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  • Country Default Risk Rises Across the Board [View article]

    Argentina's bonds are pretty likely to default, so I wouldn't be surprised if someone paid 4400 in order to get $10,000 back.. I think that Argentine bonds trade well below par right now..
    Dec 4, 2008. 04:40 PM | Likes Like |Link to Comment
  • Star Bulk Carriers: Interesting Dividend Payout [View article]
    The problem is not with dividend payments - the problem is that companies didn't allocate their cashflows wisely in order to be more competitive compared to their competitors. What is the guarantee that a company that doesn't pay any dividends will allocate the funds wisely?

    How else are shareholders expected to earn some real cash from the companies they invest in? Sure, stock prices could rise and fall based off fundamentals, but there always is a disconnect between those. When a company shares a portion of its profits with shareholders, it proves that these profits are real, and not made by manipulating the books.
    In the corporate america of the 21st century the shareholder is the last one to get paid. Companies that cannot afford to pay dividends are always suspect. If they cut or suspend dividends they show you zero confidence in the short-term ability to compete in the markets. If management doesn't think that the company will earn enough cash to support the dividend it has been paying for some time, then why should you hold the stock?

    Google never paid a dividend, yet they had the funds to pay millions for a space challenge.. That's a missapropriation of shareholders money if you ask me!

    Dec 3, 2008. 03:59 PM | 2 Likes Like |Link to Comment
  • A Dividend Primer, You Don't Get Something for Nothing [View article]
    You are not discrediting me with your childish comments. You are discrediting yourself with your 6 posts on SeekingAlpha. Shame on you.

    On Dec 02 09:46 PM 22Thoroughbreadisanidi... wrote:

    > Wow! That has to be the dumbest comment I have read on a financial
    > blog...EVER.
    Dec 3, 2008. 10:46 AM | 1 Like Like |Link to Comment
  • GE Shareholders Cheered by Dividends, Earnings News [View article]
    I am very skeptical of the whole dividend reiiteration thing. Citi and BAC also claimed their dividends to be safe, only to cut them several months later..
    Dec 2, 2008. 05:38 PM | 1 Like Like |Link to Comment
  • A Dividend Primer, You Don't Get Something for Nothing [View article]

    You are looking at the issue from the standpoint of a daytrader. It is true that the stock price at the open is reduced by the amount of the dividend, but more often than not this is only a cosmetic change as the market adjusts it value up or down based off other factors.
    Stocks that pay dividends tend to outperform those that do not, as their dividend checks tend to soften any declines in bear markets and further compound your profits in bull markets.
    Dec 2, 2008. 05:32 PM | 3 Likes Like |Link to Comment
  • Highest Yielding Stocks Going Ex-Dividend in December [View article]
    I wrote an article on the dividend capture strategy:


    Basically this strategy assumes that markets are inefficient and that there is free lunch. Even the author of the article doesn't do what he preaches - then why should you risk a large capital loss for a small dividend?

    Dec 2, 2008. 11:36 AM | Likes Like |Link to Comment
  • 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, 2008. 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, 2008. 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, 2008. 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, 2008. 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, 2008. 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, 2008. 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, 2008. 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, 2008. 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, 2008. 05:51 PM | Likes Like |Link to Comment