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  • Should You Follow Warren Buffett’s Latest Moves? [View article]
    Saltaway,

    Actually the opposite is true - investors who mimicked Buffett's portfolio would have outperformed the markets over the past 30 years:

    papers.ssrn.com/sol3/p...


    On Feb 19 08:31 AM SALTAWAY wrote:

    > I would point out that the average investor that follows and mimics
    > Buffet's picks has not done well over the last 20 years or so. Because
    > of the time lag between his moves and public knowledge, you are doomed
    > to underperform him. I agree with Michael above. I wouldnt copy him,
    > I would let him run my money by buying brk.a or brk.b
    Feb 24 03:36 AM | Likes Like |Link to Comment
  • Should You Follow Warren Buffett’s Latest Moves? [View article]
    Hedged in,

    Another reason could be that he needs to raise as much cash as possible, in order to participate in other preferred stock or fixed income deals, where he could earn a 10%-15% annual dividend yield, with very favorable terms for his company. Ordinary investors do not however have the purchasing power to participate in such favorable deals at this time.


    On Feb 19 06:53 AM Hedged In wrote:

    > This is good attempt to rationalize Warren Buffett's moves -- thank
    > you.
    >
    > But look again at this:
    > "One reason why he might be selling solid dividend stocks such as
    > Johnson & Johnson and Procter and Gamble could be that they haven’t
    > fallen as much as the broader market, which makes them ideal for
    > Buffett to deploy the funds in other beaten down sectors."
    >
    > If Buffett sees greater value in other sectors, then shouldn't other
    > investors too?
    Feb 24 03:35 AM | Likes Like |Link to Comment
  • Should You Follow Warren Buffett’s Latest Moves? [View article]
    Michael,

    Of course you could always buy BRKa/b and not need to do any research. Of course i enjoy trying to decipher what made Buffett decide to rebalance his portfolio.

    Furthermore i see a major risk in BRKa/b that Buffett's investment objectives might not be the same as yours. Also in Buffett "retires" from BRKa you will be left with stock in the company, but the Buffett premium will soon evaporate and the stock will fall.. The end result is that you would have learned a valuable lesson - always do your own homework,


    On Feb 19 06:01 AM Michael Zhuang wrote:

    > Why make things more complicated than necessary? Why not just buy
    > BRK.A or BRK.B?
    Feb 24 03:34 AM | Likes Like |Link to Comment
  • Are Any Dividends Safe? [View article]
    MG,

    One lesson that investors should learn from this crisis is to hold a diversified portfolio of dividend stocks, and not use leverage.
    Feb 24 03:20 AM | 2 Likes Like |Link to Comment
  • Dividends Falling - No Bottom in Sight [View article]
    Of course this article fails to mention that the majority of companies that cut dividends are cyclical in nature. They tend to cut at the low points of the cycle and increase at the high point of the cycle.
    At the same time the dividend aristocrats keep increasing their dividends, as most of these stocks have a wide moat business model..

    seekingalpha.com/artic...
    Feb 24 03:18 AM | 3 Likes Like |Link to Comment
  • Dividend Aristocrats Strike Back [View article]
    Market Ace,

    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

    Marcap,

    It is true that some companies raise dividends when they cannot afford to. But most companies that have raised their payments for more than a decade and can keep doing that are sending fundamentally strong signals. If you can keep raising your dividend in a recession, you must have a wide moat business. If you check the dividend aristocrats list in 2009, there have been 12 increases and only 2 cuts. The business models of most aristocrats and achievers are pretty anticyclical. You don't get to raise dividends for more than 25 years just by accident.
    In a bear market, when your stock loses 50%, but your dividend check is the same and even gets increased, what do you care?

    Dividends have accounted for the majority of total returns over the past few decades. Stock prices go up and down and few if any investors could take advantage of market timing. Thus a simple buy and hold with a dividend reinvestment could do miracles for you no matter where the stock market goes. As long as your dividend is stable and/or going up.






    On Feb 23 10:33 AM market ace wrote:

    > If you call these aristocrat dividend stocks you are a joke. There
    > are many many much better dividend stocks out there compared to your
    > pathetic list.
    Feb 24 03:14 AM | 5 Likes Like |Link to Comment
  • 22 Companies with Dividends on Death Row [View article]
    Alan,

    How many of the companies that you have cited in your list have increased dividends for more than 10 years? How many have increased their dividends for more than 25 years?
    Are dividends from all industries at risk, or are the cuts concentrated mainly in one/two sectors?

    Are the companies about to cut having wide moats and strong brands, or are they cyclical or discretionary item?

    My take:

    www.dividendgrowthinve...



    Feb 16 12:35 PM | 2 Likes Like |Link to Comment
  • Why China Can't Dump U.S. Treasuries [View article]
    What if the chinese decided to convert these $$$ into yuan and invest in their own consumer economy?
    Feb 13 04:48 PM | 2 Likes Like |Link to Comment
  • Focus on Dividend Growth Investing, Five Suggestions [View article]
    Jake,

    BAC was not a consumer staple, while PFE had its own problems arising from its patents expirations after 2011.

    Most dividend investors are long term holders who do not care that the stocks have fallen in one month as long as the companies generate enough EPS/cashflow increases to support a growing dividend. A growth in EPS will most probably lead to growth in stock price.

    Even if you look at the dividend aristocrats in total, they have outperformed the S&P over the past 18 years. It might not happen again in the future as there are no guarantees in investing.

    I gave very good reasons why the 5 stocks above should do well - because they are consumer staples whose products people use even in a recession. You can of course take whatever you like from this article, but please remember to do your own research before buying/selling stock.

    As for dividends being peanuts, that is very wrong. Investors should focus on total returns. Many studies have found that reinvested dividends have produced the majority of total returns in the stock markets over the past century. Dividends are also the only source of return on investment for shareholders during bear markets.

    It is true that some companies cut dividends, but sometimes wise investors should look beyond the newspaper headlines, and learn that there are cyclical companies which always cut during recessions. Not that many dividend aristocrats cut dividends in 08 - mainly financials. There were several cuts in 09, but the increases far outpaced them.
    Feb 12 04:28 PM | 2 Likes Like |Link to Comment
  • Altria: A Recession Resistant, High Yield Dividend Stock [View article]
    DM,

    As PM and MO shareholder I certainly hope that the future repeats the past. However, when I think that way I always remember a quote from Buffett claiming that if history always repeats itself, then librarians would be the wealthiest people in the World.
    Feb 8 11:04 AM | 1 Like Like |Link to Comment
  • State Street: Dividend Cut Analysis [View article]
    User 352558 ,

    How good are STT's EPS when they actually cannot support a measly dividend, equal to 1/5 of their EPS? What have they been doing with their EPS so far? Taking on more risk with lower reward? I guess I should have done more research on this one.

    NSS,

    I am glad you stayed away from this one.

    rob4321,

    I am glad that you are smart and know everything there is to know about investing. Based on your measly one comment to this site, I am certain that you are winning on 100% of your investments. Anything less than that is stupid, right? Following your investment plan is stupid, right?

    Maybe that's what's wrong in USA - people are too opinionated to get their heads out of the.... sand and think of everything as one huge gamble. Heads I win, I am smart, tails I lose that guy over there is dumb.
    Feb 8 11:01 AM | Likes Like |Link to Comment
  • The World Money Show: Five High Yielding Energy Trusts [View article]
    Tom,

    The problem with canadian trusts high yields is summed in one word: 2011 when most yields are going to drop as dividend payments on Canroys are cut.

    And I am not even going to mention the rest of the problems..You can check this article out..

    www.dividendgrowthinve...
    Feb 6 08:21 AM | Likes Like |Link to Comment
  • Dividends: The Secret to Long-Term Returns [View article]
    Claudio,

    Your response is very far from the truth. Asides from a few exceptions the only companies cutting dividends are financials. There are a ton of stocks raising their dividends, right under your nose.

    Owning small portions of good businesses you understand (also called shares) has always been the way to prosper in this country. Few if any people have made much money with active trading ( now I exclude money managers and brokers, who make money no matter what by charging you commissions)




    On Feb 04 10:59 AM claudio.lane@att.net wrote:

    > The article is antiquated in light of the current market conditions.
    > As previous posters have noted billion dollar banks are basically
    > insolvent. Dividends have been cut or eliminated. Many companies
    > which were stalwarts of industry are no longer in existence. For
    > people investing under the old mentality your time has passed and
    > if you continue to invest based on the past your in for a rude awakening
    > and a lightening of your retirement account.
    Feb 6 08:17 AM | 1 Like Like |Link to Comment
  • Sell Altria During Market Hours [View article]
    MO has indeed been the best performer in the S&P 500 since 1957. Would it be the best performer in the S&P 500 over the next 50 years? Highly unlikely imho.
    I wonder if the company's merger with UST won't lead to a div cut sometime down the road.
    Jan 31 10:51 AM | Likes Like |Link to Comment
  • Dividend Stocks: The Good, The Bad and the Ugly [View article]
    Great Article as usual. PFE is also becoming a part of the ugly.
    Jan 30 08:51 AM | 1 Like Like |Link to Comment
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608 Comments
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