Seeking Alpha
  • When Opportunity Knocks, It's Wise To Open The Door - Low Valuation Trumps Growth
    Editors' Pick IBM Today, 12:26 PM Chuck Carnevale 79 Comments

    Summary

    • I only see the stock market as the store where I can shop in to buy good businesses.
    • Once I do purchase the business, I no longer worry about the daily quotes.
    • What I do care about is how the business is performing.
    • True value investors get excited when they find a wonderful business selling at a deep discount to its intrinsic value.
    • When opportunity knocks loudly at the door, it's wise to open the door.
  • Algonquin Power: Diversified Canadian Utility With Mainly U.S. Revenues
    Editors' Pick AQUNF Yesterday, 11:46 AM George Fisher 11 Comments

    Summary

    • Algonquin Power is a stealth water utility, representing 5.8% of revenue. Pending acquisition will increase its water customer count by 70%.
    • Recent dividend increase of 12% and change in payment currency is U.S.-shareholder friendly. Dividend growth investors should take notice.
    • Many utility investors, even income investors looking for small-cap opportunities, overlook Algonquin Power.
  • Why Applied Materials Stock Is A Good Investment Opportunity
    Editors' Pick AMAT Yesterday, 7:53 AM Arie Goren 1 Comment

    Summary

    • Applied Materials is an excellent combination of good value and a strong growth dividend stock.
    • As the leading global supplier of semiconductor equipment, Applied Materials will continue to benefit from the increasing demand for semiconductor equipment.
    • AMAT's stock has performed very well this year and in 2013; however, it still has plenty of room to move up.
  • Is American Realty Capital Properties A 'Sucker Yield' Bet?
    Editors' Pick ARCP Yesterday, 7:00 AM Brad Thomas 159 Comments

    Summary

    • My biggest concern with ARCP has to do with the unusually high yield that also signals that the dividend could be in danger of being reduced.
    • Companies that fall under the "sucker-yield" definition typically have unpredictable and unreliable earnings histories with unsafe dividend payouts.
    • I will not be suckered into a trap where my principal is not safe.
  • American Capital Agency's Upcoming Q3 2014 Book Value Projection
    Editors' Pick AGNC Yesterday, 4:21 AM Scott Kennedy 30 Comments

    Summary

    • I am projecting AGNC will report a modest decrease in quarterly BV and generate a minor economic loss for the third quarter of 2014.
    • The projected modest decrease in quarterly BV is mainly due to the heightened spread/basis risk that occurred during the third quarter of 2014.
    • My projection for AGNC's book value per common share as of 9/30/2014 and 10/17/2014 is stated in the "Conclusions Drawn" section of the article.
    • My projection for MTGE's and NLY's book value per common share as of 9/30/2014 is stated just above the "Conclusions Drawn" section of the article.
    • My buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the "Conclusions Drawn" section of the article.
  • The New Nifty Fifty, Part 2: Dividend Growth Investing's Greatest Hits
    Editors' Pick AAPL, AFL, BRK.B Wed, Oct. 22, 10:15 PM Mike Nadel 262 Comments

    Summary

    • As a follow-up to the recently named New DGI Nifty Fifty, these are the 10 panelists' best of the best.
    • JNJ was the top choice, but even that didn't appear on every list.
    • Each panelist's Top 10 is presented.
    • Some individual stock selections are discussed in greater detail.
  • What Likely Happened To Dividend Growth Retirees In The Recessions
    Editors' Pick BAC, COP, GE Wed, Oct. 22, 7:32 AM Dale Roberts 130 Comments

    Summary

    • The Great Recession delivered the greatest challenge to dividend investors.
    • Many dividend stalwarts delivered dividend cuts, holds or eliminations forcing investors and retirees to make some tough decisions.
    • What happened to an investor who used dividend growth through the recession, and who had to cut and run on some dividend growth holdings?
    • We'll see that a dividend growth core offered some wonderful recovery potential.
    • I run the numbers on a dividend growth proxy portfolio that holds a core of consumer dividend payers along with a popular holding that offered a dividend cut.
  • BAC: Best Practice Model Validation For Fed Stress-Testing, Value At Risk And Credit VAR
    Editors' Pick BAC Tue, Oct. 21, 5:12 AM Donald van Deventer 7 Comments

    Summary

    • Last Friday the Fed decried banks' reliance on poor risk models in announcing the rules for the imminent stress testing exercise with results due in January.
    • These stress tests have important implications for BAC, C, JPM and WFC and the banks regulated by the European Central Bank and UK authorities.
    • This note, which is designed for serious nerds, focuses on best practice model validation for stress testing, value at risk, and credit-adjusted value at risk.
  • Lexington Realty Trust: Patience Is A Virtue
    Editors' Pick LXP Mon, Oct. 20, 7:00 AM Brad Thomas 47 Comments

    Summary

    • Loss, as defined by Howard Marks (in his book, The Most Important Thing), is what happens when risk and adversity collide.
    • After examining the catalysts for Lexington, I consider the shares to be trading at a moderate discount.
    • My “top pick” for 2014 has not performed but as I said at the outset, I really haven’t lost yet.
    • There are a number of catalysts in place (for Lexington) that should move the needle and the dividend appears to be safe and growing.
  • American Capital Agency's Upcoming Q3 2014 Income Statement Projection - Part 3
    Editors' Pick AGNC Mon, Oct. 20, 4:48 AM Scott Kennedy 23 Comments

    Summary

    • Most 15- and 30-year fixed-rate agency MBS coupons saw a minor to modest price decrease during the third quarter of 2014.
    • As such, I am projecting AGNC will report a net unrealized gain (loss) on available-for-sale securities of ($400) million for the third quarter of 2014.
    • I am projecting AGNC will report a net unrealized gain (loss) on interest rate swaps (upon reclassification to interest expense) of $37 million for the third quarter of 2014.
    • My projection for AGNC’s comprehensive income (loss) amount for the third quarter of 2014 is stated in the “Conclusions Drawn” section of the article.
    • A future article, which will be published prior to AGNC’s quarterly press release, will project the company’s BV as of 9/30/2014 and 10/17/2014.
  • Water Stocks: Great Promise But At What Cost?
    Editors' Pick AEGN, AWK, AWR Sun, Oct. 19, 11:55 AM Roger S. Conrad 28 Comments

    Summary

    • The US needs to make massive investments in municipal water systems to ensure safe supplies for the communities these serve - a crushing burden to state and local governments - and taxpayers.
    • We prefer system operators to engineering, procurement and construction companies; the latter names have taken a big hit because municipalities have balked on spending.
    • Cash-strapped municipalities increasingly look to monetize their water services, giving well-positioned private operators such as WTR ample opportunity to grow through consolidation.
    • Avoid AWR, CWT, SJW, all of which entail too much regulatory risk.
  • A Textbook Model Of Dividend Predictability
    Editors' Pick O Sat, Oct. 18, 8:56 AM Brad Thomas 94 Comments

    Summary

    • It stands to reason that a value investor should examine any potential investment based upon ALL metrics, especially the methods that are the most meaningful for dividend investors.
    • The simplest model for valuing equity is the dividend discount model - the value of a stock is the present value of expected dividends on it.
    • Realty Income's stock valuation is tailor made for the DDM and perhaps may even be a "conservative" way to value the stock.
  • Nuveen Long/Short Commodity Total Return Fund Should Be Restructured
    Editors' Pick CTF Sat, Oct. 18, 7:57 AM Reactive Event Driven Investors 27 Comments

    Summary

    • Largest discount to NAV among US traded closed-end funds.
    • The fund violates Buffett's owner-related business principles.
    • CTF primarily holds cash which can be purchased at a significant discount.
  • 5 Myths About SeaDrill That Could Cost You Real Money
    Editors' Pick SDRL Fri, Oct. 17, 3:17 PM Elliott Gue 187 Comments

    Summary

    • SeaDrill boosters often cite numbers (backlog, yield, day-rates) without placing these figures into context. We address 5 common myths about this stock.
    • SeaDrill proponents cite day-rates on fixtures that were negotiated 12 to 18 months ago to argue that the market for new rigs hasn't softened. The supply-demand balance tells a different story.
    • SeaDrill has a roughly $20 billion backlog. The timing of contract expirations and the likelihood of securing fixtures at similar prices much more important to cash flow.
    • Forget stock price and yield, industry fundamentals ultimately will dictate SeaDrill's performance.
  • British American Tobacco: Reading The Smoke Signals (Part 2)
    Editors' Pick BTI Thu, Oct. 16, 4:14 PM Timberwolf Equity Research 4 Comments

    Summary

    • British American Tobacco is backing Reynolds American's bid for Lorillard.
    • British American Tobacco is Philip Morris's foremost competitor.
    • The company has in 2013 and 2014 been hit by currency troubles.
    • P/E is at 15.6x while the dividend yield is around 4.27%.
  • Market Meltdown Faced With Aplomb By Retirees Bolstered By Dividends
    Editors' Pick EPR, FUN, LVS Thu, Oct. 16, 9:52 AM George Schneider 67 Comments

    Summary

    • The S&P 500 index has given up 194 points or 9.6% since its high of 2019 reached just a few weeks ago.
    • We have gone from pullback to correction mode in short order.
    • Like Cindy Lauper, retirees ‘just wanna have fun’.
  • Kinder Morgan Inc. Investment Thesis
    Editors' Pick KMI Wed, Oct. 15, 8:26 PM George Thoreson 103 Comments
  • The New Nifty Fifty, Part 1 - Dividend Growth Style
    Editors' Pick CVX, KO, KMB Wed, Oct. 15, 5:04 PM Mike Nadel 590 Comments

    Summary

    • The original Nifty Fifty was so '70s.
    • Ten Seeking Alpha contributors and/or commenters helped choose a new Nifty Fifty with a Dividend Growth focus.
    • The list includes all the "standards," but also some surprises.
  • 31 Beaten-Down Dividend Growth Stocks: Part 2
    Editors' Pick BLK, CRR, FUL Wed, Oct. 15, 12:56 PM Chuck Carnevale 62 Comments

    Summary

    • 31 dividend growth stock research candidates that that appear attractively valued.
    • I believe the current market correction is a healthy response to an overall market that had become extended regarding valuation.
    • There are appropriate long-term choices for various investment objectives to include safety, high-yield and above-average total return, so choose accordingly.
  • Cracker Barrel Is A Cash Cow, Here's How To Milk It
    Editors' Pick CBRL Tue, Oct. 14, 7:00 AM Brad Thomas 44 Comments

    Summary

    • Cracker Barrel operates 633 stores and of that the company owns the land and buildings for 417 stores.
    • Considering that Cracker Barrel owns a significant amount of real estate it seems logical that the company could improve its overall efficiency (capital structure) by unlocking real estate value.
    • It would seem reasonable that a value investor would recognize the wealth that could be created by spinning the real estate into a REIT structure.
  • It's Not Rocket Science: BioMed Is A Buy
    Editors' Pick BMR Tue, Oct. 14, 6:50 AM Brad Thomas 21 Comments

    Summary

    • Today, the world is on edge with the Ebola virus disease in which 8,376 suspected cases resulting in the deaths of 4,024 have been reported (source: Wikipedia).
    • I don’t think that Mr. Market is giving the company adequate credit for its improved balance sheet and continued diversification efforts.
    • Given the strong macroeconomic environment in the pharmaceutical sector, BioMed appears to be trading at a cheap valuation.
  • Philip Morris: Reading The Smoke Signals (Part I)
    Editors' Pick PM Mon, Oct. 13, 10:10 AM Timberwolf Equity Research 24 Comments

    Summary

    • Philip Morris stock has declined slightly this year.
    • Dividend was upped recently to $1.00 per quarter, yielding 4.75%.
    • Foreign exchange headwinds remain a large concern.
    • Recent dollar strength against the euro adds to the currency troubles.
  • Oversold, 11.3% Dividend Vanguard Natural Resources Is A Bargain On This Dip
    Editors' Pick VNR Mon, Oct. 13, 7:21 AM David White 36 Comments

    Summary

    • VNR closed on the acquisitions of two new properties in Q3 2014. These both should be accretive to distributable cash flow.
    • VNR reserves are 68% natural gas. Hence VNR is not overly exposed to falling oil prices; and natural gas prices seem likely to rise.
    • VNR oil production is well hedged for both 2014 and 2015 as is its natural gas production.
    • VNR grows mostly by buying mature, low decline rate assets that require little development. This should obviate the development financing problems of many development companies.
  • Primary Fixed Rate Mortgage Yields Fall 0.06% And Mortgage Servicing Values Rise This Week
    Editors' Pick WFC, AGNC, BAC Fri, Oct. 10, 8:22 AM Donald van Deventer 8 Comments

    Summary

    • All-in yields on 15 and 30 year fixed rate mortgages fell 0.06% this week in the wake of a U.S. Treasury yield drop of 0.07% to 0.12%.
    • The 15-year fixed rate mortgage all-in yield is projected to rise from the current 3.372% to 5.359% in 10 years, down 0.06% from last week.
    • Mortgage servicing rights values rose for both 15 and 30 year fixed rate mortgages.
  • 45 Attractive Dividend Growth Stocks In Today's Overheated Stock Market - Part 1
    Editors' Pick AAPL, AMP, BAX Thu, Oct. 9, 12:47 PM Chuck Carnevale 182 Comments

    Summary

    • This article presents a pre-screened list of 45 dividend growth stocks that appear attractively valued, and possess the potential for above-average future earnings and dividend growth.
    • When you consider that many stocks are actually overvalued today, there is a significant long-term benefit to be found with sound valuation.
    • Exercise the discipline to purchase a stock at sound valuation, and you can have confidence that your portfolio is being built on a solid foundation of value.
    • More often than not, a stock’s price will move into alignment with fair value sooner than later.
  • Ensco Plc: A Thorough Analysis
    Editors' Pick ESV Wed, Oct. 8, 5:41 PM Aristofanis Papadatos 41 Comments

    Summary

    • While S&P has remained essentially flat in the last 3 months, the offshore drillers have experienced a fierce bear market, losing about 1/3 of their value.
    • This article provides a deep analysis of the impact of reduced day rates on the earnings of Ensco.
    • The reduced rates will have a limited effect on the revenue from floaters and a negligible effect on jackups. Ensco derives 40% of its revenue from jackups.
  • The Music Is Still Playing For New York REIT
    Editors' Pick NYRT Wed, Oct. 8, 7:32 AM Brad Thomas 19 Comments

    Summary

    • Nicholas Schorsch is somewhat of a magician in which he has been able to successfully manipulate multiple REIT platforms.
    • Schorsch has shown a propensity to sell so that he can publicize a "win" and sell more non-traded shares - where his bread is really buttered.
    • There’s no slowing down but remember how the game ends in musical chairs? Don’t be the last one standing.
  • It's Time To Sell Hewlett-Packard Bonds
    Editors' Pick HPQ Tue, Oct. 7, 2:00 PM The Financial Lexicon 1 Comment

    Summary

    • Hewlett-Packard announced plans to split the company into two.
    • The press release did not include details about how it will divide its debt and cash.
    • It's time to sell Hewlett-Packard bonds.
  • A New Global Fertilizer Giant In The Making?
    Editors' Pick CF, YRAIF Tue, Oct. 7, 1:44 PM Seeking Early Retirement 31 Comments

    Summary

    • CF Industries and Yara International ASA have confirmed that they have entered into merger talks.
    • Both companies are the world’s leading nitrogen fertilizer producers and complement each other in certain aspects.
    • There are some good arguments in favor, but also against a merger of CF Industries and Yara.
  • Comparing Annaly Capital Management's BV, Dividend, Risk And Valuation To Several mREIT Peers - Part 2
    Editors' Pick NLY Tue, Oct. 7, 9:51 AM Scott Kennedy 50 Comments

    Summary

    • As I previously projected, NLY and most of the company’s mREIT peers had declared a stable dividend per share rate for the third quarter of 2014.
    • Two mREIT peers who did not have a stable per share rate were CYS with a modest dividend decrease and WMC with a minor dividend increase (percentage wise).
    • NLY continued to have yield percentages modestly below the agency mREIT average, thus inherently lowering the risk of dividend reductions throughout the remainder of 2014 going into 2015.
    • AGNC continued to have yield percentages slightly below the agency mREIT average while ARR and CYS continued to have yield percentages above the agency mREIT average.
    • My current buy, sell, or hold recommendation on each mREIT company within this analysis is stated in the “Conclusions Drawn” section of the article.
  • For Retirees, Have The Last 15 Years Been The Worst Of Times? Ever?
    Editors' Pick CL, JNJ, KO Tue, Oct. 7, 7:58 AM Dale Roberts 62 Comments

    Summary

    • Funding retirement is tricky business, to say the least. What works in one period may not work in the next.
    • Stocks have typically provided the growth engine that allows retirees to beat inflation and maintain an aggressive spending strategy - and maintain that quality of life.
    • But investing in the equity markets takes on additional risks for the retiree, as selling stocks in down years can cripple the portfolio.
    • The last 15 years have been perhaps the most trying time for retirees, especially those who began retirement in 1999 to 2001.
  • Excel Trust: An Unpolished Gem Considered A Diamond In The Rough
    Editors' Pick EXL Tue, Oct. 7, 7:00 AM Brad Thomas 15 Comments

    Summary

    • Sometimes by sifting through the REIT mines, it’s possible to uncover a jewel disguised as coal - preparing for a day in the sun when the true potential is unlocked.
    • Excel Trust trades at $11.99 and I believe that Mr. Market has overlooked the potential for the shares.
    • I consider Excel Trust to be a "diamond in the rough" and I intend to initiate a BUY rating on the shares.
  • LTC's Sweet Monthly Dividend Is Icing On The Cake
    Editors' Pick LTC Mon, Oct. 6, 7:00 AM Brad Thomas 24 Comments

    Summary

    • The continued "graying of America" should result in increased demand for long-term care services and related properties.
    • LTC has a very healthy balance sheet with less than 1% of secured (mortgage) debt.
    • LTC's track record for dividend growth is the icing on the cake, and because the company pays monthly, I can lick the icing on the spoon every month!
  • Retirees: When Harvesting Assets Forecasting Future Earnings Growth Is The Key To Success: Part 2
    Editors' Pick CTRX, GOOGL, PBM Fri, Oct. 3, 3:35 PM Chuck Carnevale 98 Comments

    Summary

    • Not every retired investor has accumulated enough assets to live off their portfolio’s income generation.
    • Analyzing equity investments can be difficult, and mistakes are certain to be made.
    • Nevertheless, the retiree’s portfolios must last long enough to fund their retirement years.
    • Forecasting future earnings growth is the key, here is a logical approach.
  • PIMCO: How To Lose (Lots Of) Money And Still Influence People
    Editors' Pick BOND, IEF, PST Thu, Oct. 2, 10:52 AM Brad DeLong 29 Comments
  • Seadrill Is Well-Positioned For The Current Difficulties In The Industry
    Editors' Pick SDRL Wed, Oct. 1, 5:55 PM Power Hedge 167 Comments

    Summary

    • Seadrill has been one of the most rapidly growing offshore drilling contractors over the past decade.
    • Today, the company has one of the largest ultra-deepwater and shallow-water fleets in the industry.
    • Seadrill's contract position is much stronger than that of the other large offshore drilling companies.
    • Seadrill's modern fleet better positions it to weather the current ultra-deepwater weakness than its peers.
    • The company remains cautiously optimistic about the shallow-water market going forward, due to the large number of old rigs that may be scrapped and replaced.
  • How To Withdraw Money Sensibly From Your Retirement Portfolio: Part 1
    Editors' Pick BF.B, WAG, WMT Tue, Sep. 30, 11:13 AM Chuck Carnevale 193 Comments

    Summary

    • When harvesting is necessary don’t water the weeds and pull the flowers.
    • The true weeds in the portfolio are those whose prices have risen beyond what fundamental value would indicate.
    • Keep the flowers that have yet to bloom and pick the ones that already have.
    • Measuring performance without simultaneously measuring valuation is a job half done.
  • Rethink Your Fixed Income Portfolio Strategy
    Editors' Pick BOI, FPF, MWTIX Tue, Sep. 30, 10:21 AM Value Plus Incentives 24 Comments

    Summary

    • Many investors have locked in unattractive IRRs in their fixed income portfolios that make little sense after considering their investment time horizon and liquidity needs.
    • Investors can estimate their expected future returns for fixed income portfolios by understanding the risk premia embedded in their portfolio. Unconstrained bond funds primarily just rearrange these risk premia.
    • Investors can improve returns in fixed income portfolios by accessing the "illiquidity premium" through careful analysis of closed-end funds (CEFs).
  • Retirees, You CAN Count On Dividend Stocks To Deliver From Here
    Editors' Pick AAPL, AGNC, BGCP Tue, Sep. 30, 9:54 AM Regarded Solutions 436 Comments

    Summary

    • Another article I disagree with could urge people to do what they might not truly want to.
    • Dividend growth investors enjoy a consistent and reliable stream of income now, in the future, and historically.
    • Growth stocks could be volatile but dividend stocks pay investors to hold them through the ups and downs.
  • Retirees, Don't Count On Stocks To Deliver From Here
    Editors' Pick SPY, VTI Tue, Sep. 30, 8:00 AM Dale Roberts 140 Comments

    Summary

    • Many retirees count on the stock markets to deliver the robust growth required to beat inflation and provide an aggressive inflation adjusted spending rate.
    • The stock markets have periods when they have provided 14% plus inflation adjusted annual gains.
    • In periods of high growth, a retiree was typically able to purchase or hold stocks at very attractive and sensible price to earnings ratios. Today is a different story.
    • From today, the equity markets may not provide the growth necessary to provide 4% inflation adjusted returns for retirees.
  • Consolidation Considerations In Kinder Deal Aftermath
    Editors' Pick KMI Mon, Sep. 29, 7:29 PM Morningstar 66 Comments
  • Bob Evans May Soon Be 'Delivering Farm Fresh' REIT Revenue
    Editors' Pick BOBE Mon, Sep. 29, 7:15 AM Brad Thomas 20 Comments

    Summary

    • Last week, The Wall Street Journal reported that several REITs had expressed an interest in buying the real estate owned by Bob Evans.
    • "The company's stock price does not reflect the significant embedded value of the owned real estate." - Sandell Asset Management.
    • Sandell's arguments are solid, and while owning real estate is an important ingredient for wealth creation, the most efficient structure for Bob Evans is to explore a strategic sale/leaseback transaction.
  • The Shorts Are Winding Down But I Own Digital Realty For The Long Haul
    Editors' Pick DLR Mon, Sep. 29, 7:00 AM Brad Thomas 38 Comments

    Summary

    • REITs have a much better methodology for assessing the predictability of earnings.
    • Just like any security that I’m researching, I pay close attention to the reliability of the company’s profit margins.
    • I could just walk away from Digital Realty now and wait for the next big hedge fund hiccup.
    • Forget the noise and take advantage of stocks on sale.
  • MLPs Overpaying For Assets? Atlas May Have Overpaid Versus Cabot In Recent Eagle Ford Transactions
    Editors' Pick ARP Fri, Sep. 26, 3:49 PM Josh Young 11 Comments

    Summary

    • Atlas and Cabot bought similar assets in a similar time frame.
    • Atlas paid approximately $1.5 million per undeveloped location.
    • Cabot paid approximately $600,000 per undeveloped location.
  • Bill Gross PIMCO Exit Creates Unprecedented Value In CEFs
    Editors' Pick PDI Fri, Sep. 26, 3:46 PM Morgan Myrmo 109 Comments

    Summary

    • Bill Gross has departed PIMCO today, following the dramatic exit of Mohamed El-Erian earlier this year.
    • This and other recent negative press has caused capital flight, which has pared PIMCO assets under management this year.
    • PIMCO is a global asset management firm with ~$2 trillion under management and currently employs the top fixed-income managers in the country.
    • Unprecedented value has been created in closed-end funds (CEFs), which marks a buying opportunity in several funds that investors should note.
    • Market pundits view this news as a move that will harm PIMCO, however this bashing only serves short-term interest.
  • Let's Make Some REIT Hay While The Sun Is Shining
    Editors' Pick CSG, LXP, O Fri, Sep. 26, 7:01 AM Brad Thomas 97 Comments

    Summary

    • “Always make hay while the sun is shining.” Farmer Ed.
    • Buying stocks when they are cheap is the best way to grow money, and stocks of good companies on sale reap the highest returns.
    • By utilizing these hard-and-fast rules, you can be just like Farmer Ed and find yourself napping each day right after lunch.
  • CVS Will Lose Billions In Revenue Having No Smokes For Sale
    Editors' Pick CVS Wed, Sep. 24, 8:38 PM Regarded Solutions 236 Comments

    Summary

    • This is my response to an article that appeared today.
    • The share price has not been hurt, yet, and the dividend yield is 1.40%.
    • My own personal efforts towards learning what really is happening.
  • Retirees, The S&P 500 And Cash Are All You Need
    Editors' Pick SPY Wed, Sep. 24, 7:48 AM Dale Roberts 188 Comments

    Summary

    • What simple portfolio survived 40 years that included stagflation, the tech meltdown and the Great Recession? The S&P 500 covered by cash.
    • This $1 million portfolio delivered nearly $5 million in income from 1972 to 2012.
    • The total return of the S&P 500 can do the trick and provide the growth necessary to help retirees beat inflation.
    • We'll have a look at the spending ratio of the portfolio and explore what is "the tipping point".
  • Omega Healthcare Is A Blue Chip Model Of Predictability
    Editors' Pick OHI Wed, Sep. 24, 7:00 AM Brad Thomas 59 Comments

    Summary

    • Due to a very weak financial profile with a majority of Omega’s operators, the company was forced to cut its dividend and preserve equity to meet its near-term debt obligations.
    • I believe that this article lays out some important attributes that make Omega Healthcare Investors a Blue-Chip REIT.
    • Some may argue that Omega needs another ten years of dividend increases before it can be labeled a “blue chip”.
    • As I sum up my definition of “blue chip” it simply means that I “sleep well at night”.
  • Can General Electric Return To Its Previous Blue-Chip Dividend Growth Stock?
    Editors' Pick GE Tue, Sep. 23, 2:31 PM FAST Graphs 60 Comments

    Summary

    • Since the beginning of 2010, operating earnings have progressed nicely, averaging 9.8% per annum growth.
    • General Electric's current dividend yield and current valuation appear very attractive considering current stock market valuations.
    • With good valuation, and attractive dividend yields hard to find, General Electric might deserve a second look.
    • The critical question to ask is - has General Electric returned to its legacy of a reliable blue-chip dividend growth stock?