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Eddie Herring

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  • What's Your (Dividend Growth) Number? [View article]

    You're welcome and actually, thank you!

    Nov 3 12:15 AM | Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]
    NV_Gary, T4Y, and WB

    I consider my 4.5 years of USAF time a great part of my life. I enlisted on my 18th Birthday as a boy and it made a man out of me. Taught me a lot.

    Nov 3 12:13 AM | 2 Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    You're welcome.

    Nov 2 01:25 PM | 1 Like Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    Glad you like it.

    Nov 2 01:24 PM | 1 Like Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    Click on the 3 bar customize and control button at the upper right of Chrome and go down to tools and then extensions. Then select "Get More Extensions" and that will carry you to the Chrome web store. Enter Seeking New in the search field and it will locate it. Then just add to chrome and it will load an orange icon in the upper right, next to the customize and control button.

    Then when you click on the tablet icon to see what articles you're following that have new comments, whichever article you select by default it goes to the first comment which is what Chowder was talking about. The Seeking New button will tell you what new comment number you're at such as 8/13 (8 of 13 new ones). You then just click on the orange icon to go to the next new comment. So if there are 13 new comments out of 150 total, you get to skip the 137 old ones.

    Nov 2 12:33 AM | 5 Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    It will by default go to the first one but if there's 150 total comments and the first new one is at the top of the page and the next 20 new ones are mixed in afterward all the way down to the bottom, then you have to do a lot of scrolling. The extension helps you skip all that.
    Nov 1 08:08 PM | 2 Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    This is just my opinion so take it for what it's worth.

    It is impossible to bat 1000 when trying to anticipate a potential dividend cut. I agree with what Chowder indicated above however, as Mike pointed out, it wouldn't have worked in GE's case.

    I like to use free cash flow to help with indicating how safe dividends are. Dividends ultimately are paid from free cash flow and if a company is struggling in that area it will show up at some point in a dividend cut. However that isn't fool proof either. GE had very good free cash flow in 07 and 08 leading up to the cut in Feb 09.

    Some might say a steep price decline is an indicator yet there were many companies in the great recession that had significant price declines yet still didn't cut their dividends. I don't view price as an indicator personally if it's taking place in an event where the entire market is pulling back. If it's only 1 company dropping like a rock and others are still going strong, then it's time to take a look at why it's dropping.

    In my opinion the best one can do is put the odds in their favor by selecting companies that have an economic moat, are recession resistant type companies (people need/have great desire for their products), have a strong corporate culture of paying/increasing dividends, generate sufficient earnings and free cash flow to cover their dividends, excellent management, and have the other strong business fundamentals that make them a quality company.

    Then when you see these things start to deteriorate, it's time to take a very hard look at staying the course with that company. It has to boil back to how fundamentally strong the company is from a business standpoint.

    In GE's case they looked real good financially right up till the announcement. I personally think that they saw that 09 was going to be a very tough year, probably indicated by orders being cancelled or slowing down, something that we might not see as investors until well after the fact.

    Again just my 2 cents.

    Nov 1 08:03 PM | 4 Likes Like |Link to Comment
  • Portfolio Business Plan: You Really Need This - Part 2 - Further Revisions [View article]

    Excellent continuation in your series. You continue to be a guiding light for those who haven't yet developed a plan. Have a great weekend.

    Nov 1 04:38 PM | 1 Like Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    Since you're dropping out you may miss this but if you use Google Chrome as your browser there's an extension called "Seeking New" that you can add. It will allow you to go to each new comment only, bypassing the old ones. Saves a world of time and scrolling. Hat tip to SA member BigIslandBum for this one.

    Nov 1 03:07 PM | 1 Like Like |Link to Comment
  • What's Your (Dividend Growth) Number? [View article]

    Old age is 21 years older than I am... regardless of what age I am.

    When I was in the USAF at 20 years of age guys who had made a career out of it were retiring at 40/41 years old and I remember thinking, these guys are old. Remembering it now they were so young but I just didn't realize it. Now I talk with 81 year old people thinking they're old but when I get to 81, I'm sure old will be 102. :-)

    Anyway, excellent article and it generated some excellent commentary, which I love to read. Well done! And I love Mcdivvies too.

    Nov 1 02:43 PM | 3 Likes Like |Link to Comment
  • Why Low Beta Stocks Are Like Bonds For Dividend Growth Investors [View article]
    I thought dogs only invested in the dogs of the Dow... :-)
    Oct 31 08:01 PM | 4 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]

    Thanks. Buying at or below a sound valuation and then holding and monitoring can go a long way in being successful. Assuming of course we're picking the appropriate companies. Thanks for your always appreciated comments.

    Oct 31 09:25 AM | 1 Like Like |Link to Comment
  • My DIY DGI Portfolio Business Plan [View article]
    DGI Guy

    Congrats on a good start to planning for your retirement. My only comment would be that I see you have moat and dividend payout ratio covered in your plan but I didn't see any mention of cash flow. I would want to make sure it is positive, especially free cash flow. Personally I prefer to calculate the payout ratio from free cash flow but a lot of people use earnings.

    Best of luck,

    Oct 30 04:33 PM | 2 Likes Like |Link to Comment
  • Why Low Beta Stocks Are Like Bonds For Dividend Growth Investors [View article]

    It would be an efficient stock picking hypothesis... :-)

    Oct 29 10:39 PM | 4 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]

    Oh, I agree that most stocks move in the same direction as the broad market. And I maintain an awareness of what the general market is doing realizing that it has a certain impact on the overall price change of stocks.

    When there is a general market pullback, even a well diversified portfolio in all likelihood will still pullback as well. But I watch the underlying company's business structure to determine if I want to buy, sell, or hold and try not to let the general market tell me what to do.

    For example, if a general market pullback is the result of a recession, in my (again humble) opinion, I believe the business fundamentals of the company will tell me how much of an impact the recession is having on the company. And I also believe that watching those fundamentals will provide anticipatory information of an upcoming dividend cut prior to it actually being announced.

    Then again the market could pull back because that's simply what markets do sometime and while the price of an individual security may pull back with it, the fundamentals of the business underlying the security can remain strong.

    In essence I think it behooves as as investors to keep an "eyes wide open" approach to both the market and our individual holdings. I'm aware of the market but focused on my individual portfolio holdings. But I never try to predict what the market is going to do.

    Oct 29 04:25 PM | 1 Like Like |Link to Comment