Exxon Mobil: Merits Of A Stock Purchase Program [View article]
I thought that might be the case. Bob Carl, I agree with your overall sentiment. The purpose of my comment was to articulate the importance of understanding tax implications of investment decisions.
Top Paying Dividend Stocks By Industry [View article]
% off Low refers the price at the time relative to the 52-week low. So if the stock is at $10 per share and the 52-week low was $8, this figure would be 10/8 -1 = 25%. One of the critical questions in looking at a high dividend yield to check whether it might be high because the stock price has been declining. A high yield on stock trading at its 52-week low should be a red flag for much more investigation.
Also, the dividends used here are trailing dividends, which means that if there is an anticipated cut, the yield might look artificially high. Conversely, if a stock has a good track record of raising the dividend, a trailing dividend yield might underestimate the potential for income. Other types of yield would be to take the most recent quarterly dividend, multiply by four, and divide by current stock price. Yahoo!Finance uses this approach. Another approach is to make an estimate of the dividends to be received over the next four quarters, sum them, and divide by the stock price. When I analyze a dividend stock, this is the approach I use.
As with any metric, it is always important to understand the exact definition to make good assessments and comparisons.
Backtesting A Portfolio Of Low Beta, High Quality Dividend Payers [View article]
It would be interesting to know the beta of the combined portfolio. I would not view .7 as a low beta - in combination with all the other stocks, the collective portfolio might have a reasonably high beta - probably still less than 1 though.
Taiwan Semiconductor: Joining The Solar Module Manufacturing Fray [View article]
Silver is used as an electrode in crystalline pv modules. It connects the pv cells together and into the module itself. Note that the pv cells and wafers are made out of polysilicon. The increasing price of silver would potentially raise the costs of pv modules. I saw an estimate at .1 grams per W for 200 Watt modules. However, as cell efficiencies improve this figure should drop - most companies now focus on 300+ W modules with the same number of cells suggesting that .1 gram per watt is now more like .07 grams per watt.
Over the more recent history of pv modules, one of the big drivers that helped reduce pv costs was the cost of the polysilicon which has dropped from $200+ per kg to ~$30 per kg. This has had a big impact on module pricing. In response, companies are looking at replacing the silver in the pv module with copper.
There are also efforts at recycling both the silver and silicon when a module is disposed. I don't anticipate skyrocketting prices for PV modules. Crystalline modules have been listed at conferences in the $0.60 to $0.70 range and prices continue to decline
Exxon Mobil: Merits Of A Stock Purchase Program [View article]
Investment decisions should be made based upon an anticipated after tax return. Similarly, a portfolio allocation strategy should consider how one allocates investments and types of investments among different accounts that might have different tax attributes - ROTH IRA vs. Traditional IRA vs. straightforward fully taxable account. Clearly some nuance here since interest is taxed at marginal income rates while qualified dividends are, at least for the time being, taxed at much lower rate. To ignore the tax implications is foolish. However, perhaps you are referring to the notion that some people have such a dislike of paying taxes they would rather have 0% return and not pay taxes than earn some return and pay taxes on that. It would be interesting to see if there was a relative shift on the value of bonds vs dividend stocks when the consideration of lowering the dividend rate entered discussion - probably hard to find since it would be over time, but perhaps there is some academic research out there.
Investment Opportunities In Downstream Oil [View article]
MPC would be a good addition to the survey and a little more intriguing for dividend investors given its yield is better than the others. The article was not meant to be exhaustive.
Investment Opportunities In Downstream Oil [View article]
Net cash would be reflected in the Enterprise Value, hence its inclusion. Note that HFC EV is less than its MC. So it was covered and continues with the theme that refineries strive for low to no leverage which is good given that they often struggle.
Investment Opportunities In Downstream Oil [View article]
Yeah, I'm not too fond of yahoo for that regard. Some items, I just manually check and calculate - EV/EBITDA. You're right that CNBC might be a better source.
Exxon Mobil: A Surging Dividend, But Will It Last? [View article]
My only thoughts would be that if XOM catches AAPL in market capitalization, a large portion would be a collapse in AAPL which would require some product issue trigger. AAPL doesn't have an inflated P/E, but is dependent on strong growth from a handful of products. It also raises the question of when AAPL hits market saturation.
Chevron: The Benefits Of Dividend Reinvestment [View article]
My point is more about the spread. At some point you take the treasury, so as treasury yields go up investors should demand something more on the dividend yield. Perhaps to you - it might need a 3% yield on the stock with 5% on the treasury or something more. Hence as you go back with higher treasuries, dividend yields were also higher than they are today.
Chevron: The Benefits Of Dividend Reinvestment [View article]
Actually, the yields have gone above 5%, albeit not frequently in the last 20 years. In early 1992, the yield hit 5.3% on the Q1 ex-dividend date. It is also possible that during various dips throughout the year, the yield spiked. Think fall 2008 and spring 2009 and post 9/11.
However, going back further, the yield was consistently above 5% for the late 70s through most of the 80s.
A key observation is that dividend stock yield tends to track against a 10 year treasury. As 10 year treasury yields rise and fall, investors demand relatively higher or lower dividend yields. If I can get 5% on the treasury bond, would I be happy with 5.5% on the stock? (balance of income risk, inflation concerns, and perspectives on capital appreciation). However, in todays super low interest rate environment, a 3.5% dividend yield is pretty attractive since the 10 year is just 1.7%.
Chevron: The Benefits Of Dividend Reinvestment [View article]
For the benefit of everyone. My templates use an estimated date after the ex-dividend date to align with the payment date of the dividend. I then use the closing price on that date. While not perfect, it does make a reasonable adjustment. Inconsistencies should be averaged out.
It should be noted that this benefits from survivorship bias and history is no indication of future performance. It is illustrative of slow and patient investing.
Chevron: Strong Dividend Growth Expected To Continue [View article]
$3.60 is the current annualization of the most recent quarter- $0.90 - I would expect to see an increase over the next year. Good luck with your investing.
ConocoPhillips: Hoping For Growth, Fearing A Cut [View article]
This is a fair point, but I would stick with the technical read. Investors at this point have the decision to keep one or the other or both. The investment decisions are now independent of each other. An investor could choose to sell the PSX shares if they do not believe in the refining business long term and not benefit from the dividend. The first PSX ex-dividend date is substantially after the spin-off, even if it was announced prior or concurrent with the spin-off.
If someone chose to keep both stocks based on independent assessments of both stocks, then the economic impact you describe is correct. However, an investor should not say hey, that PSX dividend is effectively growing my COP dividend. Being long or short COP has to be based on only on COP specific activity and prospects alone.
Exxon Mobil: Merits Of A Stock Purchase Program [View article]
Top Paying Dividend Stocks By Industry [View article]
Also, the dividends used here are trailing dividends, which means that if there is an anticipated cut, the yield might look artificially high. Conversely, if a stock has a good track record of raising the dividend, a trailing dividend yield might underestimate the potential for income. Other types of yield would be to take the most recent quarterly dividend, multiply by four, and divide by current stock price. Yahoo!Finance uses this approach. Another approach is to make an estimate of the dividends to be received over the next four quarters, sum them, and divide by the stock price. When I analyze a dividend stock, this is the approach I use.
As with any metric, it is always important to understand the exact definition to make good assessments and comparisons.
Best of luck with your investing!
Backtesting A Portfolio Of Low Beta, High Quality Dividend Payers [View article]
Taiwan Semiconductor: Joining The Solar Module Manufacturing Fray [View article]
Over the more recent history of pv modules, one of the big drivers that helped reduce pv costs was the cost of the polysilicon which has dropped from $200+ per kg to ~$30 per kg. This has had a big impact on module pricing. In response, companies are looking at replacing the silver in the pv module with copper.
http://bit.ly/VlrhgH
http://bit.ly/TyQNYH
There are also efforts at recycling both the silver and silicon when a module is disposed. I don't anticipate skyrocketting prices for PV modules. Crystalline modules have been listed at conferences in the $0.60 to $0.70 range and prices continue to decline
Exxon Mobil: Merits Of A Stock Purchase Program [View article]
Investment Opportunities In Downstream Oil [View article]
Investment Opportunities In Downstream Oil [View article]
Investment Opportunities In Downstream Oil [View article]
Exxon Mobil: A Surging Dividend, But Will It Last? [View article]
Chevron: The Benefits Of Dividend Reinvestment [View article]
Chevron: The Benefits Of Dividend Reinvestment [View article]
However, going back further, the yield was consistently above 5% for the late 70s through most of the 80s.
A key observation is that dividend stock yield tends to track against a 10 year treasury. As 10 year treasury yields rise and fall, investors demand relatively higher or lower dividend yields. If I can get 5% on the treasury bond, would I be happy with 5.5% on the stock? (balance of income risk, inflation concerns, and perspectives on capital appreciation). However, in todays super low interest rate environment, a 3.5% dividend yield is pretty attractive since the 10 year is just 1.7%.
Chevron: The Benefits Of Dividend Reinvestment [View article]
Chevron: Strong Dividend Growth Expected To Continue [View article]
http://seekingalpha.co...
It should be noted that this benefits from survivorship bias and history is no indication of future performance. It is illustrative of slow and patient investing.
Chevron: Strong Dividend Growth Expected To Continue [View article]
ConocoPhillips: Hoping For Growth, Fearing A Cut [View article]
If someone chose to keep both stocks based on independent assessments of both stocks, then the economic impact you describe is correct. However, an investor should not say hey, that PSX dividend is effectively growing my COP dividend. Being long or short COP has to be based on only on COP specific activity and prospects alone.