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  • Dividend Aristocrats Strike Back [View article]
    Marcap,

    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?

    Axelrod,

    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 (seekingalpha.com/symbo...)
    > 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
  • Should You Follow Warren Buffett’s Latest Moves? [View article]
    Jason,

    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]
    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, 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]
    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, 2009. 03:34 AM | Likes 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, 2009. 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, 2009. 08:21 AM | Likes 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, 2009. 10:51 AM | Likes Like |Link to Comment
  • Dividend Increases: 6 More Companies Buck the Trend [View article]
    Asquared,

    You are correct.
    Jan 30, 2009. 04:30 AM | Likes Like |Link to Comment
  • Four Stocks for 2009 [View article]
    Thanks for the link to the Best High Yield Stocks for 2009!
    Jan 2, 2009. 12:34 PM | Likes Like |Link to Comment
  • Dividend Paying Stocks: You Only Have to Be Lucky Once [View article]
    Devin,

    That's a great original and thought provoking article. Without dividends, stock markets do look like a giant ponzi scheme, where the greater foll theory is in full effect. With dividends and reinvestment however, stock market look like a sound investing practice for long-term wealth accumulation.
    Dec 22, 2008. 07:19 PM | Likes Like |Link to Comment
  • The Dogs of the Dow Can Keep You Out of the Doghouse [View article]
    Didn't Dogs of the Dow significantly underperform major indexes by 20% in 2008?

    The only period for which Dogs of the Dow made any more money than a simple buy and hold index funds strategy, was when the DOD strategy was being backtested.
    Dec 11, 2008. 01:57 PM | Likes Like |Link to Comment
  • Five Solid Dividend Companies [View article]
    That's a very good article D4L. I need to look into TEG, I have ED as an alternative.
    Dec 11, 2008. 01:48 PM | Likes Like |Link to Comment
  • Altria: One of the Best Run Companies [View article]
    I own MO as I like the company and its ability to increase dividends and buy back stock consistently. The current MO however is different than the Altria that Siegel discusses, as it doesn't include international operations. However If you also own PM you should do just fine ( I own that one too)

    The high payout for MO is a warning sign.. The thing however is that the tobacco industry is in a decline and there should be little in capital investment for the future. Furthermore the company doesn't have a lot of options to reinvest in its business other than acquisitons..
    Dec 10, 2008. 10:55 AM | Likes Like |Link to Comment
  • My Take on Year End Investing [View article]
    If you are looking to purchase an MLP fund, check out TYY or TYG.
    Another thing to check is the annual management fee that will come out of your pocket every year..

    Dec 9, 2008. 12:15 PM | Likes Like |Link to Comment
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