How Blue-Chip Dividend Investing Gives You Instant Gratification [View article]
Tim,
I agree with what you are saying with the less volatile blue chips like JNJ, and PEP.
However, one reason that the more cyclical companies might offer equal or even better returns is because of the volatility in their earnings.
These days, a simple earnings miss from a cyclical company, even by five cents, is treated as if the stock has the plague or something. This offers investors a chance to initiate or increase a position on the price dip and wait for the inevitable rebound. (IBM) is a good example of this process in action.
Earnings miss = stock price beat down = good time to buy on the dip.
Reinvesting Dividends Vs. Saving Them And Buying On Stock Price Drops [View article]
DD,
I like these little exercises in "what if's". I'm on board with the DRIP process with my 60 plus stock portfolio and I'm happy with the results. I'm not sure the effort of letting dividends build and then picking the best stock is worth it. I think it might be a wash over a long time frame.
Plus, what if you save $1000 of dividends and then buy a turd like (CLF) or (ACI).
Of course hindsight is 20/20, and we should all just save our cash and wait for a massive 50% crash before we invest in anything. That would be nice if you had a crystal ball.
It Pays To Be Patient As A Dividend Growth Investor [View article]
DD,
I like the idea of buying on the dips. However, since the market tends to go up over the long term, some questions remain:
How long do you wait for a dip?
What if the dip never comes?
I tend to keep a small amount of cash on hand from new contributions each month, but it's hard to not deploy it when it's available. I think 5% in cash for buying opportunities is about the most I can do.
Another issue that comes to mind, is when you have a diversified watchlist and portfolio, there is usually always something trading at fair value or under value due to macro trends or a company specific issue. That's where I usually end up deploying my cash.
I appreciate the insight that you provided. I think the analysis of real world performance is valuable for everyone, whether derived from pencil and paper or programming skills.
The Market Is Advancing: Is It Time To Sell? [View article]
Dave,
Good perspective here based on your experience.
I have some of the same "problem" stocks like (MAIN) that is up over 100% from where I bought it. In fact almost everything in my portfolio is up.
I've been debating when and where to trim for profits, but my annual dividend income keeps rising every month, so I'm meeting my goal of building an income generating portfolio that grows every year.
I'm having trouble finding value in this market, even with Chuck's excellent fastgraphs tool.
I see tech (INTC) (AAPL), energy (COP) (BP), and mining (IAG) (NEM) as the best values right now. Of course all of those stocks have possible issues and that's what makes them bargains.
It's a very small position in the portfolio, three quarters of one percent, to be exact.
Will they raise the dividend next week?
Will they announce a special dividend?
What about a stock split?
Or issue a preferred to existing shareholders?
The truth is, I don't know for sure, but I'm willing to take a small, calculated risk on a company that has a strong history of innovation and is sitting on a ton of cash.
My 2-Part Margin Of Safety For Dividend Growth Investing [View article]
Eddie,
Nice article. This is a well thought out article detailing the intricacies of investing with a margin of safety. I'm already long (CSX), but have been watching (NSC) and may add it to my portfolio at some point.
Dividend Stocks From The Land Of The Rising Sun [View article]
Guraaf,
Thanks for this closer look at Japanese equities. I noticed that DCM and NTT were on David's CCC list for those looking for more fundamentals.
Also, I appreciate you covering the tax implications of these equities. That's one area that is frequently neglected by other authors and has to be argued about in the comments section.
Times are tough right now for ADM with the drought and ethanol woes, however, I weather and crop yields are cyclical and sure to turn at some point. When they do ADM will benefit greatly since they have the infrastructure and distribution channels in place.
Plus, a long history of raising the dividend and low payout ratio makes this a pick for my dividend income portfolio (http://bit.ly/OIRQXv).
Halliburton Is Excitingly Cheap, But An Even Better Entry Point May Await [View article]
I wish (HAL) would raise the dividend, that would help the share price immediately. I think long term it's got some potential, but the yield is crap right now.
"The Board of Directors of National Retail Properties, Inc. (NNN), a real estate investment trust, declared a quarterly dividend of 39.5 cents per share payable August 15, 2012 to common shareholders of record on July 31, 2012. The dividend represents an annualized rate of $1.58 per share and marks the twenty-third consecutive year National Retail Properties has paid increased annual dividends per share."
Intel: Major Upside Ahead, 2014 Estimates Too Low [View article]
Larry
How Blue-Chip Dividend Investing Gives You Instant Gratification [View article]
I agree with what you are saying with the less volatile blue chips like JNJ, and PEP.
However, one reason that the more cyclical companies might offer equal or even better returns is because of the volatility in their earnings.
These days, a simple earnings miss from a cyclical company, even by five cents, is treated as if the stock has the plague or something. This offers investors a chance to initiate or increase a position on the price dip and wait for the inevitable rebound. (IBM) is a good example of this process in action.
Earnings miss = stock price beat down = good time to buy on the dip.
Larry
Dividend Challengers: 23 Increases Expected In The Next 11 Weeks [View article]
Appreciate all the work you do.
Larry
Reinvesting Dividends Vs. Saving Them And Buying On Stock Price Drops [View article]
I like these little exercises in "what if's". I'm on board with the DRIP process with my 60 plus stock portfolio and I'm happy with the results. I'm not sure the effort of letting dividends build and then picking the best stock is worth it. I think it might be a wash over a long time frame.
Plus, what if you save $1000 of dividends and then buy a turd like (CLF) or (ACI).
Of course hindsight is 20/20, and we should all just save our cash and wait for a massive 50% crash before we invest in anything. That would be nice if you had a crystal ball.
Larry
It Pays To Be Patient As A Dividend Growth Investor [View article]
I like the idea of buying on the dips. However, since the market tends to go up over the long term, some questions remain:
How long do you wait for a dip?
What if the dip never comes?
I tend to keep a small amount of cash on hand from new contributions each month, but it's hard to not deploy it when it's available. I think 5% in cash for buying opportunities is about the most I can do.
Another issue that comes to mind, is when you have a diversified watchlist and portfolio, there is usually always something trading at fair value or under value due to macro trends or a company specific issue. That's where I usually end up deploying my cash.
I appreciate the insight that you provided. I think the analysis of real world performance is valuable for everyone, whether derived from pencil and paper or programming skills.
Larry
The Market Is Advancing: Is It Time To Sell? [View article]
Good perspective here based on your experience.
I have some of the same "problem" stocks like (MAIN) that is up over 100% from where I bought it. In fact almost everything in my portfolio is up.
I've been debating when and where to trim for profits, but my annual dividend income keeps rising every month, so I'm meeting my goal of building an income generating portfolio that grows every year.
I'm having trouble finding value in this market, even with Chuck's excellent fastgraphs tool.
I see tech (INTC) (AAPL), energy (COP) (BP), and mining (IAG) (NEM) as the best values right now. Of course all of those stocks have possible issues and that's what makes them bargains.
Larry
Will Apple Exist 3 Years From Now? How Much Will It Be Worth? [View article]
http://bit.ly/M86nrV
It's a very small position in the portfolio, three quarters of one percent, to be exact.
Will they raise the dividend next week?
Will they announce a special dividend?
What about a stock split?
Or issue a preferred to existing shareholders?
The truth is, I don't know for sure, but I'm willing to take a small, calculated risk on a company that has a strong history of innovation and is sitting on a ton of cash.
Larry
Retirement Tips Series: 1 - Start Early [View article]
I'll add my dividend blog here:
http://bit.ly/M86nrV
Updated the first day of every month.
Larry
Dividend Champions For November 2012 [View article]
Thanks again for compiling the CCC list. You are adding so much value with your work.
Larry
My 2-Part Margin Of Safety For Dividend Growth Investing [View article]
Nice article. This is a well thought out article detailing the intricacies of investing with a margin of safety. I'm already long (CSX), but have been watching (NSC) and may add it to my portfolio at some point.
Larry
3 Stocks Virtually Guaranteed To Raise Dividends [View article]
Better recheck the yield on KO. Quickly.
Larry
Dividend Stocks From The Land Of The Rising Sun [View article]
Thanks for this closer look at Japanese equities. I noticed that DCM and NTT were on David's CCC list for those looking for more fundamentals.
Also, I appreciate you covering the tax implications of these equities. That's one area that is frequently neglected by other authors and has to be argued about in the comments section.
Larry
Archer Daniels Midland Company: Dividend Stock Analysis [View article]
Thanks for this in depth analysis of ADM.
Times are tough right now for ADM with the drought and ethanol woes, however, I weather and crop yields are cyclical and sure to turn at some point. When they do ADM will benefit greatly since they have the infrastructure and distribution channels in place.
Plus, a long history of raising the dividend and low payout ratio makes this a pick for my dividend income portfolio (http://bit.ly/OIRQXv).
Larry
Halliburton Is Excitingly Cheap, But An Even Better Entry Point May Await [View article]
Larry
Dividend Contenders: 15 Increases Expected By The End Of September [View article]
"The Board of Directors of National Retail Properties, Inc. (NNN), a real estate investment trust, declared a quarterly dividend of 39.5 cents per share payable August 15, 2012 to common shareholders of record on July 31, 2012. The dividend represents an annualized rate of $1.58 per share and marks the twenty-third consecutive year National Retail Properties has paid increased annual dividends per share."
Larry