I would classify myself as “primarily a dividend growth investor”- buy mainly strong wide moat dividend growers, as well as index funds for foreign/ emerging markets. Have about 85% in equities, 9% in cash, 6% bonds.
So far, portfolio down 21% from peak (in absolute terms- PAINFUL, over 1.7 million down!), but no dividend cuts (yet). Worry that there may be some from financials, etc. But still periodically throwing more money in the markets- USB, KO, MMM, CSCO, CVS, DUK, MCD, VZ already adde since this started.
My 2X leveraged divey growth ETN, SDYL, is down 'only' 60% YTD. I'll find out in about 3 weeks whether its normal 5.6% distribution will be cut. I expect so, given what I know about how ETNs work.
......going forward, my 2X leveraged portfolio should still generate a bit more cash flow than what I need to cover my retirement withdrawals.
The math does not seem to work. While you post that your SDYL is down "only" 60% YTD ( -60% for SDYL makes sense since VTI, my largest holding, is down 29.6%.), your 2X MRRL is down 96.14% YTD and closed, and your best performing 2X ETN (PFFL) is down 56.86% YTD. Distribution from MRRL will no longer be coming in, the distributions you have been receiving from SDLY and PFFL will surely be cut. The MRRL redemption will have locked in losses leaving less capital to generate your typical unsustainable yields.
Question; Do you think companies will try to conserve cash to survive and what effect will that have on dividend growth?
So far I’m down about 24%. Have continued to make purchases with available cash. Most recent buys have been small nibbles at T, MMM, D, DUK, SO, PEP, SYY, EPD (wife told me to stay out of the oil patch), SPG. Have not owned SYY in some time. M* recommended it; yield was over 5%. No divy cuts yet, but I imagine some are on the way. My CLX, KMB, WMT, PG have weathered the storm okay. On good days, I wish I had more cash for the fire sale. On bad days, I, well, a bad day is a bad day. Stay safe all.
copie - your the man, you always do it right. It’s really that simple. Southern Comfort for me. Sometimes Johnny Walker Blue. Raised to plan for the worst and hope for the best so we have enough TP also. The kids are already using both sides. Who’s laughing now.
I agree @copie is the man!
I learned a lot from my mother. She always said do not use 4 letter words, Bond and sell are the two worst (IMO) words to use! :)
When I buy one of my so called income stocks I buy it with the ideal of the dividend being cut in half. Stock I am adding now: CNP yielding over 9%. Ele. and gas ulit. If they hold at present amount it will be alright and if they cut it less then half then I can live with that. 4.5% is not bad with what CD's and bonds are giving.
My old plan is same. Buy small amounts each month on way down, at the bottom and on way back up. 2007-2009 scared me a lot more then now and I used the same old plan. You cut and bail hay in dry weather not when it raining. IMO its time to bail some hay! :)
Copie, you still have some standing timber? If so, I sure hope you didn't short toilet paper, or venture too far into timber futures puts last year!