Seeking Alpha

Dividend Growth Investor

 
View as an RSS Feed
View Dividend Growth Investor's Comments BY TICKER:
Latest  |  Highest rated
  • 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
  • The High Dividend Stock Investor's Collapsing Dollar Survival Guide, Part 3 [View article]
    What happens if the dollar does not collapse, but all the other currencies depreciate against it? When the WHOLE WORLD quotes their currencies exclusively against the dollar, and any major central bank in developed or developing countries is happy to keep dollar reserves you are talking about collapse of the dollar. Has it ever occured to you that the dollar is a global currency, not a local currency?

    What happens if the deflationary cycle keep on going? The portfolio needs some allocation to assets that would do ok in a deflationary environment.
    Mar 6 04:53 AM | 2 Likes Like |Link to Comment
  • 5 Dow Stocks with the Safest Dividends [View article]
    Most of the stocks above except BMY have stable and reliable cash flows. Their products are somewhat better recession proof in comparison to others.
    Mar 4 03:16 PM | 2 Likes Like |Link to Comment
  • The High Dividend Stock Investor's Collapsing Dollar Survival Guide, Part 1 [View article]
    Aren't you afraid that concentrating your portfolio mainly in high yielding sectors will hurt your portfolio in the long term? for exampl many investors seeking the highest yielding financials got burned when the dividends were cut. Isn't it better to obtain a balances approach between dividend growth and dividend yield?
    Mar 3 08:40 AM | 2 Likes Like |Link to Comment
  • Markets Punish Dividend Cutters [View article]
    Antiquary,

    So far the statistics show that breaking with a dividend stock after a cut is a smart way to preserve wealth.


    On Mar 02 02:58 PM antiquary wrote:

    > Cutting a dividend indicates the company doesn't have a firm grip
    > on its business? Only in ordinary times. This is no cyclic downturn.
    >
    >
    > These days, selling a company because it's cutting a dividend is
    > like breaking up with a nymphomaniac with multiple personality disorder
    > because she's currently on a rare personality that doesn't want to
    > sleep with you. These companies have the dividend habit. They'll
    > be back, and reward most those who had faith in them.
    Mar 3 03:26 AM | Likes Like |Link to Comment
  • Dividend Investors Watch Out [View article]
    Selling right after your dividend has been cut is actually a very good idea. If they can't sustain it, then put your money somewhere else. If you sold when BAC first cut their dividends when the stock was trading at $30, you would have been better off than holding and hoping for the best..
    Mar 2 02:42 PM | 3 Likes Like |Link to Comment
  • GE Finally Cuts the Dividend [View article]
    Chris,

    If you bought GE at $31 in 2008 your yield on cost is 4%, even if current yield is 10%. Now that the dividend is 10 cents, your yield on cost will be 1.30%..

    I do agree however that chasing high yields is seldom a good strategy. I disagree that if you seek income you should limit yourself to CD's. Dividend Growth stocks have proved in the past that they could be a reliable way to generate an increasing stream of dividend income over time..


    On Feb 27 02:58 PM Chris B wrote:

    > This was the right decision for GE just as it is the right decision
    > for almost any bank going through this crisis. Yet the yield chasers
    > sold.
    >
    > My question is, why do investors keep chasing single-digit ANNUAL
    > dividend yields into such risky territory at a time when prices are
    > moving 5-10% DAILY? If you wanted yield, you should have bought a
    > bond or bank CD, not common shares of a massively leveraged lender!
    >
    >
    > I'm not interested in this bank stock because management has demonstrated
    > themselves to be fools and are still draining the company of much
    > needed cash by paying any dividend. When I read this article, I had
    > a flashback from another article about GM a while back.
    Feb 27 03:12 PM | 5 Likes Like |Link to Comment
  • Dividend-Paying Utilities for a Well-Rounded Portfolio [View article]
    Con Ed (ED) did cut their dividends in 1974. It has been consistently raising them for over 3 decades now..
    Feb 26 11:01 AM | 3 Likes Like |Link to Comment
  • Top Canadian Dividend Stocks [View article]
    David,

    How sustainable are these dividend payments?
    Feb 26 10:58 AM | Likes Like |Link to Comment
  • Dividend-Paying Utilities for a Well-Rounded Portfolio [View article]
    Interesting list. I am a holder of ED. In my analysis of many utility dividend achievers I have discovered that utilities typically increase dividends in cycles and then abruptly cut them, only to increase them again.
    Apart from this however, most retirees like them for the high current yield
    Feb 25 03:53 PM | 4 Likes Like |Link to Comment
  • IBM: Dividend Stock Analysis [View article]
    IBM is perfect for selling naked puts with a 65 strike.

    The yield is low, but it is well covered and the yield on cost will certainly be more than many of the current "high yield" favorites such as Canadian Trusts, oil tankers, BDCs etc, which are then cut severely or even worse, suspended.

    Pfizer cut its dividends recently. I wouldn't bet on PFE increasing them any time soon. It will be expensive to integrate WYE..



    Feb 25 04:14 AM | Likes Like |Link to Comment
  • Dividend Aristocrats Strike Back [View article]
    Marcap,

    You are looking at only one side of the story - tangible book value. I look at stocks as an asset that generates cash flows. EPS has almost doubled since 1999. Revenues have increased from 13 bln to 29 bln.

    You are not understanding ABT's business. Here is the description: This diversified life science company is a leading maker of drugs, nutritional products, diabetes monitoring devices, and diagnostics.

    Intangibles such as patents are important for this company to innovate and sell new products and generate revenues. Once you have created a medical product like a drug, your variable cost is pretty small. How do you account for that in your valuation?

    You are not going to make any $$$ no matter what the balance sheet says, unless the financial situation is directly monetized for you as a shareholder of ABT. Even if the company had $60/share in cash unless ABT distributes them back to you as a dividend, what good is it for the stock price?

    Axelrod,

    It is highly suspicious that HTE will keep paying out $.24/share every month. What would happen in 2011 when canadian trusts begin getting taxed less favorably?
    Other trusts such as AAV, PGH and PWE have recently cut their distributions. If HTE maintains their distributions that's good for you. If

    Anyways, I do like some MLPs, but I would caution you not to chase high yielding stocks. Look for sustainable dividend payments/distributions... Concentrating all of your portfolio in MLPs and Canadian Trusts is a recipe for disasterin the making. I am a big fan of diversification.




    On Feb 24 11:41 AM Marcap wrote:

    > "ABT,KO, TEG and SHW are indeed dividend aristocrats. They are amoung
    > the few that have consistently raised dividends every year for more
    > than a quarter of a century. That's not a small achievement"
    >
    > You are joking, right? Take Abbott Laboratories (seekingalpha.com/symbo...)
    > for just one example. While Abbott's stated book value is $12.47
    > per share, remove the huge amount of stated Goodwill and other Intangible
    > crap totaling more than $15.8B from its Balance Sheet, and net book
    > value plunges to a mere $1.35 per share. Now if anyone thinks that
    > paying $54.42 (current market) for a stock with a net book value
    > of only $1.35 is justified simply because of a current 2.7% dividend,
    > boy do I have a deal for them.
    Feb 25 04:06 AM | Likes Like |Link to Comment
  • Dividends Outlook for 2009 [View article]
    Avi,

    Masco (MAS) wasn't part of the dividend aristocrats index in 2008 or 2009. It was part of the dividend champions.
    Feb 24 02:11 PM | 2 Likes Like |Link to Comment
  • Should You Follow Warren Buffett’s Latest Moves? [View article]
    Jason,

    Most of JNJ and PG's products are things people use on a daily basis. Even a great depression shouldn't hit these companies too hard.

    City Desk,

    Buffett took a 3 billion francs in convertible preferred shares in Swiss Re that pay an annual interest rate of 12% and will be convertible into common stock after three years at a price of 25 francs a share, subject to anti-dilution adjustments.
    If the entire investment of 3 billion francs were converted into shares, Buffett could end up holding more than a fifth of Swiss Re


    On Feb 19 04:11 PM Jason C. Rines wrote:

    > Just a guess as to WB's thinking on J&J and Proctor and Gamble.
    > These companies are mixed Consumer Healthcare products and have greater
    > exposure to consumers pulling spending back then say, a straight
    > Pharmaceutical company selling essential Rx treatments. The writing
    > is on the wall, we are in depression.
    Feb 24 03:42 AM | Likes Like |Link to Comment
COMMENTS STATS
608 Comments
1,392 Likes