Long only, dividend investing, long-term horizon, value
Long only, dividend investing, long-term horizon, value
Contributor since: 2012
ditto, the actualy ADR increase was $0.04 form $0.90 to $0.94.
PM is one of my favorites to sell puts against. I'm currently sitting on a Jan 17 '15 $80 Put I sold for 9.00 in February. I could close now and capture almost a $500 gain or I may just ride it out since I wouldn't mind adding more PM at a great price ($71) anyways. The the great thing about selling puts against companies you want to own more of, it's a win-win.
Thanks for the article.
Thanks for this analysis! I recently made some very small purchases and hope to continue averaging down as their earnings could struggle in the short-term. Long-term they have a great dividend track record and I'll be cautiously watching their yearly raises. These types of companies seem to do really well in a recessionary environment which will come again eventually.
"Even though they have only raised their dividend consecutively for the last four years,"
My records show the last 13 years for NSC. I stopped reading at that point...
I recently added some ESV (the last two months) and it's now one of my largest positions at 4.15% weight. I see the short-term negative news (possibly 2-3 years as you mention) as a good buying opportunity for a long-term investor.
How do you see the large dividend increase affecting their ability to use cash flow to pay for their CapEx and therefore increasing debt? Their payout has increased substantially with the last two raises.
I appreciate your very detailed analysis and I'm now a follower.
It doesn't worry me very much, I see the short-term weakness as a buying opportunity myself
Thanks for the response. I plan on reading the prospectus because I'm interesting in adding a high yielding preferred and I'm a fan of WFC. I was hoping to get more insight on the new language I've heard is being used by bank preferred's and if the bank can get away with calling shares for less than face value, in this case $25. I will definitely do some more research.
I haven't done a lot of research on preferred but would like to include them in my portfolio at some point.
What is the difference between the O and N preferred's and if there is none then why do they trade at different values? I'm not familiar with the new wording on these preferred's. Can it be called for a price less than $25 at some point?
Thanks for the detailed analysis. I love the business model. They are currently the only REIT that I own and I just added more shares last week.
Thanks for this article. Many of the reasons you point out are why INTC is currently my top holding as I feel it's a great value here. They also pay a nice and increasing dividend while you wait.
TWGP has not increased its dividend since June of 2011. I own a small stake but am closely watching the company. They incurred a lot of claims from the recent storms in NY but I think will be fine long-term.
Thanks for this detailed review of TGH. I am long TGH and am looking for an attractive price to buy more. Meanwhile, I have sold a couple of puts to maybe pick it up at a better price. I like the business and plan to add to the position this year. I also like the fact that they have increased their dividend every quarter since May 2010.
I enjoyed the 3-part series. Thanks for taking the time to give a thorough analysis of BBVA.
I'm currently long BBVA and selling some naked puts on weakness. I believe BBVA is currently a good value and income play for the long-term investor.
4 TB can get used up pretty easily. A regular Blu-Ray movie actually takes up 25 GB, while a dual layer Blu-Ray movie takes up closer to 50 GB. If you have two 2 TB drives (4 GB total) in a Raid formation for backup purposes then you could only store and backup 40 dual layer Blu-Ray movies. There's still a big need for larger and especially faster/lower energy use drives.
I like your series of articles and I think you've got a nice way of ranking going for you.
I do keep a spreadsheet of my own that I'm still tweaking. I have important information like payout ratio, beta, stock price etc. automatically imported from yahoo finance upon opening the file. The only thing I'm manually inputting now is # of shares owned and the 5-year CAGR. I didn't see the 5-year CAGR on yahoo finance like you mentioned. Under the key statistics tab there is a 5-year average dividend yield but not CAGR. If someone knows of a reliable site that I'm able to import the 5-year CAGR automatically into Excel from please let me know.
Why wait for $22. I sold a Dec $23 put this morning for 1.1 putting my entry point at $21.90 not counting commission. This was also updated on my blog.
I picked up shares on 06/20 at 28.99/share and simultaneously sold puts that reduced my entry price even more. I decided to hang onto the shares even after being up as much as 25%. I like the company long-term and they've increased dividends for 36 straight years. I don't see any reason they won't be able to continue to do this.
I think you made a good buy and thanks for sharing your thought process. I added to my shares yesterday as well although I paid a little more than you did, 31.64.
I have been looking to accumulate more shares and today's weakness presented an opportunity. Their payout ratio is a little on the high side but I believe they can continue increasing the dividend as they have been doing for the last 9 years. Long WM.
Nice article. I like to sell puts against companies that I want to own anyways. It's a great way to generate additional income while waiting for a better price. I don't buy many calls, instead I just usually buy the shares.
I pulled the trigger and bought a small position in WAG yesterday and also sold a couple of Oct puts. I've had good luck selling puts but have found I would have been better off just buying most of the stocks outright. This time I did a combination in case there is a run up in stock price.
"It is clear the Market is not happy with the acquisition."
Are you sure the correction is just not taking into account the dillution of WAG's shares by about 10%?? Am I wrong to assume they are issuing an additional 83.4 M shares to their already approximately 850 M shares outstanding? If this is the case then maybe the market isn't "not happy" but just correcting for the share dillution.
Disclosure: I just entered a long position with WAG yesterday and also sold some OCT puts.
I added shares this morning and sold some Oct. puts. I've been waiting to get in WAG and with a combination of share price weakness and a dividend increase it has allowed me to get near a 4% yield on cost.
Caiman Valores,
I will be on the lookout for your BBVA analysis. You gained a new follower.
I liked your analysis on STD however I disagree with your comment on BBVA not having a global diversification. I would love to see the same analysis done on BBVA. BBVA does business in 33 countries and their net attributable profit by country according to their financials are:
Mexico - 30%
South America - 26%
Eurasia - 21%
Spain 16%
USA 8%
I saw high yield in the title and laughed. That alone invalidates the entire article.
I just sold a July PG Put this morning. If it gets assigned I'll own a great company at a good price. I now have 6 open naked puts with 4 expiring in July. I've made over $1300 with options so far this year with nothing being put to me. I do expect to be put a couple of positions in July.
If anyone is interested in my trades I have them here at my blog:
T has a 5-year DGR of 4.87% vs VZ's 5-year DGR of 4.18%. It's nothing I'd brag about. Both companies act more like utilities.
Verizon is the nation's largest wireless carrier and has their 4G-LTE service in over 200 markets, planning to double this by the end of the year. Their future earnings predictions are better and I believe they will have more growth going forward than T.
Long VZ
I'm long WM for many of the reasons that you mention and have it as one of my top holdings that I track on my blog.
However, I feel that it's at the higher end of the trading range and I am waiting for a pullback to add more shares. I sold puts against WM last fall and they didn't get assigned. I may look at selling puts again to get a lower entry point.
I dont know a lot about CHK but I do like NG longterm. With huge supplies and weak demand it could be a rocky road in the short term. It is a great alternative energy source but I think it will be a slow transition. I think a position in CHK is mostly speculative although if you are holding for the long haul and averaging in then you could do very well. If I was going to invest say $3k I would probably buy $1k worth about every 4 months.
I wish it was alchemy. It would have been a lot easier to get here. I could have skipped a lot of the blood , sweat and tears part. :)
I'm always looking for new ideas on what the best investment strategy for me should be. Taxes are going to play a huge role though. Who knows if the dividend tax rate will even stay the same. There are a lot of variables.
Thanks for the feedback. I agree the 20% increase isn't going to be realistic for most people. That's why I left it adjustable for anyone that wanted to play around with it. This was more for my particular situation. My company's sales have grown by around 100% annually the last 4 years. I don't expect to keep that kind of pace going but those contributions are actually conservative for me right now. Like anything though, it's hard to predict with a lot of certainty into the future so we use our best estimates. I do want the DGI portfolio to be my top investment priority so if I have a bad year I'll contribute more to it and less into other investments. I have only about 45% of my extra investing income going into this account. Another 45% is going into real estate, 10% into other investment like gold/silver and growth stocks.
You have some good ideas for another spreadsheet and you make valid points about adding in taxation and comparing against a different investment strategy. I'll probably play around with it more when I have time and take into account the capital gains/dividend taxes and share the results.
Congrats on starting your DGI portfolio. I hold several of the same positions as you. Sometimes getting started is the hardest part. Good luck!