General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
Hi Robert,
GE used to be a growth/dividend stock. Growth has faltered, which is why it lost 2 years worth of dividends in a week. Dividends should rise along side EPS and revenue.
General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
JC,
I have to disagree. Why should GE sell a segment that is rising due to secular demand? The dividend raises should come along with EPS growth. No point to increasing the dividend while revenues fall.
General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
Hi Steve,
GE is cheap, no doubt about that. However, it was almost brought down by its Capital segment. GE is growing EPS, but only due to the Capital segment. IMO, if you want to own a bank, buy WF or JPM. GE needs to focus on its core business, asap.
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
I would imagine that if a dividend cut happens, the first target would be debt. PBI has a large debt load, with relatively low interest rates. PBI would have to refi it at higher rates. 2nd would be organic growth. If I were to guess where, it would have to be in the software segment. Share repurchases also would not hurt. PBI was buying back stock during 2012, but stopped last quarter.
PBI was a screaming buy when it was at $10. At 14-15, not so much.
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
I would think that a clean slate is needed for the new CEO. Most of PBI's cash is tied up in the dividend and debt payments, leaving little left for reinvestment.
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
I think we all know that PBI can afford its dividend. However, I really do think that the upcoming Investor Day maybe an opportunity for the CEO to implement a new dividend policy. PBI has traded at a 10% yield for awhile now, so the yield no longer supports the stock price. In order for PBI to be a long-term investment, it needs to find revenue growth.
Atlantic Power: Forget Dividend Haircuts, More Pressing Issues Deserve Your Attention [View article]
agrossfarm,
I know what you're trying to say. But I have to disagree. AT's dividend cut was shocking in size. It blindsided the analysts and market, hence the severe price drop.
I first starting researching AT during Q2 2012. I added it to a watchlist with other high yield names, waiting for a price drop. This price drop occurred after Q3 earnings. I read, and reread the 2011 10k, and the Q2 and Q3 2012 CCs. The CEO repeatedly stated that DCF covered the dividend, and that the PPAs locked in the distributions till 2015. When the Q4 earnings came out, they were a disaster. The dividend was cut, yet the payout was still 100%. I went searching for what went wrong, and found the answer in the 2010 10k. There, you would have read that the FLA assets which were sold off represented the majority of AT's DCF.... AT's profit margin on them was north of 80%, compared with sub 20% on the rest of its assets. AT failed to mention this at any point in 2011 or 2012. The market reaction to the dividend cut was IMO, justified. AT lost the majority of its cash flow when it sold the FLA assets. The payout ratio for January and February 2013, using only recurring cash flow, was north of 300%.
Hindsight is always 20/20, but with AT, even deep fundamental analysis would not have helped. While a dividend cut was expected, the magnitude of it was not.
Buy McDonald's For Both Its Dividend And Growth [View article]
When I have traveled overseas, I often try to eat at american restaurants. You know that you'll get a decent meal at a fair price. You really cannot say the same for some of the local restaurants.
Altria: A Classic Dividend Growth Stock [View article]
Cranky,
I look at MO/PM solely as an investment. If all of the sudden the major tobacco companies stop selling cigarettes, do you think people will stop smoking? Also, tobacco sales provide massive revenues via taxes to state and local governments.
Linn Energy: A Solid Choice For Income [View article]
Bryce,
I must ask the same question: why do you still own LINE if you do not understand it?
I happen to think LINE has done a good job in explaining its business model. I own two similar upstream MLPs (VNR and QRE) and they both have a similar strategy as LINE in regards to hedges.
General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
GE used to be a growth/dividend stock. Growth has faltered, which is why it lost 2 years worth of dividends in a week. Dividends should rise along side EPS and revenue.
General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
I have to disagree. Why should GE sell a segment that is rising due to secular demand? The dividend raises should come along with EPS growth. No point to increasing the dividend while revenues fall.
General Electric: The Recent Price Decline May Be A Buying Opportunity [View article]
GE is cheap, no doubt about that. However, it was almost brought down by its Capital segment. GE is growing EPS, but only due to the Capital segment. IMO, if you want to own a bank, buy WF or JPM. GE needs to focus on its core business, asap.
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
PBI was a screaming buy when it was at $10. At 14-15, not so much.
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield [View article]
Atlantic Power: Forget Dividend Haircuts, More Pressing Issues Deserve Your Attention [View article]
I know what you're trying to say. But I have to disagree. AT's dividend cut was shocking in size. It blindsided the analysts and market, hence the severe price drop.
I first starting researching AT during Q2 2012. I added it to a watchlist with other high yield names, waiting for a price drop. This price drop occurred after Q3 earnings. I read, and reread the 2011 10k, and the Q2 and Q3 2012 CCs. The CEO repeatedly stated that DCF covered the dividend, and that the PPAs locked in the distributions till 2015. When the Q4 earnings came out, they were a disaster. The dividend was cut, yet the payout was still 100%. I went searching for what went wrong, and found the answer in the 2010 10k. There, you would have read that the FLA assets which were sold off represented the majority of AT's DCF.... AT's profit margin on them was north of 80%, compared with sub 20% on the rest of its assets. AT failed to mention this at any point in 2011 or 2012. The market reaction to the dividend cut was IMO, justified. AT lost the majority of its cash flow when it sold the FLA assets. The payout ratio for January and February 2013, using only recurring cash flow, was north of 300%.
Hindsight is always 20/20, but with AT, even deep fundamental analysis would not have helped. While a dividend cut was expected, the magnitude of it was not.
Buy McDonald's For Both Its Dividend And Growth [View article]
Buy McDonald's For Both Its Dividend And Growth [View article]
I actually go to MCD quite often for coffee. You really cannot beat them on price or consistency.
Philip Morris Was Aided By Its Large Share Buybacks During Q1 2013 [View article]
Philip Morris Was Aided By Its Large Share Buybacks During Q1 2013 [View article]
Yup, PM has been a buyback machine.
CYS Investments: An Undervalued mREIT With A 10.8% Yield [View article]
Yup, I noted the CPR for April in the conclusion.
Altria: A Classic Dividend Growth Stock [View article]
I look at MO/PM solely as an investment. If all of the sudden the major tobacco companies stop selling cigarettes, do you think people will stop smoking? Also, tobacco sales provide massive revenues via taxes to state and local governments.
Linn Energy: A Solid Choice For Income [View article]
LINE has nearly all of its production hedged, so these movements are not as important.
Linn Energy: A Solid Choice For Income [View article]
I must ask the same question: why do you still own LINE if you do not understand it?
I happen to think LINE has done a good job in explaining its business model. I own two similar upstream MLPs (VNR and QRE) and they both have a similar strategy as LINE in regards to hedges.