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  • When The Cost Of Sovereign Default Plunges [View article]
    Here are a few choice countries that have never defaulted in their history: Canada, Denmark, Belgium, Finland, Malaysia, Mauritius, New Zealand, Norway, Singapore, Switzerland and England.
    Apr 17 11:20 PM | 1 Like Like |Link to Comment
  • These 5 Companies Could Rally Strongly In The Next 5 Months [View article]
    It is always nice to see someone who actually understands basic statistics -- thank you! Bonus points would have been given for a goodness of fit statistic :)
    Jul 29 07:55 PM | 1 Like Like |Link to Comment
  • Taking Your Dividend Growth Strategy To The Next Level [View article]
    A very sensible strategy, thanks for commenting.
    Jun 6 09:19 PM | Likes Like |Link to Comment
  • Taking Your Dividend Growth Strategy To The Next Level [View article]
    Hi Dan7256,

    Yes, I calculate a value range for every stock I own and every stock on my watchlist. I calculate them using a combination of my favorite metrics: earnings yield vs historical earnings yield (similar rationale to the CAPE), PEG and a Discounted Cash Flow.

    One thing I didn't make clear in the article that I should have is that my value ranges are somewhat subjective. They are the values that *I* would be happy to pay for a given stock and not necessarily an attempt to calculate a stock's exact fair value (if that is even possible).

    I believe my ranges are reasonable if somewhat conservative and help me have the required discipline to buy on dips and to prevent me from chasing a hot stock.
    Jun 6 09:18 PM | 1 Like Like |Link to Comment
  • Taking Your Dividend Growth Strategy To The Next Level [View article]
    Hi Richjoy403. Thanks for the interesting question. I know this is a controversial topic for DGIs but for myself I consider the Yield on Cost metric to be almost useless.

    It is a nice stat that you can reflect on to see your progress and anything that helps you stay motivated and stick to a sensible investment plan has some value. However, all that matters for making investment decision is current value and future expected value.

    I had a phenomenal yield on cost with Enbridge, well into the double digits. Of course, I am not getting that "yield on cost" -- I am actually receiving a current yield of around 2.8%. I believed the stock to be considerably overvalued and that keeping my money in this stock would be an inefficient use of my capital so the fact that I had success with the company in the past did not affect my decision regarding the future.
    Jun 6 09:07 PM | Likes Like |Link to Comment
  • Taking Your Dividend Growth Strategy To The Next Level [View article]
    That is a very good validictus, as mentioned in the article, transaction costs must be kept low. Using DRIPs or a brokerage like Sharebuilder helps a lot for smaller investors.

    DCA isn't really about getting a good price it's more about making sure that you don't make a big mistake.
    Jun 4 08:07 PM | 1 Like Like |Link to Comment
  • Taking Your Dividend Growth Strategy To The Next Level [View article]
    Hi HackFab. Thanks for the compliment and I do something similar where I have an open line of credit tied to my brokerage account for instant transfers. It's not about using leverage, really, just the flexibility.
    Jun 4 08:05 PM | Likes Like |Link to Comment
  • Looking For High Yield In The Energy Sector [View article]
    Hi Emerald. Seadrill does cover their dividend and interest payments but after capital expenditures is cash flow negative. This is readily available in their documents if you wish to confirm.

    As for the "lunatic" comment, it was meant to be tongue-in-cheek and I thought that was obvious.

    Thanks for commenting.
    Apr 30 07:33 PM | Likes Like |Link to Comment
  • How To Invest In Coca-Cola For More International Exposure And Bigger Dividends [View article]
    I tend to agree with the other commentators here that KO is generally better than the bottlers, albeit a little over-priced at the moment.

    One exception, I believe, would be the Latin American bottler KOF. Soda is no longer a growth industry for the developed world and KOF has exposure to one of the few growing markets. They are expected to grow earnings by 20% over the next two years, then by around 12% the next three years thereafter. I can forgive the low dividend yield when they have a dividend growth rate of over 40%.
    Apr 23 07:36 PM | 3 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    A very thoughtful reason to consider a larger number of holdings, thank you for posting.
    Apr 23 07:27 PM | Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    I prefer hold 'em because it is easier for relatively inexperienced poker players to play. I find the larger luck factor in the game tends to allow a poor player to have short-term success, encouraging them to continue wagering their money against someone who can easily beat them in the long run.
    Apr 20 05:07 PM | 1 Like Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    I do love ABV. I am less enthused with the current valuation.
    Apr 19 11:44 PM | Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Hi Will63. Yes, absolutely.

    Automatically DRIPing makes sense when you are new, as it is hard to go wrong with blind dollar-cost averaging. It also may make sense for a smaller portfolio that needs to minimize transaction costs.

    When you (and your portfolio) are ready, I would receive dividends in cash and reinvest in what seems like the best value.
    Apr 19 11:44 PM | 2 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    Hi extreme banker. Your criticism is actually very valid. I started out with a strict DCA strategy but as I have matured over the years, I now have more of a "buy the dip" mentality. And in 2009, a "buy the really scary metldown" mentality.

    My main point is that the "buy low, sell high" strategy is a big loser for almost everyone that tries it. I don't try to buy at the lows or sell at the tops. My strategy is, obviously, to acquire attractive dividend growth stocks. I buy when I perceive the particular stock to be at an attractive price and don't worry about whether it is going higher or lower in the short term.
    Apr 18 11:52 PM | 4 Likes Like |Link to Comment
  • 7 Tips For Dividend Growth Investors [View article]
    To some extent, we are arguing about differences in degree and semantics.

    My point was that by owning dividend growth stocks you are taking on market risk, which is obviously true. My "absolutely false" statement was too strong, as absolutes usually are, and as you have explained quite well. So, yes, I concede the point :)
    Apr 18 11:49 PM | 3 Likes Like |Link to Comment
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