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  • George Soros Is Betting Against The Market And Why Investors Should Take Notice [View article]
    I have been investing in dividend paying stocks since early 2008, by putting money to work for me every month. I look for businesses I can understand, which have catalysts to grow earnings per share going forward, are attractively valued today, and will pay me higher dividends in the future. My holding period is forever, although in my case that could be anywhere from 30 to 50 years. I could not care less if George Soros is long the Yen, short the Bund or is selling straddles on the e-mini's or Noodles.
    Sep 3, 2014. 09:00 AM | 58 Likes Like |Link to Comment
  • DGI Investing: It's Riskier Than You Probably Think [View article]

    You need to do more research, before jumping to conclusions.

    When you say that the typical DGI investor is 80% invested in a few companies, you are proving you did not do much research. If you don't do research, you are going to make incorrect conclusions and lose money in the process.

    The reason why you have not been successful at investing is because you make up your mind in advance, rather than use the evidence to come up to a logical conclusion.

    I went through your articles posted on Seeking Alpha, and honestly, I would much rather buy Colgate Palmolive at 30 times earnings, than touch any of the stuff you have written about such as:

    You were dead wrong in three of the articles I randomly selected from your profile at Seeking Alpha. This shows to me that you are not an investing expert (but neither am I). As such, you cannot generalize about what dividend growth investors do or do not do. And more importantly, you cannot tell others that they are following a supposedly bad strategy.

    If this is an attempt of you to gain pageviews, you succeeded. If this is an attempt by you to learn, then you might be on the right path.

    Either way, I sincerely with good luck to you. I hope CIB works for you. I am just hopeful you know what you are doing. I would be interested in learning about why you invested there, and evaluate your knowledge of the financial sector, the Columbian financial sector, and what your expectations for the long-term depreciation of the Colombian Peso versus the dollar.
    Mar 6, 2015. 12:48 PM | 40 Likes Like |Link to Comment
  • Investors Should Not Be Complacent About Dividend Champions [View article]
    I liked your article, because you had some valid points. Investors should not purchase dividend stocks blindly, but only if the business fundamentals and the valuation made sense.

    However, even if investors blindly purchased all dividend achievers, they would have done slightly better than the market. Not all dividend achievers are a buy however. Investors who have a head on their shoulders can research company, buy it if its a good buy and sell it if it is a good sell (dividend cut). Investors are essentially managing their own portfolio, and being in charge of their own destiny, while saving on management fees, conflicts of interest and other shenanigans from the mutual funds industry.

    You have several factual errors. You say " In fact, only the 101 currently reigning “Dividend Champions” from an original list of perhaps 500-700 stocks promising “dividends for life” 25 years ago would have survived the test of time."

    There were approximately 84 dividend champions in 1991, while there were 362 dividend achievers.

    Another factual error is that Enron, Xerox were never dividend champions. Neither was Lehman - it was only a div achiever.

    Just because a company drops from the list, doesn't mean that it went to zero and investors lost everything. Some companies like Kellogg stopped raising dividends after a 44 year run, but maintained them, until it started raising distributions again several years ago. Many promising dividend growth stocks get bought out by larger competitors at a steep premium. Very few actually "go under".
    Sep 24, 2011. 12:30 PM | 24 Likes Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    Actually this is a pretty good article. Essentially, by taking SS early, you are not fore-going 8% annual increases, but much lower annual increases ( due to the COLA adjusstments). This is something that I have not seen written out anywhere else before.

    At the end of the day, the decision to take SS early, at 66/67 or late depends on many factors. It is a highly personal choice. I for example expect to move small portions of regular IRA or 401K money into Roth IRA, without triggering any tax liabilities. Therefore, if I haven't done that by age of 62, I would postpone taking SS benefits for as long as possible.

    Of course, if I had already done this, I would much rather spend SS first than spend my dividend income. When I die, the SS benefit is mostly lost out to whoever inherits my money ( family, charity etc). But the dividend checks would likely be there after I am gone, paying for whatever they need to pay for.
    Aug 26, 2014. 01:45 PM | 22 Likes Like |Link to Comment
  • Dividend Investors Will Make Money Even If The Stock Market Closed For 10 Years [View article]

    I started dividend growth investing at the worst time possible - early 2008. That's when I started discussing my dividend ideas on my website, That's when I started republishing some of my articles on this site here.

    I kept putting money in stocks as the world was ending in 2008. Every month, like clockwork, putting money in quality dividend paying stocks.

    I kept adding money in 2009, 2010 etc, through inflation scares, double-dip recession scares, QE1, QE2, QE3, debt ceiling, etc etc.

    The past 7 years have been anything by EASY. They only look easy with the benefit of hindsight.

    I would be happy if stock prices fall by 25%. I would be ecstatic if stock prices fall by 50%.

    I always have someone telling me how stupid I am for doing what I am doing. I ignore their "opinions", stick to my plan, and enjoy life.

    In 4-5 years, income from dividends will be enough to cover my expenses
    Jul 17, 2014. 05:19 PM | 22 Likes Like |Link to Comment
  • The Importance of Dividend Investing [View article]

    Thanks for analysing my article. However there are some issues I wanted to point out. I am not sure if I didn't say things correctly or whether my article is being misinterpreted.

    First of all, I do think that this sample method should be about equally balanced -25% for each group. And yes the idea is that this is your total portfolio.

    Second the stocks in each group are just examples. I hold two MLPs in my portfolio, in addition to REITs and utilities. Those are good for current income. An investor should not stop there. They could own MO, PM, BP etc in the second tier.

    As far as rising interest rates and bonds, I realize that this could be an issue for the specific portion of the portfolio. But the bond allocation is to provide a cushion during a depression. I wrote this down clearly. The other portions of the portfolio would do well under longer term inflation. You won't win every year, but over a period of a few years you should do just fine.

    I also recommend diversification, and holding at least 30 individual securities. These days it is possible to have zero investment costs so this should not be an issue. I don't want to pay any fees to investment advisers or mutual fund companies.

    The major idea of the dividend investment strategy presented in my article was that one should spend only the income it throws off each year. Therefore if interest rates rise to 6% and the price goes down the dividend investor won't care AS long as total dividend income increases at least by the rate of inflation. So we are spending only income here, not principal.

    Also you should look into the portfolio in total, not just part by part. The reason for the four parts is that each does well under different conditions. If we get deflation bond part does well. During normal situations all portions should do well. During inflation the last 2 parts would do fine and even the second should do fine as well, since for MLPs they are able to increase fees for transporting energy by the rate of inflation. Reits should also do fine during inflation as well.

    Also I would advice that you look into my articles in total and not just read one article and believe that it has all the answers. Your comment does not take into consideration anything else i have written about over the past 2 years.
    "My idea of a diversified portfolio includes exposure to every big sector of the market with stocks of many different attributes so that there is at least some exposure to whatever is leading the market. "

    I also recommend diversification, and holding at least 30 individual securities. These days it is possible to have zero investment costs so this should not be an issue. I don't want to pay any fees to investment advisers or mutual fund companies.

    Also dividends could get cut, but for a diversified portfolio not all dividends would be cut. Foreign stocks could also be included, but then you are also exposing yourself to other risks. Most of the top companies on the S&P 500 by market cap already have a large portion of their earnings derived from foreign operations. By adding foreign stocks, you are increasing your taxes and you might be overdiversifying internationally..
    Apr 1, 2010. 04:22 PM | 21 Likes Like |Link to Comment
  • Kinder Morgan's Dividend Payout Rate Is Unsustainable [View article]
    I would second the comments of the last four commenters. KMP is an MLP and as such is required to pay out most of its earnings. What is important for MLPs is distributable cash flow, not EPS.
    While KMP is big, it could still afford growing its distributions over time if it realizes efficiencies, acquires other pipelines and also as inflation adjustments raise the prices it charges companies to transport oil and nat gas.
    If the company cut its IDR( incentive distribution rights) to 25% rom 50%, the distributions growth could be better off as well.

    Could KMP cut its dividend? Sure it could. I doubt it would do it however, as this would enrage shareholders. Furthermore the pipelines are a boring business. Demand for nat gas and oil is not volatile at all - probably a one -two percent annual change in US demand in either direction is considered huge.

    KMP is superior to PWE, since if PWE does not keep buying new exploration properties, it would earn nothing once it depletes its resources. furthermore PWE would lose its canroy status in 2011, after which its dividends would be much lower than today, since now it distributes most of its cash flow to unitholders.
    KMP could go on as long as energy from oil and gas is needed in the US. KMP has stable and growing distributions, while PWE has volatile and shrinking distributions, dependend ot the prices of volatile commodities.

    As an income investor I prefer stable and growing distributions, and a stable income stream.
    Jul 28, 2009. 09:00 AM | 19 Likes Like |Link to Comment
  • Portfolio Keeping You Up At Night? Take One Of These [View article]
    If "markets" are making you feel uneasy, perhaps you should not be focusing exclusively on the stock price. You should develop a system where you invest every month in individual businesses, which share with you a portion of their profits paid to yours truly every quarter. Those payments are always positive, they are more stable than relying on capital gains, and they have historically grown faster than the rate of inflation.

    This strategy is of course called dividend growth investing, and many retirees have found it to be the best method to live off their nest eggs.
    Oct 16, 2014. 07:45 AM | 18 Likes Like |Link to Comment
  • Dividend Stocks to Avoid [View article]
    Historically dividend cutters have underperformed the stock market and dividend grower and initiators have outperformed the stock market on average. As a dividend growth investor I buy stocks that keep growing their dividends and sell stocks that cut or eliminate their dividends. Why would I keep on hoping that GE would someday increase its dividends and waste my money at a company that doesn't deliver rising income for me when I could allocate my money at a company that delivers results?

    When GE starts delivering positive dividend growth I would once again consider initiating a position in the stock. The company might be a great buy at current levels, but your guess about future stock performance is as good as mine... I do hope sincerely however that you make money on your investments however.

    Best Regards,

    Dividend Growth Investor

    On Apr 21 10:58 AM sthpawil wrote:

    > I consider buying GE back when it was below $7 an incredibly smart
    > move on my part. In a few years when the dividend returns to its
    > normal level, the ROI will be huge since my cost basis is so low.
    > Between that and my capital gains, I don't see how anyone with an
    > ounce of common sense can make the argument that one should avoid
    > these stocks. Articles like this are very short sited and proof that
    > so called "experts" are people too and they make mistakes just like
    > the rest of us.
    Apr 21, 2009. 12:51 PM | 17 Likes Like |Link to Comment
  • DGI Investing: It's Riskier Than You Probably Think [View article]
    Ha, someone talks trash about TheDiv-Net?

    You mean the site where people who were investing in dividend growth stocks in 2007 - 2008 - 2009- 2010 - 2011- 2012 -2013 - 2014 - 2015? Did we "give up" in 2008? Nope.

    You just glanced at the site, and then looked for something to confirm your preconceived belief, didn't you? If not, I would like to see the analysis of all investment ideas presented on Div-Net, and what percentage met your requirements and what percentage didn't? Also, provide a list of your requirements.
    Mar 6, 2015. 12:20 PM | 13 Likes Like |Link to Comment
  • 12 Dividend Machines Raising Distributions For Investors [View article]
    Show me the academic research that supports your thesis. (or any objective research that can be relied upon, which had a statistically valid sample ). Also show me the proof that the paragraph is “wrong”.

    The thing is, you can’t, because you are talking out of your hat.

    PS The statement you are making is complete BS – “How often have you seen companies raise dividends and then tank after they are forced to reduce or even cancel them altogether?”

    If you have bothered to look at actual data, rather than talking out of your hat, you would have learned that your statement is incorrect.

    Thanks to people like you, inefficiencies in the stock market exist, and people like me make a lot of money in dividends and capital gains. So please, spread your disinformation.
    May 5, 2014. 08:54 AM | 13 Likes Like |Link to Comment
  • What Happens When You Sell An MLP? [View article]
    For the two years i have owned OKS and EPD, the UBTI has been negative in both years.

    I am not certain why investors are so afraid of MLPs. If your tax adviser cannot handle them then you need to fire them. I guess investors who are not comfortable with MLPs because of the extra tax paperwork, create an inefficiency in the market that can be exploited by others.
    Apr 30, 2013. 09:53 PM | 12 Likes Like |Link to Comment
  • Dividends Matter a Lot, But Not More Than Proper Diversification [View article]

    There is a reason why I do not respond to articles like this one.

    First, I think that anyone that writes negative things about dividend investing, and calls me and my strategy stupid, without offering any idea about their own strategy, is not worth my time. Roger Nusbaum writes about a lot of interesting ideas to research. But I do not know what he invests his client's funds in. So if he has no skin in the game, I do not listen to him.

    Second, the reason why Roger writes these types of articles is because he wants to generate controversy, and therefore more traffic to his site.

    Third, as a financial adviser himself, he feels threatened that do it yourselfes dividend investors would invest on their own. Investing is not as difficult as financial advisers would make you believe it is. Actually, most financial advisers earn money when they sell you financial products or they earn money based off the amount of assets they manage for you. So it is no surprise that investment advisers ( who do not deliver much in value anyways) see the emergence of investors who want to do it on their own, fire their advisers, and live off the dividend stream, rather than rely on selling off 4% of their dividend portfolio ( which is similar to cutting off the tree branch you are sitting on).

    Fourth, Based on one article that Roger wrote in response to an article I wrote last year" Living Off dividends in retirement", I realized that he does not understand dividend growth investing. I also realized that he does not understand asset allocation. In my article I had written how it is a good idea for investors who are retired to have a 25% allocation to fixed income. Roger Nusbaum, of all people, wrote in my article rebuttal strongly against bonds. Obviously this adviser has no idea what he is talking about - bonds are a great diversifier, and in certain market periods ( aka great depression or last 2 decades in japan or last 11 years in the US) have proven to be worthwhile investments.
    Jun 14, 2011. 09:25 PM | 12 Likes Like |Link to Comment
  • Sleep at Night Investments: Utility Preferred Shares [View article]

    That's an awesome article. I liked the depth of it. I am looking forward to reading more articles from you.

    Dividend Growth Investor
    Apr 27, 2011. 08:00 PM | 11 Likes Like |Link to Comment
  • 14 Dividend Stocks With Dividend Growth Potential [View article]
    Thanks for all the comments. As a side note, the dividend growth in the table above is the Ten Year Average Dividend Growth per Year.
    Jul 14, 2010. 08:31 PM | 11 Likes Like |Link to Comment