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4 Percent

 
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CHD, FTR, GE, GOV, HCP, MAT, O, PG, PM, T, TGT
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  • The 4% Rule Examined [View article]
    Great article and well said Dividend Mantra. Putting together a diversified dividend portfolio that generates a reliable and growing 4% return in dividend income will simplify a person's retirement investment strategy and allow them to sleep well at night. It's a shame this way of investing isn't utilized more by "professionals" who are hired to build a retiree's portfolio.
    Sep 12 05:30 PM | 5 Likes Like |Link to Comment
  • Digital Realty Trust Dividend Safety Analysis: A High-Yielding Hidden Gem [View article]
    You're welcome Walter.

    I do not believe DLR is overvalued at current prices. P/E is not an accurate way to evaluate REITs as there is a great deal of accounting manipulation that goes on to determine "earnings" for REITs. It's better to focus on funds from operations (FFO) for these type of companies. As I stated in the article, using management's FFO guidance midpoint for FY14 of $4.90 per share, Digital is currently trading at a forward Price/FFO multiple range of just 13 - 14. For an REIT that has been growing like DLR this represents a lower than average valuation.
    Sep 8 12:34 PM | 2 Likes Like |Link to Comment
  • Digital Realty Trust Dividend Safety Analysis: A High-Yielding Hidden Gem [View article]
    It was a combination of missing earnings expectations for 3Q2013 as well as a lot of negative publicity caused by the mentioned Highfields Capital shorting of the stock. Earnings since then has proven Highfields wrong and provided ample gains for investors who trusted management and bought during the dip.
    Sep 8 11:55 AM | Likes Like |Link to Comment
  • Digital Realty Trust Dividend Safety Analysis: A High-Yielding Hidden Gem [View article]
    Agreed. Brad has done a great job breaking down DLR.
    Sep 3 10:26 AM | 2 Likes Like |Link to Comment
  • Digital Realty Trust Dividend Safety Analysis: A High-Yielding Hidden Gem [View article]
    Thanks for reading crazty
    Sep 3 10:24 AM | Likes Like |Link to Comment
  • Procter & Gamble Dividend Safety Analysis: A Guaranteed 3% Return [View article]
    Morningstar has the 5 year average yield for a stock under the "Valuation" tab.
    Jun 27 12:51 PM | Likes Like |Link to Comment
  • Procter & Gamble Dividend Safety Analysis: A Guaranteed 3% Return [View article]
    Thanks for the kind words Thad. In regards to WHZ, we tend to steer clear of trusts due their finite life and somewhat erratic dividend payments. We focus on companies that pay a set dividend and who typically increase that dividend payment annually. WHZ does have an impressive yield though, best of luck with your portfolio.
    Jun 26 04:58 PM | Likes Like |Link to Comment
  • Procter & Gamble Dividend Safety Analysis: A Guaranteed 3% Return [View article]
    At first glance, a 6.4% payout does look enticing for DPO. But looking at their distribution data, nearly 80% of their distribution is simply a "return of capital". The two distributions in 2014 of $0.218 were made up of $0.1648 "return of capital" and just $0.0532 of income. The fund appears to be just returning your money back to you in the form of a distribution while charging you a 1% annual fee to do so. IGA and IGD appear to be doing something similar. This does not seem sustainable nor a reliable source of income.

    With PG you know you've got a safe dividend that will most certainly grow each year.
    Jun 26 03:49 PM | 2 Likes Like |Link to Comment
  • Procter & Gamble Dividend Safety Analysis: A Guaranteed 3% Return [View article]
    If its yield would match the lowest yielding Consumer Goods stock in our Portfolio right now (3.5%) we would recommend a switch from that stock to PG due to PG having better dividend growth potential. We do not want to recommend a move that would effectively lower our subscribers dividend income as that is the primary focus of our portfolio.
    Jun 26 11:57 AM | Likes Like |Link to Comment
  • Procter & Gamble Dividend Safety Analysis: A Guaranteed 3% Return [View article]
    Our service provides an example retirement portfolio that can be followed in order for a retiree to generate at least 4% in dividend income each year. PG is a stock that we have not recommended yet, but we are watching it closely in case the price drops (and the yield goes up) from here. We currently view the other Consumer Goods stocks in our Portfolio as better buys for income purposes, but PG would take precedent if its yield reaches a higher level.
    Jun 26 11:37 AM | Likes Like |Link to Comment
  • HCP, Inc. Dividend Safety Analysis: Income Investors Should Take Notice [View article]
    Most healthcare REITs are vulnerable to potential cuts in Medicare and Medicaid. I'm not certain to what level HCP is vs OHI though, and at this point many of these cuts are purely speculative. I would imagine any negative news about cuts will affect HCP and OHI in a similar fashion.

    Disclosure: I am long OHI and it is currently a recommendation in our 4% Portfolio.
    Jun 18 11:01 AM | 1 Like Like |Link to Comment
  • Target Dividend Safety Analysis: Lower Increases May Be Ahead [View article]
    The current ratio is factored to assess a company's ability to pay its short-term obligations. It is displayed in our assessment in order to be consistent with the other safety analyses that we perform. The table above is meant to be a high-level summary that points out areas that may need to be looked into deeper before making a financial decision.

    As stated though, financial ratios tend to be sector specific and the current and quick ratios can be skewed for companies in the retail sector. If we were assessing a company that did not have the scale of Target, these ratios would be more alarming.
    Jun 4 10:04 AM | Likes Like |Link to Comment
  • Target Dividend Safety Analysis: Lower Increases May Be Ahead [View article]
    That would be a bold move by management considering their current situation. Perhaps they have a better idea of what the impending lawsuits will cost them? It seems that if they do make that big of an increase the free cash flow payout will take the biggest hit. Of course, at 33% they do have the room. Perhaps the biggest concern is not the cost of the lawsuits, but the time it will take to earn back the customer's it lost do to the data breach and return to growth.
    Jun 4 09:53 AM | Likes Like |Link to Comment
  • Target Dividend Safety Analysis: Lower Increases May Be Ahead [View article]
    I agree as well Skip, current prices seem do present a good buying opportunity for the long-term and double-digit dividend growth could return once they are past their current problems. If they do increase the dividend this year as high as they stated in their conference call I will be surprised considering the other factors that are affecting them.
    Jun 4 09:39 AM | 3 Likes Like |Link to Comment
  • HCP, Inc. Dividend Safety Analysis: Income Investors Should Take Notice [View article]
    Thanks Louverture
    Apr 30 03:55 PM | Likes Like |Link to Comment
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