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  • Colgate-Palmolive Delivers A Disappointing Dividend Increase [View article]
    Hi Alex,

    The price of $1.43 you see is adjusted for historical splits. That way, you can easily compare the current price versus the price it was in 1985, adjusted for the splits.

    In order to come up with that price you would obtain the historical price from Yahoo on last day of 1985: $22.91 (Source: http://yhoo.it/1pfrUle)

    The next step is determining how many stock splits were there between 1985 and 2014. Yahoo Finance shows the following:
    Splits: May 16, 1991 [2:1], May 16, 1997 [2:1], Jul 1, 1999 [2:1], May 16, 2013 [2:1] ( Source - Check the splits directly from under the stock chart: http://yhoo.it/1pfrWcZ )

    To come up with the $1.43 split adjusted price, I divided the $22.91 price by 16. (Or alternatively, you can divide the 22.91 price by a factor of 2 on four times).

    So in other words, if you put $1000 in CL at 22.91 you got ~43.65 shares. After splits you got ~698.38 shares. So your split adjusted cost basis is ~1.43/share.

    But in even other words, if the Colgate stock price had never split between 1985 - 2014, the $63.29 you see quoted would have actually been 759.48/share ( again 63.29 times a factor of 16). That's the only way that the ~43.65 shares you bought with the $1000 at very end of 1985 would have stayed at 43.65.

    I actually thought that anyone could find the split adjusted price, and that it was a common sense approach to presenting historical data. But I guess what I find to be common sense is not common sense for others.

    Does that pass your "smell test" ;-)
    Mar 20, 2014. 01:18 PM | 1 Like Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    But the ex-dividend thing you claim, as well as dividends versus homemade dividends have already been refuted before:

    http://bit.ly/1dbEItd

    Good luck in your dividend investing journey!
    Mar 18, 2014. 08:47 PM | Likes Like |Link to Comment
  • Do Not Become A Victim Of Fear In Your Dividend Investing [View article]
    Fox,
    That’s a great question. Reading DGI and archives should be required for anyone that wants to get college diploma in any major ;-)

    In all seriousness, I try to teach investors that they should not blindly follow anyone, but should use facts and do the hard work themselves in order to make their own analyses, and make their own investment decisions based on those analyses.

    It is dangerous to listen to other people’s opinions, because you never know if they have done the work or thought through all the facts, what their level of experience is, if they are selling you something, if they are biased, or following herd behavior.

    If you are a beginning investor, you might follow opinions as a learning tool, but you also have to try and do the work and make your own decisions. If you end up following the person who is teaching you the wrong stuff, you might be at a disadvantage, which might be further compounded by the fact that you are still a beginner at the art of investing. For example, I spent a lot of years thinking that short term fluctuations were the way to make money, while ignoring fundamentals. That thinking has probably cost me a lot of time and I could have been where I am now much earlier. There are always two sides to a coin, so how can you gain the expertise to decide for yourself what to do? The answer – years of trial and error, continuous learning, and keeping an open mind until you find something that works for you. That’s when you can develop “an opinion” that can count. There are no shortcuts to investing.

    I look at factual evidence, and try to make up my mind on what I need to do with my hard earned money. Going back to two sides to a coin, Charlie Munger said that in order to have an opinion, you need to be able to know well and debate the arguments on both sides

    I actually wrote an article about the work required to have an opinion:
    http://bit.ly/1iSBrkB

    I know that my opinion is somewhat substantiated from analyzing a lot of companies since 2008 on my site, discussing my strategy, and reading a ton of annual reports, quarterly reports, books/journals on investing, accounting, business strategy, marketing etc to gain some insight. Even then I make stupid mistakes all the time. I try to learn from my mistakes and then go on. But I keep making new mistakes ;-) I am also always short on time with work, family, investing, and my new hobby of hands-on research of DEO, BF/B etc ;-)

    The reality is that my approach to investing is different than the approach of many others. I believe in good hard work, and have stopped looking for shortcuts. Of course, I have spent the past 16 years learning about investing, so what I say means different things to different investors at different stages. I am always evolving. I write my articles because writing makes me concentrate on what I think, and crystalizes my thoughts. One could say I write more for myself and try to improve my investing, than anything else.

    Does that answer your question? I am very wordy..
    Mar 6, 2014. 06:37 PM | 7 Likes Like |Link to Comment
  • mREITs Are The True Dividend Champions, And Safer Than You May Think [View article]
    Peter,

    I hope you manage to do well in your retirement. However, if i look at CMO, IMH, RWT and their historical dividend payments, I get a little scared of the fluctuations.

    That being said, just because I am not comfortable owning something that pays $2 a quarter that then drops payment to 2 cents/quarter, doesn't mean you should do what I do.

    http://yhoo.it/1ievavc

    I am curious if you had looked at all the mortgage REITs at a given period of time (say since the 1980s), whether you would have arrived at the same conclusion or not.

    Please advise!

    DGI
    Mar 6, 2014. 04:19 PM | 4 Likes Like |Link to Comment
  • Altria's Latest Earnings Announcement Is Not A Good Reason To Short The Stock [View article]
    I would gladly let any short sellers borrow my shares in Altria Group (MO) for a small fee of course. Maybe I should open an account with Interactive Brokers, who would share some of the proceeds from that activity.
    Feb 10, 2014. 03:18 PM | Likes Like |Link to Comment
  • The Only Reason For Automatic Dividend Reinvestment [View article]
    I am going to ignore the personal attacks from you. But, if all you got out of this article was arguments about record-keeping, then I think you missed the forest for the trees.

    I sincerely hope your total reliance on record keeping from your broker for everything works out for you.

    I wish you a nice evening and success in your dividend investing journey! Hope to talk to you soon!

    DGI
    Jan 30, 2014. 08:21 PM | 1 Like Like |Link to Comment
  • The Only Reason For Automatic Dividend Reinvestment [View article]
    Thanks everyone for commenting. If you enjoyed this article, I would encourage you to check my other articles on my website at http://bit.ly/14xxhn8.

    The main reason I don’t reinvest automatically is because it is not the best way to optimally allocate new cash. As was mentioned in the article, I am against paying top dollar for stocks. Now, if you want to pay 30 times for a company like BF/B today through mindless dividend reinvestment, go ahead and ignore everything in this article. It is your money you are wasting.

    Now as for DRIPping, if it can work for you, go ahead and do it. If you have developed a system, good for you, and stick to it. But, also be mindful about changes in brokers, broker failures, your computer crashes and how it affects your recordkeeping. Also be mindful of spin-offs, acquisitions, and how they affect your cost basis etc . We are not talking about the last five years, but for the next 20 – 30 years. I am not that smart to say that I would keep perfect recordkeeping for 80 – 120 dividend reinvestment transactions per company in a 30 – 40 stock portfolio. Add in spin-offs, cash acquisitions etc, and the picture becomes pretty complicated.
    I am highly skeptical that the vast majority of individual investors would do perfect record-keeping of their long-term transactions over a period of 20 – 30 years. In a previous job have reviewed accounting work of professional corporate accountants with years of experience at small companies and large companies alike, and I have found many material errors in their work. So I am skeptical that individual investors who spoke so highly of their own DRIP recordkeeping skills can do what they claim to do and do it well for an extended period of 20 – 30 years. You know, 90% of drivers in Sweden think they are above average, although statistically speaking only half of them can be above average. So do not fall prey to overconfidence in recordkeeping.

    That being said, the articles I write come from my years of experience investing. My methods are very manual, so it is possible that I might have to look into streamlining my process, which heavy on spreadsheets. That works for me, but I only make 24 – 36 transactions/year. I would much rather invest my money in a company yielding 3% and selling below 20 times earnings, than mindlessly reinvest it in a company selling for 30 times earnings and yielding 1%. But then, what do I know, I have only spent the past decade and a half learning all I could find about stock market investing?
    Jan 29, 2014. 02:08 PM | 2 Likes Like |Link to Comment
  • How To Use Leveraged Dividend Growth Investing [View article]
    I don’t think you understood the premise of the article. Please try reading it again.
    You assume my readers are dumb. You are plain wrong.
    Margin could be dangerous in the wrong hands. In the right hands, it could be helpful.
    I assume readers that read my articles are smart, and have their financial house in order. They are smart because they already know how to save money, and want to learn how to invest it. This article is not for the people who run credit card debt and are crushed by it. They are not interested in dividend investing or any type of investing.
    If you think about it, I am not writing about recklessly using leverage to boost returns. I am giving you options on how to use leverage intelligently. You know, a smart person would want to learn about the tools to make them successful. A dumb person would have a loser mentality, where everyone and everything is against them, and where they do not believe they could do anything to increase their odds of becoming successful in life.
    A smart person uses credit cards to earn reward points. A not so smart person uses credit cards to accumulate credit card debt.
    A smart person can use Loyal3 to buy Target (TGT) directly from the company using credit or ACH from their bank, and earn 5% cash back, without incurring any investment costs. They can pay that credit card later.
    A smart person could use margin as a smoothing mechanism for timing purposes. But this is not market timing, this is the timing between the date you find a bargain and the date your paycheck clears.
    For those who want to use me as a contrarian indicator, go ahead. I just want to caution you, because this article was actually written in 2011. It is just that I posted it in 2013. Because of the long-term nature of dividend investing, many of my strategy articles from 2008 – 2013 are still relevant and will be relevant 10 years from today.
    The article also assumes readers are already following the checklist I have of screening for stocks, analyzing companies one at a time, and purchasing them at attractive valuations. Nowhere do I say to throw this out of the window. I always find it annoying when someone reads one article and comments – they are ignoring the fact that everything I write is a cumulative process.
    This is why I don’t comment under articles. I simply do not have the time to correct the incorrect judgments of everyone who didn’t take the time to really think through all the issues. Good luck!
    Dec 20, 2013. 12:05 PM | 5 Likes Like |Link to Comment
  • These 3 Ideas Can Jeopardize Your Investing Success [View article]
    No, I like that you disagree in some items with me. I recheck statements from people who disagree with me against my understanding of the facts, and see if I missed anything or not.

    In a previous article posted on my site, that SA didn't publish here, I discuss that I have blind spots and discussions with other investors and my rechecking my facts make me a better investor.

    I am hoping for prosperous 2014 to everyone!

    In reality, I really hope the next 30 - 40 years are prosperous..
    Dec 11, 2013. 01:26 PM | 7 Likes Like |Link to Comment
  • A Stock Warren Buffett May Secretly Hold [View article]
    I know that Buffett used to drive a VW Beetle a few decades ago. Either way, I doubt a cyclical car company would be considered as investment by the Oracle of Omaha.

    Thank you so much for the research. I guess we would never know which stock he bought, but we can always try to make reasonable assumptions.
    Dec 11, 2013. 08:15 AM | Likes Like |Link to Comment
  • Pros And Cons Of International Diversification [View article]
    Great catch Fireman 45!

    You are correct, it should say " Canada would NOT tax"

    Thanks for reading!

    DGI
    Nov 24, 2013. 05:45 PM | 1 Like Like |Link to Comment
  • How To Classify Dividend Increases [View article]
    Hahahahaha, you are so full of hate. This is pathetic ( notice I called your actions pathetic, but that is not the same as calling you pathetic).

    I said " weasel out" for your action. I was referring to your behavior.

    To which you replied " you are a weasel". You were personally offending me, which is not cool. I have been called worse, and am a big boy so I brush off the hatred aside.

    I see where the problem lies - you are having trouble comprehending words that are written down and interpreting them the wrong way. You know, if you do not understand something, the way to gain knowledge is to ask politely and not be obnoxious about it. Otherwise, you are stuck where you began in the first place.

    The lack of reading comprehension led to faulty assumptions used about short selling that completely ignored the facts of the article and my disclosure. Dbtunr was particularly unhappy because he/she got called out, as all his/her comments were full of illogical conclusions. This behavior is best characterized by internet trolls, who pick fights with people for the purpose of picking fights. I fell for it this time, but I had to take a stand for once. The net effect is a waste of my time, as usual.

    Since this conversation is going nowhere and is wasting my time, I am cutting my losses and not going to respond to your ad hominem attacks any more.

    Good luck trolling, maybe if you put in enough effort, this website will generate more comments similar to those under Yahoo Finance articles!
    Nov 19, 2013. 08:07 PM | 1 Like Like |Link to Comment
  • How To Classify Dividend Increases [View article]
    Haha, why would I apologize to you?

    It is clearly stated that I am long ADP at the top of the article.

    Yet you concluded erroneously that I am short ADP.

    And thanks for calling me names. When your arguments are not strong enough in the first place, it is always best to call people names in order to save face.
    Nov 19, 2013. 04:55 PM | 6 Likes Like |Link to Comment
  • How To Classify Dividend Increases [View article]
    You said:

    "You are not making that case here to buy ADP in the event that everything goes down."

    I simply said buy ADP below $63. Why can't the stock go down because the market is down?

    Your original thesis is that a stock that goes down, is broken. You should stand up for your word, and not weasel out. If you do change it, you should admit being wrong, and apologize for being obnoxious.

    Otherwise, the way I look at it:

    1) It is okay for you to back out of your original thesis that a stock that goes down is broken, by the excuse that the whole market was down

    But it is not ok

    1) When I say the stock is going, to assume that this would happen because the market is down
    Nov 19, 2013. 04:29 PM | 2 Likes Like |Link to Comment
  • How To Classify Dividend Increases [View article]
    I missed BDX at the end of 2012/early 2013.. Now I am just watching it go up and up. I finally understand what Buffett means by " mistakes of omission"
    Nov 19, 2013. 02:57 PM | 1 Like Like |Link to Comment
COMMENTS STATS
628 Comments
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