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Passive Income Pursuit  

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  • Now's Not The Time For McCormick & Company, Inc. [View article]
    2reb,

    I agree about not being able to outsmart the market but I also think that we should always search for value. I think MKC is about like CL and CLX and a lot of the other consumer staples. They are excellent companies that should continue to grow and increase their dividend payouts, but that doesn't mean I'm excited about paying 25 x TTM EPS or 21-22 x Forward EPS for companies that will grow in the area of 3-8% per year. As a long term investor, with the intent to hold forever once I purchase, the only thing that's truly in my control is my entry point.

    While I don't truly need the income now, other than just to reinvest, the starting valuation will determine your long term returns. All things considered would you rather own MKC with a starting yield of 2%, 2.5%, or 3% with the growth of the company and dividend being the same, just throwing those yields out there for illustration purposes.

    Plus in the context of constructing a portfolio you then also have to take into account the relative valuations of your holdings to get the best long term results.

    All this is to say that I look to pick and choose my entry points. I don't necessarily wait for my target entry price, the low valuation point, to initiate positions. If the share price is close to my average/fair value calculation then I tend to initiate positions and hope to add on any dips.

    Thanks for the comment and I hope that answered your question.
    May 13, 2015. 06:54 PM | 5 Likes Like |Link to Comment
  • Now's Not The Time For McCormick & Company, Inc. [View article]
    awayk,

    I finding less value in the markets right now so I want to take a look at quality companies even though they might not be near prices where I'd like to purchase. It's better to plan ahead of time with a cool head than trying to make decisions with lots of emotions involved.

    I saw the drop in UNP today and if we get another one tomorrow then I might be an owner of some UNP shares.
    May 13, 2015. 06:42 PM | 1 Like Like |Link to Comment
  • Bargain Hunting With Ross Stores, Inc. [View article]
    Illuminati Investments,

    While that's true that ROST has historically grown their dividend at an absolutely incredible rate I wouldn't want to project that too far into the future. I'd rather err on the side of being too conservative with my projections than too aggressive. The historical growth rates only reflect what management has done but not what will happen. If you take the historical growth rates as guarantees for the future you'll be rather disappointed. MCD's 10 year dividend growth rate is 19.6%. I highly doubt we'll see a single year with that kind of growth going forward under the current business model.
    May 8, 2015. 12:30 PM | Likes Like |Link to Comment
  • Lanny's Recent Purchase - Johnson & Johnson [View article]
    JNJ is a great pick and I'm looking to add more shares to my portfolio as well. Although don't be too happy about the share buyback. All that money that's been spent on buybacks has led to an increase in the share count. So chances are the cash for the buybacks has been just to reduce due to share dilution from either acquisitions/stock options...I can't remember off the top of my head. But JNJ is still an excellent company and I'll gladly add more to my portfolio on a dip below $100.
    Apr 26, 2015. 01:58 PM | 4 Likes Like |Link to Comment
  • Shopping For Bargains With TJX Companies, Inc. - Dividend Stock Analysis [View article]
    If she happens to browse SA you might want to swap the order of your long positions. :-)
    Apr 21, 2015. 01:07 PM | 3 Likes Like |Link to Comment
  • Bargain Hunting With Ross Stores, Inc. [View article]
    Kenyatta,

    Make sure to do your own due diligence before investing.

    I'd love to see that price but keep in mind that there will be a stock split soon so you need to adjust your buy price accordingly.
    Apr 20, 2015. 12:43 AM | Likes Like |Link to Comment
  • Bargain Hunting With Ross Stores, Inc. [View article]
    dflam,

    I think ROST is a great long term growth and dividend growth play and one of the best companies in the discount retailer space. Eventually I want to add this company to my portfolio and the only way I'll know if the value is there is to update my own stock analysis spreadsheet. Plus it's a great learning experience for myself as it forces me to read through the annual/quarterly reports again.

    There's several companies on my list watch list to buy. Eventually. Both CLX and Cl fit the bill there but I won't be buying either one of them any where near current prices. But I only know how low I need the price to go by re-analyzing the companies.

    Hope that helps clear up the issue of a company that's overpriced but otherwise absolutely excellent. Eventually the shares will be priced better for long-term investors and I'll be ready to strike, capital permitting.
    Apr 20, 2015. 12:42 AM | Likes Like |Link to Comment
  • Why Investors Should Consider Buying This Mutual Fund Company [View article]
    Absolutely love TROW and I'm looking at them to potentially increase my position. If my investment capital was more free flowing then I'd have already done so.
    Apr 14, 2015. 12:48 PM | 1 Like Like |Link to Comment
  • Can Becton, Dickinson And Company Cure Your Portfolio? [View article]
    Jim,

    Congrats on having a proven winner for 5 years. I wish I had that kind of holding period on BDX. Eventually I'll get this company in my portfolio and am looking to add some over the next couple months. Even if I pay a little bit of a rich price, this company will continue to deliver results.

    Thanks for the comment.
    Apr 13, 2015. 06:07 PM | Likes Like |Link to Comment
  • Can Becton, Dickinson And Company Cure Your Portfolio? [View article]
    aida2003,

    A DRIP of both BDX and MMM seems to be a great strategy. I'm bullish on both companies for the long term and have a small position in MMM. BDX almost always seems a bit expensive but it almost always just continues churning out excellent results and DG. I'll have to look into setting up a DRIP for BDX because I want this company in my portfolio. Although I might just spring for a few shares should the price dip just a bit.

    Thanks for the comment.
    Apr 13, 2015. 06:05 PM | Likes Like |Link to Comment
  • Can Becton, Dickinson And Company Cure Your Portfolio? [View article]
    Nigel,

    BDX is one of the highest quality companies out there and I wish I had it in my portfolio already. I'd love to see a pull back in BDX's share price and we might get that as earnings season is under way. I'll eventually have this company in my portfolio, hopefully sooner rather than later.

    Thanks for the comment.
    Apr 13, 2015. 06:03 PM | Likes Like |Link to Comment
  • My Dividend Portfolio: Adding Becton Dickinson [View article]
    I'm a huge fan of BDX and I've missed out on it plenty of times. Still kicking myself for passing this one up a few years ago. I'll be looking for an opportunity to add this excellent company to my own portfolio.
    Apr 9, 2015. 04:42 PM | Likes Like |Link to Comment
  • An Overlooked Giant That I Would Build A Retirement Portfolio Upon At Any Age [View article]
    I thought it was expensive in 2011, and 2012, and 2013...but finally snapped up a few shares in 2014. The "rich get richer" as they say and MMM is a proven winner. I'll be looking to buy more shares if we get a yield of 2.75%+ and if it hits 3% again I'll be loading up for sure. seems like one of those companies you will have to either wait a long time to add shares or just admit that the company is excellent and it's going to trade at a premium and slightly overpay along the way.
    Apr 6, 2015. 10:43 AM | 1 Like Like |Link to Comment
  • Dividend Growth Checkup - Part II [View article]
    Rose,

    If a really great opportunity came up with MCD or KMI I'd probably still add but it needs to be a really compelling value. I'll continue holding both of these for the long term and reduce my dividend weights for them by adding to other companies.

    I really want to add more exposure to health care companies because they have lots of tailwinds that should propel their dividend growth.

    Thanks for the comment.
    Mar 18, 2015. 11:08 AM | Likes Like |Link to Comment
  • Dividend Growth Checkup - Part II [View article]
    SDS,

    I make my projections based on 5% dividend growth so 10% over the short term is nice. About the only way to continue with 10% growth would be to cycle through companies that are in their growth phases. But that would open up a whole other set of issues and make things way too complicated.

    I guess I wasn't clear about MCD and KMI, my plan is to bring their weights down through investing capital elsewhere not through selling. I believe both companies should continue to do well and have no intentions of selling.

    Thanks for the comment.
    Mar 18, 2015. 11:01 AM | 2 Likes Like |Link to Comment
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