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  • Western Union Now An Even Better Buy - Ignore The Negative Hype [View article]
    And I always heard the comment of it's not a problem when the CEO leaves or is forced out, but when the CFO leaves, that means there are bigger problems than meets the eye. I always had this on the watch list, kind of in the GME territory of can you tune out all the negativity of the stock to see if there is value (note: I never did buy GME), but could never tell if this was a value trap or not. As well known as WU is, I think this is falling into the trap category.

    Thanks for the article, though.

    DD
    Nov 25, 2013. 10:26 AM | 2 Likes Like |Link to Comment
  • Retired Income Investors - What You Need To Know About Dividend Cuts [View article]
    Bob:

    I have done my own breakdown of that list. I don't know if it was said specifically, but from the CCC list, half of the cuts from every year are from the financial sector. So, yes, when in doubt, don't invest in the financial sector (I do - WFC, SBSI, AFL for disclosure)

    I have been backtesting a strategy using the CCC list and as good as Mr. Fish does, it always bothered me how to find out what would have been on the list, even ones that have crashed and burned or got bought out (Wrigley as an example). Then I stumbled across at the library:

    The Standard & Poor's Guide to Building Wealth with Dividend Stocks (Standard & Poor's Guide to) by Tigue, Joseph (Mar 9, 2006)

    Through a lot of hard work, I wanted to know should you sell at the dividend cut announcement or do you hold on? If you sell, you are taking that permanent loss on any future dollars to invest but does that loss remain when you hold on? From what I could gather (and there was about 40-50 companies over that time that would have been on a CCC list), the average to get back to even on a CAPITAL GAINS BASIS was about 24 months. Obviously, the income did not come back but it was interesting how consistent that timeline was to get back to zero.

    Just wanted to share for "Mr. Preservation." (If C. Carnevale is "Mr. Valuation, I think you can get a name too)

    DD
    Nov 11, 2013. 04:30 PM | 1 Like Like |Link to Comment
  • How To Be A DGI Investor And GUARANTEE You Will Lose Half Your Money [View instapost]
    thanks mbn. She is still bitter about how much the divorce cost, not that it occurred. Her coworkers had it done for 1/10 of ours, but we had assets - a fair amount of them considering our ages - and a business to be appraised.

    It's just a matter for me to try and be there for the kids now. She does things mentally to try and punish me but the best part is I can hang up the phone now.

    DD
    Nov 6, 2013. 06:50 PM | Likes Like |Link to Comment
  • Why Low Beta Stocks Are Like Bonds For Dividend Growth Investors [View article]
    Can we all agree that Dr. Chambers thought that bonds don't fluctuate is also bunk? The only "risk-free" bond is a Treasury bond because all the government has to do (and they do it extremely well) is print more money. Every other bond has risk, even the ones from JNJ and XOM, the AAA rated bonds. If there is an uptick in rates, any bonds bought now will go down in value, unless you hold it to term (disregarding inflation risk). Of course, the bonds could be called early, but why would a company want to call a cheaper interest rate bond early? No logical reason.

    I guess I just don't understand what Dr. Chambers is saying. I understand you, DVK, but if he is saying bonds don't have risk, beta, volatility, I guess there is a reason why he is teaching at Lafayette College and not Wharton or Harvard.

    DD
    Oct 29, 2013. 03:21 PM | 4 Likes Like |Link to Comment
  • 2 Global Income Stocks To Hedge Against The Dollar [View article]
    This is not my area of expertise but on a US income tax return, there is a place for "foreign dividends withheld" to get a credit back. I believe it is up to a certain dollar amount, so the percentage doesn't matter. I know this has been addressed before in other articles.

    Morgan, I am just saying it needs to be a highlight, but add a sentence with VOD, there is no repatriation of tax. With NVS there is a X? of your dividend withheld that can be reclaimed when you file your taxes.

    DD
    Oct 21, 2013. 02:18 PM | Likes Like |Link to Comment
  • How To Be A DGI Investor And GUARANTEE You Will Lose Half Your Money [View instapost]
    Skip:

    Thanks for your comments. All I can say is I am not the first to go through this nor will I be the last. When I catch people up on what happened now, I just present facts - no more, no less. No emotion behind it, but of course, you questions some decisions. Everyone has those stories.

    The problem with my career is how physically demanding it is. From the outside, you would not think so, but so many of my friends are having carpal tunnel, stiff shoulders, and bad backs and we are not even 40 yet. So the goal is to have enough to walk away WHEN I CHOOSE TO and know I don't have to work again. That I can go on vacation again and not have an overhead to worry about - that would be something. I'm not there yet, but I am on my way.

    DD
    Oct 21, 2013. 02:10 PM | Likes Like |Link to Comment
  • 2 Global Income Stocks To Hedge Against The Dollar [View article]
    Morgan:

    For future articles, please talk about taxes on dividends with foreign companies in future articles. Since most readers are most likely from the US, there will be no withholding tax on VOD because of the US/UK treaty, but NVS may have a 35%(?) withholding tax on the dividend. Yes, you can reclaim the tax but you lose the magnification of the compounding effect when you initially receive the dividend.

    DD
    Oct 21, 2013. 08:59 AM | 3 Likes Like |Link to Comment
  • 10 By 15: What Happens With Low-Yield High-DGR Stocks [View article]
    Dave:

    I know I commented on this once before because I do add new money, but I call the column "Personally Money Invested." I know what I personally put into the account vs what has been added by dividends.

    I track YOC to see when will the cumulative amount of dividends get to what I have put in personally and will I ever get to the crossover point that my dividends per year will be more than what I personally put in to the portfolio. It's just for the game to see that the dividends are increasing over time.

    Dave, what will make your articles less confusing (though I get it) is using #s. Rounding #s, you started with $47,000. Your goal in 10 years, without any new personal money invested, was to get $4700 in dividends by Year 10. The portfolio value, according to your website, is now $67,000. You now have $20,000 in portfolio expansion to get to your goal of dividends received. It's that simple. If your portfolio went up 50% to $100,000 in 2014, you can sell everything (barring taxes), find a 5% yielder, and you are done.

    Hence, it really doesn't matter what the initial yield on cost is as a percentage if you explain it as, "I bought 32 shares of Philip Morris Int'l which is slated to give $120.32 in dividends over the next 12 months. That is 2.56% of my intended goal of $4700 in dividends." Or something to that effect.

    DD
    Oct 4, 2013. 01:56 PM | Likes Like |Link to Comment
  • An Open Letter To My Kids - Prepare For Your Future Now [View article]
    Eddie:

    I agree with all the comments above. I wrote a book about DGI. It's not published anywhere, but solely for the benefit of my kids to understand the basic tenets of DGI. Some people have asked for it and I have emailed to whomever asked and of course, the articles that have come out since I wrote this have put my book to shame. But it's there for them to read.

    I have started letting my older child, now 8, understand dividends around 6.5 yo. We went to MCD and I told him that he is an owner of MCD. His eyes nearly exploded out of his head when I told him. And then I said that they give you enough money every 3 months that you could buy you and your brother's Happy Meals today. Of course, his next response was," Well, where's my money? I want it." I explained that if we keep it in place we will own a little more MCD for when they hand out money 3 months later. So he does understand he has to wait to get to it.

    And yes, he has more than just MCD. But I figured he and his brother have time. Put a little in there and see how the next 50 years plays out.

    DD
    Sep 16, 2013. 07:29 PM | 6 Likes Like |Link to Comment
  • My Dividend Opportunity Portfolio Philosophy And Beginning Picks [View article]
    Cash:

    I am only a few years older than you so at least we can talk as peers. Most of the warnings are well heeded advice, but I will give you a practical example and the emotions that sucked me down with it.

    2006-2007 when MReits were all the craze, there was one that I invested into, Novastar Financial (NFI). The yield was amazingly high and they were doubling the dividend it seemed like every quarter. And then things started to crack (company specific and teh real estate meltdown), but I was naive and trusted the others that were posting. So you see the price go down and what shoots up? The yield. And you start to think, "I should double down." And that's what I did. And then the short sellers continued to pound it down and down and the yield gets up to 30%, and you think, "I PRAY to be on the right side of this trade because if they can hold the dividend a few quarters, then at least I got cash back." Instead they paid the dividend in more shares. they should have been the red flag to get out but more money went in/reinvested. Needless to say, it was brutal and I had TONS of carry forward losses that I am miraculously used up.

    Short story: You need to have discipline, you need to not waver, and if you lose money, you need for it to be a learning experience and move on. Don't dwell but those high yielders are generally high for a reason.

    best of luck.

    DD
    Sep 10, 2013. 06:18 PM | 3 Likes Like |Link to Comment
  • At What Price Should You Buy A Dividend Growth Stock? [View article]
    Ops:

    I understand your conflict but why are you holding the company? Are you holding the company for the price appreciation and the dividend is a nice add-on, OR are you buying the company for the potential of increasing income and whatever the price is at any period of time does not matter to you? There have been comments made that "the price has gone up so much that it is worth 5 years of dividends in capital appreciation." That's great. What are you going to substitute it with? After taxes paid, will you now have the at least the same amount of income coming in from your new stock as if you held on to the old one?

    I am not chastising your opinion. I am just trying to articulate what every investor struggles with: When do I buy? When do I sell? What do I have to replace the old stock with if I do sell? Is the QUALITY of the new company as good or better than the stock I just had? Do I have time to actively monitor through the day if I am that nervous about a certain position? Can I use puts and calls to buy or sell a position of a stock that I think is a fair price? Lots of questions with no easy answers.

    DD
    Aug 27, 2013. 04:06 PM | 6 Likes Like |Link to Comment
  • A Young Investor's DGI Plan And Portfolio [View article]
    Nice first article. Some people gave some good quality companies outside of your current portfolio. The only one I didn't see there that comes to mind with a low yield is ROST and it's competitor TJX. People always want to shop for a bargain.

    I don't think you need to expand on the number of companies quite yet. Once the portfolio becomes large enough, whatever large is to you, you will get that antsy feeling in your stomach that you need to diversify into more companies. You'll have that hunch, not because of macro indicators, but the protection of the revenue stream over more companies starts to overweigh the current value of the portfolio. So, take your time, you are young, and add maybe 1-2 solid fair/undervalued companies per year. You are running a marathon so take your time.

    Now I will heed my warning since you are getting married in a week. I have shared it before and you can read my instablog. I just finished a divorce. I hope it does not happen to you, but you need to be prepared. Sometime this week, get a printout of the most recent statement of each and every brokerage and bank account you have. If you have any savings bonds, have the receipt for that as well of when you purchased them before your marriage. Once you have all that info, make copies - several of them and have one for you and let your parents keep copies as well. You want to have a record of what you brought into the marriage versus the growth of your assets that you both shared together. Trust me, you want to CYA. As I started, you marry this person expecting to be with them the rest of your lives. But with a 50% divorce rate, you don't know what side of the coin you will be on in the future.

    Best of luck.

    DD
    Aug 26, 2013. 04:27 PM | 1 Like Like |Link to Comment
  • How To Be A DGI Investor And GUARANTEE You Will Lose Half Your Money [View instapost]
    Ron:

    Lots of great questions. I wished this was more featured and not buried in the blogs. I know I am not the first one to go through this. I'll answer as specifically as I am comfortable with each question:

    I do not pay alimony. She does make a nice salary as that was considered. Here's the twist: Alimony you get a tax deduction; child support you do not.

    The child support is determined by a formula. I maxed out the formula so I maxed out child support in my state. Child support covers "food, shelter, and clothing." Anything above that is negotiated.

    "if your ex makes a decent salary, shouldn't her part be able to cover the incidentals?"

    You would think so, but in my state child support does not look at my ex-wife's salary. Doesn't make a lick of difference how much she makes. Now I twist this around and say, to do what's right for my kids and to KEEP HER EMPLOYED, I need to pitch in for the incidentals. That's my rationalization whether it is correct or not. It is supposed to be for them and I will provide for my boys. The amount I pay is a percentage split of the incidentals.

    Will I get married again? I am getting used to dating again so marriage would be a long time off. My answer right now is no. As my lawyer said, I need to have a good pre-nup if I go down that path again. Call me guarded but I need to be very careful moving forward if the person likes me or likes my status. It's the sad truth and I have seen others go through this two or three times. That is emotionally and financially devastating.

    DD
    Aug 26, 2013. 10:16 AM | Likes Like |Link to Comment
  • Start IRA Conversions Early To Have More Purchasing Power Later [View article]
    Jerry:

    Thank you for the insightful comments. If I am lucky more so than smart, my goal/hope is to retire in about 15 years at the age of 52/53. My time frame is skewed longer term as compared to if I was retiring within the next 5 years. I unfortunately envision more socialistic programs as the future plays out. That can only come about by two things: diluting the power of the dollar even more by keeping those printing presses going and/or paying more taxes. But I digress and you may be right. The real question is: Who knows?

    DD
    Aug 22, 2013. 10:09 AM | 1 Like Like |Link to Comment
  • Start IRA Conversions Early To Have More Purchasing Power Later [View article]
    I included the link to Calulateincometax.com It gave me the breakdown if you were single, married, etc. on your net taxable income for about the last six years. Married joint the magic # is $72,500 for 2013
    Aug 21, 2013. 10:23 AM | 1 Like Like |Link to Comment
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