Mitchell Manoff

Mitchell Manoff
Contributor since: 2012
Company: Corinthian Partners, LLC.
People do not look at the real risk in a dividend growth retirement account. That is not if your principal goes down, but if your cash ceases to rise. If one is using the dividend income of say $40,000 from a million dollar account, it does not matter if the account goes to $850,000 as long as the $40,000 remains the same OR goes up as is the case with the JNJ's of the world. Key is to own these stocks and have a decent amount of cash to start.
Many of the "iconic names" on Wall Street were produced a "me too" type of products and services. With negotiated rates, decimals replacing fractions in trading their days were numbered long before Dodd-Frank. Many of the names mentioned would be hard pressed to show a business unit where they were the go to firm.
Good article. I use the 4/5/8 program. A 4% yield, 5% dividend growth and 8% earnings or cash flow growth for my overall portfolio. Depending on how close you are to retiring this program can be modified. For example, someone 5 years away from retirement might opt for a 3% yield, but with securities that are projected to raise their dividends 6-7%. Investing in companies who are growing somewhat is critical to get a total return. Bottom line is that you want to minimize the decision of selling to raise the 4% distribution.
There are only 6 uses of free cash flow for a company and dividends are the only one where the investor is assured to come out ahead.
Using free cash flow for:
R & D
Buying another company
Reinvesting into the company and
Keeping it in the bank
May or not work out
While a stock buy back does shrink the float, but there are many examples of companies buying their stock at the high.
Paying out a dividend allow an investor the opportunity to use the cash for their lifestyle, or diversifying their portfolio. If an investor does want to maintain their position they can simply reinvest the dividend.
For those living off of their investments, you want to avoid as much as possible making a decision to sell the stock for cash needs. We generally are poor market timers.
Berkshire has the best formula for share buybacks, if the stock is trading at 110% or less of book value they will buyback, if not they will find better opportunities. This way they are minimizing the market's effect.
Very good article about a solid stock. That said the 12.9 p/e is not cheap for a multi-industry company especially one with a 8% earnings growth, in part from a large share repurchase program.
Tom in Texas, According to KMR's website states that the company was founded in 1997, which was when Clinton's was in office, in fact during his tenure the MLPs had among their best period.
no real growth, yes the 4% dividend is safe and who knows maybe raised by year end as they generate lots go cash, it looks like dead money, which if the market corrects 15% may not be a bad place to hide, for those long term investors, writing options may be a good strategy,
The name of the insurance company was Equity Funding and yes it was one of the first true computer frauds. In fact they even had fake policy holders "die" so that they could produce a believable program.
Richjoy403- you are right, it was a typo to include only REITS, my bad. I did not include BDCs, only because they are not potential candidates but because everyone is very different and that I have not followed them close enough to make a thoughtful comment. Do you follow any?
Good article. However I personally like to focus upon companies who buy back shares based upon specific criteria, such as price to book, p/e, NAV (such as Berkshire's policy), not constantly having a buying program.. It might be helpful to see what price Intel paid over the years for the shares. I think that Hewlett would be a great example of a misplaced buyback plan.
They are not. Many people do have a covered call program, these numbers are without them, but a solid idea, especially in a flat market.
The GP of Atlas is an excellent choice as well. In fact a number of brokerage firms like it better than the LP. I believe that both will do well in 2013.
All outstanding names, there are many quality companies, and one of the reasons that I joined this group is to see what other thoughtful investors are looking at that I overlooked. I especially like CL and HNZ.
As a first time contributor to Seeking Alpha I am flattered by the response. While there are differences of opinions, styles and strategies, the bottom line is that every person has given a great deal of consideration on how to successfully invest. As someone who has worked with very successful businesspeople for over 30 years, I am frequently shocked at the lack of thought given to their personal finances, that is not the case with my fellow SA membors. I am proud to be in such a group and wish that Congress would be half thoughtful. Next article is comparing share repurchases vs. buybacks. Thanks.
rip2451, agreed that a number of stocks were down in 2012, some quite a bit, but the article was written based upon 12/31/2012 closing prices. Let's talk in 90 days and see what the performance is.
Thank you for your comments and kind words. The management of Atlas is different than the one in 2008, which ran it like a very unsuccessful hedge fund. As for it being appropriate for retirees, remember that this is also for the "near retirees" which as part of a diversified portfolio I believe would work.
Not at all, I stay with the same discipline of 4,5,8 it's just that I find more opportunities with market declines.
thank you. I am a huge believer in doing as Rothchild did buying when there is blood in the street.
Given these issues doesn't that make the dividend streams from REITS, MLP's and in general companies which generate revenue from U.S. operations very valuable. Especially since they must pay out a huge portion (90%) of their free cash flow. I'd rather Unfortunately the possibility for a tax holiday to bring this money back onshore, even with strings attached to job creation will not occur in the next 4 years.
I question the choice of Hugoton Royality Trust or any royality trust. They untimately will go to zero as they can not buy new assets and there are better ways to get excellent yields, safer and simpler. I'd buy any number of MLP's, before any royality trust.
Have you tracked how you would have done if you brought stocks immediately AFTER they went Ex-dividend vs. buying them prior to going ex-dividend?
A sizable amount of Cisco's free cash flow is oversea and would be subjected to a high tax if it was brought onshore, barring a tax break, which is unlikely. Also while there is a moat around their respective businesses their businesses are very mature especially Intel's dependency on desktops. These companies while well managed have gone from growth to mature before our eyes and should be thought as such.