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David I. Templeton, CFA

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  • Investors May Be Too Bullish [View article]
    No apologies ever needed. Always good to receive other reader's perspective. Good luck in investing in 2010!
    Jan 3 10:54 AM | 2 Likes Like |Link to Comment
  • 26 Stocks for an Overextended, Stock Pickers' Market [View article]
    I actually used YahooFinance's Java stock screener.

    On Jan 03 01:27 AM RobberBaron wrote:

    > This is a very nice list. I'm guessing (you didn't state) that you
    > used Google Finance screener? By adding ADRs (NYSE), you get a few
    > more nice picks, like GlaxoSmithKline plc [GSK] and Telecom Corp
    > of New Zealand [NZT] There are others, in countries that might be
    > considered riskier, but those two would seem fairly stable.
    Jan 3 08:30 AM | 2 Likes Like |Link to Comment
  • Cramer's Mad Money - 3 Safe Dividend Stocks (12/21/09) [View article]
    For investors, be sure to ascertain what comprises the yield. BDV's yield includes return of principal as well. This is know as a Section 19 distribution. The income yield for BDV is only about 3.5%.
    Dec 22 07:13 PM | 2 Likes Like |Link to Comment
  • High-Yield Stocks Underperform In Rising Interest Rate Environment [View article]

    Thanks for your comment and observation. I do agree that a stock yielding 2.5% does not seem to be high yield. I am not certain how S&P determined the stratification of the S&P 500 index holdings.

    * I will say that the S&P (501 holdings with the Google split) has 425 stocks that pay a dividend and 76 non payers.
    * 147 stocks yield greater than 2.5%
    * 126 stocks yield less than 1.5%
    * 8 stocks yield greater than 5%
    * 22 between 4% and 5% dividend yield

    I think S&P was not trying to say that 2.5% and above yields are "high" yields, but rather "higher" yielding than the other holdings in the index.

    With respect to market downturns, S&P's A- quality ranked stocks and better actually hold up better than the overall market in a market downturn. Some detail is provided in S&P's Quality Ranking white paper found at the bottom of the page at the following link.
    Jun 4 03:30 PM | 1 Like Like |Link to Comment
  • It's A Myth: Triple Net Lease REITs Aren't Bonds, They Are Becoming A Core Asset Class For Income Investors [View article]
    Investors may find the white paper on REITs at the below link of interest:

    REIT Stocks: an Underutilized Portfolio Diversifier.
    Oct 5 12:32 PM | 1 Like Like |Link to Comment
  • Dangers Lurking In The Bond Market [View article]
    Koy Ote,

    I have significant oncerns with these types of ETFs. See a recent article I wrote on this topic at the below link.
    Feb 14 06:57 AM | 1 Like Like |Link to Comment
  • Dangers Lurking In The Bond Market [View article]
    I believe there are opportunities outside the U.S. for fixed income investors. An important factor for U.S. investors vis-à-vis foreign bonds is the impact of currency exchange rates. Generally, foreign and U.S. bonds have alternating outperforming periods as noted in the below chart.

    The developed and emerging markets are obviously two distinct markets for investors to consider. The central bank in China and Brazil are taking an accomodative approach in an effort to stimulate economic growth. Austrailia is doing the same. The impact for dollar investors of lower rates in these other markets can be seen by specifically looking at Japan. Japan is in a strong QE mode that is weakening its currency relative to the dollar as noted by the chart at the below link.

    This will have a negative impact on unhedged returns as the currency returns are converted back to the dollar.

    In the end foreign bond investment can add an element of diversification to ones overall portfolio. However, investors need to know the strategy being employed in a foreign bond portfolio in order to fully evaluate the risk (is it hedged or unhedged). I am of the belief there are markets outside the U.S. that are not "coupled" to the U.S. in terms of interest rates. Below is a table of interest rates in global markets/countries.
    Feb 10 04:15 PM | 1 Like Like |Link to Comment
  • Not So Golden Retirement Years Is Fallout From Weak Friday Employment Report [View article]

    You are absolurtely correct that I missed that one. As reported in a recent WSJ article:

    "A smaller portion of households headed by such preretirees had $100,000 or more in financial assets in 2010 (38%) than in 2007 (45%), according to the group’s analysis of the Federal Reserve Board’s 2010 Survey of Consumer Finances."
    Dec 10 11:08 AM | 1 Like Like |Link to Comment
  • Periodic Table Of Dividend Champions [View article]

    Nice chart and article. Good work here.

    May 10 01:29 PM | 1 Like Like |Link to Comment
  • Dividend Payers Experience Multiple Expansion At Low Nominal Interest Rates [View article]

    REITs are included to the extent they are in the S&P 500 Index, like Vornado, Avalon Bay, Health Care REIT, etc.

    Apr 11 10:17 AM | 1 Like Like |Link to Comment
  • Philly Fed Report Not a Good Predictor of Future Stock Market Action [View article]
    The longer term data shows nearly the same result as the data back to '07.
    Aug 21 03:22 PM | 1 Like Like |Link to Comment
  • Berkshire Hathaway's Profits: Not As Strong As They Appear [View article]
    One aspect of the annual letter that I thought was interesting was Mr. Buffett's focus on the rolling 5-year returns for the company's stock. I agree that investors should view stock returns over a complete market cycle, generally 3-5 years; however, I had the sense he was warning BRK shareholders that near term results might be constrained due to additional "larger" acquisitions.
    Feb 27 12:01 PM | 1 Like Like |Link to Comment
  • Dividend Paying Stocks' Outperformance Likely to Continue in 2011 [View article]
    One equally weighted S&P 500 ETF is ticker RSP.
    Jan 9 02:56 PM | 1 Like Like |Link to Comment
  • Entering Year Three of the Presidential Cycle and Bull Market [View article]
    In the third year of a presidential term, the S&P has been higher 94% of the time with the an average return of 17.1%. In the first year of a presidential term the index has been higher 100% of the time.
    Dec 21 09:04 AM | 1 Like Like |Link to Comment
  • Earnings Improving Slowly, Quarter by Quarter [View article]
    The 2.0 long term average is since 1996.
    Nov 12 10:00 PM | 1 Like Like |Link to Comment