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Darian Frost

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  • Dividend Growth: More Important Than Yield? [View article]
    Bob:

    Dividend Growth is not for everyone. Someone in your position may benefit quite a bit from the higher yields. It is my philosophy that companies with higher yields(utilities are one of these) may not be able to grow cash flow or earnings as much as their dividend growth counterparts. This sometimes makes their share price stable, but limits growth in capital appreciation. Dividend Growth companies, on the other hand, "should" increase in price to match the dividend growth. Notice that i put should in quotations. This is because the market is a varied beast and doesn't always act as it "should". Good luck!
    Oct 12 02:03 PM | 1 Like Like |Link to Comment
  • Dividend Growth: More Important Than Yield? [View article]
    Hi,

    The thing about all these companies, is that i am trying to fit them into a theoretical mold in order to prove a point. That is not the easiest thing to do. Even before i wrote this article i knew that not all companies can sustain high percentage dividend growth rates. I am going to do another article showing the difficulties facing companies that get bigger and bigger from paying out a constant percentage year over year. What i didn't know is the concept of denial that companies do with their dividends. That is really interesting.

    Darian
    Oct 12 01:52 PM | 1 Like Like |Link to Comment
  • Dividend Growth: More Important Than Yield? [View article]
    Chowder:

    Thank you for clarifying which metric to use with MLP's. I learn something new every day! Mostly because this is all a learning experience. And now guess what topic I am going to be studying today? :) Sorry for my ignorance of how MLP's are valued.

    Darian
    Oct 12 01:47 PM | 1 Like Like |Link to Comment
  • 3 Fundamental Comparisons To Consider Before Establishing A Position In Norfolk Southern [View article]
    From a dividend investor's standpoint, the fact that exchange rates are so volatile does speak toward whether they should own the stock. I'm guessing that it might all even out in the end (i'm not quite sure. a little help please?) But if it is a reliable income you are looking for, the exchange rates do wreak havok on the "reliable terms".
    Oct 9 04:38 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Oh, well then please disregard my previous comment! Playing matchmaker when I don't have to! :)

    Darian
    Oct 6 03:06 PM | 1 Like Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Oh i like the perspective presented in that newsletter. I think i am going to investigate it further. But of course, like i said before, even yield calculations are no substitutes for due diligence! Thank you.
    Oct 6 02:09 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    With that sort of success with the Dogs of the Dow strategy, you may be interested in someone else here on SA. Miz Magic Dividogs has adapted that same strategy to the CCC lists and presented it in their "Confessions of a DGI Lite Investor" series. I found it interesting. In fact, we are going to be doing a competition with stocks picked from that strategy and from this article's strategy. I hope this is useful?
    Oct 6 02:07 PM | 2 Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Hey Miz!

    I read your stuff, and i am a fan! I can't believe i haven't followed you yet. Time to fix that.

    I really like the idea of the competition. Lets do it! I'll start researching now, but when are we planning to start this hypothetical portfolio? 1/3/13? Just trying to iron out some details.

    Darian
    Oct 5 01:46 PM | 1 Like Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    I believe that he answers that question in the article. He made a table indicating the various gains/losses resulting from different prices at expiration. Just trying to help!
    Oct 5 12:01 AM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    This is a great resource. I had always seen it like that in my mind. I would subscribe to it simply in order to see what they believe is the yield in the middle of the overvalued and undervalued lines. Thank you.

    Darian
    Oct 4 06:45 PM | 1 Like Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Hi,

    That sounds like a really interesting study. I think i'll do it. I will publish the results in another article then! Thank you for the idea.

    Darian
    Oct 4 06:31 PM | 1 Like Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Cash Flows is a great metric to use. Very useful. However, because the Payout Ratio is included in the stock selection, like cash flows, also provides a view into the sustainability of the dividends. A company with a Payout Ratio above 100% is obviously having some problems with cash flow. Likewise, if cash flows begin to decline, and dividends remain constant, the payout ratio goes up. That also grants a red flag.

    But you are right, i should use the actual cash flow metric and include it in the strategy.

    Darian
    Oct 4 02:04 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    I love Warren Buffet quotes. The guy is on record saying some funny things and some useful things. But if we can't use any of those things, what do we use? :)

    Darian
    Oct 4 01:11 PM | 1 Like Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    Hi,

    There are a few such funds out there. Vanguard Investment's VDIGX is one.
    Fidelity's FDGFX fund is another.
    Goldman Sachs' GSRIX is another.

    I hope this is useful, if it isnt good enough, I can do more research for you!

    Darian
    Oct 4 01:09 PM | 1 Like Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    What sort of software are you using to plot the risk profile? I am new and would like to know about a tool like that.
    Oct 4 12:23 AM | Likes Like |Link to Comment
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