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  • Target Is The Only 'Above Average' Dividend Champion [View article]
    Says who? There are always ups and downs for ANY company doing business. That doesn't mean they have to fail. I'm way more inclined to rely on the know-how of a management team that runs a company which has been in business for 100+ years. Other folks may find it fancy to partner up with firms who've just learned to walk straight (i.e. IPOs). For most DGIs the intended holding time of any stock in the portfolio is forever, which makes the screening process so important. Taking shortcuts - as Eli has pointed out here - can be flawed but doesn't mean it is bad per se.
    Feb 21, 2014. 12:17 AM | Likes Like |Link to Comment
  • Target Is The Only 'Above Average' Dividend Champion [View article]
    Some folks are even considering LMT a good buy for $160 right now...
    Feb 21, 2014. 12:09 AM | Likes Like |Link to Comment
  • Another Purchase In My Portfolio: Lockheed Martin [View article]
    Nice analysis but I'm not sure if LMT is a buy right now. I'm actually considering to sell a couple shares because of the recent run up (my cost basis is in the $93 ballpark and I only started buying LMT about a year ago). Fundamentals are great of course and the company's position in each possible scenario is good but a 15 P/E ratio might be cheap for one sector while it may be too expensive for another. This figure alone doesn't tell the entire story.

    There are other great dividend growth companies out there which are comparatively cheap right now. Think Target, Sysco, Coca Cola or Procter&Gamble for instance.

    Long LMT, TGT, going long on KO within the next 72 hrs.
    Jan 22, 2014. 11:24 PM | 1 Like Like |Link to Comment
  • Why You Need To Ignore 52-Week Lows [View article]
    A very nice article Eli, thanks! I like this one here particularly: "at the time JNJ was trading at $72.42 it was actually much closer to being a 52-week high rather than a 52-week low. In turn, if you had a similar mindset about the 52-week range back then, you still wouldn't have bought a share."

    However, for my screening process I actually include the 52-week HIGH, or better yet, the discount shares trade at compared to their 52wh. I think this tells me a bit if a certain stock is under pressure since, as you set it out, "profitable companies tend to have a propensity to increase in share price". So when a share price is going into the "wrong" direction, it is usually under pressure for any possible array of reasons and I can take a closer look why that is the case and if it makes sense to utilize the dip.
    Jan 20, 2014. 08:48 PM | Likes Like |Link to Comment
  • Is Holding Cash A Good Idea? Will It Pay Off? [View article]
    Now this is a very good take-home advice under any circumstances.
    Jan 17, 2014. 07:56 PM | 2 Likes Like |Link to Comment
  • Is Holding Cash A Good Idea? Will It Pay Off? [View article]
    To be honest, you lost me here with your math but it's a funny read anyway. And I must agree since I don't hold cash at all. I buy shares every month whether it rains or not ;-)
    Jan 17, 2014. 04:05 PM | 8 Likes Like |Link to Comment
  • No Free Lunch For Minimum Wage And McDonald's [View article]
    Everything is more expensive in Canada. I see that with our own company (headquartered about in the middle between Toronto and Detroit). We just recently started to slash prices for our Canadian customers. They always used to pay more than our US customers...
    Jan 13, 2014. 07:30 PM | Likes Like |Link to Comment
  • Target: Bad News Equals Buy Window [View article]
    Today it's Target, yesterday it was Walmart, tomorrow it's going to be K-Mart. There's always something. I seriously doubt that such issues will have any long term effect on a company which has not only survived but also has thrived for 100+ years. BP had a huge drawback a couple years ago with that oil spill but today they're stronger than ever. What's this short term thinking all about?

    I started buying TGT shares last fall when those rumors about a very bad holiday season came up with less days to shop and whathaveyou. That very season turned out to become one of the best for retailers nationwide. As soon as I heard those news about that data breach, I added more shares ;-)
    Jan 13, 2014. 06:01 PM | 1 Like Like |Link to Comment
  • No Free Lunch For Minimum Wage And McDonald's [View article]
    Nice analysis although a bit shortsighted IMO. An increase in wages naturally leads to more consumption, not necessarily for the companies who pay them out but for the general economy. Like Chazuu mentioned, MCD burger flippers who all of a sudden would see a 30% increase in wages will most likely spend the newly found "richness" instead of putting it away.

    Also, higher minimum wages lead to lower support payments from the government like EBT etc. and hopefully in the long run to lower (or at least not increasing) taxes for all of us. What the guys in DC are essentially trying to achieve here is to move these support payments away from the taxpayer towards the corporations and their customers (which of course intersect again with the group "taxpayers" - it's a vicious circle).

    Whether we like it or not, we all elected those guys in Congress (well technically I have to exclude myself since I'm not a US citizen but you get the idea ;-)

    They were not divinely chosen to lead us like kings, they are elected officials. So if someone is to blame for their laws it's us...

    Very long MCD
    Jan 13, 2014. 01:31 PM | 1 Like Like |Link to Comment
  • Target The Best Dividend Champion To Buy Right Now [View article]
    Welcome to the world of DGI John. Watching my cash flow increase like clockwork every quarter thrills me so much more than just the pure number down there on the bold line of my net worth sheet ;-)

    Target has also been the #1 on my screen list for quite some time now. Bad news is good news for dividend growth investors. There'll always be hiccups along the way of companies big and small. Being greedy when others are fearful seems to work out time and again ;-)
    Jan 6, 2014. 06:25 PM | 1 Like Like |Link to Comment
  • It's Time To Exit Exxon And Chevron Stock [View article]
    His 2nd article which is a quite good listing of numbers everybody holding any of these two stocks or their peers already knows of, a catchy title but other than that there's not much to back the claim why I should sell my CVX position (long and adding).

    No offense but considering the size of the comment stream I'd say he has accomplished his goal of making a quick buck in page views...
    Jan 6, 2014. 01:53 PM | 2 Likes Like |Link to Comment
  • Teflon Target still doing just fine [View news story]
    Have been following TGT only for a few months now but buying back shares while they are under pressure IMHO makes much more sense than wasting billions of shareholder $$ to buy back when the price is at peaks. Just my 2¢
    Jan 3, 2014. 02:17 PM | Likes Like |Link to Comment
  • To Sell Or Not To Sell, This Is The Question [View article]
    efactor, I'm glad you take my considerations into account for your own research. That's the whole idea and I appreciate that ;-)

    There are a couple of assumptions I've made which were not necessarily stated in the article clearly.

    1. I took my original cost basis of the high yielder vs the now current market value (due to the run up in price) in order to see whether it makes sense to sell the old stock and acquire the new one.

    2. I did not account for dividend reinvestment since I currently do not DRIP neither my AFL nor MDT positions as mentioned above

    I've quickly run the numbers for a hypothetical 5% vs 2.5% yield and a 5% vs a 20% growth with the same initial investment amount. In this case it would take almost seven years for the higher growth stock to overtake the higher initial yielder. Here's the screenshot from my Google spreadsheet.
    Dec 18, 2013. 10:26 AM | Likes Like |Link to Comment
  • Teva settles with Pfizer; to offer generic Viagra in 2017 [View news story]
    After all those beatings for the Copaxone issue, the CEO crash and the back taxes it's about time to hear some good news for a change...
    Dec 17, 2013. 01:56 PM | Likes Like |Link to Comment
  • To Sell Or Not To Sell, This Is The Question [View article]
    No need to apologize. That's what we're all her for!
    Dec 17, 2013. 12:49 PM | Likes Like |Link to Comment