Tag Archives: income

Quantitative investing: trending value system update

In today’s post I’ll update the Trending Value quant system. The primary difference Trending Value has in relation to the three other systems that I have updated (Utilities Value, Consumer Staples Value, and Enhanced Yield) is that it uses relative price momentum in addition to value to screen for stocks. I first discussed the system almost 2 years ago now. Let’s update the results and see how it has performed and what stocks the screen favors today. The trending value system combines the best of value and momentum. It first uses a composite value score (VC2), like in the utilities … Continue reading

Posted in Quant Investing | Tagged , , , , , , | 37 Comments

Quantitative investing: enhanced yield system update

Time to update quant system #3 in my series. See my previous two posts for the first two system updates (here and here). Today I’ll update the enhanced dividend yield system which I originally posted on almost 2 years ago. Let’s dive right in. The enhanced dividend yield strategy originally appeared in What Works On Wall Street. In its original form its is a bit complicated to implement with an unequal weighting of the individual holdings. In my modified approach I use an equal weighting of the top 25 stocks. The strategy basically screens for large profitable popular dividend paying … Continue reading

Posted in Quant Investing | Tagged , , , , , , | 9 Comments

Poor future returns and the safety first approach

In today’s post I want to address another approach to dealing with the prospect of poor future returns. In my last post I described the prospect of poor future returns and different risk-based portfolio strategies in such an environment. Today I’ll consider an alternative. The alternatives are various dedicated income approaches that put the retirement income stream at the top of the priority list. For the most part these approaches have been documented only in obscure research papers but thanks to a few retirement researchers that is starting to change. Let’s take a look at some of these safety-first approaches. … Continue reading

Posted in Retirement | Tagged , , , , , , , , , | 3 Comments

An IVY Buy & Hold Portfolio for the Skeptical & Emotional Investor

One of the keys to successful long term investing is finding a portfolio strategy that works for you, that lets you be at peace and sleep at night. Historical and theoretical returns don’t mean a thing if you have little chance of sticking with a certain strategy. And herein lies the biggest problem with the commonly recommended buy and hold strategies – most investors can’t stick with them over the long term as is shown every year by the Dalbar studies or any studies that look at actual investor returns. For many investors this is where an automatic approach like … Continue reading

Posted in Portfolio, TAA Investing | Tagged , , | 10 Comments

Income investments & that vertical drop-off thing that’s coming…

You’d have to have been living in a cave, or dry camping in the wilds for 6 weeks like I was until a few weeks ago, to not have been bombarded by the 2 words that I allude to in the title of this post. I’ll try and spare you and only say them a few times in the post. Needless to say the ‘fiscal cliff’ fears have taken a bit of a toll on income investments, in particular equity income investments that have performed well so far this year. I thought it wold be useful to take a look … Continue reading

Posted in Dividends | Tagged , , , | 2 Comments

Revisiting a recipe for a happy retirement

Time out in the boonies, in our case the wonderful eastern Sierras, almost forces you into a reflective mood. Yesterday was one of those days where the amazing beauty of a spectacular hike (see my wife’s post and pics here) got me thinking about what is needed for a happy retirement. Well, I should say rethinking because early on in the blog I posted on this exact subject. I thought today, being more than 2 years on from that post, I would revisit my proposed recipe and see what’s changed. I have to say that not much has changed to my … Continue reading

Posted in Retirement | Tagged , , , , , | 8 Comments

A brief case study in reaching for yield

I am often shocked at how much income investors will stick their neck out for yield. I spend most of my time looking at stocks so I often will note how I think investors are reaching for yield by going after utilities, REITs, etc… But if you really want to see extreme cases of reaching for yield look at some examples in the closed end fund (CEFs) world. Truly mind boggling. I thought I had come across a great example last night but this morning Jason Zweig at the WSJ wrote about a real doozy. Jason’s example is the Cornerstone … Continue reading

Posted in Bonds | Tagged , , , , | 6 Comments

October income investor dashboard

September turned out true to historical form, as one of the weakest months for stocks, In last month’s report I said that there was a good chance stocks would test the August lows. The August lows were not only tested this month but broken causing even more pain for stocks this month and continued flight to safety into all sorts of government bonds. Lets take a look at the results in the dashboard below. I’m a little behind on this, with prices as of the close on Oct 4th, but it didn’t make too much difference. In general, it was … Continue reading

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August income investor dashboard

It’s time again for the monthly update of the income investor dashboard. July was an exciting month with stocks dropping in general, bonds defying the consensus chorus and rallying, and volatility spiking higher. Below is the updated income investor dashboard. As usual the highlighted green cells are for those areas that became less expensive, higher yields, during the month. The broad stock averages dropped about 1-2% for the month and the dividend ETFs did even poorer, dropping 2.5% to 3.5%. Some of the dividend ETFs, like IDV are starting to look interesting. What’s important to note is that the broad … Continue reading

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Income investor dashboard for July 2011

Wow! That was truly a crazy last week of the month. A great week for stocks and a not so great week for bonds. This is when zooming out and looking at market changes over a monthly period helps to add some perspective. Having said that lets jump right in to this month’s Income Investor Dashboard. Prices and yields are as of the end of the day June 30th so they do not capture the increase in the markets we saw today. Here is the Dashboard for July. Many of the ETFs declared their quarterly dividends this month so the … Continue reading

Posted in Portfolio, Stocks | Tagged , , | Comments Off on Income investor dashboard for July 2011