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  • Dividend Growth Investors Should Look To Canada [View article]
    Hi Gibor365. I like Suncor, it also has large oil reserves although it is a slightly different play. CNQ has diverse assets by type (light oil, heavy oil, NGLs) and geography whereas Suncor is almost exclusively heavy oil in the Alberta Oilsands region. That brings the unique technological and political risks with that region.

    Suncor is the more mature company with higher production rates and sales. While both companies have large reserves and the ability to increase production, CNQ's larger reserves and asset bases allows the potential for more growth. Potential, of course, is not always realized.

    Normally I would chose CNQ easily over SU, however the market has deeply discounted SU this year. The price is bordering on ridiculously low and may be very tempting to a value investor.

    I am still choosing CNQ but realize you can make a very strong argument for SU. Because of the low valuation SU may actually be the safer play.
    Nov 4 07:55 PM | 2 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Stoxx 30 was local currency but for the Brazilian companies I used the ADRs.
    Nov 3 09:42 PM | 2 Likes Like |Link to Comment
  • 13 High-Dividend Stocks With The Best Growth Expectations [View article]
    Good article. I bought SCCO recently as the stock was offering too much value to ignore...although it is one of my few holdings that I don't feel entirely comfortable with. I am also long PM and am holding; the price is getting a tad high for new purchases.
    Nov 3 08:20 PM | Likes Like |Link to Comment
  • 5 High Alpha Energy Stocks - Should You Buy? [View article]
    Good article. I like your thinking on ENB. Great company but it has significantly over performed the market the last couple of years and is now overvalued by historical P/E and historical yield. I still like the stock but I won't be adding any more at this price.
    Nov 3 08:17 PM | Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi Thomas. I appreciate your comment about taking the time to invest. One reason that dividend growth investing appeals to me is it teaches the disciplines of thinking for the long term, buying dips and analyzing value. No method of investing is foolproof, of course, but the disciplines dividend growth investing teaches makes it more likely you will succeed.
    Nov 3 08:15 PM | 6 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi No Free Cake. All dividend growth rates are in local currency; that is USD for U.S. companies and CAD for Canadian companies.
    Nov 3 08:11 PM | 2 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi Richjoy403. You did get the main points of the article, thank you. I was trying to criticize the simplistic idea that all you had to do to calculate future YOC was take the current yield and apply a historical DGR. I believe that is a poor approach.

    I also feel that some DGIs are not adequately diversified. U.S. blue chips are a great asset class, historically one of the best, but investors should look at different countries.

    Dividend growth being a product of future EPS growth sounds right to me, too. After the Great Recession the earnings growth of companies dove but is now reverting back to its prior trendline. Hopefully that means dividend growth will increase, too.
    Nov 3 08:09 PM | 2 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    I think you are dead on! I am dividend growth investor myself and I look at the "intent and ability" to increase dividends. I don't believe historic DGRs tell you much about the company's future dividend increases; my main metrics are EPS growth and payout ratio.

    I remember an author several weeks back calculating CenturyLink's future yield based upon it's 5 year DGR of 60%. I believe it was you, Mr. Fish, who commented in the comment section why that was unlikely.

    My article was directed at that line of thinking. I certainly was not suggesting that dividend growth would stop.
    Nov 3 07:58 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada (Part 2) [View article]
    Hi FMHouser. The tax treaty signed between the U.S. and Canada states that there will be no taxation of dividend income in accounts intended for retirement (e.g., RRSPs in Canada or IRAs in America). If held in a taxable account there will be a withholding tax but an American investor can claim an off setting tax credit on their annual return.
    Nov 3 07:46 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada (Part 2) [View article]
    Hi Deedubs: Thanks for the catch, that looks like a typo. I will submit it to the editors.
    Nov 3 09:08 AM | 1 Like Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi David Fish,

    You are perfectly correct when you point out that the Canadian Aristocrat isn't equivalent to the U.S. Champions. I included that chart for interest but perhaps I should not have because it distracts from the main point of the article.

    My simple point was just that you can't predict future dividend growth rates from historical data.
    Nov 3 09:03 AM | 3 Likes Like |Link to Comment
  • Dividend Growth History: Not Useful For Prediticing Future Yield-On-Cost [View article]
    Hi Trainer51,

    For the first chart I picked the companies with the longest streaks of dividend increases as well as the average of every Dividend Champion.

    KO, MCD and JNJ all have declining dividend increases like the rest of the group; however, PG's dividend growth rate has held up well.
    Nov 3 08:57 AM | 3 Likes Like |Link to Comment
  • Can These 5 REITs Keep Paying 10% - 20% Dividends? [View article]
    Payout ratios for reits should be done using FFO or AFFO.

    More noteworthy than than payout ratios, at least for NLY, is the fact that they have begun aggressively reducing leverage. With the macroeconomic risks this could be a wise move but may lead to a dividend cut.
    Nov 2 11:51 PM | Likes Like |Link to Comment
  • Scanning The World For The Best Dividend Stocks [View article]
    Hi Dividends4 Life: a great article about the sometimes overlooked need for diversification even within a dividend growth portfolio. Definitely a recommend.

    I have written two articles trying to argue that Canada should be on every dividend growth investor's radar screen. Our companies pay regular, quarterly dividends with consistent increases every year. Not only that: the dividend growth rate in Canada is *higher* than it is in the States.

    Please check out the articles and let me know what you think:
    http://bit.ly/rtbujr
    http://bit.ly/vjiIAx
    Nov 2 10:53 PM | 1 Like Like |Link to Comment
  • Why It's Time To Buy Depressed Miners [View article]
    Great article. I took out small positions in SCCO and TCK last month. I feel like you should be re-balancing your portfolio towards safe positions in the midst of large run ups and adding risk during downturns. That strategy has worked well for me so far but then again I might be broke by this time next year :)
    Nov 2 09:56 PM | 1 Like Like |Link to Comment
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