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Eric Landis  

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  • Chasing High Dividend Growth Rates For Higher Total Returns [View article]
    big54,

    David Van Knapp has written a few recent articles discussing ETFs for dividend growth. Plenty of comments following each of them. I don't own any ETFs personally, but would probably go with SCHD if I had to pick one.

    Why I Purchased Schwab's U.S Dividend Equity ETF As A Dividend Growth Investment: http://seekingalpha.co...

    Several Dividend ETFs Slash Their Dividend By Up To 22%: http://seekingalpha.co...

    Is VDIGX A Good Dividend Growth Investment?: http://seekingalpha.co...
    Apr 20, 2015. 12:13 PM | Likes Like |Link to Comment
  • Searching For Stability In A Volatile Oil Market [View article]
    The speculative pick of the bunch, Carbo Ceramics (CRR), announced a dividend cut today. The next payment will be reduced from $0.33 to $0.10 per share.

    http://yhoo.it/1GcY5PO
    Apr 20, 2015. 12:02 PM | Likes Like |Link to Comment
  • Why I Am Exiting My Position In General Electric [View article]
    Ahh, did a quick search of FAST's recent conference call and notice they bought back 2 million shares at $41 and just authorized another 4 million.

    If it drops to the $36 or $37 level I will be seriously considering it. Would be trading around a 20 PE and just over a 3% yield at that level.
    Apr 18, 2015. 01:40 PM | 2 Likes Like |Link to Comment
  • Why I Am Exiting My Position In General Electric [View article]
    Alexander,

    What company bought back shares at $14? Neither STAG nor FAST have traded near that level any time recently.
    Apr 18, 2015. 01:36 PM | Likes Like |Link to Comment
  • Why I Am Exiting My Position In General Electric [View article]
    Alexander,

    I'm not rigid in either requirement for my DGI stocks. I'll take a 4%+ yield with a mid single digits dividend growth or a 1% or 2% yield that is growing in double digits.

    I've been looking at FAST, but it still seems a bit expensive to me at current prices. Also been looking pretty hard at STAG on the recent pullback as it is now yielding over 6%.
    Apr 18, 2015. 10:02 AM | Likes Like |Link to Comment
  • Why I Am Exiting My Position In General Electric [View article]
    Nice article Alexander. I agree with your thoughts and I, too have been considering my position after the recent news. It will take good execution on many fronts for GE to get over $2.00 per share in earnings in 2018, and with a share price over $27 now, the risk/reward isn't overly compelling to keep holding.
    Apr 18, 2015. 01:19 AM | 4 Likes Like |Link to Comment
  • A Real Dividend Growth Machine: Q1 2015 Review [View article]
    Nice update DGM, looks like you are doing great with your portfolio!
    Apr 18, 2015. 12:26 AM | Likes Like |Link to Comment
  • 401(K) Reconstructed: 2015 Q1 Review [View article]
    Thanks Hardog, I'm glad you enjoyed it.
    Apr 16, 2015. 02:52 PM | Likes Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    djsulli,

    I know I made a ton of assumptions, and maybe should have stated that more clearly.

    For a more tempered expectation, assume low end of 2015 guidance at $1.10 and 8% EPS growth in the industrial segment and a 15% reduction in shares. This would give EPS of roughly $1.81 in 2018, which at an 18 PE gives a target share price of $32.58. Not nearly as attractive as it's just an 18% gain from current prices.

    Then consider a company like Kinder Morgan, that just went through a huge restructuring and provided guidance of 10% dividend growth through 2020. I feel much more confident investing in a company like that, that has shown a track record of increasing returns to shareholders. With GE, they have recently cut the dividend after saying they wouldn't, and now are freezing the dividend for two years while spending $50,000,000,000 on share repurchases.

    Could it all turn out great for shareholders? Sure.

    Am I as confident with this restructuring as I was with KMI's? Absolutely not.
    Apr 16, 2015. 12:44 PM | 2 Likes Like |Link to Comment
  • Project $3 Million - Portfolio Management, New Purchase [View article]
    Completely agree Mike.

    Dividends are a near sure thing; capital gains...not so much.
    Apr 15, 2015. 03:14 PM | 4 Likes Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    Take into consideration that GE is guiding for $1.10-$1.20 in industrial EPS in 2015 and they are guiding for 90% of EPS to come from industrial segment in 2018.

    Then assume they can organically grow industrial EPS by 10% per year until 2018, giving $1.20*1.1*1.1*1.1 = $1.60 EPS from industrial, or $1.77 total earnings in 2018.

    Then assume the buyback plan goes completely as planned and they can reduce share count by 20%, increasing the EPS from $1.77 to $2.22.

    Put a PE of 18 on that and you get an end of 2018 price target of around $40, which is about 45% upside from current price of $27.60.

    Best case scenario doesn't look bad, and you get a 3% dividend yield on top of those returns. Of course, a lot of things need to go right for this to happen, but back of the napkin numbers don't look too bad.
    Apr 15, 2015. 12:48 PM | 1 Like Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    ScottU,

    I am not convinced that share buybacks are an efficient way to reward shareholders, as they generally don't reduce share counts the way one would expect.

    Consider this article from Harvard Business Review: http://bit.ly/1CuZ6k8

    And this quote: "Consider the 10 largest repurchasers, which spent a combined $859 billion on buybacks, an amount equal to 68% of their combined net income, from 2003 through 2012. (See the exhibit “The Top 10 Stock Repurchasers.”) During the same decade, their CEOs received, on average, a total of $168 million each in compensation. On average, 34% of their compensation was in the form of stock options and 24% in stock awards. At these companies the next four highest-paid senior executives each received, on average, $77 million in compensation during the 10 years—27% of it in stock options and 29% in stock awards. Yet since 2003 only three of the 10 largest repurchasers—Exxon Mobil, IBM, and Procter & Gamble—have outperformed the S&P 500 Index."

    Or this quote: "GE, for example, spent $3.2 billion on buybacks in the first three quarters of 2008, paying an average price of $31.84 per share. Then, in the last quarter, as the financial crisis brought about losses at GE Capital, the company did a $12 billion stock issue at an average share price of $22.25, in a failed attempt to protect its triple-A credit rating. "

    If I am buying a stock for capital gains, I want something growing earnings at 10%+, and want it to be doing so based on its actual business results, not on a reduced share count due to a huge share repurchase program.

    I bought GE for reliable dividend growth and it is no longer providing that. Now I need to decide if I want to change my viewpoint and hold it for potential capital gains instead, or decide if there are better opportunities out there for that objective.
    Apr 15, 2015. 12:19 PM | 3 Likes Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    Mike,

    Yeah, I own it in the public portfolio I write about on SA: http://seekingalpha.co...

    Hadn't thought much about it until the recent news. I like the shift towards industrial, but don't like how they are favoring buybacks over dividends for shareholders. Obviously, $50B is a huge number that should meaningfully decrease the share count, but it disappoints me that they can't use any of that cash to at least give a small bump in the dividend.

    I guess it comes down to trying to decide if management's interests are the same as my own, and as of now, I'm leaning towards them not being so. If I sell, it would be my whole stake since it's not large enough to split up. I generally trade in all or nothing terms due to the smaller size of my positions.

    Guessing I will hold for the time being and see what the next couple months bring.
    Apr 15, 2015. 11:29 AM | 2 Likes Like |Link to Comment
  • Under Armour: The Underdog Story Continues In Golf And Basketball, Ride Along With This Growing Company [View article]
    Nice article covering the different bullish trends behind UA's growth. No doubt it is extremely expensive here, and I have no idea where it is going in the short term, but if you buy and tuck it away for a decade I'm pretty confident you will smiling in 2025.

    I also noticed Spieth's family at the 18th hole. Everyone was decked out in UA gear, looks like they are all in with the sponsorship.
    Apr 15, 2015. 10:40 AM | 1 Like Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    Mike/Rose,

    Been struggling with GE myself. Seem to be more concerned about share buybacks and financial engineering than actually worrying about shareholders.

    No dividend increase until 2017 with $50B in cash from these deals is a slap in the face.
    Apr 15, 2015. 10:37 AM | 4 Likes Like |Link to Comment
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