People often use total portfolio value and use it as measure of whether its going up or down month to month.
but this is subjected to great market variation...something no one can control. More often than not this can be depressing when its all red, creating unnecessary fear. If its a bull market, smiling all the way. Haha.
nowadays i use dividend to chart my progress.
-this is far more stable. Even during bad times, rarely will this drop much. None of my counters are expected to skip dividends. A cut would be rather unlikely.
-over a long time this will invariably increase due to reinvestment
Ytd..my dividend has grown 6-7%.
but this is subjected to great market variation...something no one can control. More often than not this can be depressing when its all red, creating unnecessary fear. If its a bull market, smiling all the way. Haha.
nowadays i use dividend to chart my progress.
-this is far more stable. Even during bad times, rarely will this drop much. None of my counters are expected to skip dividends. A cut would be rather unlikely.
-over a long time this will invariably increase due to reinvestment
Ytd..my dividend has grown 6-7%.
Hi Paul,
ReplyDeleteCan you kindly explain how you value SingRe?
I am interested in this company due to its dividend history and its involvement in the reinsurance business. However, I have trouble valuing this company.Will appreciate your take on this company.
Thanks and regards,
Bernard
Hi Benard,
DeleteI value singre based on
1) unblemished 40year hx
2) non skipped div
3) ability to increase payout over time
4) nav on slow uptrend. Overall growing biz
5) cash rich
6) no debt
7) valuable ppties inside
in short, bao chi if stay vested n reinvest div over long term.
Hi Paul,
ReplyDeleteInteresting thought. Mind to elaborate a bit more? Are you tracking the yield percentage or the dividend in dollars and cents? Are you tracking dividend per counter or total dividend?
Hi sanye
DeleteIts the change in div amt.
for eg if total div 100k in jan start, end june total div 105k, means div up 5%.
Of course any new monies injected or shares sold will increase or decrease this.
but as a long term investor, i find it more useful than absolute portfolio amt. Cos this div amt can only go up over a long time.
I see. So you are monitoring the increase of dividend received?
DeleteI plot a graph on the Year-to-date dividend received every year. Because it is using the cumulative number, it is a curve that goes upwards. I compare the curves (or lines) from different years. If the line this year stays above the line from previous year, it's an increase of dividend; otherwise it's a decrease.
Yes. Cos over long time if the total dividend quadraples, the portfolio will invariably follow suit.
DeleteDiv per yr wont fluctuate so much as absolute portfolio value cos these companies selected hardly cut dividend even in bad times n will up dividends in good ones.
Dr Penguin,
ReplyDeleteThe "right" measurement metric for the "matching" investing strategy ;)
Contrast this to someone who calls oneself as "income investor" but his SMART goals and milestones were not based on "income".
Similarly, a growth and income investor will measure against another metric. Same goes for the value or growth investor ;)
I like you custom fitting versus off-the-rack tracking.
No opportunity to poke; can only tap my hand on the table :(
Wah piang mr smol...sounds cheem.
ReplyDeleteanyway...wat matters is dividend growing...whether value investor income investor dividend investor penguin investor smol investor....doesnt matter lah...
most impt metric....dividend get more n more..i think mr sanye will agree with me
lol
I agree with you 2 things:
Delete1. Comments from Mr. SMOL are very cheem. Sometimes I can't understand. I am a simple person, I only read 3 pages of most books, hence my nickname 三页。
2. What matters most is dividend income, for I am nearing retirement age. :)
Penguin (I don't call you Dr you don't call me Mr),
DeleteYou should be talking!
You 东方不败 lagi 变幻莫测。。。
Today happy XY; tomorrow happy XX.
LOL!
This comment has been removed by the author.
Delete三页,
Delete对不起， 江湖特色，没有办法。
肚子空空； 瞒神弄鬼。
Ok. Lol. Whatever...
ReplyDeleteimpt is to be happy n have a system which works.