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  • My Third Quarter 2015 Portfolio Review - Doing Some Buying [View article]
    Thanks for the update, Bob. I like your criteria for new purchases. You've helped me winnow some of the lower credit rated companies from my retirement income portfolio. The volatility we have enjoyed recently provided an opportunity to improve the quality of one's portfolio. Some great companies were on sale, giving us a chance to "trade up," as Mohamed El-Erian said in a Bloomberg Surveillance interview yesterday. Michael McKee asked: "How does one look to invest (now)?"

    El-Arian: "First, you internalize the shift in volatility regimes, which means that prices will overshoot, that you are going to have unusual asset class correlation, that you're going to have undue contagion and you're going to have the occasional sharp rebound. ... You want to be very nimble. You're going to have lots of opportunities to pick up good names at bargain prices, but you're also going to have the ability to trade up in quality during periods of upward retracement. You want to look at markets that have been totally unhinged.... There are some pretty big opportunities in emerging markets today because some of them have been totally unhinged."

    All the best to you!
    Oct 6, 2015. 10:40 AM | 3 Likes Like |Link to Comment
  • Dividend Portfolio Review - Am I Down 8% Or Up 8%? [View article]
    Just under the "stop trying to time the market" picture, you could find one that says:

    "If a dividend steadily rises over many years, the market price will follow."
    Oct 6, 2015. 10:33 AM | Likes Like |Link to Comment
  • Oil Majors: Dividend Investing Amid The Downturn [View article]
    Thanks for the helpful information, Rick. I've not studied these with your level of detail, but my rank would be exactly the same as yours.
    Oct 5, 2015. 09:34 AM | Likes Like |Link to Comment
  • My Valuation Procedure And Why I Bought Or Added Some Stocks, But Not Others [View article]
    Thanks, Dave. I didn't mean to imply these were two of your top picks.

    However, that would be another nice list for you to consider publishing!

    We all appreciate your good work.

    Oct 5, 2015. 09:30 AM | 1 Like Like |Link to Comment
  • 2015 Dividend Machine Failures? [View article]
    MM, I appreciate your focus on the debt/equity ratio. One of my learnings from the Great Recession was that a company should have a debt percentage of less than 50% (or a D/E ratio of less than 1 by your calculation). As we go through the current bear market, I think these ratios will be increasingly important--particularly as Mr. Market shrinks the equity portion of the equation.
    Oct 4, 2015. 04:08 AM | Likes Like |Link to Comment
  • The Best Of The 735 CCC Companies - With And Without Yield As A Consideration [View article]
    Thanks, Dennis, for another thoughtful article. I appreciate your calculations and your filters.

    I'm intrigued that Maiden Holdings is ranked highly by your work. MHLD was one of the five stocks I recommended for study in Bob Wells' recent project. I hold no position in it, but as I scanned the CCC list with my own quick "eyeball" filter, MHLD caught my attention.

    One of my hesitations about financials is that my portfolio is heavily weighted with REITs, and that is my personal "sweet spot" for approaching financials.

    You've provided a service to those looking for some stocks to study. Keep writing!
    Oct 4, 2015. 03:56 AM | Likes Like |Link to Comment
  • Dividend Portfolio Review - Am I Down 8% Or Up 8%? [View article]
    Hey, no reason to be jealous. It's just a function of time (see the gray hair). It's likely that in the future someone will be envious of your entry point. The one difference may be that now JNJ gets good reviews but in the 2009-2013 period, JNJ was viewed negatively by many investors and analysts. A new CEO helped change that perception. Are there outstanding companies that are currently out of favor because of questions about management or company direction? Several industrials come to mind.
    Oct 4, 2015. 03:39 AM | Likes Like |Link to Comment
  • Dividend Portfolio Review - Am I Down 8% Or Up 8%? [View article]
    Thanks for your thoughtful article, DGIG. I maintain my (relative) sanity and my good humor by staying focused on the average monthly income number on my spreadsheet. I pay attention to market prices, but mostly as a way of identifying the best relative bargains. Market volatility such as we have recently experienced can provide an opportunity to improve the quality of one's portfolio and to increase one's average monthly income. It requires some time and diligence, but I've found it to be a worthwhile enterprise.

    However, my favorite stocks are the ones that I buy and hold. Early Thursday morning (Oct 1), I reviewed my 25 index cards (one for each stock in my retirement income portfolio), and put about 15 of them in a stack that I labeled (with a MMM Post-it Note) "Do Not Disturb." I divided the others into several stacks, including "add a little," "trim a little," "move up a notch," "move down a notch," and "below investment grade." That helped me maneuver through a very interesting day of market volatility. I have found that by having a focus that is only obliquely related to market price, I generally can avoid irrational exuberance on the upside and panic on the downside.

    JNJ continues to be my favorite stock. It was on top of the "do not disturb" stack. My first purchase was 7/9/09 a $57.33. It didn't move fast. Almost three years later, I made another purchase at $62.56. I've added shares over time at higher prices but JNJ is one stock that I haven't been tempted to sell.
    Oct 3, 2015. 09:13 PM | 2 Likes Like |Link to Comment
  • My Valuation Procedure And Why I Bought Or Added Some Stocks, But Not Others [View article]
    Rose, thank you for sharing your strategy and your method. I like your method for determining a buy price. I think we should refer to it as the Rose number. (Move over, Chowder!)

    I've been adding to my EMR position, most recently on 10/1 at $42.85. My last purchase of JNJ was on 9/22 at $92.62. JNJ is 6.1% of the portfolio and EMR is 6.0%.

    I've adjusted my "add to" JNJ price to $89.55 (a 3.35% yield) and my "add to" EMR price to $41.78 (a 4.5% yield).

    This weekend, I've added space on my spreadsheet for two additional industrials (who, like EMR, have been beaten down): Dover and Parker Hannifin. I hope to phase them into the portfolio in the coming weeks if weakness persists. My target price for DOV is $56 (a 3.0% yield). Dover's high yields in recent years have been:

    3.2% in 2010,
    3.3% in 2011,
    3.2% in 2012,
    2.7% in 2013, and
    2.3% in 2014.

    DOV slipped to $55.50 on "Flash Crash Monday" (August 24), which was the 52-week low. It tested that low on October 2 ($55.68), but I missed it. In this strange market, it could go lower, but all things considered, I view $56 that as a good entry point (for me). The current yield, as of Friday, is 2.9%.

    PH's rapid descent has brought it back to my radar screen. The 8/24 low was $99.74, and it has recently slipped below that. It slipped to $93.47 on October 2. I missed that one, too. PH's five-year high yield comparisons are even more impressive than Dover's:

    2.3% in 2010,
    2.6% in 2011,
    2.4% in 2012,
    2.0% in 2013, and
    2.4% in 2014.

    The current yield for PH is 2.6%. I would love to pick up some PH at a 3.0% yield, which would require a price of $84.00 at the current dividend rate. I'm afraid that would be a "best case" scenario, however. So, I would be willing to begin buying at 2.7% (or $93.33).

    Dover is #2 on David Fish's CCC list. Parker Hannifin is #3.

    These are my goals. Your mileage may vary.

    Keep writing, Rose!
    Oct 3, 2015. 08:33 PM | 2 Likes Like |Link to Comment
  • Oil Majors: Dividend Investing Amid The Downturn [View article]
    Thank you Sarfaraz, for a thoughtful article. How would you differentiate among the four oil majors you cited? Would you see them as having the same or similar relatively risk (for dividend cuts, for example)?
    Oct 3, 2015. 08:06 PM | Likes Like |Link to Comment
  • National Retail Properties Is A Likely Stalwart In A Troubled Time [View article]
    Thanks, David. I'm long NNN. Management has always impressed me with their conservative style and their consistent performance in all kinds of markets.
    Oct 3, 2015. 08:00 PM | 1 Like Like |Link to Comment
  • Receiving Investment Income Everyday, Part 2 [View instapost]
    Gregory, with all due respect, SA is not a professional society of advisors. SA is for everyone. Professionals and amateurs share ideas freely. Most of us are here to learn rather than to make money as financial analysts or to promote our websites.

    In your various writings and media appearances, you have been quite critical of the advice given by many professional, credentialed, mainstream financial analysts. I think you would agree that professional certifications are no guarantee of the value of one's comments.

    The value of the content of every writer is inherent in the writing itself.

    Most SA readers are savvy enough to judge the merits of what each person says.
    Oct 2, 2015. 10:25 AM | 1 Like Like |Link to Comment
  • It's Always Something, So Dividend Growth Investors Best Be Prepared [View article]
    Thanks for a fun article, Mike.

    A little known fact is that Roseanne came from a family of savvy investors. The portfolio of her mom, Nana Roseannadanna, included PG (she was a big Ivory Soap fan) @ $66.29, a 4% yield, or considered @ $69.78, a 3.8% yield.

    Her musical cousin Carlos Santana Roseannadanna, cut catchy commercials for 3M and invested in MMM @ $117.14, a 3.5% yield, or considered @ $136.67, a 3% yield. Her aunt Pollyanna could see potential where others could not, and she ran the Pollyanna Roseannadanna Fund, which focused on out-of-favor sectors, such as energy, buying XOM @ $64.89, a 4.5% yield, or considered @ $69.52, a 4.2% yield.

    Her religious aunt, Hosanna Roseannadanna, ran the small three-stock Trinity Portfolio that was limited to AAA rated companies. She liked JNJ @ $85.71, a 3.5% yield, or considered @ $89.55, a 3.35 yield. Roseanne's singing cousin, Lola Falana Roseannadanna, did a good bit of digital recording and had an interest in all things digital, including Digital Realty @ $56.67, a 6% yield, or considered @ $60.71, a 5.6% yield.

    The Americana Roseannadanna portfolio focused on North American assets, such as Enterprise Products Partners (EPD) @ $23.38, a 6.5% yield, or considered @ $24.52, or a 6.2% yield.

    For those who don't want to use as many brain cells, Roseanne's family came up with the Nirvana Roseannadanna ETF, which approximates the Schwab Dividend ETF (SCHD), @ $31.71, a 3.5% yield, or considered @ $34.15, a 3.25% yield.

    Dividend "Never Mind" Sleuth
    Sep 24, 2015. 09:18 PM | 135 Likes Like |Link to Comment
  • Rare Opportunity For Dividend Investors [View instapost]
    Yes, one can go crazy trying to find an exact bottom. When this happens, I ask, "Did we get it at a fair price?" I think the answer is, "Yes, particularly if we maintain a long term perspective."
    Sep 23, 2015. 01:27 PM | 1 Like Like |Link to Comment
  • Rare Opportunity For Dividend Investors [View instapost]
    Thanks, Argyll. I've thought about Boeing but I've never studied Lockheed-Martin.
    Sep 23, 2015. 01:04 PM | Likes Like |Link to Comment