The 'Perfect Storm' Just Hit Safeway Short Sellers [View article]
Charlie:
One of the things that seems to restrict many investors is "emotion."
I wrote an article a few months back that discussed SWY and a few other stocks that we were purchasing in our portfolio. There was a very strong backlash against SWY and most of the comments were strictly emotional with little or no accommodation for "the facts."
I try to be the Mr. Spock of emotion free investing. Doesn't always work, I'll admit, but when I keep my emotions out of the decision making process, I tend to be more successful with my investments.
The Dividend Cut And Run - Or Should You Stay? [View article]
I never said that the author does not understand the strategy. In fact, Cranky is very much an author who not only understands the strategy, but he writes very good articles, both pro and con on the strategy.
As I was referring to investors "in general" and did not mean any criticism of Cranky, I think you might be making more of my comments than you should.
There are many investors--of all stripes--who will self destruct if the market crashes. That is because so many investors operate with the emotions of "fear" and "greed."
There really isn't a place for "emotions" in investing. Those emotions take investors from making decisions based on their own personal strategies and using their benchmarks for purchase or sale decisions--not fear or greed.
As for having any desire to appeal to your "logic", that was never my intent. I write articles on real time portfolios. I try to be as transparent as I can and to share my own ideas as to how I go about investing. If you choose to ignore my advice, I'm ok with that.
There are many who write about theoretical things. I live in a practical world of what is as opposed to what I hope will be.
I don't think that Cranky is upset by my comments and when he comes to my articles, I enjoy his. Why you would be upset, quite frankly, is a little troubling to me.
After re-reading my post, I think I took adequate time to explain exactly how some investors--not Cranky--misinterpret the strategy behind DGI. Maybe you should read it again.
A Million Dollar Portfolio: Easier Than You Might Think [View instapost]
SDS:
It's not the dividend growth rate that you need to be concerned about. It's investing in quality stocks that are priced at a value--first and foremost.
When you buy a stock and the price of the stock at the time of purchase makes all the difference in the world.
Having purchased different stocks in my portfolio, the gains of 15-30% over 12-18 months ACCELERATES the portfolio growth rate.
I am not looking for a DGR of 8%. I am looking at a total return of 8%. That not only includes DGR, but capital appreciation as well.
A Million Dollar Portfolio: Easier Than You Might Think [View instapost]
2006:
Thanks!
I would agree that the Roth is a fantastic tool for younger folks and a pretty good tool for people like me (older).
When you take the time to sit down and do the math, the potential is staggering.
I hope that people would take advantage of the retirement savings programs that are available to them, but most people will find a reason why they can't afford to invest, instead of finding a reason why they can't afford NOT to invest.
Dividend Growth Investors: The Only Thing To Fear Is Fear Itself [View article]
DD:
I bet he's one of those guys over 65 that's still working today, huh?
I think he should have said: "Never speculate in the stock market, but always be willing to INVEST in good companies that are publically traded in the stock market."
The Dividend Cut And Run - Or Should You Stay? [View article]
Cranky:
I don't sell all that often--at least a full position. I do rebalance twice a year, though.
When a stock freezes, cuts, or eliminates the dividend it is no longer held in my portfolio.
Other than that, I am an accumulating pack rat.
The stocks that I purchase that are not DG stocks or core holding stocks, I tend to "trade." I've recently bought CA, CSX, NSC, SWY, SPLS, and WU. The SWY, SPLS, and WU are potential trades.
In my latest article, I published my picks moving forward. I took positions in each of these stocks over the last two weeks:
"Some of the stocks on our watchlist are: Deere & Company (DE), Holly Frontier (HFC), Capital One Financial (COF), Joy Global (JOY), Questcor Pharmaceuticals (QCOR), Qualcomm (QCOM), F5 Networks (FFIV), Caterpillar (CAT), Cognizant Technical Solutions (CTSH), Oracle (ORCL), and Schlumberger (SLB)."
Not all are CCC stocks, but priced at what I think are a value. I was pleasantly surprised by QCOR today. Well, actually stunned by QCOR today.
The Dividend Cut And Run - Or Should You Stay? [View article]
Jon:
I was thinking about the days that I worked at KO. I had just learned about a friend of mine losing his oldest son, yesterday. So, it brought back a flood of memories, having known his son who was a little boy back then. Sad.
But I also remember meeting a neighbor when we moved into our home in Pleasanton. She asked me what I did for a living and I told her I worked for Coca-Cola. She asked me how I liked it and I told her that it was the best job I've ever had. The company was introducing Diet KO and we were getting set to go on a tear.
I told my neighbor, if she did nothing else, she should buy all the KO stock she could possible get. She took my advice and years later, she is in the same place as me. An almost retired lady with one heck of a lot of KO stock and a fantastic dividend stream from those shares of KO.
Not the most exciting stock in the world. Just a consistent winner, plugging away and innovating the beverage industry. I know this, my kids shares of KO are going to be much more valuable to them than they ever will be to me!
The Dividend Cut And Run - Or Should You Stay? [View article]
Cranky:
Most articles that discuss the nature of dividend growth investing fall short of understanding the strategy of dividend growth investing.
Here's what I mean. I've been purchasing DG stocks since 1984. Through thick and thin, reinvesting dividends and holding the course has resulted in the accumulation of a rather large value portfolio that is throwing off an income stream that is larger than my current salary.
Now, part of my initial strategy was to purchase stocks that were growing dividends annually and doing so at a rate larger than inflation. That goal has been achieved.
I've held stocks through good markets and bad and I've watched my portfolio value change on a regular basis. However, the income stream has never gone down--but increases every year.
The second part of my strategy is to leave the portfolio to my kids. Thirty years from now, when they are approaching retirement, these shares will have been held for almost 60 years.
Has the portfolio changed over time? Sure it has. That called portfolio management. Some holdings no longer meet my needs or operate consistently with my strategy. So, they go and new replacements are found. But, that is pretty infrequently.
I really don't care about the value of my portfolio, because I am not planning on selling my positions in order to fund my retirement. That is difficult for many people to understand, because the conventional wisdom is that I could be making "more" money by abandoning my strategy and embracing another.
The key to success in the market is avoiding emotions in making decisions. Purchasing stock in companies at value pricing and not overpaying makes perfect sense to me.
As for GE. I love the fact that this company is about as controversial as AAPL and gold. The simple fact is regardless of Immelt or anyone else running the company, GE was a tremendous purchase sub $10 a share. But, some folks who deal with emotion said that they would "never invest in GE again."
How'd that work out? Same thing with BAC (a former DG stock) priced sub $7. JPM and WFC presented the same opportunities as BAC, yet many investors were emotionally influenced by the fall in the price of these companies at a certain point in time.
Opportunity abounds. Investing is not a game. It's work. If you don't want to spend the time working at it, you need to be buying index funds and go on about your business.
Index funds may be a good idea for people who choose not to actively manage their portfolios. The good news for index funds is that you will never perform worse than the index. The bad news is that you will never perform better than the index either.
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
Arnie:
It all depends on what your expectations are. If you are looking for a growing income stream from WIN, then that is not happening for you.
If you are seeing this as a great capital gains play--say a rise in price from $4-$8, then you are approaching WIN from a different expectation.
The question is not what I think about it. The question should be "why am I buying this particular stock and what is my expectation for my investment."
Being a DGI, I'm looking for an increasing dividend income stream. This is a "fixed income" investment. For those looking for capital gains, there are certainly better candidates for growth than this one.
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
Dr. Jim:
If you want a "fixed income" investment then I guess it's ok. What good is the dividend when the price of the stock declines greater than the dividend income?
The problem with this company is that if the only reason for buying it is the dividend, then perhaps investors are "chasing yield."
What is your expectation from WIN with long position? Capital appreciation? Increasing income? If you could elaborate, I would appreciate it.
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
So, you don't consider not having increased the dividend since 2008 is not an issue here? While they haven't cut the dividend "yet", the lack of an increase in the dividend is even more troubling.
The 'Perfect Storm' Just Hit Safeway Short Sellers [View article]
One of the things that seems to restrict many investors is "emotion."
I wrote an article a few months back that discussed SWY and a few other stocks that we were purchasing in our portfolio. There was a very strong backlash against SWY and most of the comments were strictly emotional with little or no accommodation for "the facts."
I try to be the Mr. Spock of emotion free investing. Doesn't always work, I'll admit, but when I keep my emotions out of the decision making process, I tend to be more successful with my investments.
SWY is the bomb!
Dave
The Dividend Cut And Run - Or Should You Stay? [View article]
As I was referring to investors "in general" and did not mean any criticism of Cranky, I think you might be making more of my comments than you should.
There are many investors--of all stripes--who will self destruct if the market crashes. That is because so many investors operate with the emotions of "fear" and "greed."
There really isn't a place for "emotions" in investing. Those emotions take investors from making decisions based on their own personal strategies and using their benchmarks for purchase or sale decisions--not fear or greed.
As for having any desire to appeal to your "logic", that was never my intent. I write articles on real time portfolios. I try to be as transparent as I can and to share my own ideas as to how I go about investing. If you choose to ignore my advice, I'm ok with that.
There are many who write about theoretical things. I live in a practical world of what is as opposed to what I hope will be.
I don't think that Cranky is upset by my comments and when he comes to my articles, I enjoy his. Why you would be upset, quite frankly, is a little troubling to me.
After re-reading my post, I think I took adequate time to explain exactly how some investors--not Cranky--misinterpret the strategy behind DGI. Maybe you should read it again.
Dave
A Million Dollar Portfolio: Easier Than You Might Think [View instapost]
It's not the dividend growth rate that you need to be concerned about. It's investing in quality stocks that are priced at a value--first and foremost.
When you buy a stock and the price of the stock at the time of purchase makes all the difference in the world.
Having purchased different stocks in my portfolio, the gains of 15-30% over 12-18 months ACCELERATES the portfolio growth rate.
I am not looking for a DGR of 8%. I am looking at a total return of 8%. That not only includes DGR, but capital appreciation as well.
Dave
A Million Dollar Portfolio: Easier Than You Might Think [View instapost]
Thanks!
I would agree that the Roth is a fantastic tool for younger folks and a pretty good tool for people like me (older).
When you take the time to sit down and do the math, the potential is staggering.
I hope that people would take advantage of the retirement savings programs that are available to them, but most people will find a reason why they can't afford to invest, instead of finding a reason why they can't afford NOT to invest.
Dave
The Dividend Cut And Run - Or Should You Stay? [View article]
If Warren called me, he'd have a wrong number or he would be wanting to order a pizza. I should be so lucky!
Dave
Dividend Growth Investors: The Only Thing To Fear Is Fear Itself [View article]
I bet he's one of those guys over 65 that's still working today, huh?
I think he should have said: "Never speculate in the stock market, but always be willing to INVEST in good companies that are publically traded in the stock market."
Dave
The Dividend Cut And Run - Or Should You Stay? [View article]
I don't sell all that often--at least a full position. I do rebalance twice a year, though.
When a stock freezes, cuts, or eliminates the dividend it is no longer held in my portfolio.
Other than that, I am an accumulating pack rat.
The stocks that I purchase that are not DG stocks or core holding stocks, I tend to "trade." I've recently bought CA, CSX, NSC, SWY, SPLS, and WU. The SWY, SPLS, and WU are potential trades.
In my latest article, I published my picks moving forward. I took positions in each of these stocks over the last two weeks:
http://seekingalpha.co...
"Some of the stocks on our watchlist are: Deere & Company (DE), Holly Frontier (HFC), Capital One Financial (COF), Joy Global (JOY), Questcor Pharmaceuticals (QCOR), Qualcomm (QCOM), F5 Networks (FFIV), Caterpillar (CAT), Cognizant Technical Solutions (CTSH), Oracle (ORCL), and Schlumberger (SLB)."
Not all are CCC stocks, but priced at what I think are a value. I was pleasantly surprised by QCOR today. Well, actually stunned by QCOR today.
Dave
The Dividend Cut And Run - Or Should You Stay? [View article]
That "just sayin" is copyrighted..............
Just Sayin
The Dividend Cut And Run - Or Should You Stay? [View article]
I was thinking about the days that I worked at KO. I had just learned about a friend of mine losing his oldest son, yesterday. So, it brought back a flood of memories, having known his son who was a little boy back then. Sad.
But I also remember meeting a neighbor when we moved into our home in Pleasanton. She asked me what I did for a living and I told her I worked for Coca-Cola. She asked me how I liked it and I told her that it was the best job I've ever had. The company was introducing Diet KO and we were getting set to go on a tear.
I told my neighbor, if she did nothing else, she should buy all the KO stock she could possible get. She took my advice and years later, she is in the same place as me. An almost retired lady with one heck of a lot of KO stock and a fantastic dividend stream from those shares of KO.
Not the most exciting stock in the world. Just a consistent winner, plugging away and innovating the beverage industry. I know this, my kids shares of KO are going to be much more valuable to them than they ever will be to me!
Daved
The Dividend Cut And Run - Or Should You Stay? [View article]
Most articles that discuss the nature of dividend growth investing fall short of understanding the strategy of dividend growth investing.
Here's what I mean. I've been purchasing DG stocks since 1984. Through thick and thin, reinvesting dividends and holding the course has resulted in the accumulation of a rather large value portfolio that is throwing off an income stream that is larger than my current salary.
Now, part of my initial strategy was to purchase stocks that were growing dividends annually and doing so at a rate larger than inflation. That goal has been achieved.
I've held stocks through good markets and bad and I've watched my portfolio value change on a regular basis. However, the income stream has never gone down--but increases every year.
The second part of my strategy is to leave the portfolio to my kids. Thirty years from now, when they are approaching retirement, these shares will have been held for almost 60 years.
Has the portfolio changed over time? Sure it has. That called portfolio management. Some holdings no longer meet my needs or operate consistently with my strategy. So, they go and new replacements are found. But, that is pretty infrequently.
I really don't care about the value of my portfolio, because I am not planning on selling my positions in order to fund my retirement. That is difficult for many people to understand, because the conventional wisdom is that I could be making "more" money by abandoning my strategy and embracing another.
The key to success in the market is avoiding emotions in making decisions. Purchasing stock in companies at value pricing and not overpaying makes perfect sense to me.
As for GE. I love the fact that this company is about as controversial as AAPL and gold. The simple fact is regardless of Immelt or anyone else running the company, GE was a tremendous purchase sub $10 a share. But, some folks who deal with emotion said that they would "never invest in GE again."
How'd that work out? Same thing with BAC (a former DG stock) priced sub $7. JPM and WFC presented the same opportunities as BAC, yet many investors were emotionally influenced by the fall in the price of these companies at a certain point in time.
Opportunity abounds. Investing is not a game. It's work. If you don't want to spend the time working at it, you need to be buying index funds and go on about your business.
Dave
Is Now The Time To Sell? [View article]
Great article and a timely topic for today's market.
Dave
Why Buy Anything But Index Funds? [View article]
Dave
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
It all depends on what your expectations are. If you are looking for a growing income stream from WIN, then that is not happening for you.
If you are seeing this as a great capital gains play--say a rise in price from $4-$8, then you are approaching WIN from a different expectation.
The question is not what I think about it. The question should be "why am I buying this particular stock and what is my expectation for my investment."
Being a DGI, I'm looking for an increasing dividend income stream. This is a "fixed income" investment. For those looking for capital gains, there are certainly better candidates for growth than this one.
I could hit a "hanging" curve!
Dave
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
If you want a "fixed income" investment then I guess it's ok. What good is the dividend when the price of the stock declines greater than the dividend income?
The problem with this company is that if the only reason for buying it is the dividend, then perhaps investors are "chasing yield."
What is your expectation from WIN with long position? Capital appreciation? Increasing income? If you could elaborate, I would appreciate it.
Dave
Why I Was Wrong To Predict A Windstream Dividend Cut [View article]
Dave