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Doctor Dividend  

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  • A Dividend Growth Investor In Love With A Growth Stock [View article]

    One of the cheapest brokerage firms is Only $2.50 per trade. I would say every 4 months, buy another stock. It will add up.
    Oct 18, 2012. 05:40 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    This concept has been around for more than 40 years and something I use for personally choosing which stocks to continue to research. The website is, started by Geraldine Weiss and continued now by Kelley Wright. The premise is that each stock has their own range of undervalued and overvalued yield RELATIVE to its own history. A number of people on this board think it's fluff because it's a "best fit" range. I think it's a great tool. To each there own.

    Look at the sample issue on their website and get their books from the library.

    Oct 4, 2012. 03:36 PM | 4 Likes Like |Link to Comment
  • 'Investing For The Long Run' With This Durable Sale/Leaseback REIT [View article]

    It was alluded to but never said directly. Was the nice increase in the dividend now because of REIT rules of having to distribute 90% of FFO? For a company that's only increased the dividend 3% a year for 13 years to then jump 15% is the only reason I can think of.

    Great article as always.

    Oct 4, 2012. 02:23 PM | 1 Like Like |Link to Comment
  • The Fourth Scenario For When Should I Transition From Capital Gain Investing To Dividend Growth Investing? [View article]

    I am on the same wavelength as you. Someone who was able to pick those 20 stocks and hold them for 20 years is an idiot-savant, an idiot, or just a savant.

    I did use longrundata to see what reinvestment of the dividends would have done in terms of the final nut. Instead of $116K, it grew to $153,000 (not figuring taxes on the dividends along the way). Also, NVS according to LRD started in late 1996 trading on the NYSE.

    I was trying to use and his DRIP site to see how many shares one would now have and the associated dividend stream you would have. That would have given much greater insight, but to no avail. If there is another site like Jessup's that someone knows about, please share.

    Sep 28, 2012. 10:35 PM | 1 Like Like |Link to Comment
  • Merck Poised To Soar On New Insomnia Drug [View article]
    I know this is an investment piece, but I do ask one thing Incomehunter. When you are treating your patients, please look for clues of sleep apnea. I educate all my patients about it because of how serious the medical condition is. Giving them pills can be masking an issue which you all as medical doctors do not get enough education of in medical school. We can talk about this more offline, but understand the insomnia is an effect. What is the cause of the sleep issue in the first place?

    We can now get back to the topics of investing.

    Sep 21, 2012. 09:43 PM | Likes Like |Link to Comment
  • The Dividend-Growth Large-Cap Fallacy [View article]

    The answer is yes, more Challengers are near the top of the growth list. I think 2 simple reasons why. First, there are more of them. Bigger population, better probability they will be first.

    Second, and this is more conjecture, I think the young'ns are still trying to find the sweet spot of dividend growth balanced with growth of the company. At this point, is it difficult to really guess that KO will raise their dividend between 6 and 9% year in and year out? No. Did I ever expect Accenture to jump their payout 50% last year (am a shareholder and very LONG ACN)? Heck no; I expected more like 15% and would have been happy. But ACN is still a young company.

    Hope that made sense.

    Sep 21, 2012. 02:44 PM | 3 Likes Like |Link to Comment
  • Can Dividend Growth Investing Be Reconciled With Modern Portfolio Theory? [View article]

    I think the US centric nature of the articles is because most people who write articles and comment on them are American. It's not good or bad, it just is. Also, when you look at the CCC list, how many foreign based companies are in the Champions list? I believe zero. When you get to the Contenders, maybe 5%. If there were long standing CCC foreign-HQed companies, they would be on Fish's list and we Americans would appreciate the greater diversity, currency exchange risk, semi-annual dividends, and foreign withholding taxes notwithstanding. Remember what is on the CCC list - companies that have INCREASED the dividend every year. There may be foreign companies on the LSE or the FTSE that have paid dividends for decades but their policy is to base it on a percentage of earnings (traditionally) and if the earnings went down last year, so do your dividends the next year.

    DVK - the other thing you didn't really touch on with MPT is not only the "science" and numerous studies, but that advisors can you use the economic science and bundle fees around it, whether on a transaction basis or as AUM. I know there are a few advisors that focus on dividend growth like we do here (Deschaine and Company and Lowell Miller come to mind), but they are obviously few and far between. The easier sell is to go with the herd.

    Sep 19, 2012. 09:15 PM | 3 Likes Like |Link to Comment
  • Looking For Opportunities In MLPs: An Interview With Malcom Day [View article]
    I know some other commenters said they follow some MLP forums. What are some of the good forums out there to follow this space?
    Sep 19, 2012. 08:46 AM | Likes Like |Link to Comment
  • How To Raise Portfolio Income By Selling Overvalued Companies [View article]
    Good, thought-provoking article. I am with DGM on this one. I can't figure out overvaluation. And with the market right now getting (IMO) toppy, where would you put the profits? Yes, you can go from a company that is yielding 2.1% (WMT) into a yielding company of 3.2% (WEC) but I wouldn't put it there because WEC seems way overvalued (and utilities in general). I guess I am trying to say you may pay too high a premium for an increase in the income stream (hence, valuations of the specific companies matter) just because your new yield is higher.

    I think sometimes, simple is better and I will default back to the Chowder Rules (not as good as the Jordan Rules, but really close). If my current portfolio provides an income stream X% higher than the same month or quarter as compared to last year AND nothing fundamentally has changed with the companies I own, I do nothing.

    My .02 reinvested.

    Sep 15, 2012. 08:05 AM | 3 Likes Like |Link to Comment
  • Trading Around A Core: The Big Picture [View article]
    Number of Analysts?
    Sep 11, 2012. 08:20 AM | Likes Like |Link to Comment
  • How To Increase The Yield On Intel By Systematically Reducing Invested Capital [View article]

    Really enjoy your series and you are the author that got me dabbling into options (selling puts). So thanks for the education.

    As you gave guidelines with yor very first series of what puts you sell (1% yield per month, 8% discount from current price, etc), what is the ratio of upside:downside you are looking with these strangles? I'll use the example of INTC April 2013 calls, so 8 months away, using the closing price of 24.27 and 400 shares.

    I calculated the upside, if using Apr 2013 30 calls to be 30% after all expenses and the 400 shares called away.

    If it expired between 20 and 30, the yield was about 7% and you keep the 400 shares

    If INTC fell to less than 20, the puts would be exercised at a -10.75% "loss" and I now have 800 shares.

    So, in this case, upside:expiration is about 4:1 (30:7)
    Upside to downside was about 3:1 (+30%:-11%)

    What is the ratio you guys look for?

    Aug 31, 2012. 01:59 PM | Likes Like |Link to Comment
  • Dividend Growth Stocks Can Provide Retirees Great Total Returns [View article]

    Another great article. I do want to highlight one sentence:

    Risk, or maybe better said, the individual's tolerance for risk, is another crucial piece of the puzzle.

    How are you defining risk in this case? I view it, much like Chowder, as the chance of my income stream going down or being less than inflation and not on a total return basis. Just curious on your take.

    Aug 30, 2012. 08:15 AM | 3 Likes Like |Link to Comment
  • Is There A Problem With Dividend Growth Investing? [View article]

    Was you grandfather Benjamin Button, by chance?
    Aug 29, 2012. 09:41 AM | 1 Like Like |Link to Comment
  • A New Take On The 4% Rule [View article]
    As you said, you do what lets you sleep well at night. I do what I do. It's not right or wrong; it's how we each decide to play and this is a big enough world where we can all play by different rules and it can work for everyone. My final response is this:

    Using a company like MMM, I have more confidence that they will raise their dividend for the 55th year in a row than knowing if the stock price will go up or down over the next 12 months. I'll take what I (reasonably) know because I can plan for the future that way. The only reasonable assumption I DON"T KNOW is how much they will raise the dividend for next year.

    Aug 28, 2012. 04:17 PM | 7 Likes Like |Link to Comment
  • A New Take On The 4% Rule [View article]

    The comments you make are pointing back to a total return basis, especially when you mention volatility of the portfolio. If you want to play to the whims of Mr. Market and what it says the price of CSCO is at 2:48 PM, be my guest. I will try and sum this up in 3 points which I have said on other articles, most knowingly on another article of DVK's, so I am paraphrasing:

    1) Dividends give me a return of my money, not necessarily a return on my money. Think real estate and rent.

    2) My primary goal is to look for stocks that have a history of distributing a portion of their net profits (yes, I think companies can run out of ideas that cannot increase their ROE) to start my own, personal (hopefully) inflation-beating annuity and I am starting that clock early so compounding has more time to take place. And yes, I am using history as a guide (thank you, Mr. Fish) to filter out those companies which still have low payout ratios with inflation-beating DGRs bought at a fair or what I determine as an undervalued price.

    3) To have #2 as my primary focus, I HAVE TO let the volatility of the market occur and let the market go where it may bringing the total value of my portfolio up, down or sideways on any given day.

    It's not right or wrong, Alan. The authors and responders in this section have just found the market to be too gut-wrenching otherwise and this lets most people here sleep well at night.

    My .02 reinvested

    Aug 28, 2012. 03:29 PM | 7 Likes Like |Link to Comment