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Dividend Growth Investor

 
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  • MLPs: Success Story in an Otherwise Dismal Quarter [View article]
    I second searcher. KMR is a very good choice for an IRA/ROTH IRA.. Furthermore Kinder Morgan( KMP and KMR) account for over one sixth of the Alerian MLP index..


    On Apr 02 10:45 AM searcher wrote:

    > Interested in KMP but in a tax advantaged account? Check out KMR.
    Apr 3 03:35 AM | Likes Like |Link to Comment
  • Dividend Aristocrats Underperform the S&P 500 in Q1 [View article]
    Damurph,

    You are correct it should have read 2008, not 2009.

    Best Regards,

    DGI
    Apr 2 12:23 PM | 1 Like Like |Link to Comment
  • 2011, A Canadian Tax Odyssey: Canadian Income Trust Investors' Guide [View article]
    Cliff,

    I enjoyed your article. However it seems that you are only looking at the best case scenario by saying the following:
    "when energy prices recover to 2008 highs and beyond, the yields and prices on these will also recover,"

    What happens to distributions from Canroys if tax rates go up to 30%-45% and if oil prices maintain their current levels? Then a 10% distribution would be cut to 5% - 7%, which won't be as good. What if distributions are cut even more by 20% - 30% due to fluctuations in oil/gas prices?

    One should always think about probabilities when constructing a portfolio. Concentrating your portfolio in just one sector, or one vehicle is a recipe for disaster in the making..

    I do agree that a portion of one's portfolio could be allocated to CanRoys.. But their fluctuations in income do not prove a dependable and stable income stream that normal oil and gas companies such as BP or CVS would provide.
    Apr 2 10:48 AM | 1 Like Like |Link to Comment
  • Tobacco Company Yields are Smokin' [View article]
    I like and own PM ad MO..Tobacco is nice to own in a diversified portfolio consisting of other dividend paying representatives of other sectors. Otherwise a rapid change in the industry might leave you without a nest egg and dividend income. Just ask investors who were overweight financials in 2008 ...
    Apr 2 10:26 AM | Likes Like |Link to Comment
  • Best High Yield Dividend Stocks for 2009, Q1 Update [View article]
    Lightway,

    Thanks for your comment. You definitely hit the jackpot with the tortoise/hare comparison. Dividend investing is a long-term process. I strongly doubt that a time frame of less than 15 years is indicative of whether the performance is sustainable or not.


    On Apr 01 10:18 PM Lightway wrote:

    > I'd expect that you would beat out the rest of the pack over time,
    > so make the time frame 3 years, and you would be the clear winner.
    > This is like tortoise vs. hare, they might beat you short term, and
    > that is understood, but you still placed well considering your picks
    > were income picks, and you're playing against players with more of
    > a speculative/growth focus.
    >
    > Nice work and thanks for posting your results.
    Apr 2 03:09 AM | 1 Like Like |Link to Comment
  • Bucking the Trend, American Express Maintains Its Dividend [View article]
    Kewgardens,

    I would analyze BWL-A in a future post.

    Best Regards,

    DGI
    Apr 1 09:56 AM | Likes Like |Link to Comment
  • Definition of CMO Trading: Look for People Dumber than You and Take Advantage of Them [View article]
    Well trading is always looking for people who are "dumber" than you in order to execute your edge.
    With dividends however you are not relying on the greater fool theory to make money- as long as you pick a solid dividend stock that would pay you a growing stream of dividend income, you don't need to worry about ever selling your stocks.
    Apr 1 07:57 AM | 3 Likes Like |Link to Comment
  • McDonald’s: Dividend Stock Analysis [View article]
    MCD is a buy at current levels for investors who plan on purchasing at least 30 different dividend stocks.

    In addition to that, I would like to add that this dividendgrowthinvestor is not ME ( the author of this article). Using the same nick name as me shouldn't confuse you as I am not affiliated with him in any sense.





    On Mar 29 09:57 AM dividendgrowthinvestor wrote:

    > Nice article but buying MCD around 50 is fine not at the current
    > price.BUying mo and PM at the current prices gives you a much higher
    > stable dividend and amuch lower PE. The smoker in the white house
    > won't make it illegal since as a commander in chief breaking the
    > law would not be coolBesides he needs the tax dollars
    Mar 29 10:29 AM | Likes Like |Link to Comment
  • McDonald’s: Dividend Stock Analysis [View article]
    You are correct, the return was a POSITIVE 6.70% annual return.
    I really don't know how I added the negative part. Thanks for checking!


    On Mar 28 08:36 AM k45 wrote:

    > "From the end of 1998 up until December 2008 this dividend growth
    > stock has delivered a ***negative*** annual average total return
    > of 6.70% to its shareholders."
    >
    > I think you need to recheck your numbers. Even without dividends,
    > Yahoo Finance, Goggle Finance and Valueline all show POSITIVE returns
    > for the last ten years.
    Mar 29 10:26 AM | Likes Like |Link to Comment
  • Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2) [View article]
    Cliff,

    You seem to be a big believer in Canadian Income Trusts. I do not like the 2011 Tax Change, which could lead to distributions taxed very unfavorably for US investors.
    I also do not like the volatility in Canadian Trust distributions. It's true that some of them spot double digit yields, but if distributions are cut the yield on cost end up less than a CD..
    I feel much more comfortable buying the solid energy plays such as CVX, XOM and BP which are dividend achievers and have a proven track record of raising dividends and buybacks. They offer more solid and dependable dividend income stream in addition to the dividend growth potential and preferential tax treatment on their dividends.
    Mar 27 08:37 AM | 2 Likes Like |Link to Comment
  • AT&T: Dividend Stock Analysis [View article]
    Data,

    The AT&T i have analyzed is the original SBC, which merged with the maBell AT&T in 2005. The data you are showing is from the "old" AT&T which was acquired by SBC in 05.
    The dividend data that you point to is not split adjusted.

    As for the 1:5 reverse split, it happened for the old AT&T (maBell), AT&T Corp, while the new merged entity is named AT&T Inc.

    www.att.com/gen/invest...

    Whenever you research the current AT&T, always remember that it is named AT&T Inc. on the company's website.

    It's a common mistake that people make.

    Best Regards,

    Dividend Growth Investor
    Mar 20 12:05 PM | 3 Likes Like |Link to Comment
  • The 'Sell After Dividend Cut/Freeze' Rule, With Exceptions [View article]
    D4L,

    Actually a dividend freeze might not be a bad thing. You shouldn’t really adjust your portfolio strategy based to follow the past market action too closely.
    In the past stocks like WYE or K have frozen their dividends, but then resumed their payments. Furthermore what happens if a company freezes its quarterly dividends, and 5 quarters later it increases the dividends again? On an annual basis your dividend income from the stock could still be increasing.
    Try researching dividend freezers over the past decade or two and only then determine if you should sell after a dividend freeze or not.

    Best Regards,

    Dividend Growth Investor
    Mar 12 06:35 AM | 4 Likes Like |Link to Comment
  • Johnson & Johnson: Dividend Stock Analysis [View article]
    Jake,

    If you feel I might have an error with any of the data above, please let me know EXACTLY which number is incorrect.

    JNJ has worked very well for me and other dividend investors over the past years. I have a much higher confidence in the company's ability to pay and raise its dividend than the financial stocks which keep dissapointing investors.

    Good Luck!

    DGI


    On Mar 08 12:53 PM Jake2 wrote:

    > JNJ is down more than 20%, so where's the cushion? Total yield is
    > the only meaningful number. Seems to me you are lying with statistics,
    > which is an easy thing to do. In addition, you really have nothing
    > new to say here. My advice: Reader, pass by.
    Mar 8 06:30 PM | Likes Like |Link to Comment
  • Ten Stocks to Hold Long-Term - Barron's [View article]
    This is an interesting list. From it only Microsoft stands out as a shareholder friendly company as it distributes a decent dividend payment and trades at a solid P/E and decent dividend yield.
    Mar 8 04:17 AM | 5 Likes Like |Link to Comment
  • US Bancorp Cuts Dividend by 88% [View article]
    Apparently the "non cash item" wasn't a non cash item that's not important, as their dividend was sacrificed. You should definitely understand how accrual accounting works.. Some "non cash items" might not affect cash flow but will lower the expectations of profit from assets.. EPS is cash which might not be received right away, but ultimately you want positive EPS and hopefully you won't have to wait for years in order to collect revenues.

    Let's look at 4Q press release on earnings:


    "Significant items in the fourth quarter of 2008 results included $253 million of securities losses, primarily impairment charges on securities related to structured investment vehicles. In addition, the Company increased the allowance for credit losses by recording $635 million of provision for credit losses in excess of net charge-offs. In total, significant items reduced earnings per diluted common share by approximately $.34. In the third quarter of 2008, the Company's results were affected by similar items, including net securities impairments of $411 million, market valuation losses related to the bankruptcy of an investment banking firm and a $250 million provision for credit losses in excess of net charge-offs. In total, those items reduced third quarter of 2008 earnings per diluted common share by approximately $.28. "

    I see a deterioration in the "special items" from 0.28 to 0.34 in 3Q 08 vs 4Q 08. Yet EPS was 0.15 and 0.32 for 4Q and 3Q respectively.

    On Mar 04 10:33 AM User 342869 wrote:

    > Since when does a company's earnings translate into cash available
    > for a dividend? These SA author/analysts appear to be really ignorant
    > of this fact. Most of USB's 4th quarter earnings shortfall was due
    > to a non-cash charge.
    Mar 6 05:08 AM | Likes Like |Link to Comment
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