Sunday, November 28, 2021

Week in review

For those that celebrate, I hope everyone had an excellent Thanksgiving week with family! 

Here in Dividend Town most of the week was spent with family, but we made some progress towards goals. Speaking of goals, check out the published goals for 2021. Mid-late December I'll publish next year goals and it will be off to the races. 

Here's the progress made this week:

  • Published a goals page
  • With the exception of the real estate sector, the Dividend Town Screener is complete and ready to implement. 
  • No dividend income this week.
  • Increased the Yield on cost 2bps to 3.15%. 
  • Acquired a few shares this week:
    • 20 shares of $O at $69.70
    • 15 shares of $CVS at $116.26
    • 14 shares of $GLW at $39.25
With the first iteration of the DT screener complete, I will be committing to using to using the screener to make selections for the portfolio. Now where it will get interesting is balancing growth for yield. 

Of the initial ~980 initially screened dividend stocks, I assign a score based off a variety of metrics. Those metrics and comprised of:
  • Growth metric
  • Quality metric
  • Dividend safety metric
  • Moat metric
  • 2nd opinion metric
After arriving at that score, I filter again based off:
  • 4+ years of increasing dividends
  • Has a Dividend Safety metric
After all this, I have 365 different equities. On a score of 0-25, compared against the 5-year dividend adjusted return, we start seeing some trends. 

5 Year Div adjusted return vs. DT Score
CDGR vs. DT Score

Dividend Yield vs. DT Score

The goal will be to choose from the higher DT Score stocks in each sector, then balanced for total portfolio yield of ~2.8% - 3.0%. Each stock has a blended fair value from a few sources that I'll look to clear as well. 

Fair value is also weighted based on DT Score, so I'll pay a small premium vs. the FV and I'll have a hurdle for lower valued DT Scores. 

I'll be looking across a few sectors today and will rebalance slowly over the next month into higher quality companies. 

No comments:

Post a Comment