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Dividend Growth Investor

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  • Why Are Technology CEOs So Reluctant to Pay Dividends? [View article]
    This is a good article Ravi. The problem with tech stocks is that few have a "moat". Many are subject to rapid technology obsolescense, which causes them to re-invest most of their earnings back into the business just so they could maintain their share in the market. Also when they are faced with large cash hoards they could "diworsify" into industries they have no clue about, thus wasting shareholders money.
    Sep 13 02:35 AM | 6 Likes Like |Link to Comment
  • The 'Four Percent Rule' for Dividend Investing in Retirement [View article]
    Thanks for commenting. The four elements and the stocks associated with each of them are just some from a wide universe of dividend growth stocks. I have never been able to pull the trigger on XOM due to the low yield, but I own CVX and BP.
    Mar 31 07:35 PM | 6 Likes Like |Link to Comment
  • When Is the Right Time to Sell Dividend Stocks? [View article]
    I disagree with your opinion. All of the financial institutions which failed or were acquired cut dividends several months before failing.

    This link shows that WaMu cut dividends in April 2008, more than 6 months before it actually failed. And needless to say prices were much higher at the time..

    www.dividendgrowthinve...
    Mar 24 12:03 PM | 6 Likes Like |Link to Comment
  • Critique Challenges Dividend Investing's Appeal [View article]
    I would much rather pick my own dividend stocks from a diversified list of industries, and have control over my strategy than have some Ivy League mutual fund manager charge me a percentage of my assets and mamke money off my hard earned assets even if I lose money. Investing using free stock brokerages like Zecco means that I have lower transaction costs than the lowest costing index fund.

    Dividend returns are more stable than stock price returns. It is much easier to rely on your dividend income than on whether the market is up 30% or down 30%.

    And if managers retain all of the cash, eventually they would start generating subpar returns on equity. Even Buffett is starting to see that as the size of Berkshire increases. I wouldn't be suprised if he started paying a dividend pretty soon..
    Feb 1 11:38 AM | 6 Likes Like |Link to Comment
  • Four Inflation Hedging Investment Strategies [View article]
    The best inflation hedge available to investors is common stocks. Stock represent small portions of real businesses which buy and sell stuff/services to consumers. If a business sells a hot dog at $1 and it costs $0.50 to produce it, then it earns $0.50/hotdog. If inflation happens, a hot dog could sell for $2 and it could cost $1 to produce. At the same time the liabilities ( debt, accounts payable) of the business would be worth less, while its fixed assets would be worth more.
    Jun 26 05:01 AM | 6 Likes Like |Link to Comment
  • Commodities for Income Investors [View article]
    The S&P 500 is consolidating between 929 and 875. A decisive move above/below these levels would be bullish/bearish. I wouldn't call the rising move from 680 to 930 a "range" however.
    May 29 01:48 PM | 6 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 12:05 PM | 5 Likes Like |Link to Comment
  • How To Classify Dividend Increases [View article]
    So if stocks dropped by 50% over the next year, you would not buy them, because they are "broken"?

    In other words, anyone who bought in 2008 - 2009, and not in 2007, is probably a fool in dbtunr's eyes, because they were buying "broken stocks".

    Did you know that price is what you pay, while value is what you get in return?

    Patience is a virtue that few investors posses, hence so many lose money.
    Nov 19 02:50 PM | 5 Likes Like |Link to Comment
  • Karl Popper And Dividend Growth Investing [View article]
    Roger,

    A diversified portfolio of dividend growth stocks is not riskier than a diversified basket of equities that an index fund offers.

    Based on my observations, you are biased against DGI for whatever reason, and are looking for anything against it;

    Instead, you should study the facts, and let them lead you to your conclusions. You might be surprised what you learn.
    Aug 8 07:53 AM | 5 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    WSP,

    I am out of touch with YOUR reality. In my reality a person that is in their 20s or 30s can save $3K or more. That is the type of reality you should strive for.

    If you can't save $3K month, it's not a problem. And I don't know why people get hung up on the $3K figure. The goal is to just start working towards a goal. People who succeed in life, make goals and work their way towards them. People who fail, are those who make excuses.

    PS I have never met a sales person who wants to be just "average".
    Jul 2 09:44 PM | 5 Likes Like |Link to Comment
  • My Dividend Portfolio Looks Much Better Than Expected [View article]
    No, I understood your question the first time, but find that it is not at all relevant to the article. Did you even read the article - your question shows you haven't?

    As an investor, what are you going to learn from me telling you I gained say 20% in a given time period, versus learning about a process of dividend investing?

    Do you think you will learn everything there is to my investing strategy by reading just one article?

    Do you think I would have gained over 13 thousand readers on this site since 2008, and 7000 on my personal site if I was peddling crap to the public?

    If you answer those questions, I have the numbers right in front of me
    Jun 3 10:57 PM | 5 Likes Like |Link to Comment
  • The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
    F&G,

    I guess markets are not very efficient after all - a hedge fund manager goes short a company, then talks negatively about that same company at a conference, without making much sense. Weak hands panic, and the stock price falls, thus helping the short cover their position at a profit.

    Rinse and repeat, and earn your 2 & 20. I am glad investors have been able to capitalize on this opportunity, after doing their analysis and identifying the weakness in the logic of the shorts.
    May 13 08:09 PM | 5 Likes Like |Link to Comment
  • Procter & Gamble - A Dividend Stock To Hold Forever [View article]
    PG is a great company to hold forever, until something changes. I would take PG at 18 times earnings any day than the crazy P/E ratio INTC had in 2000.
    May 13 07:45 PM | 5 Likes Like |Link to Comment
  • 17 Cheap Dividend Aristocrats On Sale [View article]
    Compounding,

    Great question. I used Zecco for a very long time, since they had $0 trades until early 2011. Then I simply increased the size of new investments. I would say that individual investors should buy stocks in $1000 increments at a minimum. If you use Zecco, that's 4.95 or 0.50%. If you wait untill you accumulate $2000 before you purchase a stock, that decreases expense to 0.25%. Of course unlike an index mutual fund where they charge you 0.10% every year, unless you sell, you would never have to pay another dime. For dividend mutual funds and ETFs, they typically charge you 0.50%/year at the minimum..

    Commissions are really low. In the late 1980s, early 1990s they have been pretty steep.
    Mar 16 08:07 AM | 5 Likes Like |Link to Comment
  • 'Dividends' Have Become A National Anthem [View article]
    Dave,

    I also find it interesting how always the worst dividend stocks such as Eastman Kodak or the financials are always used, while the best non dividend stocks such as Berkshire or Apple are used against dividends.

    It also amuses me that "traders" fail to mention that with an active strategy a market participant can compound their losses really quickly and lose their capital.. Add in inexperience, low capital amounts, leverage and slippage - you got yourself a pretty poor edge against the "Wall Street computers" selling the stock to you.
    Oct 1 06:24 PM | 5 Likes Like |Link to Comment
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588 Comments
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