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  • Top High Dividend Stocks in a Down Market [View article]
    It's important to make sure that the dividend is adequately covered. If the payout is significantly more than 50%, i would be hesitant in purchasing the shares..
    Dec 2 11:32 AM | 1 Like Like |Link to Comment
  • Merger Arbitrage: Sound Strategy for a Bear Market [View article]
    Looks like GDL has outperformed the market in 2008 by falling only 15%. ( total returns). The weird part is that GDL seems to be returning capital in order to maintain its 40 cents/quarter distribution.
    It also looks to me as if the fund participates in all deals, which is someting I am not looking to achieve. By all deals I mean deals that are just announced, and still have obvious hurdles in front of them. For example on 6/30/2008 GDL owned shares of YHOO even though the merger was never approved by YHOO's board.

    Please review this post on merger arbitrage:

    Nov 30 05:12 PM | Likes Like |Link to Comment
  • 40 Net Current Asset Stocks for Value Investors [View article]

    I don't own any of the above stocks. I have been researching TAIT in order to determine how much can you get out of it if the inventory were sold off. I also like that TAIT seems to be returning capital to shareholders through dividends over the past 2 years.

    Of course the builders also look interesting as a potential value play. Graham made a lot of money in the 1930's by buying whole companies selling below the net current assets minus total liabilities and then liquidating them..
    Nov 30 04:55 PM | Likes Like |Link to Comment
  • Markets Punish Dividend Cutters [View article]

    My reviews of companies cutting or eliminating dividends suggest that more bad news are ahead for stockholders in those that provide negative dividend news. I do write how much the stock has increased or decreased in a given week, but that's because I provide the dividend cuts on a weekly basis. I wish I had started tracking dividend cuts a long time ago..
    In a previous post I posted a chart from Ned Davis research, showing that dividend cutters or eliminators underperform the dividend growers and initiators over the long-term. So I wouldn't expect these stocks on average to perform well over time.

    On Nov 25 02:48 PM Aalan wrote:

    > If a business is losing cash flow due to market conditions beyond
    > its control, I'd rather it maintain its long-term viability by putting
    > its remaining cash to working more efficiently, rather than cannibalize
    > itself to make stockholders happy for another quarter. If you're
    > only interested in short-term trades, then your response makes sense--but
    > don't blame the business model; that's strictly market-timing.
    Nov 26 09:58 AM | Likes Like |Link to Comment
  • Why Should Companies Pay Dividends? [View article]

    The chart from Ned Davis Research compares the performance of dividend paying S&P 500 stocks versus non-dividend paying S&P 500 stocks. All S&P 500 stocks are believed to be established enterprises.
    Nov 24 09:47 AM | 1 Like Like |Link to Comment
  • The Dow's Lost Decade [View article]
    The etf that covers Dow Industrials (DIA) closed 1998 at 91.53. The closing price for 1999 was 115.19.

    Since the end of 1998 DIA has distributed $20.03 in dividends/share
    Since the end of 1999 DIA has distributed $18.36 in divs/share

    In 1999 DIA distributed $1.67 in dividends. In 2007 it distributed $2.75. I would say that investors didn't do as bad, although not as good as in prior decades.
    Nov 23 06:29 PM | 2 Likes Like |Link to Comment
  • Electric Utilities: Thus Far a Relative Safe Haven [View article]
    As a proud owner of ED i could definitely say that utilities have been an outperforming factor for my dividend portfolio in 2008.
    Nov 23 06:13 PM | Likes Like |Link to Comment
  • Betting on Ford: Ugly Stock, Intriguing Options Opportunity [View article]
    I also think that GM bonds are a much "safer" investment than GM stock at this moment. The covered call on Ford could be a nice idea as long as the stock doesn't fall a lot.
    Nov 23 06:03 PM | Likes Like |Link to Comment
  • My Dividend Portfolio: I Like Beer [View article]
    If you are a fan of alcohol stocks, have you considered Diageo (DEO) as a global dividend play?

    Nov 23 05:51 PM | Likes Like |Link to Comment
  • Going for High Yield Stocks [View article]
    I strongly doubt that the stocks with the highest dividends have sustainable dividend rates. Typically they fluctuate up and down. I believe that the best strategy is to include the high yielders only if they have a history of consistent dividend increases for at least a decade. Other than that you are speculating and giving in to greed..
    Nov 19 02:33 PM | Likes Like |Link to Comment
  • Real Price of Gas Approaches a Historic Record-Low [View article]

    I just wanted to say that I really enjoy the historical perspective in your articles.

    I never considered the fact that gas prices are in a long term decline..

    Nov 18 01:54 PM | 1 Like Like |Link to Comment
  • 100% Yields on Ecuador Bonds: A Sign of the Times [View article]
    Interesting article. I see a great profit opportunity for emerging market countries, if they learn how to play smart with their debts. First emerging market countries like Ecuador manage to sell as much debt as possible when times are good, by locking in low long-term interest rates. Then they just wait for the next global crisis and then they default on investors, sending the bonds to super low levels..

    If they have 2 billion on hand, why can't they ( at least theoretically) simply purchase these bonds.. And reduce their debts forever?
    Nov 18 11:30 AM | Likes Like |Link to Comment
  • General Electric: Genuine Risk of Collapse? [View article]
    The following sentence is right on the money in terms of what dividend investors are fearing:

    "Rumors of a dividend cut have been swirling in the business press. GE spokesmen have guaranteed the dividend only through 2009. Many other banks have promised no dividend cuts in the last year, only to cut dividends a month later."

    Nov 18 10:47 AM | 5 Likes Like |Link to Comment
  • Ten Companies Who Increased Dividends [View article]

    What are the odds that FRO and NAT will cut or suspend their dividend payments just like DSX, ESEA and FREE did last week?
    Nov 16 04:24 PM | Likes Like |Link to Comment
  • Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor? [View article]
    Personally I'd rather save the auto workers jobs, than save the greedy executives with their million dollar spa treatment.
    Nov 12 10:14 AM | Likes Like |Link to Comment