Ganesh Kumar

Now Is the Right Time for a DRIP

The reason DRIP is better is that the investor need not have to monitor the stock prices once the initial investment is made. The dividends are automatically reinvested periodically. My analysis has shown that if you have made the initial purchase at the right price, paying a little higher price later when you reinvest dividends should not affect the average cost that much. The trouble in taking out the discipline by accumulating cash dividends and waiting to buy at the right price is just that, determining the right price. If there is not overall strategy governing such repurchases you may end up with just cash not accumulating the shares.

Anyway the point of the article was to look at the brighter side of today's low prices and it is that DRIP investors are able to accumulate more shares than ever and that will benefit the DRIP investors in the long run.

Investing in Dividend Paying Companies

Interesting analysis. I would also like to know how you would have faired if you reinvested the dividends. Also if the analysis can distinguish between companies that raise the dividends consistently and the ones that do not.

Dow Chemical's Liveris Interview: Part V- Earnings

Andrew Liveris can talk all he wants but can he walk the walk?

I have heard a couple of earning conferences and presentations where he claims to take DOW out of "cyclical business" and "inflection points" and all the stuff. ALL TALK so far.

The best judge whether a company is confident of its earnings and earnings growth in future is consistent dividend INCREASES. I want to BOLD and CAPITALIZE increases.
There may be share repurchases, talk about cash from Kuwait etc. But SHOW ME THE MONEY.

If Liveris is so confident that DOW can be looked past as a cyclical company why there was NO DIVIDEND increase?

This is the most important measure of company's confidence in itself.

Did the author not get to ask this very important question in this LONG interview? especially when he talked about a possible dividend increase in an earlier article (before declaration of dividend)
I am long DOW and it is disappointing when I see steel companies like Nucor and chemical companies like PPG and Dupont announce consistent dividend increases over many years , DOW keeps talking but not WALKING.

STOP TALKING AND ACT!