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Show HN: An index of all monthly dividend stocks

thedividendlist.com

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Re: Show HN: An index of all monthly dividend stocks

#61

Post by daydream »

mystertea wrote: post #46
anonu wrote: post #30

* "index" has particular connotation in finance. This is just a list - not an index. * Why "monthly"? There may be higher quality companies that pay quarterly. Why exclude them? * Have you looked at the myriad dividend ETFs? Things like SDY showcase funds that have regularly raised dividends YoY. ETFs may be a better way to get consistent yield and yield growth. Look into SDY, DVY or higher-powered div rates with SDI…

You make some good points here. 1. I stated index in this post (whoops); luckily I called it a list on the website. 2. Partly, in seeking an income strategy, that seemed important to me. Also, frankly, it allowed me to limit the scope of my dataset a bit. Maybe I should go back to the drawing board and include quarterly stocks as well, though. 3. I'll look into it I'll jump ahead and answer your last question as it's…

> 4. What about dividend reinvesting? Can't you avoid taxes if you do that?

No. Dividends that are reinvested are still taxable.

Re: Show HN: An index of all monthly dividend stocks

#62

Post by grepfru_it »

mystertea wrote: post #44
gtani wrote: post #37

There's paywalled sites and then there's the tools you get at Schwab, e-trade, Fidelity, TDA, (maybe Vanguard, their apps investment is lagging), which have detailed info about std dev total returns, Sharpe/sortino ratios, correlations, tax consequnces on a large universe of assets - quarterly pays, - preferreds - laddered investment grade bond portfolios, - asset and mortgaged-backed - high yield bonds, - REITs, hot…

True, the trading sites are more comprehensive, but I found them difficult to use, at least eTrade, with clunky and confusing interfaces that require a lot of knowledge to use effectively. Though, Maybe that last bit is a necessary component, and my site won't be useful for the experienced investor.

I disagree with this assessment. TdAmeritrade is very straight forward in the client and even easier on the website

Re: Show HN: An index of all monthly dividend stocks

#63

Post by gen220 »

mystertea wrote: post #46
anonu wrote: post #30

* "index" has particular connotation in finance. This is just a list - not an index. * Why "monthly"? There may be higher quality companies that pay quarterly. Why exclude them? * Have you looked at the myriad dividend ETFs? Things like SDY showcase funds that have regularly raised dividends YoY. ETFs may be a better way to get consistent yield and yield growth. Look into SDY, DVY or higher-powered div rates with SDI…

You make some good points here. 1. I stated index in this post (whoops); luckily I called it a list on the website. 2. Partly, in seeking an income strategy, that seemed important to me. Also, frankly, it allowed me to limit the scope of my dataset a bit. Maybe I should go back to the drawing board and include quarterly stocks as well, though. 3. I'll look into it I'll jump ahead and answer your last question as it's…

Re 4: reinvested dividends are still taxable income.

The way companies get around this (return value to shareholders without triggering a taxable event) is by repurchasing and retiring shares.

For example, there are 100 public shares trading at $1/share. At the end of the quarter, the company has a spare $1. If they issue a dividend, every shareholder gets $0.01, which is taxed.

Instead of issuing a dividend, they repurchase 1 share for $1. Assuming the value of the company hasn't changed, the per-share price should now be $1.01. Basically, they gave you an untaxed $0.01 increase in equity value, which you can choose to recognize on your own schedule.

This might give you another idea, which is to list companies with stock repurchase programs.

Also, re 3: make sure you account for the expense ratio of these funds. Since dividends are relatively volatile (lots of new entrants and exits on the margin), you might be surprised by how much these ETFs charge for their service. Sometimes, it's justifiable as a price worth paying. Other times it isn't, use your judgement and VOO as a benchmark of what bare-minimum expenses look like.

As an example, USOI's expense ratio is 0.85% and VOO's is 0.05%. Over long holding periods, a 17x higher expense ratio is extremely meaningful.

Re: Show HN: An index of all monthly dividend stocks

#64

Post by bob1029 »

When looking at investing in stocks (long term, growth), I weigh the dividend yield as a minuscule fraction of my overall decision. If you are buying "monthly dividend" stocks with hopes of securing a stable, long-term cashflow (i.e. by way of mostly just inspecting their historical yields), you are in for a really shitty ride.

The dividend is a noob test for an investor. Only in very targeted situations should you actually care about this number. Only when every other factor leads you to ??? should you glance at this figure and allow it to push you one way or the other. For example, "Should I buy ATT or VZ"? Trick question - You should buy both. Diversification is more important than dividend yield.

Holding something that yields 20% over the last 5 years sounds great, until the board (or more likely, market/competition forces) decide to light the whole thing on fire. Now, your entire original investment is up in smoke overnight. If you had been listening to the earnings calls, you might have developed some suspicions, but more likely than not your DD consists entirely of websites like this.

Re: Show HN: An index of all monthly dividend stocks

#65

Post by mystertea »

bob1029 wrote: post #64

When looking at investing in stocks (long term, growth), I weigh the dividend yield as a minuscule fraction of my overall decision. If you are buying "monthly dividend" stocks with hopes of securing a stable, long-term cashflow (i.e. by way of mostly just inspecting their historical yields), you are in for a really shitty ride. The dividend is a noob test for an investor. Only in very targeted situations should you a…

Looking at your point regarding that earning call, it seems you're looking at this in light of a more traditional company and not an ETF/REIT/Leveraged fund. Forgive me if I'm wrong in that assumption. For conventional value investing, this is probably true, I'm no expert.

It does seem to me that there is room for a stock like this in one's portfolio though, as part of a larger strategy. Maybe a high yield leveraged fund is only a small portion of your stock, or you need to convert some of your assets to income for a few years.

Re: Show HN: An index of all monthly dividend stocks

#66

Post by lxgr »

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

> Stock buybacks are such shenanigans in comparison: they make money and use it to inflate the value of their shares.

Nothing is inflated if you think it through, since the market capitalization does not change.

By that logic, is issuing new stock (or even stock splits!) virtuous, since they both decrease the price per share?

Re: Show HN: An index of all monthly dividend stocks

#67

Post by mystertea »

gen220 wrote: post #63
mystertea wrote: post #46

Earlier quoted context omitted.

You make some good points here. 1. I stated index in this post (whoops); luckily I called it a list on the website. 2. Partly, in seeking an income strategy, that seemed important to me. Also, frankly, it allowed me to limit the scope of my dataset a bit. Maybe I should go back to the drawing board and include quarterly stocks as well, though. 3. I'll look into it I'll jump ahead and answer your last question as it's…

Re 4: reinvested dividends are still taxable income. The way companies get around this (return value to shareholders without triggering a taxable event) is by repurchasing and retiring shares. For example, there are 100 public shares trading at $1/share. At the end of the quarter, the company has a spare $1. If they issue a dividend, every shareholder gets $0.01, which is taxed. Instead of issuing a dividend, they re…

Thanks for the reply -- good info in here.

I'll consider adding a section / filter for stocks with repurchase programs. That is an interesting point I didn't consider. It's a bit tangential to theme of this site, but maybe I can make it work.

Factoring in the expense ratio is a very good idea--I'll look into how to add that.

Re: Show HN: An index of all monthly dividend stocks

#68

Post by thunky »

bob1029 wrote: post #64

When looking at investing in stocks (long term, growth), I weigh the dividend yield as a minuscule fraction of my overall decision. If you are buying "monthly dividend" stocks with hopes of securing a stable, long-term cashflow (i.e. by way of mostly just inspecting their historical yields), you are in for a really shitty ride. The dividend is a noob test for an investor. Only in very targeted situations should you a…

To add to this, if you think of a dividend as a forced sale of some of your shares (because that's effectively what it is), it doesn't look quite as appealing. A dividend is not free money.

That said, I do think that companies with consistent earnings and a solid track record of paying dividends are a different breed than a company than one that is driven by growth (often to their detriment). So it is worth paying attention to.

Re: Show HN: An index of all monthly dividend stocks

#69

Post by HumanReadable »

It's a well executed website, but there is no good reason for it to exist. You shouldn't be on a quest to find high yield dividend stocks in the first place.

Whether a stock pays dividends really shouldn't factor in to your decision as to whether to buy it. Any dividend a company pays out makes the company worth that much less. Whatever you stand to gain from the dividend, you stand to lose in the value of the stock you own.

When buying a stock the only thing that matters are its fundamentals. Ie. is the company's assets and future earning potential worth more than the current price of the stock to you? Unless you have information that the market doesn't, this is not a question whose answer you will reliably get right.

Re: Show HN: An index of all monthly dividend stocks

#70

Post by tndibona »

I like the site. I’ve actually tried to use Schwab and Fidelity to locate long term stable dividend stocks but their search and filters are complex. Your site mostly lists funds so an option to filter by stock, or ETF, or managed fund would be helpful. Also a column that shows the expansion next to the abbreviated ticker name would be gold. Thanks for the effort
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