Has Dividend Growth Gone Out Of Favor? [View article]
FYI, Devlin - I have several DG strategy portfolios, and will be updating the Income-Growth model next month, so that might provide some stocks of interest for you. As for this article, I like the analysis of different metrics vs performance. I've read other research more recently that found dividend growth rate to be the main driver of total return, which seems to conflict with these results, since it ranked the dollar change from low to high (not high to low), though that doesn't necessarily reflect on the percentage change. Can you rerun the strategy on a percentage basis and see if it makes any difference? Also, is that total dollar change in divs paid, or in divs per share?
The Role Of BP's Dividend In Preserving Your Wealth Over The Medium Term [View article]
I think you were doing fine up until that last paragraph…since dividends are in a separate "bucket" from capital gains, we can think of them as helping to reduce the impact of price declines. However, if we go the route of looking at total return, then there are bigger questions to ask about BP. Looking at a 10-yr (or longer) chart, BP has consistently underperformed XOM and CVX in total return, even before Deepwater incident. It has a higher dividend (except when it stopped paying it), and maybe there's a reason for that…investors might not be very interested in it without that. Not owning it now (I sold right when the incident occurred), I don't follow BP, but I'd like to know why they always underperform. Does the market have this wrong, or is management subpar? Sure, we can collect the dividend, for if you're interested in total return, unless something has changed (i.e. mgmt or opportunity), I'd look elsewhere.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
Martin, if you look at the other stocks, most have lower betas, so if there is a relationship, it probably has more to do with the industry, though there is variation there too. I would chalk it up to firm-specific traits. If I ever have time to throw the CCC data into an analysis tool, it would be fun to make charts plotting beta vs DGR or EPS Growth, etc. to look for relationships. Really need some total return numbers though to see if any metrics led to better performance.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
That's what I see too, so Pistachio, can you cite an article/news source for your dividend number? Yahoo lists it as $2.53 paid this month. However, I do see where on the summary page, Yahoo lists it at $1.64. That's rather inconsistent. Pistachio, do you actually own NVS? I don't, so I can't confirm what was actually paid (vs what Yahoo says). Is it displaying the amount AFTER foreign tax withholdings? Switzerland has a 35% withholding, and $1.64/$2.53 happens to be 65%. Looks suspicious to me...
A Portfolio For A Young, Aggressive Investor [View article]
Well said, Chowder. While cleaning out an old file, I found a handwritten list of my stock transactions from 1991 (I was 21). If I have time to reflect more on it and write an article, I will, but suffice it to say, "Oh my, what junk I owned…" Out of the maybe 15 stocks listed, only 4-5 are still around today, and a few (like Citigroup) have really suffered. The only saving grace was the last one listed was MCD…of course, I didn't hold on to it for the last 19 years.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
There are some dividend ETFs, like SDY, and SPLV (low volatility) seems to hold mostly div stocks in its Top 10, though I don't know if it is exclusively dividend stocks. I may have some more info on a new venture next month…ask me this again in April!
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
Thanks, Martin. The combination of HY and LP by formula definition results in low PE stocks, so it doesn't surprise me that FAST Graphs would identify them as undervalued. Next month, I'll update the Income-Growth model, which relaxes the low payout requirement a little more, allowing for MLPs, REITs, and Medium-Medium stocks to enter the mix. You might get some ideas from that rebalance too, given your objectives.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
Thanks, Bob. Regarding no/low debt, from a corporate finance standpoint, there is the same question: what is the optimal level of debt? Firms can raise their ROE by leveraging, but go too high, and there are risks. No debt is definitely "safer", but they could potentially improve returns by changing their capital structure. Intel used to have practically no debt, but changed; of course, with rates so low, I can't blame them! But, in 2 years, it's gone from $2B (~2=4% of shareholder equity) to $13B (26%). That's probably enough, so hopefully it isn't going up more this year.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
Thanks! I just use Excel to sort and filter the stock list down. What I'd really like to do is get my hands on historical data (adjusted price, PE, DGR, other metrics) and play with the data in a visual tool like Tableau to see what patterns can be found.
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
Thanks, Romilar. The payout ratio does vary by industry and the firm's model. Utilities, Telecom, Tobacco…often have high payouts. These are regulated industries, with kind of slow growth, but they generate cash. I guess the "raise an eyebrow" approach is still valid…then check the firm's model, cash flows, etc. and make a decision.
Has Dividend Growth Gone Out Of Favor? [View article]
The Role Of BP's Dividend In Preserving Your Wealth Over The Medium Term [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
http://seekingalpha.co...
http://seekingalpha.co...
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A Portfolio For A Young, Aggressive Investor [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]
A High-Yield, Low-Payout Dividend Growth Model Portfolio For 2013 [View article]