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  • Fallen Dividend Champions: I Still Have No Fear Of A Market Crash: Part 2 [View article]
    Great article.
    I thought this part was outstanding, and a must-read for any retail investor:


    "To support this contention, I offer that most definitions of risk postulated by Modern Portfolio Theory (MPT) are related to volatility. These would include statistical concepts such as Beta (a.k.a. systemic risk), R squared (the coefficient of determination or regression analysis), Standard Deviation and others, generally related to a measurement of the movement of price.


    My primary issue with this approach is that I consider stock price movements more often than not, unpredictable, irrational and emotionally driven. Consequently, as I stated in previous works, I do not consider volatility as total risk, or risk in its own right. In contrast, I BELIEVE THAT AN INVESTOR'S REACTION TO VOLATILITY IS WHERE THE GREATER RISK RESIDES. THEREFORE, I CONTEND THAT THE GREATEST ANTIDOTE TO THAT RISK IS KNOWLEDGE. With the proper understanding and perspective about the inevitable short-term volatility of stock prices, emotionally charged reactions can be avoided or controlled."
    Jun 20 04:34 AM | 13 Likes Like |Link to Comment
  • How to Buy the Right Dividend Stock - At the Right Price [View article]
    I commend you on your analytical and concise approach to investing.
    Your step-by-step approach is very rational and well-thought through.
    It rules out making knee-jerk investment decisions and that's something most investors have been guilty of at one time or another!
    May 18 05:39 AM | 12 Likes Like |Link to Comment
  • 5 Exceptional Dividend Growth Stocks With Lower Volatility And Higher Total Return [View article]
    This article again makes some fine points..

    Firstly, through providing factual evidence from mentioned companies that "'Investors don't need to expose themselves to excessive levels of risk in order to outperform" and that the best way to outperform is to convince yourself to pull the trigger when undervaluation is clearly evident, and proper DD has been performed of course.

    I particularly liked two points you made in your conclusion, namely that "Above-average long-term total returns can be achieved without sacrificing dividend income" and that "it's all about making decisions one stock at a time in contrast to vague notions about stock markets or economies in general."

    Keep up the good fight Chuck, in 3-5 years time some investors will look back at this time and market climate and think 'I should have listened a bit more closely to Mr. Carnevale'.
    Sep 23 05:42 AM | 11 Likes Like |Link to Comment
  • Understanding Compounding: Berkshire's Not-So-Hidden Dividend Contrarian Secret [View article]
    Reading 'The Snowball' a few years back left me with great admiration for both Buffet and Munger and their investment philosophy.

    It was an amazing feat to slowly change a dying textile business (Berkshire Hathaway) into a business conglomerate by astutely reallocating cash year after year after year.

    Buffet knows that the small, fast-moving companies that pocketed him staggering returns in the past will barely make a dent in Berkshire now, which explains the hoards of excessive cash on hand.

    Finding a suitable purchase is no easy endeavour for a company of Berkshire's size and one should arguably have more modest expectations for returns when investing in BRK at this time.

    Perhaps a dividend may even be in the future for Berkshire Hathaway shareholders!
    May 16 10:22 AM | 11 Likes Like |Link to Comment
  • Nokia: The Market Is Missing The Point [View article]
    I have to respectfully disagree with Ari's statement that people don't buy smartphones with camera resolution in mind. It's a proven fact that smartphones are increasingly replacing traditional cameras and camcorders with Gen X and Y consumers. The Nokia 808 PureView may be Symbian Belle powered, but it remains an impressive smartphone. PureView technology will certainly migrate to Nokia's WM8 phones in the future.

    The fact remains that Lumia phones have been a big hit all over Europe since introduction. The Lumia 800 has been the number one selling phone in the Netherlands, Finland and Russia for example. Meanwhile the company is still earning it's share with the S40 (dumb-phone) feature phones, with sales up by 250%. Nokia is on the verge of bringing the first Windows Phone to China, with introduction planned this month.

    Nokia has been making great strides, and unless something unexpected happens, the company and share price could see a steady recovery in the medium term. It's nothing if not fickle, the stock market and investor sentiment.
    Mar 1 08:39 AM | 10 Likes Like |Link to Comment
  • Debunking Dividend Agnostic Assumptions: Here's What Really Makes Income Investors Tick [View article]
    Just Sayin,

    You've said it all in your various comments on this article, Kudos times 3. I for one found them very insightful.

    I applaud the commentators on this article which are now in retirement and able to reap the benefits from their personal investment strategy. It seems the majority of these investors are now handsomely profiting from their lifelong habit of saving, investing and compounding.

    Whether people agree of disagree with a particular method, it remains an accomplishment to successfully reach your goals and knowing you haven't lost sleep while doing it..
    Sep 5 10:56 AM | 10 Likes Like |Link to Comment
  • We Don't Think SeaDrill's Dividend Is Sustainable [View article]
    The article is lacking in substance, pure and simple. It certainly doesn't do anything to live up to the title.

    Seadrill (http://bit.ly/u1d6zb) has 12 semi-submersibles, 4 drillships, 16 jack-ups, and finally 16 tender rigs in operation at this time. 48 units total.

    Seadrill currently has 2 semi-submersibles, 6 drillships, 5 jack-ups, and 5 tender rigs under construction this. 18 units total.

    Given a plethora of long-term contract announcements, tight supply, rising dayrates, and demand in deepwater and ultra-deepwater sector being driven by continuing success worldwide in exploration drilling, Seadrill will no doubt earn their target of $4 billion annual EBITDA by 2015, when the new units are in operation.

    I'm certainly not a fan of the leveraged balance sheet, but for the short- and medium-term SDRL's dividend is perfectly safe. Unless you have a Macondo-like incident, as experienced by Transocean (http://bit.ly/oeANwU), of course, but that's always a risk when investing in contract drillers.
    Aug 30 10:20 AM | 9 Likes Like |Link to Comment
  • Trade In Your Bonds And Gold For Dividend Growth Stocks Instead [View article]
    One of the best articles I've read in a long time.

    When the news story of the rogue UBS trader hit the wires yesterday, one of the first things that came to mind was that the financial industry by and large will never change, it's not allowed to. If one bubble burst, another one slowly inflates.

    One of the best ways to make money long term is to still seek out whatever it is that Wall Street believes is least likely to happen, and bet on it happening. People and markets are simply predisposed to underestimate the likelihood of dramatic change.

    The only problem with bursting bubbles is that they usually pop in dramatic fashion...
    Sep 16 10:40 AM | 9 Likes Like |Link to Comment
  • 10 Dividend Stalwarts Outperforming The S&P 500 Since 2006 [View article]
    Ahh, well that certainly explains a few things!..
    Especially sending unwanted PM's, not done

    Well, at least we all appreciate your articles and know you always have your readers best interest at heart, many thanks!
    Sep 9 11:59 AM | 8 Likes Like |Link to Comment
  • 10 Dividend Stalwarts Outperforming The S&P 500 Since 2006 [View article]
    "Houston, Tranquillity Base here. The Eagle has landed."
    Chuck, you remain a source of investing wisdom and common sense rarely seen!

    This article is hopefully another step in educating anyone still floating on a sea of overconfidence and conviction toward their own beliefs and biases.

    One giant leap in further understanding that returns can be achieved in different ways, but that one method doesn't necessarily exclude another and that underlying valuation and long term earnings growth will always matter.

    If we, as part-owners of these companies, can subsequently receive a share of the profits for reinvestment or income through a well-supported dividend, than all the better!
    Sep 8 03:42 PM | 8 Likes Like |Link to Comment
  • 2 Aces Up The Sleeve: Nokia Lumia Sold By 13,892 AT&T, T-Mobile And Verizon Locations [View article]
    Come now Moon, 'According to analysts'? I tend to look past most of these comments, but did any of the analysts you refer to actually try one of these new Nokia's first hand, compared these Lumia's one on one with the SIII or iP5.

    It just so happens that my wife has been using a Lumia 900 for a month now (so I've been doing the same ad-hoc as a result). I can tell you from personal experience the build quality compared to both the SIII (yes, the new one) and iP4S is pretty impressive.

    And the OS interface not being as nice? Did you use WM7.5? Much better than Android, certainly on par with iOS. This sudden popularity in Europe and now North America isn't coming from nowhere. The current product is very good indeed (L900), and the L920 with WM8 and Pureview should be even better. That's what is getting noticed. JMHO.
    Oct 9 03:08 PM | 7 Likes Like |Link to Comment
  • Interview With Chuck Carnevale: Why Valuation Matters For Buy And Hold Dividend Investors [View article]
    Chuck, David,

    Kudos on the making of this interview, I wasn't expecting to get to work on Monday morning and start the week with reading an article co-authored by two of my favorite SA-authors.

    I was not aware of Chuck's call sign among the 'Dizzies', but indeed Chuck "Mr. Valuation" Carnevale sounds extremely fitting. I suggest you trademark it straight away!
    Sep 26 03:48 AM | 7 Likes Like |Link to Comment
  • Dividend Growth Stocks Perfect For Retirees - Part 3 [View article]
    Good stuff Norman, just saw your 2nd comment on Chuck's new article. I’m a sucker for energy, healthcare and utilities!

    BTW, It's noon here in Amsterdam, much earlier in the States. I understand Navy night shifts have prepared you for waking up early, but you're a retiree now. You shouldn't be up this early every day.. ;)

    I'm starting to worry about your sleep pattern!
    Sep 23 06:07 AM | 7 Likes Like |Link to Comment
  • Dividend Growth And Income Investing Vs. Total Return: A Battle For The Mind [View article]
    Freethinker,

    That's a bit simplistic to be honest..

    Firstly, you don't own the dollar bill unless it's distributed through a dividend or coupon payment. You may own a very tiny share of a business, but management decides how to allocate FCF.

    Regarding price adjustment on ex-date, it's indeed something to look at if you're interested in buying shares in a company that happens to have an ex-date around your preferred time of purchase. Usually prices tend to go up right before the ex-date and the price tends to go down right after a dividend is issued, but only temporarily.
    Sep 10 10:09 AM | 7 Likes Like |Link to Comment
  • Illinois Tool Works: Innovation, Growth, Above-Average Yield and Low Valuation [View article]
    It's amazing to see the level of disconnect in the current markets. A correction was expected for quite some time, but people have just been selling good-quality companies indiscriminately in recent days.

    But then algorithmic trading (specifically HFT) seems to have increasing little use for the investment principles first laid out by Mr Graham and Mr Dodd!

    On the other hand this current climate keeps providing plenty of opportunities for value and dividend investing. The dividend rates on certain oil and telecom holdings are just staggering and to be able to keep reinvesting profits and dividends at these levels is almost a blessing in disguise..

    As Mr Buffet so eloquently put it "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years"
    Aug 5 10:23 AM | 7 Likes Like |Link to Comment
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