Seeking Alpha
View as an RSS Feed

The Part-time Investor  

View The Part-time Investor's Comments BY TICKER:
Latest comments  |  Highest rated
  • Warren Buffett Is Wrong About Dividends [View article]
    A, Chi,

    Although a company's assets contribute to the value of the company, in the end the stock price is based on the company's earnings. You claim that once a company pays a dividend it now has less assets. But when a company pays a dividend do all the earnings estimates for that company drop? No. The company will still be expected to create the same amount of earnings. Therefore the stock price will soon return to where it was before the dividend was paid. So, since the price returns to its previous level, but you also have received the dividend, the value of your portfolio is now greater. The lower assets that you mentioned, IMHO, have little to do with how the market will value the company. The decrease will only be temporary, as the company's cash flow should replace the dividend fairly quickly.
    Feb 6, 2014. 08:38 PM | 8 Likes Like |Link to Comment
  • Dividend Growth Investing And DRIPs Work Under All Conditions [View article]
    Moat,

    Because that was not the point of this article. The point was to show that any stock, as long as it has a good yield + DGR, will do well in the long run, regardless of what happens to the price, as long as the dividends are reinvested. It was not to highlight any specific stock.

    I post my portfolio on SA, so if you would like to see my holdings you can look at them. http://seekingalpha.co...
    Jun 11, 2013. 10:24 AM | 8 Likes Like |Link to Comment
  • Super Powered Dollar-Cost Averaging [View article]
    Please take a look at this article that I published recently. http://seekingalpha.co.... I looked at a straight DCA method of buying more shares of a stock every quarter, no matter what the price is, vs waiting for the stock to be undervalued before buying additional shares. This is similar to your study, but my test covered a 20 year time period. In almost every case waiting for the stock to be undervalued before buying more performed worse then just buying new shares every quarter. You touched on the reason for this towards the end of your article. There are time periods when the stock is rising for so long that you don't get a chance to buy it at lower prices. Those lower prices never happen, so you end up either owning fewer shares, and therefore not collecting much in dividends, or you end up buying many more shares at the higher price, thereby raising your cost basis.

    I think if you are going to be a dividend growth investor then you need to be collecting and reinvesting dividends. This means getting into the market whenever you have the funds. If you leave your money on the sidelines waiting for a better price you will not be producing income. And in the long run this will hurt your returns. If you feel that MCD (for example) is over valued, then instead of waiting for it's price to dip, look for a different dividend growth stock that you feel is undervalued and buy it. This way your money will always be working for you to produce dividends.
    Dec 20, 2012. 12:30 PM | 8 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    David,

    You make a very good point with your JNJ example, but what you haven't taken into account is what happened to the dividend that was not DRIPed back into JNJ. If it was invested in a different dividend paying stock, that was a better value, and/or had a higher yield, the over all returns may have been even better.

    As long as the dividend is reinvested in some way, although not necessarily right back into the stock that paid them, you still get the long term benefits.
    Jan 27, 2015. 10:49 AM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review [View article]
    Income,

    With all due respect to them, I don't respect the analysis of any of the respected analysts.
    Jan 3, 2015. 08:45 AM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review [View article]
    Thank you Chowder. Any praise from you is like praise from on high. I appreciate it. And thank you. There wouldn't be a KISS portfolio if there wasn't a Chowder.
    Jan 2, 2015. 09:27 PM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review [View article]
    SDS,

    I'm reporting on a real time, live portfolio. It's only been in existence for two years, so that's all I can discuss. With each update the portfolio gets older and older, and the results will get more and more significant. But when you present a form of investing to people they want to know how it's doing. Right now. So that's what I'm telling them. I guarantee you if I presented my portfolio, and said "I'm not going to show my results so far because they really won't mean anything for another 10 years" I would get ridiculed, criticized, condemned, and no one would read my articles anymore.

    It may only be the first inning of a 9 inning game, but people still want to know the score.

    "IMO portfolios of most DGis outperform due mostly to value and/or quality factors,"

    I don't disagree. In fact valuation and quality are essential to my stock selection. So if I'm outperforming, whether it's based on those reasons or others, why not report it?

    Finally, I don't care what academics consider to be important. Only actual results matter. And I'm very happy with my results, even if "academics" might scoff at my methods.
    Jan 2, 2015. 09:58 AM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review [View article]
    gilbd,

    Thank you for reading my article and Happy New Year to you as well.

    Yes, I am ALL-IN, and quite happy. Almost all my stocks pays me a rising dividend. To me that is not gambling. Dividend stocks were producing great returns long before the Fed started it's current policies. I have no reason to believe the future will be any different, no matter what the Fed does. But I appreciate your opinion.

    What history are you referring to that says dividend growth investing is reckless?

    If we enter an economic world where ALL of my stocks cut their dividend then I submit that the world will be in a lot of trouble, and what is happening to my portfolio will be the least of my concerns.
    Jan 1, 2015. 08:34 PM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 4th Quarter 2014 Update And Year-End Review [View article]
    cpo,

    I am an MD. A physician. They all got it right, probably because I've said it in other articles.

    I don't believe it takes much training to run a DGI portfolio, and my KISS portfolio updates are my demonstration of that. I have developed the system by what I have learned here on SA. It also doesn't take much time. It takes me about an hour every three months to run my screen, and a few minutes to run my PAAY system to decide on my reinvestments. I have plenty of time to take care of my investments.

    And I contribute to a Roth IRA through a backdoor IRA, another gem I learned here on SA.
    Jan 1, 2015. 08:17 PM | 7 Likes Like |Link to Comment
  • A Demonstration Of How Dividend Growth Investing Outperforms [View article]
    Itscalled,

    DGI has performed well in every decade in the past. I see no reason that it should not perform well in the future as well.
    Dec 29, 2014. 08:29 PM | 7 Likes Like |Link to Comment
  • Using Yield To Find Buying Opportunities [View article]
    CDM,

    Nice comment! Thank you for it. But are you sure it was directed at my article??
    Dec 16, 2014. 07:11 PM | 7 Likes Like |Link to Comment
  • What Happened To The Dividend Growth Investor Who Didn't Cut And Run [View article]
    Buy 6 quality companies and sell one when the dividend is cut, and you'll do well.

    Buy 6 quality companies and hold them all, even after a dividend cut, and you'll do well.

    Common theme, buy quality companies and you'll do well. Is this surprising?
    Nov 5, 2014. 05:08 PM | 7 Likes Like |Link to Comment
  • What Happened To The Dividend Growth Investor Who Didn't Cut And Run [View article]
    Dale,

    Is there anything new in this article? Seems like you just said "here is what my last article showed".

    Sorry if I missed something.
    Nov 5, 2014. 09:51 AM | 7 Likes Like |Link to Comment
  • Why It Can Be Self-Destructive To Compare Yourself To The S&P 500 [View article]
    mkemac,

    I had no idea Tim was selling a book. From reading this article or any of his articles. You are way out of line.
    Jul 30, 2014. 08:43 AM | 7 Likes Like |Link to Comment
  • My K.I.S.S. Dividend Portfolio: 2nd Quarter 2014 Update [View article]
    I just received today an 8.6% raise from PAYX and a 5.8% raise from COP. So my ED12 has gone up even more. You gotta love DGI!!!
    Jul 10, 2014. 12:16 PM | 7 Likes Like |Link to Comment
COMMENTS STATS
2,566 Comments
2,517 Likes