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Eric Landis  

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  • Conoco: Get Ready For An Extended Dividend Freeze [View article]
    Joni,

    If you look at the article in the link posted, I show a 25 year history of quarterly payouts for each company. Both have long streaks of annual increases, but both also have a history of paying the same dividend for more than four quarters, with Exxon having up to 10 quarters in a row at the same level.

    Maybe freeze isn't the best word, I suppose the definition is up for debate. Generally dividend growth investors expect an increase every 5th quarter, and I was simply saying the XOM and CVX have had several instances of longer than 4 quarters between increases. If COP does the same, it shouldn't be looked down on as a lesser company because of it as Tim is implying with the article.
    May 22, 2015. 02:16 AM | 1 Like Like |Link to Comment
  • Conoco: Get Ready For An Extended Dividend Freeze [View article]
    Thanks, we've been blessed to have a couple of cute little boys, I give their mother all the credit for that!
    May 21, 2015. 02:51 PM | 1 Like Like |Link to Comment
  • Conoco: Get Ready For An Extended Dividend Freeze [View article]
    Kathy,

    I think we are on the same page. I am long all three with no intentions of selling a share.

    Oil isn't going to stay low forever; this is a great time to be adding shares through dividend reinvestment at higher current yields which will pay even greater dividends in the future when prices rise again and growth returns.
    May 21, 2015. 11:24 AM | 1 Like Like |Link to Comment
  • Conoco: Get Ready For An Extended Dividend Freeze [View article]
    Kathy I,

    Exxon and Chevron have both frozen their dividends plenty of times in recent past as well. http://seekingalpha.co...
    May 21, 2015. 10:50 AM | 2 Likes Like |Link to Comment
  • Retired Investors: When Dividend Growth Slows What Should You Do? [View article]
    Also don't forget the huge currency headwinds it has faced of late with the strong dollar.
    May 20, 2015. 05:18 PM | 3 Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    kolpin,

    I did not own ABT/ABBV prior to the split as that happened before I discovered DGI and Seeking Alpha and began investing in dividend paying companies..

    Also, there is nothing to keep me from buying BAX again in the future once the dust settles on the transition and there is a clearer picture on the dividend and growth prospects for the company.
    May 20, 2015. 03:12 PM | Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    Scott,

    Completely agree with your thoughts, as they say..."That's what makes a market."
    May 20, 2015. 03:02 PM | Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    Big Thunder,

    At the current $2.08 annual dividend, the payout ratio is 52% of analyst expected 2015 earnings of $4.00; while the guidance payout ratio is for 35% of BAX earnings and 15% of BXLT earnings going forward.

    The investor presentation didn't provide any EPS guidance for the two companies, but throwing some assumptions out I'll guess that it remains $4.00 between the two, and say that 80% of that is from BAX and 20% is from BXLT. This would give a guidance dividend of .35*.8*$4 = $1.12 from BAX and .15*.2*$4 = $0.12 for BXLT or $1.24 in total, which would be a roughly 40% cut from current levels.

    It's difficult to project what management intends as there has been no announcement of the number of shares of BXLT that BAX owners will receive in the spinoff, and as I said no earnings projections for the two companies. Rather than a cut, it is also possible that management will decide to hold the current dividend as is and let earnings grow into the desired payout ratio, which could mean the current payout amount would be frozen for a while.

    Either way, I was disappointed with what was presented in the recent investor presentations and like more clarity on my investments, so I decided to pull the plug and go in another direction.
    May 20, 2015. 02:35 PM | Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    ScottU,

    You make a good point regarding account types as I am more patient in taxable accounts than in IRA's. You are also right that I have more churn than many DGI do.

    In the case of BAX, I've held it for over two years now and just haven't seen anything about the company to keep me excited about it, and after 26 months I am sitting a slight loss even with taking into account the dividends reinvested. Some people consider two years a long holding period, while others consider trading out of it now as being inpatient. I hope those that continue to hold are rewarded, but I decided to go in another direction. I am still long ABC, ABBV, GILD, MNK, OHI, and WBA so I have plenty of exposure still to the healthcare sector.

    For what it's worth I put the proceeds into CLDT, which gives a 40% higher yield and much higher growth prospects. It is in a more cyclical industry as a hotel REIT, but I like what I see from the company.
    May 20, 2015. 12:49 PM | Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    ScottU,

    I was disappointed with the lack of clarity from BAX regarding the dividend going forward. They provided target payout ratios for the split companies, but no EPS projections or initial dividend targets to go with it.

    Based on what they said in the Monday presentation targeting a 35% BAX payout ratio and 15% BXLT payout ratio, I am expecting a significant cut from the existing level, and the fact that the dividend has now been at the same level for 5 quarters reinforces that. The current $2.08 annual dividend and expected 2015 combined earnings of $4.00 gives a payout ratio of 52%. It wouldn't surprise me if the dividend is cut by as much as 40% once the deal goes through as a reset for the new BAX.

    With management providing guidance of 6-8% EPS growth from BXLT and no guidance that I can find for EPS growth from BAX, I had enough uncertainty that I didn't want to be a part of the spinoff. My expectations are a 25-50% cut in the dividend from current levels and mid-single digit growth going forward. In my opinion there are better options out there for both yield and growth so I went in another direction.

    I'd also point out that ABT was a dividend aristocrat with a tremendous track record of dividend growth before the ABBV spinoff. Meanwhile BAX had a 10 year stretch of frozen dividends before the recent streak and if you read through conference calls it doesn't get more than a casual mention from management. I don't think the priority is there in the same way between the two companies.

    All that said, BAX may well end up being a good hold going forward, I just like more clarity in my positions, and wasn't feeling it with this one.
    May 20, 2015. 11:15 AM | 2 Likes Like |Link to Comment
  • Portfolio Introduction: Starting From Scratch And Learning Along The Way [View article]
    Looking forwarding to following your progress, and I agree with your decision to swap BAX for GILD as I recently sold the former and am long the latter.

    I may have missed it, but with $600 positions, how often will you be making buys for the portfolio and how long do you expect it to take to build the full 50 position portfolio?
    May 19, 2015. 12:03 PM | Likes Like |Link to Comment
  • Wal-Mart misses by $0.01, misses on revenue [View news story]
    Minutemen,

    I agree TJX and ROST just continue to perform while WMT seems to have plateaued.
    May 19, 2015. 11:55 AM | 2 Likes Like |Link to Comment
  • Why You Should Avoid AmerisourceBergen [View article]
    dkohler555,

    Thank you for the detailed and expansive response, it is much appreciated. Great history of the company and where it is headed; would be worth editing and posting as an article in itself.
    May 19, 2015. 11:45 AM | Likes Like |Link to Comment
  • Learning From The Masters: Q&A Session With Chowder [View article]
    I agree on the richjoy nomination, gives him a chance to tell his horse cart story to the masses! =)
    May 15, 2015. 10:20 AM | 3 Likes Like |Link to Comment
  • Why You Should Avoid AmerisourceBergen [View article]
    I don't trade options, I'm a simple buy and hold dividend growth investor here.

    Long ABC since $50.70.
    May 14, 2015. 03:21 PM | Likes Like |Link to Comment
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