Skeptical12 - Seeking Alpha © seekingalpha.com. Use of this feed is limited to personal, non-commercial use and is governed by Seeking Alpha's Terms of Use (http://seekingalpha.com/page/terms-of-use). Publishing this feed for public or commercial use and/or misrepresentation by a third party is prohibited. SeekingAlpha.com http://seekingalpha.com/author/skeptical12 Dividend Investors To Face Significant Challenges Going Forward http://seekingalpha.com/article/1136871-dividend-investors-to-face-significant-challenges-going-forward?source=feed 1136871 It is easy to forget that within the past decade savings accounts offered 5%, bond yields were over 5%, and many basic income and dividend investing strategies were unable to offer long-term inflation adjusted returns. Dividend and income based investing is not new, but the unique current interest rate environment, historically high recent levels of volatility, and the particularly strong recent performance of leading dividend stocks has significantly increased interest in traditional income based investing strategies. Many popular dividend stocks such as Altria (MO), Procter & Gamble (PG), AT&T (T), and Kimberly-Clark (KMB), have also consistently been the strongest performing stocks in the market over the last several years.

Investors will always face new and old challenges, but certain investing ideas face greater obstacles at specific times. With rates guaranteed to move up in subsequent years, inflation likely to rise at least modestly, and most leading dividend stocks at all-time

]]> Mon, 28 Jan 2013 08:18:36 -0500 Skeptical12 BySkeptical12:

It is easy to forget that within the past decade savings accounts offered 5%, bond yields were over 5%, and many basic income and dividend investing strategies were unable to offer long-term inflation adjusted returns. Dividend and income based investing is not new, but the unique current interest rate environment, historically high recent levels of volatility, and the particularly strong recent performance of leading dividend stocks has significantly increased interest in traditional income based investing strategies. Many popular dividend stocks such as Altria (MO), Procter & Gamble (PG), AT&T (T), and Kimberly-Clark (KMB), have also consistently been the strongest performing stocks in the market over the last several years.

Investors will always face new and old challenges, but certain investing ideas face greater obstacles at specific times. With rates guaranteed to move up in subsequent years, inflation likely to rise at least modestly, and most leading dividend stocks at all-time


Complete Story »]]> INTC KMB MO PG T Skeptical12 BP: Dividend Could Double In 5 Years http://seekingalpha.com/article/934661-bp-dividend-could-double-in-5-years?source=feed 934661 Investing is about managing risk and reward, but sometimes risks are not easy to evaluate. Companies often miss on earnings, lower guidance, or face higher input costs, but markets usually have harder times pricing in less tangible events and issues. Few companies have faced greater uncertainty over the past several years than BP p.l.c. (BP). The nearly $138-billion-dollar company still trades nearly 30% below its 2010 share price, and has significantly lagged its North American peers Chevron Corporation (CVX) and Exxon Mobil (XOM).

BP has faced consistent regulatory and legal uncertainty, and the company's political problems in Russia have also hurt production levels. The company still remains attractively valued compared to its peers:

BP Chevron Exxon-Mobil
Market Cap $138 Billion $226 Billion $430 Billion
P/E 8 8.5 9.8
Book Value 1.2 1.7 2.6
Profit Margin 4.5% 11.5% 10.3%
Operating Margin 6% 16.5% 11.4%
Return on

Assets

 5% 11.2% 9.5%
]]> Fri, 19 Oct 2012 04:28:41 -0400 Skeptical12 BySkeptical12:

Investing is about managing risk and reward, but sometimes risks are not easy to evaluate. Companies often miss on earnings, lower guidance, or face higher input costs, but markets usually have harder times pricing in less tangible events and issues. Few companies have faced greater uncertainty over the past several years than BP p.l.c. (BP). The nearly $138-billion-dollar company still trades nearly 30% below its 2010 share price, and has significantly lagged its North American peers Chevron Corporation (CVX) and Exxon Mobil (XOM).

BP has faced consistent regulatory and legal uncertainty, and the company's political problems in Russia have also hurt production levels. The company still remains attractively valued compared to its peers:

BP Chevron Exxon-Mobil
Market Cap $138 Billion $226 Billion $430 Billion
P/E 8 8.5 9.8
Book Value 1.2 1.7 2.6
Profit Margin 4.5% 11.5% 10.3%
Operating Margin 6% 16.5% 11.4%
Return on

Assets

 5% 11.2% 9.5%

Complete Story »]]> BP CVX XOM Skeptical12 Cliffs Natural Resources: Classic Value Trap http://seekingalpha.com/article/917821-cliffs-natural-resources-classic-value-trap?source=feed 917821 The easiest way to invest is looking at the recent past. Trends and mirages often come and go, but it is easy to think a stock that was a top performer just a couple years ago could regain its high in the next several years.

Cliffs Natural Resources (CLF) and many leading iron ore and metallurgical coal stocks have sold-off hard over the past year as growth in China has begun to slow dramatically. China was growing at over 8% when the real estate and construction industries of this nation were booming just a couple years ago, but the slowdown in China has accelerated significantly in the last year.

Cliffs Natural Resources lost over 50% of its value over the last year, and leading iron ore and metallurgical coal producers such as Rio Tinto (RIO) and BHP Billiton (BHP), have also sold-off hard.

Cliffs Natural Resources is a nearly

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The easiest way to invest is looking at the recent past. Trends and mirages often come and go, but it is easy to think a stock that was a top performer just a couple years ago could regain its high in the next several years.

Cliffs Natural Resources (CLF) and many leading iron ore and metallurgical coal stocks have sold-off hard over the past year as growth in China has begun to slow dramatically. China was growing at over 8% when the real estate and construction industries of this nation were booming just a couple years ago, but the slowdown in China has accelerated significantly in the last year.

Cliffs Natural Resources lost over 50% of its value over the last year, and leading iron ore and metallurgical coal producers such as Rio Tinto (RIO) and BHP Billiton (BHP), have also sold-off hard.

Cliffs Natural Resources is a nearly


Complete Story »]]> CLF Skeptical12 Altria: The Biggest Threat This Company Faces Is Rising Cost Of Capital http://seekingalpha.com/article/915361-altria-the-biggest-threat-this-company-faces-is-rising-cost-of-capital?source=feed 915361 Dividend investing has been one of the most successful and popular strategies over the last decade. Many traders have proclaimed buy and hold as dead, but patient investors willing to continuously buy and compound income and total returns in consumer staple stocks continue to outperform most indexes.

Tobacco stock have been some of the most popular and best performing dividend stocks in the market. Companies such as Philip Morris International (PM), Altria (MO), Lorillard (LO), and Reynolds (RAI), are all up over 30% in the last year. These stocks have also significantly outperformed the broader indexes over the last decade as well.

Altria is the largest U.S. tobacco company. The $69 billion dollar company has over 50% of the U.S. tobacco market, and the company gets over 75% of its revenues from cigarettes. Altria owns 25% of SAB Miller, the smokeless tobacco brands Skool and Copenhagen, and the wine brands

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Dividend investing has been one of the most successful and popular strategies over the last decade. Many traders have proclaimed buy and hold as dead, but patient investors willing to continuously buy and compound income and total returns in consumer staple stocks continue to outperform most indexes.

Tobacco stock have been some of the most popular and best performing dividend stocks in the market. Companies such as Philip Morris International (PM), Altria (MO), Lorillard (LO), and Reynolds (RAI), are all up over 30% in the last year. These stocks have also significantly outperformed the broader indexes over the last decade as well.

Altria is the largest U.S. tobacco company. The $69 billion dollar company has over 50% of the U.S. tobacco market, and the company gets over 75% of its revenues from cigarettes. Altria owns 25% of SAB Miller, the smokeless tobacco brands Skool and Copenhagen, and the wine brands


Complete Story »]]> MO Skeptical12 Philip Morris International: 20% Overvalued http://seekingalpha.com/article/905541-philip-morris-international-20-overvalued?source=feed 905541 Price action and fundamentals are not always aligned. When stocks go up, markets are usually pricing in stronger earnings expectations, but short-term price action and long-term fundamentals vary.

Philip Morris International (PM) is a nearly $157 billion dollar company selling cigarettes in nearly 160 countries. The company sells no cigarettes in the U.S., unlike its peer, Altria (MO). Phillip Morris International trades at nearly 18.5x trailing earnings estimates, and nearly 16x forward earnings estimates. The company's profit margin is 27%, and its operating margin is 43%. Philip Morris International has a poor debt to equity ratio of over 300, and the company has $20 billion in long-term debt, but management also has strong coverage of interest payments at 13x, and Philip Morris International has been able to recently raise capital at less than 4%. The stock hit a 52 week high today.

Philip Morris International gets 40%

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Price action and fundamentals are not always aligned. When stocks go up, markets are usually pricing in stronger earnings expectations, but short-term price action and long-term fundamentals vary.

Philip Morris International (PM) is a nearly $157 billion dollar company selling cigarettes in nearly 160 countries. The company sells no cigarettes in the U.S., unlike its peer, Altria (MO). Phillip Morris International trades at nearly 18.5x trailing earnings estimates, and nearly 16x forward earnings estimates. The company's profit margin is 27%, and its operating margin is 43%. Philip Morris International has a poor debt to equity ratio of over 300, and the company has $20 billion in long-term debt, but management also has strong coverage of interest payments at 13x, and Philip Morris International has been able to recently raise capital at less than 4%. The stock hit a 52 week high today.

Philip Morris International gets 40%


Complete Story »]]> PM Skeptical12 GE: Strong Growth And Cheap Capital Should Enable Double Digit Dividend Raises http://seekingalpha.com/article/900921-ge-strong-growth-and-cheap-capital-should-enable-double-digit-dividend-raises?source=feed 900921 General Electric (GE) has been one of the most maligned stocks in the market over the last decade. GE was primarily a financial company over the last decade, and the stock dropped over 80% when the financial markets collapsed and the recession resumed.

GE is now a new company that has refocused the business on its industrial divisions. GE gets over 70% from its industrial divisions, and the company has had eight consecutive quarters of strong revenue growth and a dividend that has been raised by double digits on average since 2009.

(click to enlarge)

GE has reported double digit growth in its transportation, health care, infrastructure, and energy divisions. The company's aviation, aerospace, and defense industries have been strong as well. GE's operating margins and return on equity of nearly 12% is also well above the S&P 500 average for industrial companies of 8-9%.

GE recently raised

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General Electric (GE) has been one of the most maligned stocks in the market over the last decade. GE was primarily a financial company over the last decade, and the stock dropped over 80% when the financial markets collapsed and the recession resumed.

GE is now a new company that has refocused the business on its industrial divisions. GE gets over 70% from its industrial divisions, and the company has had eight consecutive quarters of strong revenue growth and a dividend that has been raised by double digits on average since 2009.

(click to enlarge)

GE has reported double digit growth in its transportation, health care, infrastructure, and energy divisions. The company's aviation, aerospace, and defense industries have been strong as well. GE's operating margins and return on equity of nearly 12% is also well above the S&P 500 average for industrial companies of 8-9%.

GE recently raised


Complete Story »]]> GE Skeptical12 Procter & Gamble: Dividend Growth Will Disappoint http://seekingalpha.com/article/898751-procter-gamble-dividend-growth-will-disappoint?source=feed 898751 Procter & Gamble Co. (PG) is one of the most well recognized companies in the world. The company, headquartered in Cincinnati, Ohio, was founded in 1837, and has a strong history of earnings and dividend growth many a company would envy.

The $191-billion-dollar company has raised dividend payouts by an average of 7% a year over the last decade, and management has doubled the dividend every seven years since 1975. Procter & Gamble has raised the dividend for 55 straight years. The company's earnings have grown at 11% a year over the last decade, and the company has raised the dividend at a similar rate.

The problem is that Procter & Gamble's earnings growth has been very weak over the last five years, and the company has continued to raise the dividend at almost 11% a year. Procter & Gamble's earnings per share have increased at less than 2% a

]]> Tue, 02 Oct 2012 03:58:09 -0400 Skeptical12 BySkeptical12:

Procter & Gamble Co. (PG) is one of the most well recognized companies in the world. The company, headquartered in Cincinnati, Ohio, was founded in 1837, and has a strong history of earnings and dividend growth many a company would envy.

The $191-billion-dollar company has raised dividend payouts by an average of 7% a year over the last decade, and management has doubled the dividend every seven years since 1975. Procter & Gamble has raised the dividend for 55 straight years. The company's earnings have grown at 11% a year over the last decade, and the company has raised the dividend at a similar rate.

The problem is that Procter & Gamble's earnings growth has been very weak over the last five years, and the company has continued to raise the dividend at almost 11% a year. Procter & Gamble's earnings per share have increased at less than 2% a


Complete Story »]]> PG Skeptical12 Why Caterpillar Is A Buy On The Recent Pullback http://seekingalpha.com/article/895111-why-caterpillar-is-a-buy-on-the-recent-pullback?source=feed 895111 It is hard to buy a stock when the company lowers guidance. CEOs often overestimate profits in tough economic times, but no investor wants to think that management is pessimistic about the company's business.

Caterpillar (CAT) has been on of the most volatile market leaders over the last three years. The stock crashed to $33 dollars a share in 2008, rebounded to $115 in 2010, and currently trades at $86. The stock recently rallied from $77 a share several months ago, to over $90 this month, prior to selling off on the recent lowering of guidance for 2015.

Caterpillar's earnings come from three main divisions: industrial equipment, the resource division, and power generation. Caterpillar's stock has been volatile because the economic outlook has been so uncertain, and the company has consistently revised its earnings outlook over the last three years.

This is why the market is overreacting to CEO

]]> Fri, 28 Sep 2012 15:08:34 -0400 Skeptical12 BySkeptical12:

It is hard to buy a stock when the company lowers guidance. CEOs often overestimate profits in tough economic times, but no investor wants to think that management is pessimistic about the company's business.

Caterpillar (CAT) has been on of the most volatile market leaders over the last three years. The stock crashed to $33 dollars a share in 2008, rebounded to $115 in 2010, and currently trades at $86. The stock recently rallied from $77 a share several months ago, to over $90 this month, prior to selling off on the recent lowering of guidance for 2015.

Caterpillar's earnings come from three main divisions: industrial equipment, the resource division, and power generation. Caterpillar's stock has been volatile because the economic outlook has been so uncertain, and the company has consistently revised its earnings outlook over the last three years.

This is why the market is overreacting to CEO


Complete Story »]]> CAT Skeptical12