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  • A New Stock Picking Ratio [View article]
    Could you explain how a buyback "virtually" returns cash to shareholders "in the aggregate"? I've never received anything from any of the companies that I own that have a buyback program, that actually resulted from the buyback. Everyone says this, but I don't understand it at all. I do understand that fewer shares causes ratios that use per/share metrics to rise, and the most "exciting" such ratio is the earnings per share metric. Also, the equity of the company is lowered by the amount of the buyback, and this raises the "return on equity" metric, and so on. But I still haven't received anything. Nothing has been "returned" to me.
    What am I missing?
    Nov 11, 2015. 04:59 PM | Likes Like |Link to Comment
  • A Dividend Growth Investor's Perspective On Advisor Perspectives' Negatives About Dividend Investing [View article]
    I would like to know more about your "research" from which you concluded that, at some initial level of interest rates (10-yr treasuries), rising rates are a "threat" to dividend growth. Do you mean to the price of the stocks, to the growth of the dividend, and over what time frame. My non-research based intuition is that over time, dividend growth responds to interest rates, such that, with a lag, dividend growth would track rising rates. This intuition is based on the fact that pricing ability increases in an rising rate environment, and therefore companies can exercise slightly better control of one more factor in profitability. This then ultimately leads to more money being available for dividends. This is highly speculative however, so I would like to see the research.
    Sep 29, 2015. 11:05 AM | 1 Like Like |Link to Comment
  • So, You'll Switch To Dividend Growth Investing After You Have Your Millions, Eh? [View article]
    In a practical, long-term focus on building wealth at the greatest level with a control for risk, it could be that dividend growth investing is, in fact, the best "growth" strategy. If so, the issue of switching strategies becomes non-existent.
    Jul 8, 2015. 10:01 AM | 2 Likes Like |Link to Comment
  • When 'Dividend Growth' Doesn't Mean Anything At All [View article]
    Does anyone know of a data source that reports mutual fund and etf distributions that are from dividends, separate from other types of distributions ( return of capital, capital gains, etc.) for any number of historical years of distributions? This would allow one to evaluate funds based only on their dividend income amounts, year-to-year. This then would be a better comparison to one's own portfolio income amounts (for certain portfolios).
    Jun 18, 2015. 10:08 AM | Likes Like |Link to Comment
  • Why Dividend Growth Will Slow Down [View article]

    There is the question as to whether and to what extent, the type of data in your article is important to a dividend growth portfolio strategy. This relates to the fact that most portfolios, of course, pick individual stocks. For such individual companies, it is a difficult question as to the factors that allow a particular company to generate strong profits and growth over long time periods. Such companies have characteristics that are typically referred to as "competitive advantages" or "wide moats", but these features do not normally have stable lifespans. So a focus on the future of dividend growth is somewhat difficult, but encouraged. Lastly, the closest metric to a strong, growing company with current competitive features is "return on invested capital" or ROIC. This is also a complex topic and few analysts agree on its definition. In the current corporate culture of buyback mania, the metric of Return on Equity becomes more and more useless as an indicator of financial strength. Things shouldn't be this difficult, but it is not my fault.
    May 16, 2015. 11:24 AM | 2 Likes Like |Link to Comment
  • Getting Rich Slowly: An Investment Strategy [View article]
    Wouldn't an ETF based on the S&P Dividend Aristocrats be even simpler as a strategy? If and only if simplicity of strategy is paramount, then an ETF would be better. Of course, if there is some other over-reaching criterion at work, an ETF would not be the way to go

    Robert albers,
    Jan 29, 2015. 12:46 PM | Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    There are ways to compute an estimate of the effect of dividend reinvestment for a particular portfolio, and all are tedious. This is because the effect of reinvestment is dependent on factors that are specific to each individual holding in a portfolio (e.g., it's weight in the portfolio, the size of the dividend, and/or its yield, etc.), and the future prices of each holding. A relatively useful calculator for each holding can be found at
    The effect varies somewhat around 1% per year, which has significant effect over several years due to compounding.
    Jan 27, 2015. 01:49 PM | 1 Like Like |Link to Comment
  • Barron's Makes The Case For Active Management [View article]
    as several SA authors have commented in other posts, the bottom line or the basic assumption at issue is what strategy winds up with the most money at the end of some time frame, usually at least 10 years or so. For "stable" strategies, there is a growing body of data that shows that passive approaches can outperform active strategies, and with less cost and less "psychic drag".,
    Jan 15, 2015. 11:02 AM | Likes Like |Link to Comment
  • Share Buybacks And Value Destruction [View article]
    It was always my understanding that variations in debt levels and share buybacks were independent of the computation of return on invested capital, under "normal" conditions. Don't you agree, and if so, how does this affect your points? See

    Robert Albers, http://www.dividend growth
    Jan 15, 2015. 10:26 AM | Likes Like |Link to Comment
  • Dividend Growth Investing FAQ [View article]
    I have found that one of the things that keep people from doing DGI is the basic fact that stocks go up and down, and they can't face the possibility of the "down" part of price movement. Therefore, this strategy, in most all of its forms, is forsaken or avoided. What would be the conceptual approach to such people in order to break thru this basic concern?,
    Dec 18, 2014. 10:10 AM | 1 Like Like |Link to Comment
  • A 4% Dividend Yield Portfolio: Reassessing The Forward-Looking Dividend Growth Rates [View article]
    It would be useful if some dividend growth authors would present the actual dividend income growth rates, with and without reinvestment over as many years as there is experience. Then the discussion would proceed on which variables would allow a better prediction of future dividend growth rates for certain companies. I am currently using eight "factors" where each factor uses multiple variables for predicting individual future dividend growth rates, but there is lots of room for improvement. For example, my predictive system failed to predict Walmart's most recent "increase", and I was (mistakenly) almost certain that Intel would increase it's dividend one quarter earlier just so they could count every yearly payout as an increase. However, I still believe that a dedicated empirical effort can be developed so that 10% dividend growth rates in a portfolio can be achieved (in the future).
    Nov 29, 2014. 11:08 AM | Likes Like |Link to Comment
  • Kinder Morgan: Is There A Multi-Billion Dollar Elephant In The Room? [View article]
    Another significant factor in the future valuation of KMI is its massive debt structure after the combination. This debt (and the interest on it) will be a large claim on cash flow, even though it will not be quite as large a claim as the tax benefit from increased depreciation. However, going forward, there will be a balance between these two financial trends, and available cash flow will be affected. The exact effects are difficult to assess, at least for me.
    Nov 25, 2014. 09:19 AM | 2 Likes Like |Link to Comment
  • A 4% Dividend Yield Portfolio With A 10% DGR Is Good Enough For Me [View article]
    Good Luck. Track the dividend income growth of your portfolio, and see how close you can come to 10% income growth from dividends as the years roll by. Also, if you have some ideas on how you predict the future growth of dividend payouts by these companies, I would encourage you to write another article. You have a column of data on this in your table, but there would be general interest in how you arrive as these predictions, especially if you are doing more than simply extending historical data.
    Nov 20, 2014. 04:58 PM | 1 Like Like |Link to Comment
  • The Best Way To Reinvest Your Dividends [View article]
    A method of reinvestment of dividends that might appeal to some would be a method whereby one lets dividends accumulate to about 1K, and then buy more of either a company already owned, or some of a new company. This has certain mathematical advantages (e.g., minimization of transaction costs), and allows for development of your holdings over time (using the dividend money). This also allows for keeping most all of your money engaged in generating dividends (for portfolios at and above 100K). This method is not appropriate for all, but this is what I do. This could be called "intermittent dividend reinvestment."
    Sep 8, 2014. 11:12 PM | Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    I think that all of us would like a list of stocks that have a yield of 7% and a dividend growth rate of 4%. Are all of these REITs?
    Aug 20, 2014. 11:53 AM | Likes Like |Link to Comment