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  • Maximizing Dividend Reinvestment [View article]
    Thanks for the comment Pendragon. Very good points that you make on both the transaction costs and compounding effects.
    My portfolio throws off enough dividend income that I am lucky enough to be able to redeploy the dividends in big enough chunks such that commissions don't make too much of an impact and aren't an important factor in my decision. However if your portfolio is throwing off a few hundred dollars in dividends, low cost DRIPs could be more relevant.
    For a new investor with a smaller portfolio, this could be material enough to push them in the direction of DRIPs initially till dividend income becomes more meaningful and transaction costs not such an important factor.
    Mar 5, 2013. 03:35 PM | 1 Like Like |Link to Comment
  • Dividend Growth Strategies For Younger Investors [View article]
    Thanks for the feedback Dan. The logic and simplicity of the DGI strategy continues to constantly impress me. I think this works well for any investor, but younger investors have the advantage of significant time to compound to accelerate this. Frankly, if started early enough, one should be able to use dividends to cover expenses and not have to touch principal for early retirement, which is exactly what I aim to do.
    Mar 5, 2013. 01:29 PM | 1 Like Like |Link to Comment
  • Dividend Growth Strategies For Younger Investors [View article]
    Tuliptown, thanks for the comment!
    There are a variety of techniques that you can look at for valuing banks. I look at return on equity as well as return on invested capital, which you can use to benchmark across different banks. I also look at top line revenue growth when evaluating international banks, just to see level of growth. Default ratios/write offs are also a very important measure for consumer lending.
    Integrator
    Mar 5, 2013. 10:18 AM | 1 Like Like |Link to Comment
  • Dividend Growth Strategies For Younger Investors [View article]
    Hilo,

    Thanks for the comment and feedback. You raise an interesting point. I don't believe that a 27% rate of growth is sustainable over 20-30 years also, but I believe Visa can and will significantly ramp up its dividend over the next 4-5 years as the thrust of its international market efforts are completed. This is a business that requires minimal capital reinvestment (the last few years have only seen $350M or so invested in the business for capex), and it has a very low payout ratio , which I estimate to be around 25% net of various one time charges. In my view, the dividend could be normalized at 3x where it is today (ie yield of almost 2.5%), with sustainable growth of 10%p.a for a number of years. That is my thesis on the stock, though I realize at its current yield levels, it may not be attractive for many.
    Here is a link to an SA article I wrote on Visa which makes the case for why I believe it to be a compelling DGI stock.
    http://seekingalpha.co...
    Integrator
    Mar 5, 2013. 09:18 AM | 1 Like Like |Link to Comment
  • Dividend Growth Strategies For Younger Investors [View article]
    Thanks for the feedback MadMan. Appreciate the feedback. I started DGI about 10 years ago when I was in my mid 20's. I am now in my mid 30's and still persist with this as a strategy given the benefits its had for me over the last 10 years.
    Mar 5, 2013. 09:10 AM | 1 Like Like |Link to Comment
  • Dividend Growth Strategies For Younger Investors [View article]
    Tomlos, I entered V around $105 in early 2012. I see good value in the stock at around the $125 mark, but would be prepared to buy up through $140. I am very bullish on the company long term and would be prepared to hold indefinitely pending periodic review of performance.
    Mar 5, 2013. 08:15 AM | 1 Like Like |Link to Comment
  • Building A Better Retirement With Dividend Income [View article]
    Thanks for the stat Robert, I didn't realize the dividend declines were so impacted by the financial stocks.
    Feb 20, 2013. 10:31 PM | 1 Like Like |Link to Comment
  • Eliminating Bad Investing Habits With Dividend Investing [View article]
    Thanks for the comment barleycapital. I think if you focus on the underlying fundamentals of a dividend paying stock, and see no deterioration in operating performance, then the market reaction shouldn't influence you. It really just represents opportunity to pick up additional income than would have otherwise been possible. Sometimes its no so easy to make the same link with a non dividend paying stock.
    Feb 19, 2013. 07:20 AM | 1 Like Like |Link to Comment
  • Why Investors Should Be Cautious Of 'Artificial' Dividend Growth [View article]
    Thanks for your comment alalala. I actually looked at operating cash flow (numbers from Morningstar). In both cases, it shows declining numbers over the 3 year period.
    Feb 11, 2013. 06:59 PM | 1 Like Like |Link to Comment
  • Why Dividend Growth Is My Investment Strategy [View article]
    Thanks TGC. I agree with you that you should be able to identify a dividend cut long before one actually takes place. An increasing payout ratio and slowing operating income growth should all be pointers of what is too come.
    Integrator
    Feb 9, 2013. 07:51 AM | 1 Like Like |Link to Comment
  • Why Dividend Growth Is My Investment Strategy [View article]
    Thanks for the comment Five Plus Investor. Fica and medicare are the hidden taxes on earnings. People typically don't take these into account when doing their planning. Overtime, they are significant drags to your income, which dividend income is not impacted by for the most part.
    Feb 8, 2013. 06:57 PM | 1 Like Like |Link to Comment
  • Why Dividend Growth Is My Investment Strategy [View article]
    I agree with you chowder. I know many don't necessarily agree with the connection between dividend growth and share price increases, but I also saw the same connection that you point to when I read the book. The graphs he has in the book make the point extremely well.
    Feb 7, 2013. 06:08 PM | 1 Like Like |Link to Comment
  • Why Dividend Growth Is My Investment Strategy [View article]
    Thanks SDS. Agree, future tax rates are open to change. I feel there is likely to be at least some medium term stability for dividend rates given the fiscal cliff discussions that have just occurred and whats been put in place.
    Feb 7, 2013. 05:54 PM | 1 Like Like |Link to Comment
  • Why Dividend Growth Is My Investment Strategy [View article]
    Bob, Thanks for the comment. I appreciate the feedback!
    Integrator
    Feb 7, 2013. 05:49 PM | 1 Like Like |Link to Comment
  • Why Dividend Growth Investing Can Make You A Better Investor [View article]
    SDS,
    Thanks for the comment, I agree that Miller's book was better constructed and more solid. Roxanne Klugmans book happened to be the first one that i picked up. At that point in time, I appreciated the simplicity of what she had to say. Simple illustrations showing the rising wall of dividends were very effective from my point of view in driving home a reason to consider DGI. I have since read a bunch of DGI books, but I credit Klugman's book for turning me on to dividend growth investing.
    Integrator
    Jan 29, 2013. 04:36 PM | 1 Like Like |Link to Comment
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