Retirees Seeking Dividend Growth

[Muschu]

Hi

I'm pretty much retired and have a SMSF. Dividends are important to us [as is SP growth if we can get it... ]

We have some of the traditional stocks [banks, WES, a couple of LICs etc].

However I am also interested in companies which hopefully are "solid" [not out-there speculative stocks] but which have been increasing their dividends... Some that we hold that seem to fit into this category are:
CCP
DTL
MOC
S32
VLW

Anyone care to add to this list? Or is there some link that will lead me to such information?

Thanks in advance for any contributions.

 

[Sir Burr]

Hi Muschu,

I'm into long term franked dividends. Have a Comsec account...
Quotes and research > Tools > Stock Screener and choose dividends with high franking and ones with 10 year results.

Use these in a watchlist for Amibroker with a long term system.

 

[Muschu]

Brilliant Sir - Thank you. I also use Commsec and will follow this up.....

And if anyone wants to offer an opinion on specific stocks then that too would be welcome.

 

[Sir Burr]

Not really an opinion but how about some AFI, MLT, BKI, ARG?

 

[Muschu]

Yes I have ARG, MLT and WAM. I had AFI but concentrated more on ARG. BKI is a fresh thought thanks.
Also holding WES and IFL...

 

[So_Cynical]

Semi retiring soon, im looking at adding TLS or APO or SLK or CCL or QUB

I need FF dividends, TLS closer to the bottom than the top, multi billion dollar mobile network and will be a cash cow for decades to come, APO solid business that looks cheap, outdoor ads will always be around and a simple tool for advertisers.

SLK i think should be looked at as half an infrastructure stock as many state govts want and need private operators to run ferry services, recurring govt revenues and little competition, CCL everyone needs to drink and still the largest marketing operator in the country, debt has been massively reduced over the last 5 years.

QUB infrastructure of sorts, that new inland port at Moorebank will be a major import facility going forward and they have a virtual monopoly there, growth industry.

 

[Muschu]

Thanks SC....
Not sure just how high a FF dividend I should seek as perhaps that comes with other risks.
I've decreased my TLS by two-thirds and remain concerned about the SP when they go XD.
From your list I will look more deeply into APO and SLK.
Also wondering just how many companies I want to hold in retirement..... Any thoughts there?

 

[Sir Burr]

Also wondering just how many companies I want to hold in retirement..... Any thoughts there?

Backtesting ideas in Amibroker and for me 15-20 is a good number but someone who promotes buy and hold for dividend income is Peter Thornhill.

Also about LICs, I understand in times like 2008 some continued paying high dividends from their cash reserves so I'm keen on some LICs too but mostly direct shares.

 

[Muschu]

I admit to sleeping better with LICs but these are probably about a third of our portfolio... Which has about 20 stocks.
Has Peter Thornhill much of a following?

 

[So_Cynical]

I hold LIC's (AFI, FGX & ALF) and ETF's (YMAX & MVW) a valuable place or both types of stocks in any long term yield portfolio, i will end up with about 25 - 30 holdings, its not a big deal to have a few too many, on the ETF front DIV & ETF are high franking and starting to look cheap, not there yet though,.

Im expecting a Sept/Oct pull back.

 

[Value Hunter]

If you are bullish on the property market Tamawood (TWD) is worth a look. It has a strong balance sheet, high return on equity, high inside ownership and a long and solid track record. It pays a solid fully franked dividend every year. Worth a closer look. Similar story with the property stocks Cedarwoods properties (CWP) and Sunland Group (SDG). Sunland Group is trading at a discount to NTA. My personal view is that the property boom in Australia will probably continue for years to come.

Of course these are all cyclical stocks and if the property market has a downturn their earnings and dividends will fall. However they are all strong enough to withstand a down turn (and will likely all pay some sort of dividend albeit reduced in a property downturn).

 

[Muschu]

Yes SC there's always a correction coming ..... Volatile days.

Anyone "excited" about any of these?
CWN
SRG
JHC reporting Monday
NCK

 

[Muschu]

Property scares me VH.. Maybe because I'm in Perth
Feel the same about retail and travel............... But FLT and QAN proved me very wrong.
Still holding RFG and not sure why........

 

[Value Hunter]

Muschu funny that you mentioned Perth. I actually think Perth economy and property will start to recover soon (in the next 6 months). So property plays in Perth might be worth looking at. The property developer Finbar (FRI) most operates in Perth. It is worth a closer look. FRI is selling at a discount to NTA which has been depressed by write-downs due to the weak property so its been a double whammy on the downside and will be the reverse on the upside (NTA will rise and the discount to NTA will disappear).

 

[Muschu]

Don't know that I agree VH... We bought a house in Perth near the coast in 2007 and sold in 2014 at a slight loss.
Bought another when we sold the one above, in a similar area, in 2014 and current value is about what we paid.
Depends upon the suburb; and the market may be near the bottom. But unemployment is high; builders are struggling for work; the State is broke [we get 33c per dollar of our GST back]; and any interest rate rise will be very damaging...

 

[kefa]

I admit to sleeping better with LICs but these are probably about a third of our portfolio... Which has about 20 stocks.
Has Peter Thornhill much of a following?

Yes but not on a stock forum.
https://www.propertychat.com.au/community/threads/peter-thornhill.9877/

 

[Belli]

Not heard of Peter Thornhill before but then I don't follow much in the way of commentary on the market. It's mostly white noise to me as there is sooo much of it around, I tend to get confused so I generally avoid reading it.

As for dividend stuff, I'm basically in the same situation as the OP.

My holdings are LIC's only both in the SMSF and outside of it. These are:

AFI
ARG
BKI
DJW
MIR
MLT
PIC
PMC
WHF

That's it. Aside from my account-based pension, for my personal holdings, I add to them each year when I can, especially if there is a share purchase plan, and, as a result, over the last few financial years (2012 to 2017) I noticed my income has been increasing by around $1,500 each year. Keeps ahead of my household costs (rates, etc). I don't feel I've ever gone short of funds as I do adhere to a budget, which seems, oddly to me, an aspect many of my peers appear to ignore.

 

[Muschu]

Thanks Belli.... Some might think them boring but my ARG, MLT and WAM sure aren't proving as volatile as most... And the dividends are fine and fully franked.
Far easier than watching my bank shares and TLS getting smashed, although I have off-loaded some CBA and all TLS.
Have you noticed whether some of your LICs have grown more than others since 2012? Just curious.
I'm into my 70s and seeking maximum stability.

 

[Belli]

Thanks Belli.... Some might think them boring but my ARG, MLT and WAM sure aren't proving as volatile as most... And the dividends are fine and fully franked.
Far easier than watching my bank shares and TLS getting smashed, although I have off-loaded some CBA and all TLS.
Have you noticed whether some of your LICs have grown more than others since 2012? Just curious.
I'm into my 70s and seeking maximum stability.

Ah this is the point at which I may be called a fool but no worries, I've been called that before both to my face and in front of others.

The answer is I don't know really. As far as I am aware there is no legislation which requires me to monitor the prices of the LIC's I hold outside of the SMSF, so I don't. See no need to add stress to my life. Sure, I mentally do some numbers when I go to invest funds but otherwise I don't bother. As for the SMSF, as far as I understand, it only has to be priced once a year and I consider that's the accountant's job. Again, I mentally do numbers when I reckon I have sufficient cash in the SMSF but apart from that I'd rather enjoy my retirement than sweat over money. It's why I consider LIC's work for me and I'm only concerned - in a financial sense - about me.

 

[Value Collector]

Anyone care to add to this list? Or is there some link that will lead me to such information?

Thanks in advance for any contributions.

Take a look at FMG.

They have a pretty good dividend payout ratio.

currently paying a fully franked 8.3% dividend, with a good chance of capital gain of up to 50% over the next 3 years or so.

I think they would make a good addition, to diversified portfolio.