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Eli Inkrot

 
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  • The Benefit Of Reinvesting Into Something Like Kinder Morgan
    Yesterday, 1:25 PM KMI 22 Comments

    Summary

    • Everyone knows that there is a tangible benefit associated with reinvesting dividends over the long term.
    • What’s less talked about is trying to get the most “bang for your reinvestment buck.”.
    • This article looks at the benefits of reinvesting into something like Kinder Morgan.
  • Don't Fall Off The Financial Monkey Bars
    Yesterday, 4:57 AM WAG, SPY, DIA 4 Comments

    Summary

    • This article relates investing to a common playground obstacle.
    • There are a variety of ways to approach crossing the monkey bars.
    • In the end, the most important part is just hanging on.
  • 3 Blue-Chip Stocks To Consider
    Mon, Nov. 24 CVX, GE, IBM 17 Comments

    Summary

    • A recent article detailed three “blue-chip” stocks to avoid.
    • The suggestions may or may not turn out to be “correct.”.
    • However, this commentary highlights the idea that “avoid” and “reasonable returns” are two different things.
  • The Thing About Target's 'High' Earnings Multiple
    Sat, Nov. 22 TGT 6 Comments

    Summary

    • If you were to look at Target’s current P/E ratio, as indicated by financial websites, you might conclude that the valuation is quite high.
    • However, upon closer examination, this commentary demonstrates that a single metric doesn’t always tell the whole story.
    • As such, it’s important to understand the components and create your assumptions based on reasonable expectations.
  • Mattel's Yield Is More Than Just Fun And Games
    Fri, Nov. 21 MAT 26 Comments

    Summary

    • Mattel has a strong dividend record overall, but has frozen its payment a few times over the years.
    • The company’s “current” yield is much higher than your average company.
    • In the end, a high yield can make up for slower or stagnating payout growth.
  • Discount Higher Yields At Your Own Peril
    Thu, Nov. 20 BP, JNJ 58 Comments

    Summary

    • This article gives you a hypothetical option to choose between BP and JNJ for dividend income dating back to 2003.
    • The results may surprise you, given the bullet points you might know about each company.
    • In the end, a higher yield can make up for many income blunders.
  • Would You Pay More Or Less For 10% More Income?
    Mon, Nov. 17 BDX, IBM, MCD 9 Comments

    Summary

    • Intuitively, you would value more income as being more valuable.
    • However, this doesn’t always take place in the market.
    • The key is recognizing this idea and using it to your advantage.
  • BP Or Kinder Morgan For Your Retirement Portfolio?
    Sat, Nov. 15 KMI, BP 97 Comments

    Summary

    • In a previous article, I compared the income prospects of Kinder Morgan and AT&T.
    • Since that time Kinder Morgan's dividend has become slightly more attractive, while AT&T has more or less stayed the same.
    • As such, this article looks to pit Kinder Morgan against a new income competitor: BP.
  • Margin Of Safety: More Than Just Price
    Thu, Nov. 13 BP, JNJ, COP 28 Comments

    Summary

    • When you consider Ben Graham's idea of "margin of safety," you probably conjure images of the price paid for a security.
    • My contention is that this is just one leg of three resulting from the desired safety principle.
    • This article looks into the other two methods of finding "safety" in investing, with specific reference to Ben Graham himself.
  • The Problem With 'Just Exchanging Your Shares'
    Thu, Nov. 13 BP, BRK.B, CL 153 Comments

    Summary

    • Often investors think about investing in two parts: “accumulating” and then later generating income.
    • However, as this article demonstrates, there could be a variety of issues with this logic.
    • In the end, as with most things in the investing universe, it comes down to understanding the risks involved.
  • What Happened If You Invested In Oil Stocks At The Peak?
    Wed, Nov. 12 BP, XOM, COP 26 Comments

    Summary

    • Conceptually, mid-2008 was probably one of the worst times to invest in oil stocks.
    • The next few years would bring about halving oil prices, a global recession and a massive oil spill.
    • This article looks at what would happen if you invested in a group of these companies at the peak.
  • Utilities Shouldn't Return 18%
    Tue, Nov. 11 SO 84 Comments

    Summary

    • One of my holdings returned 18% over the past 12 months.
    • Aside from being a utility, this fact alone isn’t particularly impressive.
    • What’s interesting is viewing this return in context and coming to the idea that an arbitrary mark isn’t particularly important.
  • Cedar Fair's Roller Coaster Payout
    Mon, Nov. 3 FUN 2 Comments

    Summary

    • Cedar Fair had a solid 20-year streak of growing its payout prior to the recession.
    • Once 2009 rolled around, the income component was cut dramatically to just a fraction of what it had been.
    • Since that time the payout has rebounded nicely, resulting in a “roller coaster” income effect.
  • Realty Income: What's Your Preference?
    Fri, Oct. 31 O 32 Comments

    Summary

    • Investors routinely look to the common shares without also considering the availability of preferred equity.
    • Preferred shares can offer a higher yield and inherent stability.
    • This article looks at the common and preferred shares of Realty Income to determine which appears more attractive today.
  • Investing In BP Like It's 2006
    Thu, Oct. 30 BP 9 Comments

    Summary

    • Everyone knows about the BP oil spill and its resulting influence on the business.
    • Today, BP’s dividend payment sits about where it did all the way back in 2006.
    • However, if you believe the company can continue to grow, the valuation proposition appears to be even much more favorable today than it was then.
  • Paying A Premium For Costco
    Wed, Oct. 29 COST 6 Comments

    Summary

    • Shares of Costco are currently trading with an earnings multiple in the upper-20s.
    • As such, it can be easy to write off this company as “too expensive.”.
    • Yet be cognizant of the idea that valuation is relative such that “paying a premium” might still turn in reasonable investment results.
  • Valuation Shortcuts For Apple
    Tue, Oct. 28 AAPL 14 Comments

    Summary

    • Often articles and reports give a single number such as a $120 price target or 11% annual expected returns.
    • This is a solid baseline, but it lacks the ability to be easily adjusted or tested against varying hypotheses.
    • This article creates two valuation shortcuts for the reader to independently determine their own expectations of Apple’s future return prospects.
  • When A 'Loss' Isn't A Loss At All
    Mon, Oct. 27 MCD, KO, WMT 23 Comments

    Summary

    • In a recent Bloomberg article, the author indicated that the world’s richest people "lost" billions of dollars in a week.
    • This, in my opinion, is the precise type of thinking that plagues the financial media and general population.
    • As such, this article provides a countervailing illustration to what should otherwise have been a “non-story.”.
  • IBM: What A 'Sit On Your Hands' Investment Looks Like
    Fri, Oct. 24 IBM 179 Comments

    Summary

    • A lot of people like to talk about IBM’s lack of revenue growth; however, this has been an ongoing and unsurprising story.
    • What’s more interesting is the idea that earnings and dividends can grow nicely despite this lack of top-line growth.
    • This article looks at a seemingly awful scenario: zero growth whatsoever for the next 20 years.
  • My Dividend Stocks Aren't For Sale
    Thu, Oct. 23 ESRX, JNJ, KO 20 Comments

    Summary

    • Many view stock price movements as signals for action.
    • My focus is on a growing and sustainable income stream.
    • As such, I don’t really care what the market does on an everyday basis because my dividend stocks aren’t for sale.
  • A Realistic Path To A 10% Yield On Cost In 5 Years
    Wed, Oct. 22 KMI 65 Comments

    Summary

    • Recently, a Seeking Alpha contributor elaborated on his 10% yield on cost in 10 years idea.
    • This is a great framework and reveals some important information.
    • This article strives to push the boundaries a bit: seeing if it’s possible to achieve a 10% yield on cost in half the time.
  • The Income Buffer In Relation To Price Declines
    Wed, Oct. 22 IBM, PG, JNJ 8 Comments

    Summary

    • Many people watch price actions and take their cues from these movements.
    • On the other hand, those who are primarily concerned with the income component aren’t as concerned with what other people may or may not be willing to pay.
    • This article looks at two recent examples and describes the “income buffer” related to income investing.
  • What Do You Do If Share Prices Drop 20%?
    Tue, Oct. 21 PG, SPY, DIA 34 Comments

    Summary

    • Over the weekend, I was reminded of the near 23% drop in the “market” back in 1987.
    • This article considers the question: “what do you do if the share price of your holdings drops 20% tomorrow?”.
    • Thinking about this action before it happens can act as a barometer for the health of your portfolio.
  • Just Stop Looking At The Dow Jones Index Already
    Tue, Oct. 21 DIA, SPY, QQQ 5 Comments

    Summary

    • The Dow Jones Industrial Average is perhaps the most quoted and well-known index in the financial world.
    • While it served a purpose 100 years ago, its use today is just as flawed, as it is helpful.
    • This article demonstrates this point by giving a recent example along with a hypothetical illustration.
  • Don't Underestimate Kraft's Dividend
    Fri, Oct. 17 KRFT 33 Comments

    Summary

    • Companies like Procter & Gamble and Coca-Cola are often thought of as the “go-to” dividend growth investments.
    • A company that might not receive as much attention as the others would be a stock like Kraft.
    • However, a higher yield can often make up for slower growth expectations.
  • When The Dividend Cut Writing Is On The Wall
    Wed, Oct. 15 PBI, SDRL 53 Comments

    Summary

    • There’s been a lot of talk about Seadrill cutting its dividend – which may or may not occur in the future.
    • This article looks at another company where the “dividend cut writing was on the wall”.
    • In the end, even a substantial cut might not prevent an investor from receiving adequate or better returns.
  • Why Dividend Stocks Routinely Dominate The World's 'Most Valuable Brands'
    Tue, Oct. 14 AAPL, GOOG, JNJ 7 Comments

    Summary

    • Interbrand creates a list of the top 100 “most valuable” brands each year.
    • This commentary looks at the top 10 brands of the last 4 years.
    • In the end, dividend-paying companies routinely dominate this list.
  • Should A Dividend Growth Investor Even Consider A Company Like Seadrill?
    Mon, Oct. 6 SDRL 150 Comments

    Summary

    • Seadrill isn’t your typical dividend growth stock.
    • This is despite the fact that is has been increasing its dividend and has historically had a very high starting yield.
    • This article looks into whether or not the company should at least be on your radar.
  • Building Your Own High-Yield Portfolio
    Sun, Oct. 5 CTL, PG, KMB 44 Comments

    Summary

    • In building a portfolio, you can either do it yourself or else “hire out” a “professional” to do it for you.
    • If you want to build a high-yield portfolio, you might focus on companies like AT&T and Kinder Morgan, or else an ETF with those companies as holdings.
    • This article looks at when it might make sense to consider either of the two options.
  • Stop Using The 'All-Time High' Excuse
    Fri, Oct. 3 SPY 8 Comments

    Summary

    • Often the financial media will phrase questions in the “all time high” context.
    • For instance, they might begin: “given that stocks at all time highs, what do you think about X”.
    • This article demonstrates why an “all time high” isn’t so much newsworthy as it as a logical expectation.
  • This Article Bought Me 2 Shares Of Kinder Morgan
    Thu, Oct. 2 KMI 46 Comments

    Summary

    • If you’re able to earn or save even a small amount of “extra” money on a consistent basis, you have a great opportunity to build wealth.
    • To demonstrate this ideology, this article looks into the prospect of buying just 2 shares of Kinder Morgan per week.
    • In the end, small efforts often aggregate to large results.
  • Hershey Probably Isn't The Most Attractive Dividend Growth Stock In The Food Products Industry
    Wed, Oct. 1 HSY 8 Comments

    Summary

    • In a recent article, an author suggested that Hershey might be the most attractive dividend growth stock in the food products industry.
    • This may or may not be true regarding total return, but it is likely misleading if your primary focus is on a growing stream of income.
    • This commentary demonstrates that while Hershey might grow its payout at a quicker rate, this certainly doesn’t mean it must provide more income.