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Doctor Dividend

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  • Dividend Paying Whole Life Insurance - The Alternative Fixed Income Vehicle (Part 2) [View article]

    I had to give you a +1 for that response. Loved it completely.

    The controversy is the blending of mixing insurance with investing. I believe that to be the case more so with Universal Life, or Indexed Life policies. The way I view Dividend paying Whole Life policies will be seen at the end of the series, but I will state this: I am giving up some returns (from purely an investment perspective) for creditor protection and a death benefit kicker. I know William said if you are that rich you don't need life insurance. I can't completely agree. There will be (possible) estate taxes and estate planning issues that could wipe out an inherited IRA that a tax-free death benefit could handle and increase the longevity of other assets.

    Nov 4 03:59 PM | 1 Like Like |Link to Comment
  • Dividend Paying Whole Life Insurance - The Alternative Fixed Income Vehicle (Part 2) [View article]
    Thanks for all the comments. I knew this would be a controversial group of articles, but I do appreciate the discussion and I do understand all points of views that are being discussed.

    If EVERYONE acted logically about finances, then this discussion is moot. However, you can apply to the same idea to an automobile, which is certainly a depreciating asset. If you just need four wheels and an engine, everyone would drive a Honda Accord and BMW, Lexus, and Ferrari would not exist. That's obviously not the case.

    I think there is something to learn, at least that's my hope. Even if you don't agree, I hope you can say that although I do not agree with his conclusion, there were some interesting things I didn't know.

    Nov 4 11:46 AM | 1 Like Like |Link to Comment
  • Could Whole Life Insurance Be Your Fixed Income Allocation? [View article]
    Bionic and Red Turtle:

    I tend to agree with you. Buy Term and Invest the Rest (BTIR) is the more logical way to secure your future, but what percentage REALLY do this? You two may, the vast majority do not/ can not/ will not. As I said in my disclosure, I have no skin in this game. I don't sell anything related to this. It's just an interesting tool which can get abused, but if done correctly, could be very beneficial to you and your loved ones.
    Oct 31 12:45 PM | 1 Like Like |Link to Comment
  • This 7% Yielder Continues To Roll [View article]
    According to the presentation on their website, they have the initial losses from starting a new company, which lowers how much profit and taxes they will pay. It does mention about the AMT taking 2-5% from the dividend for the first 2-3 years. So, if you have nearly the same dividend, but a lower price, your yield will be higher.

    Once things normalize, the dividend would be taxed at the corporate level of 35% and the yield would be about 2% different. 7% for LINE, 5%ish for LNCO.

    Oct 25 01:01 PM | 1 Like 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 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 10:35 PM | 1 Like Like |Link to Comment
  • Is There A Problem With Dividend Growth Investing? [View article]

    Was you grandfather Benjamin Button, by chance?
    Aug 29 09:41 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: Reflections On What I've Learned [View article]

    My list is very short because I analyze things differently. But 1st tier undervalued: AFL, BBL, TEVA, WAG (their new European exposure definitely puts a twist on things)

    2nd tier (meaning close to my buy point): LINE, CVX, and UTX.

    The two small caps that I hope go down again: SBSI (currently own some) and WRLS (really interesting space, almost recession resistant IMO, maybe need one more year to see another dividend increase again to go in).


    P.S. Forgot to mention - really great article and loved the series. Clear, concise, logical way to get your SWAN stocks.
    Jun 23 10:17 PM | 1 Like Like |Link to Comment
  • Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]

    I think we are more on the same side of this versus opposing camps. There are several variables that do make this all a guess, but I really started investing in 1998-1999. I f I used my historical return for those 2 years, I would have been retired in 2006. Obviously, it didn't work out that way because the wealth creation potential and reality didn't quite work out.

    At least with DGI, I can see on spreadsheets what the numbers say (not counting inflation - if they only went back to a gold standard). I reread your article you referenced. My guess is if he waited till 67, DRIPped, and had only 6% dividend growth, he would have $50K per year, maybe more. My spreadsheets let me know my goal of $X dollars per year in dividends can be done by 53 y/o if everything is exact. If it happens to be 55, well gosh - I only have 40 years of retirement (the longevity in my family is crazy) versus 42 years.

    See your inbox.

    May 16 08:49 AM | 1 Like Like |Link to Comment
  • Pound For Pound, These REITs Should Never Break Down [View article]

    Always love your comments and I hope your grandson reads this. From the sounds of it, he just missed investing in 2008/2009. So he is driven more by capital gains. And then another 2008-2009 is going to happen and he is going to see the stocks with dividends which have raised them (YUM being a great example) will have been less affected by the overall market and the lightbulb is going to turn on. It's not about growth all the time, it can be about preservation.

    the other way I define it, if you remember in my book, is that I want a predictable return on assets and dividends are the only way I can do that. Good that he picked AAPL, but what about a decade ago if he picked JDSU, CSCO, I think all investors, especially us youngins (I'm still in my mid-30s), go through this phase and learn the hard way. Try and guide him towards focusing on stocks that at least pay a dividend, pay the taxes along the way, and maybe 5% as play money that don't. Everyone wants to find the next Apple, but I spoke with a Venture Capitalist this weekend who has been in the business for almost 30 years and he just says failure is guaranteed on a 10:1 basis for too many different reasons. You finally look good (and lucky) when you can say I invested in Google before it was Google.

    If I started DGI at 25-26 instead of 35, I could probably retire by 47 vs 55.

    My .02 reinvested.

    Mar 28 05:52 PM | 1 Like Like |Link to Comment
  • Starting My $10,000 Dividend Growth Portfolio [View article]
    with commissions, you can attack it two ways, maybe 3. Please note I use none of these brokerages: - $2.50 per trade - unlimited plan is $290/year within their 2 trading windows per day. They have a basic plan as well. - also a trading window that others have found free trade promo coupons for.

    Make sure you DRIP the dividends, that DRIPping is free and that the brokerage will let you hold fractional shares for continued dividend reinvestment.

    Best of luck. Not all my favorite stocks but a solid well rounded portfolio.

    Mar 27 05:24 PM | 1 Like Like |Link to Comment
  • Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
    To me the issue goes back to this statement by the author:

    This is not because they are necessarily superior companies but because we were able to leverage our considerable gain in the value of the McDonalds shares for exposure to additional dividend growth streams.

    Here is the thing. MCD is way superior to both companies used in the examples and just about every other company out there. This goes back to an article by David Crosetti, I think the Blackjack article, where he mentioned swapping a highly appreciated XOM for fairly valued INTC and increasing his dividend stream. That was an A+ company with a lower yield for an A+ company with a higher yield and makes total sense. This is an A+ for an A- and a B company in this example which the author would probably do just fine but you are giving up something intangible in the deal.

    The point is well taken but I just find the more I try and tinker with increasing yield and increasing yield, I have to start looking at MREITS because that's the highest yield out there. unfortunately, I have been down that road and have learned my lesson.

    Mar 13 03:52 PM | 1 Like Like |Link to Comment
  • A High-Dividend-Growth, Low-Payout-Ratio Portfolio [View article]

    I would not replace a stock if the yield goes below 2%. Since you are doing this for total return and you plan on rebalancing annually, that means that stock has had a nice increase in price but your (hypothetical) yield on cost for the 12 months was still better than 2.1%. It may be a minor quibble, but I think the other factors are good criteria.
    Feb 17 10:08 PM | 1 Like Like |Link to Comment
  • Retirement Choices: Annuities Vs. Dividends [View article]
    I am commenting from someone who is in their mid 30s, so take this with a grain of salt.

    I don't disagree that long-term, DGI are better than annuities, but when one compares an annuity to a pension, reserach has shown that the people who have pensions have a much happier retirement than those who don't. I can see the same rationale for annuities - the guaranteed monthly check. There is the emotional psychology of knowing that there is that GUARANTEE that puts people at ease, even though DGI will account for inflation as well.

    Just my .02, reinvested.
    Jan 12 06:00 PM | 1 Like Like |Link to Comment
  • The Misplaced Mania Over Dividend-Paying Stocks [View article]
    Off hand, I am not looking through 500 names to try and prove your point, but I will give 4 names that are in the Nasdaq 100 - the index that should be technology heavy, shouldn't pay a dividend (forget about increasing over many years) and should have some debt.


    Finally, Intel. Here was a company that purposely took on more debt. Why? It would cost them more money in dividends on all of the existing shares vs borrowing cheap money, reducing the share count and still (highly likely) increase the dividends paid out in 2012. That's a business I want to (and am) associated/invested with.
    Jan 11 10:52 PM | 1 Like Like |Link to Comment