Friday File: Portfolio Hodgepodge — One New Speculation, an Add-on Buy, and Check-ins on Some Dividend Growth stocks and Altius
by Travis Johnson, Stock Gumshoe | May 25, 2018 4:30 pm
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Source URL: https://www.stockgumshoe.com/2018/05/friday-file-portfolio-hodgepodge-one-new-speculation-an-add-on-buy-and-check-ins-on-some-dividend-growth-stocks-and-altius/
Fortis
I may be corrected on this but believe Fortis – FTS (CA and USA) is the longest running and only stock that has consistently increased its dividend every year going back to 1972 amongst all USA and Canadian equities
That’s a good run, but there are more than a dozen big US companies that have increased the dividend annually for at least 50 years… here’s one article about a few of them: https://www.google.com/amp/amp.kiplinger.com/slideshow/investing/T018-S001-dividend-aristocrats-with-50-years-payout-growth.html
Travis, what program or platform did you use to compile those 13 stocks?
YCharts
Hi Travis,
I’m fairly new to investing so I’m not sure if I got this right. From your portfolio, it looks like you use stop losses and not trailing stops. Is this correct? And if so, why? I’m now looking to add trailing stops or top losses to most of my porfolio holdings and was wondering if you could share your approach or if any other readers could share theirs. Thanks!
I watch trailing stop levels, mostly using the volatility quotient stop loss percentages recommended by TradeStops.com. The numbers in my portfolio come from TradeStops.
I do not mechanically follow stops, however. Some stocks I’m very unlikely to sell if they hit stop loss trigger levels, but some I will sell, either in whole or in part… and some I will buy more of. I use the stop loss alert as a signal that I have to look closely at that stock again and make a decision — if it’s a richly valued momentum stock, I’m more likely to sell because sentiment shifts can quickly cut such stocks in half — but if I think there’s strong underlying asset value or that it’s just a temporary overreaction by the market, I’m more likely to hold or buy more.
Avoiding the permanent loss of capital that comes when you “marry” a stock that falls into permanent decline or has no real fundamental value is critical for investors, especially for faddish or trend-riding positions where you bought because of a story or a rising stock price — but “sell low” is not a great strategy for companies that really do have long-term compounding power.
Thanks Travis. Where does a stock like Shopify fit for you: “richly valued momentum stock” or a stock you “very unlikely to sell if they hit stop loss trigger levels”?