book wraps up with steps to  take care of, when its time to retire – with a good discussion on tax planning for your sources of income; and managing the portfolio during retirement and passing on the fortune to your children.
Retire With Dividend Growth: A Better Way is available on Amazon for $4.93. Click here to buy.
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A couple of items to note from the chart below are: only stocks are included (all funds from my holdings have been left out), and one stock – IAMGold (IMG.TO) is missing, as it recently cut their dividends to 0.
Overall, I am happy with the layout of the stocks I hold. In addition, I hold funds which are high yielders providing me with more income currently which I use to reinvest into my stock holdings.
Company Name
|
Ticker
|
Market
Cap
|
Quote
|
P/E
|
Yield
|
Payout
Ratio
|
5-yr
DGR
|
---|---|---|---|---|---|---|---|
Comcast/NBC | CMCSA | $117B | $44.68 | 18.83 | 1.75% | 27% | 41.74% |
21st Century Fox News Corp |
FOX NWSA |
$70B $8.6B |
$30.92 $14.93 |
11.92 5.18 |
0.56% 1.14% |
7% NA |
9.1% NA |
Walt Disney | DIS | $120B | $66.98 | 20.35 | 1.12% | 23% | 16.4% |
Viacom CBS Corp |
VIA CBS |
$35B $32B |
$72.41 $52.89 |
17.58 19.86 |
1.66% 0.91% |
27% 18% |
NA -13.99% |
Time Warner | TWX | $57.5B | $61.70 | 19.02 | 1.86% | 33% | 7.86% |
Sony | SNE | $22.4B | $22.19 | 95.26 | 1.25% | 64% | 3.66% |
Comcast/
NBC
|
Fox/
News Corp
|
Walt Disney
|
Viacom/
CBS
|
Time Warner
|
Sony
|
|
---|---|---|---|---|---|---|
Broadcast TV | NBC | Fox | ABC | CBS, The CW (50%) |
The CW (50%) |
|
Cable
|
USA Network, SyFy, Bravo, E! |
FX, National Geographic |
ABC Family, A&E (50%), Disney Chnl |
MTV, Nickelodeon, Comedy Central, Showtime |
TNT, TBS, HBO |
|
Movie | Universal Studios | 20th Century Fox |
Walt Disney Pictures |
Paramount Pictures, CBS Films |
Warner Bros | Columbia Pictures |
Theme park/ Resorts |
Universal Parks & Resorts |
Walt Disney Parks & Resorts |
Nickelodeon Resort Orlando |
Parque Warner Madrid (5%) |
||
Publishing | Wall St Journal, The Times |
Marvel, Disney Publishing |
Simon & Shuster | DC Comics, Time, People, Sports Illus |
||
News | MSNBC | Fox News | ABC News Now | CNN, HLN | ||
Business | CNBC | Fox Business | ||||
Sports | NBC Sports | Fox Sports | ESPN | CBS Sports | NBA TV | |
Recod label | Fox Music | Disney Music | CBS Records | Warner Music | Sony Music | |
Internet | iVillage, Fandango, Hulu (32%) |
News Corp. Digital Media, Hulu (36%) |
Disney Interactive, Hulu (32%) |
MTV News Media, CBS Interactive |
Flixter (32%) | Sony Online Entertainment |
Disney and Comcast (esp after NBC Universal acquisition) are the largest conglomerates of the mass media industry with market caps of $120B and $117B respectively. The two companies also look very well diversified across the businesses. They have attractive 5-yr dividend growth rates, but the yields are quite low (<2%). The yields are not attractive enough for me to initiate a position, but I will continue to keep an eye on these two.
Disclosure: None.
Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.