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Stan Stafford

 
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  • Fifth Street Finance: 10 Reasons Why This Double-Digit Yielding Stock Is A Buy [View article]
    I thought you said you were going to disagree with a number of the 10 reasons, not all 10. Just kidding:) I'll try to respond to all of your points, but my time is limited, so if I miss anything I apologize. (I will try to check back on this article again later in the week).

    #1 - Even before the recent increase, the stock was a high yielding stock, averaging over 9% yield. I would still recommend the stock at that yield. In terms of the reason for the dividend increase, I guess we will have to see what the future holds. In two months we will know if the company is able to cover the current dividend. If they are not able to, I will have some concerns.
    #2 - I wasn't trying to mislead here and specifically stated FSC is not a dividend growth stock. Was just stating that it was nice to see the dividend increase (depending on your perspective, of course). I think the increase is because management has confidence in increased earnings going forward.
    #3 - You make a good point and I should have used per share metrics to gauge some of these by. In terms of recent investment income it has been fairly stagnant.
    #4 - Same as #3, i should have used per share metrics. While net income per share hasn't increased as much, it has increased significantly over the past five years.
    #5 - Same point, can't argue that I shouldn't have used per share metrics. Although i will say that book value per share hasn't really changed all that much since Q2 2012. While not a positive, I wouldn't say its a negative unless per share value continues to decline.
    #6 - Same per share issue.
    #7 - I'm not that concerned with total return as it is going to very greatly based on specific date(s) you are looking at. Over the past five years(9/8/09 through 9/8/2014), FSC stock has increased 1.91%, while total return has been 63.14%. (I'll take that every time). But if I adjust my dates slightly to 4/8/2010 through 6/9/2014, then stock price decreased by 21.6% and total return was just 16.90%. Total return I'm only concerned with when I believe there are issues that warrant selling a stock, which I don't think currently apply to FSC.
    #8 - Total return has been greater than 11% over the past five years. As I sated in previous item, total return is only important if you sell (at least IMO).
    #9 - If dividends are not covered in latest quarterly report, I'll agree with you. If management has strong confidence in increased earnings, I have no problem with this. I only have an issue if the company cannot meet those expectations.
    #10 - My comparison to ARR was only in the sense that both are high dividend yielding stocks. I believe FSC carries a lot of value for investors wanting a high yield that are not going to be selling in the near future. I'm not trying to say that FSC is the best BDC out there, but I do think it offers opportunity that some of the lower yielding BDCs do not.

    Thanks for the detailed comments/questions. It's these kind of comments that really help me in terms of improving my writing/research for future articles.
    Sep 8 11:25 PM | Likes Like |Link to Comment
  • Fifth Street Finance: 10 Reasons Why This Double-Digit Yielding Stock Is A Buy [View article]
    I agree. I think the company is pretty confident that it will be able to cover the current dividend rate.
    Sep 8 10:34 PM | Likes Like |Link to Comment
  • Fifth Street Finance: 10 Reasons Why This Double-Digit Yielding Stock Is A Buy [View article]
    Valid concerns. I'm not expecting much in the way of dividend growth from FSC, but I'm confident in the company's ability to maintain its current rate. In the company's Q3 earnings call, the CEO stated "This is the third quarter in a row where net investment income per share has met our dividend."

    When this stops happening then i'll be concerned that a cut might be in the future.
    Sep 8 10:33 PM | 1 Like Like |Link to Comment
  • Fifth Street Finance: 10 Reasons Why This Double-Digit Yielding Stock Is A Buy [View article]
    Dwarren - thanks for the comment. You make a great point about future rates. I think its actually a good reason to own both FSC and MCC if possible as each is better positioned for higher/lower growth in rates.
    Sep 8 10:25 PM | 1 Like Like |Link to Comment
  • Fifth Street Finance: 10 Reasons Why This Double-Digit Yielding Stock Is A Buy [View article]
    I'm a fan of MCC. I think they both offer around the same level of safety, while MCC might have a higher value at its current price. I wrote a bit about MCC in this article that listed some high yield dividends I considered worth buying and a few that I would avoid: http://seekingalpha.co...
    Sep 8 10:23 PM | Likes Like |Link to Comment
  • 13 Reasons Casey's General Stores Is A Great Long Term Buy [View article]
    The company is fairly good at meeting its own forecasts, which is a positive sign for me. I'm not overly concerned about the inconsistent quarterly earnings, as long as long term growth continues. If the double digit growth and fairly large number of acquisitions were not happening, the inconsistency would concern me more.
    Aug 16 11:59 PM | Likes Like |Link to Comment
  • 13 Reasons Casey's General Stores Is A Great Long Term Buy [View article]
    Thanks for the comment! While I would prefer more consistent quarter over quarter earnings, as long as annual earnings continue to grow, I'm not going to be too concerned about it.
    Aug 16 11:49 PM | Likes Like |Link to Comment
  • The Best Dividend Growers, Part 25: AGL Resources [View article]
    Thanks! Glad you enjoyed the article. I have just a few more of these dividend grower articles to finish up related to remaining S&P 500 industry sectors. I enjoy writing about dividend stocks, so I may write a future series of articles related to non S&P 500 stocks.
    Aug 16 11:44 PM | 1 Like Like |Link to Comment
  • The Best Dividend Growers, Part 25: AGL Resources [View article]
    Thanks for the comment. Definitely something to keep an eye on in the coming years. I could definitely see the dividend growth slowing, but then again, AGL operates a fairly wide number of services that I think can continue to produce growth opportunities in the future.
    Aug 16 11:41 PM | Likes Like |Link to Comment
  • The Best Dividend Growers, Part 25: AGL Resources [View article]
    Thanks for the comment! The exclusion of coal/nuclear is definitely an added benefit to AGL.
    Aug 16 11:33 PM | Likes Like |Link to Comment
  • Pengrowth Energy: A 7% Yield With Long-Term Upside [View article]
    I bought a small position last year at $5.12 and recently sold at $6.66. I may repurchase a similar position if the stock once again falls under $6. I believe there remains a strong possibility for nice returns from this stock is Lindberg project plays out well.
    Aug 12 05:12 PM | 4 Likes Like |Link to Comment
  • American Express Is Attractive At Its Current Price [View article]
    Brad,

    Thanks for the comment. In terms of the link, I'm not sure what happened there (unless CNNMoney only supports links to the home page).

    Regarding the forecast, you are right in that those numbers are just based on analyst predictions. I don't place much weight on these numbers, but I do think they provide some use when placed together with earnings growth estimates as well as past performance of a company's financials and stock price.
    Aug 11 11:28 AM | 1 Like Like |Link to Comment
  • American Express Is Attractive At Its Current Price [View article]
    Thanks for the comment. I think your statement regarding the business model of AXP and the associated risks compared to V and MA sounds like a great idea for a future article. I will try and write one in the near future on these subjects.
    Aug 11 11:24 AM | Likes Like |Link to Comment
  • 30 Reasons Why 3M Remains A Solid Long-Term Buy [View article]
    Thanks! Glad you liked it. It's really the first article I've written in this type of format, but I think its a nice way to lay out specific details that make a stock/company look attractive and I will probably write some future articles in a similar pattern for both stocks that I like and those that I do not.
    Aug 11 11:21 AM | Likes Like |Link to Comment
  • 30 Reasons Why 3M Remains A Solid Long-Term Buy [View article]
    heglimp,

    Thanks for the comment. I think your evaluation of MMM and T's dividends is correct. I think both are great long term holdings. When I was analyzing their dividends for one of my previous articles, I believe it was around 16 or 17 years when the dividends returned would become equal (based on MMM's greater growth (if continued) and T's greater yield). And then any time frame longer, MMM would return more.
    Aug 11 11:19 AM | Likes Like |Link to Comment
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