Lockheed Martin Dividend Increase
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On 3 October, Lockheed Martin (LMT) increased its quarterly dividend by
4.76%, from $3.15 to $3.30 per share.
The dividend will be paid on 27 December to...
Realty Income Corp (O) Dividend Stock Analysis
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Linked here is a detailed quantitative analysis of Realty Income Corp. (O).
Below are some highlights from the above linked analysis: Company
Description: ...
October 2024 Net Worth $2,054,424
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Hey Everyone and welcome to our October 2024 net worth update. We’re at
$2.054 million, up over $22k in what was another great month for our
investments....
2023 Retrospective and Portfolio Updates
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Dear Readers, While I have been busy tending to my family, my portfolio has
mostly been in auto-pilot mode. This is actually quite a relief to be
honest. P...
2022 Week 46 investing and trading report
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I feel like the markets are easing their bearish stance. They are still
extremely volatile and choppy intraday, but we are poised for a rally that
may la...
2020 Q1 Dividends - $430.58
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The markets have been in turmoil and I have seen my investments drop by
20%. My standard reply to market volatility has been that I don’t care
because I ...
Portfolio Update – March 2021 – $1,000 per month!
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I am a little shocked, and disappointed in myself, that it has been almost
eight months since my last post. The timing makes sense though: I went back
to s...
Passive Income for July 2020
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Once a month, I like to talk about my total passive income for the previous
month. I do this to track how much passive income is coming in. When I
start ...
Portfolio Update May 2020
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It is time to give a new update about my current portfolio. April has shown
some recovery of my portfolio and also of my dividend …
The post Portfolio Up...
Cardiovascular Systems
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Cardiovascular Systems, Inc., a medical technology company, develops,
manufactures, and markets devices to treat vascular diseases in the United
States. Th...
Buy: ABBV
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Today I added a new position: ABBV. They didn't show up on my screener
because some spin-off activity made it look like their div history is much
shorter t...
Exchange Traded Funds (ETF) are another form of investing vehicle available to investors. The major attraction for ETF has been low cost expenses and fees in comparison to mutual funds and ability in trade during market hours. Like any other investing vehicles, I believe ETFs have a strategic role to play in our portfolio. The simplicity with which one can buy and sell an ETF makes it difficult to understand how it is structured and what its constituents are. ETFs are good investment vehicle for broad market exposure and access to alternative assets.
Broad Exposure: It can be used for hedging against broad market performance, broad industry sector, broader country exposure, or any particular asset class. Investors need to understand which particular ETF is structured to meet that objective (all ETFs are not created equal). Many ETFs invest in few bunch of stocks and expect only those small number of stocks to provide broader exposure. In my viewpoint, ETFs for broad exposure should consist of more than 250 or more stocks.
Access to Alternative Assets: This is one the significant benefits depending upon how the ETF is constructed. E.g. ETFs based funds for leverages, currencies, commodities, futures, etc are being made available. However, I believe that such ETFs are high risk prepositions. I am not advocating the use of such assets, but merely pointing the fact that such asset classes were not available earlier.
ETFs can play these two roles successfully if investors are investing for long haul and understand their structure.
Time Horizon: The time horizon should be in the order 10 years or more. One of the methods to invest in ETF is dollar cost averaging over a period of time. There is a school of thought that investors should buy when an ETF is below intrinsic value or when relative PE is less than one. It is next to impossible or futile to go into these exercise. Keep it simple, and hence buy and/or continue to add when it is below 200 day and 365 day moving average.
ETF Structure: Many ETFs are closed end funds with high expenses, many provide dividends that include return of capital, many provide short term gains distributions, many consist of only 30 or 40 stocks based on capitalization, etc. In addition, investors need to more careful for ETF focusing on emerging markets. Many funds just invest in ADR/GDR/ADS, which is locally available in US and still charge high fees, many only have less than 100 stocks, etc.
ETFs can strengthen investor’s portfolio and help in asset allocation. At this point in time, ETFs are the best investment vehicles to get exposure to emerging markets. I use Wisdom Tree ETF, EPI, for exposure to Indian economy. Investors do not need to worry about identifying countries or individual companies in emerging countries. It provides a means to invest in India markets, but also a mechanism to buy and sell easily during trading hours in US bourses.
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I review the list of dividend increases every week, as part of my
monitoring process. It's helpful as one of the things I use to review how
existing hold...
19 hours ago
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Linked here is a detailed quantitative analysis of Microsoft Corporation
(MSFT). Below are some highlights from the above linked analysis: Company
Descript...
1 year ago
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