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  • Differing Outlooks On The Market [View article]
    I didn't know there was a battle between the two.

    We all own a good bit of MMP and it's one of our better performers. DM is a puppy starting out and I wouldn't even consider it unless we had established positions in KMI, EPD and MMP.
    Aug 3, 2015. 07:22 PM | Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? [View article]
    And for the record, I believe KMI has more than 80,000 miles of pipeline, not counting the hundreds of storage facilities and the shipping business. They are the largest pipeline/storage company in North America, I think.

    I believe that 80% of their revenue comes from the fees they charge to rent the pipes whether liquid goes through them or not.

    Those assets aren't going anywhere. They may need maintenance and upkeep, but those pipes are going to be used for years.
    Aug 3, 2015. 05:59 PM | 1 Like Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    There is no way I am going to substitute an ETF for individual equities other than perhaps in small cap companies or emerging markets for example.

    I've been down the ETF road for quite a few years and not only do they have larger drawdowns than my individual equities do, their income flows are inconsistent and not always rising.

    The companies I own are mostly represented in the ETF's you suggest regarding large cap companies and represent a good size as well. I can dispense with some of what appear to me as weaker companies in the ETF.

    Anyway, I'm not looking to mimic the index or the ETF. I'm looking to grow income or cash flows to the portfolio on a regular basis and be in a position where I don't have to harvest shares to generate income. I believe I can do that better with individual equities. We'll see.
    Aug 3, 2015. 05:21 PM | 5 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    I won't buy an index because I won't get the yield I can get with individual equities, and I won't stop talking about how well the Aristocrats do against the index.

    Survivorship is exactly what I'm looking for because I want to know what characteristics they possessed that others didn't that made them a survivor, and that's what I focus on going forward.
    Aug 3, 2015. 03:16 PM | 5 Likes Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    Morgan Stanley called DM their best new MLP idea out there.
    Aug 3, 2015. 03:11 PM | 1 Like Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    What that chart does show is that once you get out to 15-20 years, and especially if you reinvest the dividends, the Aristocrats not only do better than the market, the longer time frame you have, the wider the performance. Good luck catching up!

    It's why I give no credence to the short term comparisons provided by those who aren't impressed with investing in the Aristocrats or dividend growth investing.
    Aug 3, 2015. 03:03 PM | 4 Likes Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    I wouldn't buy FTR either but people are going to chase that yield.

    I did keep the shares spun off by VZ and I do reinvest the dividends back into FTR, but the only reason I keep the spun out shares is because it didn't cost me anything, really. It was sort of a dividend and I'm willing to see what it does over the long-term, but I'm not going to add to the position other than letting the dividends reinvest.
    Aug 3, 2015. 02:51 PM | 1 Like Like |Link to Comment
  • A 2015 Review Of The Dividend Safety Superstars [View article]
    They might freeze the dividend, I don't know. I would expect a lower growth rate first since they have raised it as long as they have.

    I think you hit the nail on the head with this comment:

    >>> Both the CFO and CEO, who are new at their positions, didn't speak specifically to the dividend but rather more broadly to capital allocation decisions. <<<

    They are both new, haven't had time to address the dividend as they had other priorities more pressing, when in doubt or lack direct knowledge, say nothing, and the Board of Directors will do what they think is right.
    Aug 3, 2015. 11:46 AM | 2 Likes Like |Link to Comment
  • Introducing The Tactical Dividend Growth Portfolio And Workshop (Part 1) [View article]
    Sorry Adam, I didn't make myself clear. Risk to a dividend growth investor is often not having an enough income generated from an asset. They may require a 3% yield and can't accept a 1% yield. They face the risk of not receiving enough income.
    Aug 3, 2015. 11:34 AM | Likes Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    Wooo Hooo! FTR was expected to earn 2 cents per share ... TWO CENTS ... and they earned 3 cents. Price is headed for the moon, up over 9% on the day as I type.

    Is this insane or what? ... Ha!
    Aug 3, 2015. 11:28 AM | 1 Like Like |Link to Comment
  • A 2015 Review Of The Dividend Safety Superstars [View article]
    Ron, I understand what you are doing and why. There was no doubt in your mind as to what to do. My comment was stated for those in doubt, wondering what to do.
    Aug 3, 2015. 11:19 AM | 1 Like Like |Link to Comment
  • Introducing The Tactical Dividend Growth Portfolio And Workshop (Part 1) [View article]
    When your objective has a cap appreciation objective focus, you're going to have to buy companies with low yields and carry more risks.

    Since my focus is the income with a cap appreciation as a secondary target, then yield and longer track records are necessary.

    I wouldn't buy any of the companies mentioned in your article when building up a portfolio designed for income first.

    My son has a portfolio of about 30 blue chip companies which were purchased first to get the compounding effect of the higher yields off to a good start. I'm into the next phase of building his portfolio which would include companies like the one mentioned in this article.

    Now that the income growth is established for him, I'm looking for a little growth now, even if it means no dividend. I added BWLD and ULTA to his portfolio about 6 weeks ago and I still consider him and me to be dividend growth investors.

    I've recently added low yield, but higher dividend growth companies like LOW and ROST.

    I wouldn't consider any of these companies, or the ones you mentioned, until the foundation was built first.

    I manage my portfolio differently though, they have to pay a dividend.

    I don't see anything wrong with what you are doing. It supports your objectives.
    Aug 3, 2015. 10:25 AM | Likes Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    At the time I purchased LOW, M* and S&P both said LOW was selling at a double digit discount to fair value. I had them and HD on my watch list for several years and couldn't match a time when funds were available and they were selling at a double digit discount to fair value. I was willing to buy either of them and decided the first to hit my discount target would be the one I purchased. LOW won.
    Aug 3, 2015. 10:13 AM | 2 Likes Like |Link to Comment
  • A 2015 Review Of The Dividend Safety Superstars [View article]
    Let me provide a little more color on MCD and the dividend. Those of you who know me know that I love using the Jefferson Research reports that are provided free to Fidelity clients.

    Jefferson's ratings are what I use to determine if a dividend is at risk. Here's what I see:

    Earnings Quality ... Strongest
    Cash Flow Quality ... Strongest
    Operating Efficiency ... Strong
    Balance Sheet ... Strong

    Does that sound like the dividend is in danger?

    To contrast that, at the end of quarter 4 in 2014, these were the ratings for LINE.

    Earnings Quality ... Weakest
    Cash Flow Quality ... Weakest
    Operating Efficiency ... Weakest
    Balance Sheet ... Weak

    It was an easy call to determine the dividend was in danger and I said so in a comment stream to one of my articles.
    Aug 3, 2015. 10:04 AM | 2 Likes Like |Link to Comment
  • A 2015 Review Of The Dividend Safety Superstars [View article]
    Wait a minute! Hold the phone! ... We're worried about what the CEO didn't say about the dividend and think that's a negative?

    Anyone recall Immelt over at GE talking about how safe his dividend was? How did that work out?

    And how about Maggie what's her name over at FTR who showed up on CNBC and talked about how safe the dividend was and how important it was to them. Boom! They cut it for the second time.

    I'm thinking, silence is golden until it isn't. ... Ha!
    Aug 3, 2015. 09:53 AM | 3 Likes Like |Link to Comment
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