How to Buy Dividend Stocks at Bottom [View article]
I purchase income stocks each month and what I buy is no secret. It is published on my website. Someone asked about November 2008. Here is a link to that update:
Increasing Dividend Yield Part V: 'Quirky' MLPs [View article]
Low Sweat Investing: Thanks for the mention of AMJ. I have not looked at it before. As mbkelly75 points out, the investor would also have to do some diligence on the entity issuing the note.
9 Dividend Stocks Building Future Yield [View article]
@EX-AD-MAN: I am a little leery of high current yields, but I still enjoy a little adventure and set aside a small portion of income portfolio to dabble in them on a controlled basis.
@mbkelly75: My dividend conversion was a result of a "near-death" experience. Here is some more info on that for anyone interested:
@Low Sweat Investing: You certainly get it. Stocks that significantly grow their dividend for decades, also grow their share price. Otherwise, their yield would be outrageous.
Increasing Dividend Yield Part I: Utilities [View article]
SLW: The point of the comparison with the ponzi sheme was to highlight that the operating cash from these businesses is not sufficient to keep them afloat in most years (negative free cash flow). The negative free cash flow is primarily driven by capx, which, as you point out, is not a problem if the actual purchases of assets which will generate future cash returns. I would go a step further and say increase future *INCREMENTAL* cash flow. The additional debt and and share dilution will require higher cash flow to service just to keep the share holder even.
When operating cash is consistently below capx requirements, in effect you end up financing your dividend via debt or equity. I am not sure how sustainable this mode is.
Increasing Dividend Yield Part I: Utilities [View article]
All: As Low Sweat Investing described, I use the classic definition of free cash flow (operating cash less capx) and I pulled the above data from Morningstar, any differences are a result of my keying errors. :)
ron3637: My investments in utilities go back many years before I critically questioned if it was something I should be investing in.
3 Simple Keys to Dividend Investing [View article]
@MR.C: We all choose what we are comfortable investing in. I am not comfortable with "sin" stocks for personal reasons while others aren't comfortable with defense, non-green or similar stocks. Each of us has to define our own boundaries, and respect those defined by others.
@Stan Sutfin: I use a conservative estimate of dividend growth rates as such: The minimum compound annual dividend growth rate of the 1, 3, 5, 7, 10 year; or 15%, if "Rolling 4-yr Div. > 15%".
5 Dividend Stocks Still Trading Below Fair Value [View article]
My fair value calculation is dividend centric and can not be applied to a non-dividend paying stock. I take the lower of a two prong approach that includes historical metrics and a goal seek for a the value I would be willing to accept as target return based on the net present value of the stock's earnings differential over a hypothetical money market account earning similar rate as a 20-year T-Bill.
I have been very open with the calculations and have incorporated changes as a result of past discussions. The calculations are described on page two of any of my analytical reports. Such as: (content.dividendsvalue...)
Also, each of my analyses provides a link to a fair value discussion at: (dividendsvalue.com/27/.../)
Some of the more complex calculations I have made available in Excel models that can be reviewed at: (dividendsvalue.com/too.../)
As noted in the disclaimer that accompanies every stock analysis, the analysis is "mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion."
All the information is available for anyone that wants to look at it.
Pocket Change Portfolio Update: November 2009 [View article]
MissAnthropy: Online earnings are just the source of funding. They are not considered in the calculation of the performance returns. One of the messages of the portfolio is that a small amount saved over long periods of time will produce significant earnings when invested judiciously.
From Dividend Cuts to 'Irrational Exuberance': What's On for 2010? [View article]
David: Most of the dividend cuts related to ETFs and some old high-yield holdings that I purchased during my "yield chasing" days. I still have a few of those left that I will sell when they cut their dividend. I always sell a stock in my income portfolio when it cuts its dividend, and will usually sell it when the dividend is flat year-over-year. I had a few stocks that I sold that were flat year over year. Not meeting my goal was more of a function of setting the goal when the market was close to its low and having to purchase relatively higher priced stocks, and the lower yields that come with purchasing at a higher price.
Why I'm Initiating a Position in Colgate-Palmolive [View article]
Best Wishes,
D4L
How to Buy Dividend Stocks at Bottom [View article]
dividendsvalue.com/149.../
Buys that month included:
CTL @ 27.53 Now: 34.52 (10.46% YOC)
KO @ 46.27 Now: 53.90 (3.78% YOC)
TEG @ 43.81 Now: 49.36 (6.16% YOC)
NNN @ 14.24 Now: 24.20 (10.46% YOC)
PGN @ 37.90 Now: 39.25 (6.50% YOC)
ETO @ 12.37 Now: 20.59 (11.32% YOC)
I also purchased CAT and VNQ, which were subsequently sold, so they are no longer in my spreadsheet.
November 2008 was a good month. As I said, "Buying at the bottom is great, but buying near the bottom isn’t bad either."
Best Wishes,
D4L
Increasing Dividend Yield Part V: 'Quirky' MLPs [View article]
Best Wishes,
D4L
8 Dividend Stocks Avoiding the Cash Trap [View article]
Best Wishes,
D4L
9 Dividend Stocks Building Future Yield [View article]
@mbkelly75: My dividend conversion was a result of a "near-death" experience. Here is some more info on that for anyone interested:
dividendsvalue.com/113.../
@Low Sweat Investing: You certainly get it. Stocks that significantly grow their dividend for decades, also grow their share price. Otherwise, their yield would be outrageous.
Best Wishes,
D4L
Increasing Dividend Yield Part I: Utilities [View article]
When operating cash is consistently below capx requirements, in effect you end up financing your dividend via debt or equity. I am not sure how sustainable this mode is.
Best Wishes,
D4L:
11 Dividend Stocks Providing Positive Feedback [View article]
Best Wishes,
D4L
Increasing Dividend Yield Part I: Utilities [View article]
ron3637: My investments in utilities go back many years before I critically questioned if it was something I should be investing in.
Best Wishes,
D4L
Income ETFs: Safer Than Stocks, Better Returns Than Bonds [View article]
Best Wishes,
D4L
Why I Love Dividends [View article]
Best Wishes,
D4L
Why I Love Dividends [View article]
Best Wishes,
D4L
3 Simple Keys to Dividend Investing [View article]
@Stan Sutfin: I use a conservative estimate of dividend growth rates as such: The minimum compound annual dividend growth rate of the 1, 3, 5, 7, 10 year; or 15%, if "Rolling 4-yr Div. >
15%".
Best Wishes,
D4L
5 Dividend Stocks Still Trading Below Fair Value [View article]
I have been very open with the calculations and have incorporated changes as a result of past discussions. The calculations are described on page two of any of my analytical reports. Such as: (content.dividendsvalue...)
Also, each of my analyses provides a link to a fair value discussion at: (dividendsvalue.com/27/.../)
Some of the more complex calculations I have made available in Excel models that can be reviewed at: (dividendsvalue.com/too.../)
As noted in the disclaimer that accompanies every stock analysis, the analysis is "mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion."
All the information is available for anyone that wants to look at it.
Best Wishes,
D4L
Pocket Change Portfolio Update: November 2009 [View article]
Best Wishes,
D4L
From Dividend Cuts to 'Irrational Exuberance': What's On for 2010? [View article]
Best Wishes,
D4L