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  • Is It Time To Buy SNC Lavalin? [View article]
    Hello Dividend Engineer,
    Now that SNC has won the bid over the next Champlain Bridge and the fact Canada is reconsidering the law of not awarding contracts for 10 years, do you see a downfall buying SNC?
    I bought it a few weeks ago thinking it's a very good contrarian play. I'm holding SNC with a 18 - 24 month horizon.
    Apr 23, 2015. 03:54 PM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Hello Bruce,
    I totally agree with you that if you are living off your dividend income, they do matter and it's not a waste of time to track it. My point was more about a long term investment period where you don't need dividend income as monthly cash flow.
    Investing strategies and processes change through time. I highly doubt I will be 100% equity when I retire. But for now, I really don't mind. I know my own portfolio will evolve through time.
    The best investing strategy is the one that allow you to achieve your goal, not matter what it is.
    Cheers,
    Mike
    Apr 23, 2015. 09:08 AM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Hum, sorry "as10675" but if being "The Dividend Guy" is not like calling myself the King of England, it's a monicker and the name of my blog, period.

    If you are retired and you need your dividend income to live, I totally understand it's important to you. But if you read a few dividend blogs, you'll notice that most of them are not retired. This was my point; tracking MONTHLY dividend income is not the most important point for an investor who will need this income for the next 20 years. I'm not retired, I can't speak as if I was one. I'm looking at the world through my eyes and you are too. That's perfectly fine from both perspectives. We don't have to all agree in the world, you know? And nobody owns the pure truth about investing.

    The point of that article was to highlight the fact that if you only keep track of your short term dividend income, you forget about the whole investing process.
    Apr 23, 2015. 09:06 AM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    You seem to think I never went through a recession or a crash as an investor. This is lots of assumptions for someone you don't even know. I was there in 2008 and never sold 1 of my position during the crisis.
    Tell me what is relevant in my situation to know that I will receive $123 or $164 as a dividend payment next month when I will touch this money only in 30-35 years from now? I rather spend my time finding companies with strong fundamentals paying dividend than calculating the impact of the next 8% dividend raise of one company on my monthly dividend income report.
    Following your dividend income month after month is more short term view than anything else. And if you answer back you will hold a company for 10 years or more because you count on the power of dividend growth, then why do you track how much the company pays you today if you are confident the company will keep on paying a bigger dividend each year? Just make sure the fundamentals are there and that the company is truly growing its dividend year after year and you don't have to mind about the short term view of your next month dividend pay check. This is my point.
    Then, I'm not the "div guy" because I don't spend time calculating something I will receive anyway? I call this efficiency, it's up to you to think that I'm a ETF trader if you want to. By the way, my ETF position is never more than 3% of my portfolio ;-)
    Apr 22, 2015. 05:13 AM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Robert,
    I'm not assuming that dividend paying companies will suffer a price decline (remember, all stocks in my portfolio are dividend paying companies). I'm just saying there is a forest behind the tree. If you solely keep track of your dividend payment, you forget about the rest of the company.
    Many people bought Yellow Page (YLO.TO) for their juicy 8% dividend yield or something like that. They completely forgot Yellow Page's business model and other fundamentals for the sake of receiving a high dividend yield. Well... they lost 99% of their investment.
    Pengrowth (PGH) is just another example of what I'm saying.
    YES, the dividend payment is important and YES I only pick companies showing strong and sustainable dividend growth. Dividend growth is part of my first investment criteria to purchase a stock or not and is the most important factor when I look at a company. However, I don't solely consider the dividend payment to know if I'm doing something right or wrong with my investment.
    Apr 21, 2015. 12:31 PM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    I'm not saying you should evolve toward them, just the fact of reading something that is not in line with your investing strategy will make you evolve in one way or another.... this is not only good as an investor, but as a person in general.
    Apr 21, 2015. 11:59 AM | 2 Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Hello Robert,
    check out all my articles I wrote either on SA or on my blog, when do I NOT talk about dividend investing? The only stocks I discuss are dividend stocks and my portfolio is 100% dividend stocks as well. Funny you say I don't fit in the dividend investor model.

    I just don't think a dividend investor should be blinded by his dividend payment. I've seen several investors being very happy to earn 5% dividend but LOSING money on capital year after year.
    Apr 21, 2015. 11:57 AM | 1 Like Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    I like the way you see it.
    I also look at my yield and dividend growth, but the most important part will remain my total return.
    However, if a company doesn't increase its distribution during a 12 month period, I will start to seriously look into it.
    cheers,
    Mike
    Apr 21, 2015. 10:18 AM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    I expect that :-) (being crushed for blasphemy). We don't evolve as investors if we don't accept generating shocks by sharing our ideas and receiving other's.
    Cheers,
    Apr 21, 2015. 10:16 AM | Likes Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Maybe I didn't explain my point properly, therefore, I will make another try:
    I think I don’t really have a problem with dividend investors tracking their dividend income. I think the problem I have is that I read so little portfolio total return articles. Therefore, I’m under the impression that most dividend investors (bloggers anyway), don’t really track their returns (or they are not good enough) to be published.
    My perception is that at the end of the day, what really matters is my total return, I don’t really mind if it’s coming from dividend or stock value growth.
    I have a 100% dividend stock portfolio and all my stocks increase their payout every year. I would call that a dividend growth portfolio. However, I'm way more excited to calculate my overall return showing maybe a dividend growth of 5% but a total return of 17% than if my portfolio showed a dividend growth of 10% but a total return of 3%.
    Apr 21, 2015. 10:15 AM | 1 Like Like |Link to Comment
  • Dividend Income Report: The Good... And The Bad [View article]
    Hello Grigerj,
    portfolio #1 generated $30K in dividend + 5% in growth. In other words, $80K total. Since you need 40K to live, the portfolio at year #2 worth 1,040K. I hope it makes more sense now.

    cheers,

    Mike
    Apr 20, 2015. 10:26 PM | 1 Like Like |Link to Comment
  • Bold Move - Sell ScotiaBank, Long SNC Lavalin [View article]
    It seems the Cdn Gov't eat the same eggs as I did. SNC just won the bid for the Champlain Bridge. I have a strong feeling BNS will trade around the same price in a year from now... and I also have a strong feeling SNC will trade $20 higher ;-)
    Apr 16, 2015. 11:25 AM | Likes Like |Link to Comment
  • SNC Lavalin: A Classic Peter Lynch Turnaround [View article]
    I agree with you criminal charges should not be taken lightely. However, SNC just won the biggest bid for an engineering firm in 2015 (the Champlain Bridge) yesterday. The Cdn Gov't is well aware of SNC situation but it seems to help them recover a good reputation by giving them this important contract instead of crushing the whole company and its expertise for a few crooks.
    disclaimer: I bought SNC about a month ago and I'm pretty happy to see how it goes for far. Buy on fear, sell on greed.
    Apr 16, 2015. 11:18 AM | 1 Like Like |Link to Comment
  • The Right Price For The Right Stock - A 3-Step Stock Valuation Method [View article]
    Hello Dioegenes,
    It seems you have a very methodical approach. Very few investors take the time to correctly value a stock before they make their decision. However, I guess you find it difficult to buy companies these days if you are looking for a P/E under 15. I try to pay under 20 most of the time unless there is a very good reason the multiple is higher.
    Using the 10 yr P/E ratio history gives me a better idea if the stock is overpriced or not. Then, using the Toolkit to do a 2 stage valuation model for both DCF and DDM makes my life easier. It's all about doing the right things in the smallest amount of time.
    Cheers,
    Mike
    Apr 16, 2015. 08:37 AM | Likes Like |Link to Comment
  • The Right Price For The Right Stock - A 3-Step Stock Valuation Method [View article]
    Hello Dundey,
    if you have any questions, you can reach me at dividendustries at gmail

    cheers,

    Mike
    Apr 15, 2015. 09:17 PM | Likes Like |Link to Comment
COMMENTS STATS
46 Comments
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