Seeking Alpha
View as an RSS Feed

Dividend Growth Investor  

View Dividend Growth Investor's Comments BY TICKER:
Latest  |  Highest rated
  • Top Canadian Dividend Stocks [View article]

    How sustainable are these dividend payments?
    Feb 26, 2009. 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, 2009. 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, 2009. 04:14 AM | Likes Like |Link to Comment
  • Dividend Aristocrats Strike Back [View article]

    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?


    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 (
    > 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, 2009. 04:06 AM | Likes Like |Link to Comment
  • Dividends Outlook for 2009 [View article]

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

    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, 2009. 03:42 AM | Likes Like |Link to Comment
  • Should You Follow Warren Buffett's Latest Moves? [View article]

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

    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, 2009. 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, 2009. 03:35 AM | Likes Like |Link to Comment
  • Should You Follow Warren Buffett's Latest Moves? [View article]

    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, 2009. 03:34 AM | Likes Like |Link to Comment
  • Are Any Dividends Safe? [View article]

    One lesson that investors should learn from this crisis is to hold a diversified portfolio of dividend stocks, and not use leverage.
    Feb 24, 2009. 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..
    Feb 24, 2009. 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


    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, 2009. 03:14 AM | 5 Likes Like |Link to Comment
  • 22 Companies with Dividends on Death Row [View article]

    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:


    Feb 16, 2009. 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, 2009. 04:48 PM | 2 Likes Like |Link to Comment
  • Focus on Dividend Growth Investing, Five Suggestions [View article]

    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, 2009. 04:28 PM | 2 Likes Like |Link to Comment