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+--- Thread: DGI Forum Yield Trap Index (/showthread.php?tid=2021)
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DGI Forum Yield Trap Index - fenders53 - 10-19-2021
Just for fun, but I do intend to track it in Portfolio Visualizer vs a benchmark of actual dividend growth stocks such as the Vanguard DGI ETF. I won't look now, but I will back test it and watch it going forward. Don't take it personal, we've all owned some of these stocks, or still do.
I guess we'll do a 10 stock index.
-No more than about two stocks from a sector.
-Have to be well known stocks that draw in dividend investors. No ETFs, CEFs etc.
-Well above market average dividend, share price lags for years.
-Still popular because of the Div.
I can think of plenty but I will let you guys start. Please throw up a few names. We'll grab stocks that get at least a couple votes. We need to cover most of the sectors.
RE: DGI Forum Yield Trap Index - EricL - 10-19-2021
Here are some that I own. I have others too, but I don't want to hog the list! =)
T, OHI, KMI
RE: DGI Forum Yield Trap Index - fenders53 - 10-19-2021
(10-19-2021, 09:32 AM)EricL Wrote: Here are some that I own. I have others too, but I don't want to hog the list! =)
T, OHI, KMI
T is a no doubter for this index. Change my mind with facts lol.
KMI is solid for energy. XOM not a bad call IMO. Sure they've had a great 2021 but much of the last decade has been bad. Folks definitely buy it for the high dividend. As biased as I am I don't think our intent should be to kneecap this index to extreme underperformance. I am trying to think back at least three years on this project.
I am going to nominate MO, IBM and XOM. Not terrible companies, but I smell yield trap.
I got more but I'll wait for input from others.
RE: DGI Forum Yield Trap Index - ken-do-nim - 10-19-2021
I don't own it, but isn't LUMN and its 8.34% yield to go along with its -57% price decline in the last 5 years the thread winner?
RE: DGI Forum Yield Trap Index - fenders53 - 10-19-2021
(10-19-2021, 09:59 AM)ken-do-nim Wrote: I don't own it, but isn't LUMN and its 8.34% yield to go along with its -57% price decline in the last 5 years the thread winner?
Never heard of them. We'll see if they get any more votes.
VZ maybe? That would close out that sector.
We should be able to come up with an industrial and a financial. Materials should be very easy. I can think of some UTEs that just lay there and struggle to pay a bit too high div.
RE: DGI Forum Yield Trap Index - ken-do-nim - 10-19-2021
(10-19-2021, 10:09 AM)fenders53 Wrote:(10-19-2021, 09:59 AM)ken-do-nim Wrote: I don't own it, but isn't LUMN and its 8.34% yield to go along with its -57% price decline in the last 5 years the thread winner?
Never heard of them. We'll see if they get any more votes.
Well you kind of have, seeing as how you participated in the thread I started on it when I first joined
. To recap, it is the highest yielding S&P 500 stock.http://dividendgrowthforum.com/showthread.php?tid=1944
RE: DGI Forum Yield Trap Index - fenders53 - 10-19-2021
(10-19-2021, 10:11 AM)ken-do-nim Wrote:(10-19-2021, 10:09 AM)fenders53 Wrote:(10-19-2021, 09:59 AM)ken-do-nim Wrote: I don't own it, but isn't LUMN and its 8.34% yield to go along with its -57% price decline in the last 5 years the thread winner?
Never heard of them. We'll see if they get any more votes.
Well you kind of have, seeing as how you participated in the thread I started on it when I first joined
http://dividendgrowthforum.com/showthread.php?tid=1944
RE: DGI Forum Yield Trap Index - fenders53 - 10-19-2021
OK I looked and LUMN clearly qualifies lol. We can only have two telecom sector though and maybe this should be one.
RE: DGI Forum Yield Trap Index - crimsonghost747 - 10-19-2021
T, OHI, RDS are the ones I've owned. I do think T and OHI have their place in this "index", an oil major should be there but doesn't really matter which one.
MO should probably be on the list too.
And maybe SPG from the REIT sector? Not too sure how many hold it from here but it might be the best REIT to fit into a yield trap category. Well, I mean they already cut their div by around 50% last year so technically it's not a yield trap anymore... but you guys get my point.
RE: DGI Forum Yield Trap Index - fenders53 - 10-19-2021
SPG is perfect for REITs. Big REIT with a large following.
A packaged foods company is probably a good candidate to finish out consumer non-durables. KHC or there are many others to choose from in the second tier. but still large and famous brands.
RE: DGI Forum Yield Trap Index - fenders53 - 10-21-2021
IBM has sealed their spot. We just need a few more sectors to finish our "index". Surely there is a candidate from materials and financial sector etc.
I suppose we can double up on sectors where the high yielders reside. I just want to dominate it with tobacco or midstreams.
Again it is OK if they just had a strong year in share price. Yield traps do that. We are trying to make a list of the 10 worst companies. Just an index of stocks that lure us in with a high dividend and then take much of it back over time. SPG was a good suggestion. Not a terrible company but that dividend could get iffy and take the share price with it, or not.
DGI Forum Yield Trap Index - bankerboy - 10-25-2021
(10-19-2021, 10:09 AM)fenders53 Wrote:(10-19-2021, 09:59 AM)ken-do-nim Wrote: I don't own it, but isn't LUMN and its 8.34% yield to go along with its -57% price decline in the last 5 years the thread winner?
Never heard of them. We'll see if they get any more votes.
VZ maybe? That would close out that sector.
We should be able to come up with an industrial and a financial. Materials should be very easy. I can think of some UTEs that just lay there and struggle to pay a bit too high div.
VZ for sure.
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