Be Comfortable With Dollar-Cost Averaging Up [View article]
iainvest,
Yes, the strategy would work. Generically, it's "dollar-cost averaging". In this particular article, I talk about the sub-case of "dollar-cost averaging up" because newer investors are more reluctant to do that (and opt for selling for capital gains and then later buy at a higher price)
In the case CVX drops down to $110 or any lower number, dollar-cost averaging actually works in my favor, so actually, I'd be happier purchasing more at the lower price vs a higher price. At lower price, I get a higher yield, which means more income for me. :D
Be Comfortable With Dollar-Cost Averaging Up [View article]
chowder,
I'm less anal about price entry points now...as long as at fair valuation or slight premium for blue chips I wanna own. I'm learning from wise guys like you, Dave, and many others.
Be Comfortable With Dollar-Cost Averaging Up [View article]
iainvest,
"I fail to see what is a good stock entry price point?"
That's what valuation is for. I wrote an article a couple months ago about that -- on "How to Pick a Value Investment for Dividend Growth and Success" http://seekingalpha.co...
FAST Graphs and Morningstar are great tools that you can look into in helping you determine if a company is at good valuation to buy or not.
How To Screen Stocks Based On 'Dividend Cultures' [View article]
Tim,
I like your clear explanations as always :) One question: How did you calculate the earnings growth and dividend growth over the decade?
For example, I'm using Morningstar's data for KO: EPS 2012: 1.97 EPS 2003: 0.89 Plugging the numbers into Investopedia's CAGR calculator (http://bit.ly/YjBefA), I get 9.23%. Dividends 2012: 1.02 Dividends 2003: 0.44 Plugging in the numbers, I get a rate of 9.79%
For JNJ: EPS 2012: 3.86 EPS 2003: 2.4 ...which is a rate of 5.42% Dividends 2012: 2.4 Dividends 2003: 0.93 Plugging in the numbers, I get a rate of 11.11%
So my KO numbers match with yours, but not JNJ. How did you calculate those numbers? (Not questioning - just wanna make sure I'm doing it right ;))
Dividend Yield As An Indicator Of A Bargain [View article]
User 7965571, not a problem.
Raytheon currently pays $2.2 per share. so to get 4% yield, that'd be $55. The equation is: desired price = annual dividend / desired yield desired price = 2.2 / 0.04 = $55
A Look At My Investing Mistakes With Dividend Stocks [View article]
I admit I was guilty of trading too. I jumped in and out of JNJ and stayed permanently out (unfortunately) because the price ran away from me and I couldn't justify buying it at an even higher price at that time. I am now better at holding. Buy quality dividend growers at proper valuations and you're set! (Of course also remember to monitor how the company is doing periodically)
Chowder, appreciate your taking the time to write your articles. As usual, I learn so much. Just wish I had known the implication of that volume bar on JNJ back then.
Dividend Yield As An Indicator Of A Bargain [View article]
Tks maybenot. The dividend yield compared to the historical yields is just one indicator of a possible good entry point. One should always do thorough research on a company before deciding whether it's a good pick. I just thought that as a dividend growth investor, if the yield doesn't reach a threshold, then, it doesn't pass the screen for further research is all. Saves some time. And for me, the threshold changes for each company. In the case of KO, I try to get it around 3%.
Dividend Yield As An Indicator Of A Bargain [View article]
Pendragon, I go through my watchlist from time to time to see if the dividend is about to be raised. There maybe compelling entry points before the raise, such that if you want a company at 4% but it is not quite there, like say at 3.7%, after the raise, it might just get to the 4% if not very close to it.
Be Comfortable With Dollar-Cost Averaging Up [View article]
Yes, the strategy would work. Generically, it's "dollar-cost averaging". In this particular article, I talk about the sub-case of "dollar-cost averaging up" because newer investors are more reluctant to do that (and opt for selling for capital gains and then later buy at a higher price)
In the case CVX drops down to $110 or any lower number, dollar-cost averaging actually works in my favor, so actually, I'd be happier purchasing more at the lower price vs a higher price. At lower price, I get a higher yield, which means more income for me. :D
Be Comfortable With Dollar-Cost Averaging Up [View article]
Be Comfortable With Dollar-Cost Averaging Up [View article]
I'm less anal about price entry points now...as long as at fair valuation or slight premium for blue chips I wanna own. I'm learning from wise guys like you, Dave, and many others.
Your opinion is worth much more than 2 cents! Ha!
Canadian
Be Comfortable With Dollar-Cost Averaging Up [View article]
Thank you for sharing your wisdom in these conversations. Very much appreciated!
Canadian
Be Comfortable With Dollar-Cost Averaging Up [View article]
"I fail to see what is a good stock entry price point?"
That's what valuation is for. I wrote an article a couple months ago about that -- on "How to Pick a Value Investment for Dividend Growth and Success" http://seekingalpha.co...
FAST Graphs and Morningstar are great tools that you can look into in helping you determine if a company is at good valuation to buy or not.
How To Screen Stocks Based On 'Dividend Cultures' [View article]
I like your clear explanations as always :) One question: How did you calculate the earnings growth and dividend growth over the decade?
For example, I'm using Morningstar's data for KO:
EPS 2012: 1.97
EPS 2003: 0.89
Plugging the numbers into Investopedia's CAGR calculator (http://bit.ly/YjBefA), I get 9.23%.
Dividends 2012: 1.02
Dividends 2003: 0.44
Plugging in the numbers, I get a rate of 9.79%
For JNJ:
EPS 2012: 3.86
EPS 2003: 2.4
...which is a rate of 5.42%
Dividends 2012: 2.4
Dividends 2003: 0.93
Plugging in the numbers, I get a rate of 11.11%
So my KO numbers match with yours, but not JNJ. How did you calculate those numbers? (Not questioning - just wanna make sure I'm doing it right ;))
Thanks,
Canadian
Dividend Yield As An Indicator Of A Bargain [View article]
Raytheon currently pays $2.2 per share. so to get 4% yield, that'd be $55. The equation is:
desired price = annual dividend / desired yield
desired price = 2.2 / 0.04 = $55
Canadian
What Does A Big Market Correction Actually Look Like? [View article]
A Look At My Investing Mistakes With Dividend Stocks [View article]
Condition Of The Market - April 2013 [View instapost]
Dividend Yield As An Indicator Of A Bargain [View article]
Dividend Yield As An Indicator Of A Bargain [View article]
Dividend Yield As An Indicator Of A Bargain [View article]
Dividend Yield As An Indicator Of A Bargain [View article]
Buy Caterpillar On 25% Pullback [View article]