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Dividend Growth Investor

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  • Royalty Trusts: Maintaining Income in a Volatile Market [View article]
    I wouldn't put all my money in these trusts. Sure oil and gas could go up.. But since these trusts do not pay a stable monthly dividend it tends to fluctuate a lot depending on their monthly operating performance.
    Try buying some dividend aristocrats instead. They would yield 2%-4% now, but the yield on cost is much more probable to grow in the future..
    Sep 8 01:57 PM | Likes Like |Link to Comment
  • New Emerging Asian Currency ETN Focuses on 'Current Income' [View article]
    I also consider this fund a risky venture for investors. Most people are being told that the US dollar will be worthless.. So they buy currencies like Euro, yen, pound etc. But these currencies do not offer high yields. So let's go for emerging markets currencies. What could go wrong there?
    The current high yield is there for a reason. When a crisis like the 1997-1998 comes your way and when everyone tries to leave these thinly ( by forex standards) traded currency markets the yields will be even higher. But the principal will be lost..
    Sep 8 01:53 PM | Likes Like |Link to Comment
  • Rescuing Frannie [View article]
    Wow I am starting to hate weekends. :-) Of course this would lead to a panic selling monday.. And maybe a bottom?
    Sep 6 08:58 PM | Likes Like |Link to Comment
  • PPG Industries: Attractively Valued [View article]
    Mr Dought, please check my disclosure for your questions.
    The dividend is $2.08/share/year which is a pretty decent yield. The company has increased dividends for over 3 decades. The eps is expected to be over $5 in 08 and about $6 in 09. I would say the dividend is well covered.
    The stock has been flat over the past decade but let's face it the S&P 500 has been flat as well.
    Sep 6 07:40 PM | Likes Like |Link to Comment
  • Why Buy MLPs? [View article]
    Very nice and thorough analysis. If analyzed TPP and KMP on my blog several months ago and concluded that they are both fine investments.

    dividendgrowth.blogspo...

    and

    dividendgrowth.blogspo...

    Sep 5 11:15 AM | Likes Like |Link to Comment
  • Attractively Valued International Dividend Stocks [View article]
    Arturo,

    Actually BLX didn't make the cut because of its erratic dividend history, it wasn't included in the Mergent's International Dividend Achievers list.
    Sep 3 03:06 PM | Likes Like |Link to Comment
  • Dividend Analysis: Automatic Data Processing [View article]
    Steve,

    I believe I hadn't looked into PAYX because it hasn't been raising its dividends for over 25 years like ADP has.
    Sep 3 09:35 AM | Likes Like |Link to Comment
  • Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [View article]
    Great resource David!
    It's great to see that dividends are cushioning the losses for investors this year. To everyone else who believes that this is a short term phenomenon, please check this link out:

    dividendgrowth.blogspo...
    Sep 3 09:32 AM | Likes Like |Link to Comment
  • Currency ETFs: Consider the Commissions [View article]
    Ray,

    Thanks for your input. Commission free brokerages like Zecco and BAC are something I should have mentioned.
    Another problem however is that you are still paying 0.35%-.55% annually which would lead to you undeperforming the underlying over a 10, 20 year period. So if you really want to invest in currencies, wouldn't it be easier to just open a forex account?

    Just my 2 cents
    Aug 26 03:56 PM | Likes Like |Link to Comment
  • Bank of America: Dividend Analysis [View article]
    JSwish,

    My idea is to buy stocks which are growing their EPS and DPS nicely and are trading attractively for me. In addition I check for whether the DPR is above 50% or not in order to minimize the risk of dividend cuts.
    I don't think that BAC fits this criteria yet. I have a plan and I do not want to deviate from it in order to blindly speculate that BAC's stock price will go up. Sure, the stock is up over 50% off its mid july lows, but that doesn't mean it can't go back to teen's or even single digits. The high payout also shows that the dividend is at risk at least for now, untill annual EPS picks up steam next year. But where will future EPS growth come from?

    If financials recover, then so be it I am ok missing the boat on BAC. But in the meantime I am allocating my assets towards other stocks which have shown some greater resilience to the bear market than BAC.
    Jul 30 09:29 AM | Likes Like |Link to Comment
  • The Long Case for Bank of America [View article]
    In my honest opinion, anyone that's purchasing financials right now is speculating. Years from now you have two possible extreme scenarios:
    1) the crisis is over by now and BAC hits 70 by 2010 for example. The dividend was never cut but actually raised in 2009, which helped BAC stay a dividend aristocrat.
    Anyone who gambled and bought BAC now talks about how much greater than Buffett they are at finding value plays.
    2) The financial crisis continues. CFC's acquisition turns out to be a bad bet, which almost costs BAC its independence. The dividend is cut by 50%, which still causes the stock to yield above average yields. The stock finally bottoms around single digits, at which point everyone is bearish and proclaims the end of the world. That's when the smart moeny will be buying..:-)

    Of course there is a middle ground but let's stick with the extremes for now,should we?:-)

    BTW i don't hold any BAC but I do hold some financials :-(. If you hold BAC i wouldn't sell. I would keep reinvesting my dividends and forget about it. Several decades down the road BAC would have turned out to be a wise investment..
    Jul 29 01:25 PM | Likes Like |Link to Comment
  • Dividend Paying Stocks: Don't Discount Them Just Yet [View article]
    The so called "dividend fad" stocks have outperformed non-dividend paying stocks over the years:

    dividendgrowth.blogspo...

    The beauty of dividend paying stocks is that they allow you to compound your returns by getting money over fixed periods of time and then reinvesting them back. Dividends also give investors much more visibility than share buybacks.

    By the way, AAPL used to pay dividends from 1987 untill 1995. After the company stopped paying dividends, the stock tanked from 31.87 at year end 1995 to 13.13 by the end of 1997.
    Jul 23 11:00 AM | Likes Like |Link to Comment
  • Earnings Preview: Pfizer [View article]
    I think that PFE is a value trap for investors as outlined in my analysis here:

    dividendgrowth.blogspo...

    The stock could bounce, but unless any major acquisitions are made or new drugs come throught PFe's pipeline, the longer term picture is bleak for PFE.

    Jul 22 03:50 PM | Likes Like |Link to Comment
  • Earnings Preview: Yahoo [View article]
    I think that people are way too bearish on yahoo and that it would go higher after hours no matter what happens.
    LEt's see if I am correct!
    Jul 22 03:47 PM | Likes Like |Link to Comment
  • Realty Income: Solid Yield, Diversified Portfolio [View article]
    I was a little negative on O when I first learned about the stock:

    www.tickerspy.com/go.p...

    Later on however, I turned bullish and even bought some after reading 2007 and 2006 annual reports.
    Jul 22 03:45 PM | Likes Like |Link to Comment
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596 Comments
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