My dividend yield on my Motif account with your website’s BUY LIST, from 10 months ago, is only 1.2%. Because the stocks have appreciated the PE Ratio is 26.56 and Beta is 1.06. Should I make some changes?
The type of investing this website recommends is "buy-and-hold investing", made preferably quarterly. If you had invested $300 each quarter, allocated equally(5%) into each of the 20 companies, in each of the 11 BUY LISTs on MotifInvesting.com we had published quarterly since June 2015, as of the Jan 15, 2018 date when this question was received, then you would have been invested in 73 different companies.
What we recommend is regular investing of new money quarterly - and "holding", unless you need some funds. We don't recommend selling for any reason, except needing funds. We don't worry about PE Ratios or Beta. We know that one out of every 20 of the best companies this website recommends in any of its BUY LISTs will cease to exist, usually because of having been acquired by another company, and that three out of every 20 companies this website recommends will perform so exceptionally over the long-term (six or more years) that overall the remaining 19 companies will perform wonderfully - and the dividends will grow, and grow, so approximately 25% of the companies, after 30 years, SHOULD BE PAYING YOU ANNUALLY a return of more than a 100%. For more info please see the "About Us" on this website.
What is the significance of the beige colored rows in the purchase lists?
To differentiate the ten basic Sectors of the economy.
RE: your 2017-09-15/18 DIVIDEND GROWTH Public Portfolio motif on MotifInvesting.com (from your link at Home>Independent substantiation of our performance). Does this, or will this, portfolio/motif be updated quarterly or at each quarter should I liquidate this and search for the latest quarterly public portfolio?
Our quarterly motifs are designed to help long term investors create their own mutual fund. You would now, at the date of this response, have FMV of approximately $3,850 from investing a cumulative $3,000 in 70+ companies over the past 2+ years, if you had invested $300 in each of our ten (as of the date of this response) DIVIDEND GROWTH published motifs, with “equal-weight” investing in each of the 20 companies (many being duplicate companies from previous quarterly motif publishing's).
We don’t recommend ever selling, because from the site creator's personal experience - and as a CPA in public practice, whose lifelong avocation has been the study of the subject of investing - the biggest mistakes investors (not traders) make are from selling. The creator says this as someone who, from experience, believes that one out of every twenty very good DIVIDEND GROWTH companies invested in will will be acquired by another company, or possibly “go bankrupt” - AND, as someone who knows from experience, that four out of every twenty good DIVIDEND GROWTH companies invested in will, thirty years down-the-road, be paying a dividend every year of more than each share's cost basis in those company’s stock (a more than a 100% return every year). Our personal story is presented in the “About Us”.
Other than the 52 week+ lookback STATS table, how can I get an idea of the historical annualized results of your site’s recommendations?
On www.MotifInvesting.com pick the number of published motifs (in existence for at least 365 days) you wish to average – we suggest at least the four most recently published, because investing in any four portfolios is certainly an acceptable way to use our site’s recommendations – and calculate the most recent TWELVE MONTHS’ TOTAL AVERAGE RETURN by adding together the averages for the price (only) percentage return and the dividend yield. Use the following process to get to the necessary screen on MotifInvesting.com: On our site go to Home>Independent verification of our performance and click the link to MotifInvesting.com [ -- OR -- in your browser visit MotifInvesting.com > RESOURCES > EXPLORE MOTIFS > on the "Browse" line click: ALL COMMUNITY MOTIFS > Search this name: daillak > hit the ENTER key > The “Daily Change” column should have changed to a “Return 1 Mo/1 Yr” column.]
NEXT – restricting your focus to only the motif’s related to our website’s recommendations, which all are titled “yyyy-mm-dd DIVIDEND GROWTH Public Portfolio": In the heading to the “Return 1 Mo/1 Yr” column Select “… 1 Yr” which will display price (only) percentage return for the last 365 days, for only those Motifs in existence for 365 days, or more. Also, note that the “Dividend Yield” column reflects the additional percentage return from the dividend for the last 365 days. [If you have accessed the above information from being signed into your personal MotifInvesting.com account, then for each portfolio you can open it and click on the “Performance” tab and examine price (only) percentage return, for any period during the previous five years by inputting a beginning and an ending date range.]
In your answer to my earlier question you say your site is "exclusively only recommending 'buy-and-hold'". Are you familiar with the recent MARK HULBERT article in The Wall Street Journal, page R2, Monday, August 7, 2017: FUNDAMENTALS OF INVESTING "Everyone's a 'Buy and Hold' Investor Now -- But it takes guts to stay that way. Otherwise it's time to reduce exposure." ??
Thanks for bringing that excellent article to our attention. We agree with it completely! Understanding the very important FUNDAMENTAL OF INVESTING presented in the article, is why our site's owner/author developed, two years ago at the site’s inception, the Investment Calculator for the Home>Simple Rules. Please note that the first of the three inputs required by our Calculator is: “P: % of Cash in your portfolio which allows you to sleep well during market ‘downtrends’”.
Should an investor initiate a portfolio each quarter and then hold that portfolio for 12 months until the next listing shows in that same quarter the following year, then buy and sell to match that new portfolio? For example, purchase the March portfolio and hold those positions until the following March, construct a second portfolio in June and hold those positions until the following June etc..?
The answer to the timing question is that whatever is the then current “Buy List”, (page 1) recommended 20 ticker portfolio, should receive the investor’s then current new investment dollars. As we have tried to make clear elsewhere on the site, we exclusively only recommend “buying-and-holding” (the reason for this position is set forth in the site’s “About Us” link, which is currently available only if you aren’t signed-in).
Our current full “Buy List” and our current “HOLD List (don’t sell, BUT do check this list ANNUALLY …)” are intended to help previous investors in any “recommended 20 ticker portfolio” to have some insight into the current status of the individual stocks into which they previously invested. Such insight will hopefully help them make the best decision when considering whether to take the extra time to construct a new “motif”, or simply invest additional funds into one that currently exists and has, in their assessment, performed satisfactorily. For portfolios (of investors not using motifs) our current “recommended 20 ticker portfolio” is where new additional “buy-and-hold” dollars should be “equal-weight” invested.
What is the best way to get started with the funds I have available. Should I go "all in" with the current Buy List?
Good question. We never advise going "all in". That is why our Home page provides the "Investment Calculator" -- as well as the ""Simple Rules" about investing". We think a discipline of saving and regularly investing some of your savings, is the best plan!
I noticed that on the 8/7/2015 update BAX was deleted because of a dividend decrease, then on the 8/14/2015 update BAX is an addition, what gives??!
ALL USERS please be cautioned that sometimes the update of information in the database may be in-process over two weeks -- usually because the stock's information was released near the end of a week. For example BAX 10Q filing with the SEC was on Friday, 8/7/2015, and was only partially entered into the database by the close of business that week. This incomplete update to the database caused the deletion of BAX, because it failed the screen for "No dividend decreases in the past 3 years." The next week, 8/14/2015, BAX was added back, when the update of all information from the BAX filing had been completely entered. CONSEQUENTLY, if you find a STOCK MISSING from our "HOLD (don't sell)" LIST, when making your "ANNUAL CHECK-UP", before taking any action, WAIT A WEEK AND CHECK THE "HOLD (don't sell) LIST" A SECOND TIME, for confirmation that the stock has been deleted!