Seeking Alpha
View as an RSS Feed

Eli Inkrot  

View Eli Inkrot's Articles BY TICKER:
AAPL, BA, BP, BRK.A, BRK.B, CLV, COP, COST, CVS, CVX, DD, DIA, DTV, ED, FUN, GE, GIS, GPC, HCBK, HE, HSY, IBM, JNJ, JPM, K, KMB, KMI, KO, KR, KRFT, MAT, MCD, MTB, NKE, NLY, NOBL, NYCB, O, OKE, ORCL, PEP, PG, QQQ, RDS.A, RDS.B, RRD, SBUX, SDRL, SE, SHW, SO, T, TGT, TRV, USB, UTX, V, VIG, VZ, WBA, WFC, WMB, WMT, WTR, XOM
  • Nasdaq 5,000 And Media Sensationalism
    Today, 11:50 AM QQQ 3 Comments

    Summary

    • In March of 2000, the NASDAQ was trading around the 5,000 level.
    • Today, 15 years later, the index is still close to this mark.
    • Given this information, one might be inclined to suspect that this would have been a poor investment.
    • However, this misses at least two key aspects in thinking about the investing world.
  • Kraft And Quibbling Over Yield
    Thu, Mar. 26 KRFT 20 Comments

    Summary

    • In October 2014, shares of Kraft briefly traded with a 4% dividend yield.
    • After that, investors had the opportunity to partner with the company with a 3.9% yield, but never again with a 4% yield.
    • In light of the recent merger news, waiting for the 4% yield to “come back” could indeed be a large opportunity cost.
  • Kinder Morgan: How To Get A 10% Yield
    Wed, Mar. 25 KMI 113 Comments

    Summary

    • Given a $2 expected dividend, shares of Kinder Morgan presently provide a 4.8% dividend yield.
    • In order to generate a 10% “yield” an investor would need to periodically sell some shares.
    • This article looks at this possibility, demonstrating its viability as a potential option.
  • AT&T: Total Income Growth Scenario Analysis
    Tue, Mar. 24 T 23 Comments

    Summary

    • In a previous article I demonstrated the importance of AT&T’s total income growth.
    • That observation was based on a single set on hypothetical outcomes.
    • This article looks to expand that possibility – providing scenario analysis for a wide range of future possibilities.
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio
    Mon, Mar. 23 CVX, GE, KMI 148 Comments

    Summary

    • The “4% rule” is a common retirement mark.
    • However, I would contend that this “rule” is much more of a guideline.
    • This article demonstrates why dividend investors could easily withdraw more than 4% per year.
  • Why AT&T's Total Income Growth Is Important
    Sat, Mar. 21 T 65 Comments

    Summary

    • People often look at AT&T’s low dividend per share growth disapprovingly.
    • However, when coupled with a high starting yield, this doesn’t turn out to be that much of a issue.
    • This article looks at why AT&T’s total income growth is important.
  • Spectra Energy: A Solid Dividend Growth Candidate
    Wed, Mar. 18 SE 11 Comments

    Summary

    • Spectra Energy has demonstrated a penchant to reward shareholders via increased dividends in its relatively short public history.
    • Given a 4%+ “current” dividend yield, moderate of better growth leads to solid investment expectations.
    • This article looks at management’s guidance along with the possibilities over the next decade.
  • Realty Income: A Historical Look At A 'Low' Yield
    Tue, Mar. 17 O 15 Comments

    Summary

    • At the end of 1999 shares of Realty Income were trading with a 10% dividend yield.
    • Given a growing dividend and a lower “current” yield today, the return prospects were quite solid.
    • However, it should be noted that even a much lower yield (and thus much starting higher price) would have resulted in reasonable returns.
  • As Expected, Banks Are Boosting Dividends
    Thu, Mar. 12 JPM, USB, WFC 9 Comments

    Summary

    • In recent commentaries I detailed what a 50% dividend payout ratio would mean for JPMorgan, Wells Fargo and U.S. Bancorp.
    • Since that time each company has provided updated capital plans.
    • This article looks at the new information with respect to previous remarks.
  • Target: What Slowing Dividend Growth Means For Investors
    Fri, Mar. 6 TGT 11 Comments

    Summary

    • Target has provided very strong dividend growth in the face of marginal earnings improvement over the last few years.
    • As such, today the payout ratio is higher than management’s intended range.
    • This article looks at what this could mean for investors moving forward.
  • CVS: Will Strong Dividend Growth Provide Solid Returns?
    Thu, Mar. 5 CVS 8 Comments

    Summary

    • CVS has demonstrated a very robust dividend growth history during the last decade.
    • Moving forward an investor could expect this to continue – with intermediate-term dividend growth in the 15% to 20% range perhaps.
    • This article looks at whether or not this also implies solid total return prospects.
  • U.S. Bancorp's Potential With A 50% Payout Ratio
    Thu, Mar. 5 USB 8 Comments

    Summary

    • U.S. Bancorp is presently paying out a third or so of its profits in the form of dividends.
    • In the past the company has paid out a much higher portion of profits.
    • This article looks at the company’s potential if it began paying out 50% of its earnings.
  • What If Your Share Price Stagnates... Forever?
    Wed, Mar. 4 JNJ 42 Comments

    Summary

    • In a previous article, I highlighted the benefit of stagnating share price using Johnson & Johnson.
    • In this instance, the share price more or less “languished” for five years.
    • This article looks at a slightly more permanent thought experiment: the same price “forever.”.
  • What If Wells Fargo Paid Out Half Of Its Earnings?
    Tue, Mar. 3 WFC 19 Comments

    Summary

    • Wells Fargo currently pays out a third or so of its profits in the form of a dividend.
    • However, it’s not unimaginable that the company could work its way to paying out half of its earnings in the future.
    • This article looks at what this scenario might look like for current and prospective investors.
  • What Would A 50% Payout Ratio Mean For JPMorgan?
    Mon, Mar. 2 JPM 6 Comments

    Summary

    • JPMorgan has demonstrated a penchant to increase its dividend payout ratio, which currently stands at about a third of earnings.
    • Although this won’t happen immediately, it’s reasonable to assume that strong payout growth is a future possibility.
    • This article looks at what a 50% payout ratio in the future would mean for JPMorgan shareholders.
  • Travelers' Shareholder Yield Is Compelling
    Fri, Feb. 27 TRV 14 Comments

    Summary

    • Travelers' 2% dividend yield probably isn’t too exciting for most income investors.
    • However, the company’s buyback program has been impressive.
    • Combined, the two methods of shareholder return offer a compelling proposition.
  • Johnson & Johnson: The Benefit Of A Stagnant Share Price
    Thu, Feb. 26 JNJ 40 Comments

    Summary

    • In the 2007 to 2012 period, Johnson & Johnson’s share price effectively stagnated.
    • Many would view this as a negative, moving directly against what they hope will happen with an investment.
    • Yet if you’re a net buyer, there is a huge benefit in seeing a stagnant share price coupled with a solid business.
  • ONEOK Reduces Dividend Guidance, How Bad Is It?
    Wed, Feb. 25 OKE 14 Comments

    Summary

    • I recently highlighted ONEOK as a company with both a high starting dividend yield and fast expected payout growth.
    • Since that time, management has reduced its dividend guidance.
    • This article looks at future income possibilities for ONEOK in reference to the lower anticipated growth.
  • In Search Of High Yield And Growth
    Tue, Feb. 24 OKE, WMB 19 Comments

    Summary

    • Usually investors have a decision between a higher starting yield or a higher anticipated growth.
    • However, occasionally you are able to find security candidates with both attributes.
    • This article looks at two companies with high starting yields and solid projected dividend growth.
  • Coca-Cola Increases Dividend, A Historical Look
    Fri, Feb. 20 KO 14 Comments

    Summary

    • Coca-Cola recently increased its dividend by 8%, representing the 53rd consecutive year of increasing its payout.
    • Due to lower reported earnings per share, the payout ratio now appears quite high.
    • However, when you take a closer look, all might not be as alarming as it originally appears.
  • Wal-Mart Increases Dividend 2%; I Wouldn't Have Increased It At All
    Fri, Feb. 20 WMT 54 Comments

    Summary

    • Wal-Mart recently increased its dividend by 2%.
    • This is quite similar to last year’s increase and well below the company’s historical record.
    • Shareholders probably aren’t very impressed, but this could be exactly what the Waltons desire.
  • Watching Your Dividends Pile Up
    Thu, Feb. 19 BWLD, JNJ, CL 36 Comments

    Summary

    • Often “growth stocks” are recommended for the young or accumulating investor.
    • This is great in theory, but a bit more difficult to accomplish in practice.
    • Watching your dividends pile up instead could very well provide similar or better returns with an added psychological benefit.
  • 8 Blue Chips With The Potential To Return 25% Of Your Money
    Tue, Feb. 17 BP, T, COP 14 Comments

    Summary

    • If you’re primarily focused on income, if can be helpful to put together a starting investment baseline.
    • While there are many types of income securities, it can be useful to begin with the “plain vanilla” common stocks.
    • This article looks at eight “blue-chip” companies with the potential to return 25% of your initial investment, in the form of dividends, over the next five years.
  • How Much More Compelling Is The Southern Company Today?
    Sat, Feb. 14 SO 45 Comments

    Summary

    • Recently I provided an update on the Southern Company, suggesting that 5% intermediate-term return expectations might be a reasonable baseline.
    • Since that time, the share price has declined dramatically.
    • This article looks at “how much more compelling” the company is today.
  • Kroger: A Recent Tale Of Dividend Hors D'oeuvres
    Fri, Feb. 13 KR 2 Comments

    Summary

    • The idea of “dividend hors d’oeuvres” is to collect a solid dividend payment while you wait for a higher valuation.
    • This concept can also be used to think about earnings growth.
    • This article looks at an interesting history of Kroger, displaying both a stagnating share price along with a huge run-up as of late.
  • Coca-Cola Vs. PepsiCo: The Dividend Growth Challenge
    Thu, Feb. 12 KO, PEP 16 Comments

    Summary

    • Recently both Coca-Cola and PepsiCo announced full years earnings.
    • Neither company demonstrated much growth, hindered by currency headwinds.
    • This article looks at each investment opportunity moving forward.
  • Kroger: Great Company, But Hard To Buy Today
    Tue, Feb. 10 KR 6 Comments

    Summary

    • Kroger has demonstrated itself to be a strong and growing company with a storied history.
    • While the stock price "stagnated" for a while, it has recently increased dramatically.
    • This article looks at the prospects of an investment in Kroger today.
  • McDonald's Versus Starbucks: Income Or Growth?
    Fri, Feb. 6 MCD, SBUX 108 Comments

    Summary

    • McDonald’s is currently being characterized as “higher yield/lower growth”.
    • Starbucks fits the “lower yield/higher growth” mold.
    • This article compares the rationality of each investment from the income and total return prospective.
  • Southern Company - Expect A Dividend Increase, But Not Much More
    Thu, Feb. 5 SO 52 Comments

    Summary

    • Recently the Southern Company announced fourth quarter earnings results.
    • The company had higher revenues, income and earnings –- slightly offset by a larger share count.
    • Expect a dividend increase in the next quarter, but perhaps not much more as an intermediate-term investment.
  • What Happened The Last Time Chevron Had A 4% Yield?
    Wed, Feb. 4 CVX 26 Comments

    Summary

    • Prior to the last few months, Chevron had a 4% yield in 2010 and 2002.
    • In both instances, the future returns were quite solid.
    • In the end, it’s important to recognize the context of the dividend yield along with your future expectations.
  • Update: BP - Still Paying Dividends
    Wed, Feb. 4 BP 2 Comments

    Summary

    • Recently BP announced fourth quarter earnings results.
    • The company provided lower capital expenditure guidance and declared an in-line dividend payment.
    • With a 6% “current” yield the “dividend hors d’oeuvres” thesis continues to play out.
  • Exxon Mobil - Full Year Revenue Down, EPS Higher
    Tue, Feb. 3 XOM 3 Comments

    Summary

    • Exxon Mobil recently released fourth quarter and full year earnings results.
    • Year-over-year sales were down and income was flat, as earnings per share actually grew a bit.
    • Exxon continues to demonstrate its shareholder might, as the dividend is increased and the share count is reduced.