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The Part-time Investor

 
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  • My KISS Dividend Portfolio: 1st Quarter 2014 Update [View article]
    tex,

    Thanks for reading and thanks for the question. I don't have any specific maximum number in mind. I figure the more positions I have the less likely any particular dividend cut will hurt me. However, in reality I can't see holding more than 100 stocks. Even 75, if I ever get there, will probably seem too much.
    Apr 19, 2014. 10:22 PM | 4 Likes Like |Link to Comment
  • My KISS Dividend Portfolio: 1st Quarter 2014 Update [View article]
    Rob,

    Thank you for reading my article and thanks for your kind comment. I'm glad you enjoyed it.

    I'm a Mets fan, so I love anybody who beats the Yankees. So...GO SOX!!!!
    Apr 15, 2014. 10:01 AM | 4 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Wit,

    I think you're missing my point. Larry says that his academic articles show that dividends have no bearing on stock returns. And yet here is an example, with Costco, of the simple announcement of a special dividend causing the stock to increase by 6% in a single day. Did the book value go up? No. Did the earnings go up? No. In fact it's debt went up, so according to Larry it should have been worth less, and it's stock price should have fallen. It shows that PEOPLE determine the stock price, not academic papers or models.
    Mar 18, 2014. 07:37 PM | 4 Likes Like |Link to Comment
  • Warren Buffett Is Wrong About Dividends [View article]
    David,

    Thank you for your comment.

    Transaction fees certainly must be a consideration for most people. But for this article, when you're selling a single share of stock for anywhere from $8200 to $165,000, the $6-10 commission is not really a factor.

    I agree with your conclusion concerning dividends, but the idea that Buffett is an idiot-savant is ridiculous.
    Feb 6, 2014. 08:24 PM | 4 Likes Like |Link to Comment
  • Warren Buffett Is Wrong About Dividends [View article]
    Greg,

    Not many of us can do that. I would prefer to simply buy great companies and collect the dividends. And then I would never have to worry about being forced to sell any of those great companies to fund my retirement.
    Feb 6, 2014. 03:37 PM | 4 Likes Like |Link to Comment
  • Warren Buffett Is Wrong About Dividends [View article]
    Kurtis,

    Thank you for your comments. You make some very good points. In response....

    1 and 2. It is my understanding that Buffett has always had more of a problem finding suitable investments, rather than having money to invest in things he wanted to invest in. I agree that BRK should not pay a dividend if Buffett can find better ways to allocate that money. But I don't ever remember hearing that there were companies he wished he could have bought, but BRK was short on cash. It seems to me that BRK has always been sitting on quite a bit of cash. I believe at least some of this could have been paid out as a dividend without hurting BRK's growth prospects.

    3. But there are tax consequences to selling shares too. Anybody selling shares of BRK that they have held for 24 years is going to have a very large capital gain. The tax consequence will depend on each individual's circumstances, but in either case they would pay dividends.
    Feb 6, 2014. 03:25 PM | 4 Likes Like |Link to Comment
  • Dividend Growth Investing: Myths 16-20 [View article]
    OK. So it was their fault, right? Nothing wrong with me? lol
    Feb 2, 2014. 10:34 AM | 4 Likes Like |Link to Comment
  • Stocks For 2014: Fairly Valued Dividend Growth Stocks With An Emphasis On Dividends - Part 4 [View article]
    And yet during that time of a relative flat stock price the dividend kept increasing year after year, and the dividend investor was probably quite happy with his/her increasing income.
    Feb 2, 2014. 10:26 AM | 4 Likes Like |Link to Comment
  • My KISS Portfolio: 4th Quarter Update And Year End Review [View article]
    cf,

    A while back I took the total value of my portfolio and divided it by the number of stocks I own. It came out to about $13,000. So I made that the value of a "full position". So when I buy a new stock that is how much I put into it. So basically, yes, the $13,000 is on a cost basis. Many of my stocks have increased in value enough that they are worth more than this, but I don't think that means I need to increase my "full position" value up to match them. If I set my "full position" value to be equal to my largest stock holding then I would only have 1 full position and 54 that need to catch up. At some point in the future I will re-evaluate the value for a full position, but I'm not sure exactly when that will be.

    I rebalance quarterly. And by that I mean I re-invest the dividends I have collected, and any pension contributions I have received, every three months into my undervalued stocks. I do not sell partial positions in the stocks that have significantly increased in price, or add to the stocks that have dropped, just to bring all my stocks back into balance. If any one of my stocks gets to be worth more than twice as much as any other then I may sell some of it to bring it back into line, but I'm not going to be crazy about it. I'm thinking more along the lines right now of letting my winners run.

    I hope you enjoy my PAAY article.
    Jan 9, 2014. 09:56 AM | 4 Likes Like |Link to Comment
  • Value Can Still Be Found In This Market: 5 Examples [View article]
    Mike,

    I too was disappointed with my "raise" this year from AFL. But we'll see what they do next year. With a 31 year history of increasing their dividend I'll give them a little slack.

    And their average yield over the past 5 years has been 2.40%. So they're not too far off their average.
    Jan 4, 2014. 10:42 AM | 4 Likes Like |Link to Comment
  • Value Can Still Be Found In This Market: 5 Examples [View article]
    Bob,

    The analysts told me this past year to stay away from "Defense" stocks, like Lockheed Martin, due to all the cuts that were going to happen to the defense budget. But LMT is up 55% since I bought it early in 2013. With all due respect, I could not care less what the analysts say.

    If DE and LLL continue to increase their dividends then I will continue to hold them. And since they both have payout ratios in the low 20s they have plenty of room to grow the dividend, even if their earnings decrease some in 2014. But if they do not give me a dividend increase then I will sell them. SImple as that.
    Jan 4, 2014. 10:37 AM | 4 Likes Like |Link to Comment
  • Dividend Growth Investing: A Better Way To Carry Out The 4% Rule [View article]
    Thank you David. I think it shows, once again, how important dividend reinvestment is.
    Dec 3, 2013. 03:34 PM | 4 Likes Like |Link to Comment
  • Marrying The 4% Rule With Dividend Growth Investing [View article]
    AT,

    You certainly have said many times that you love the DGI strategy. But you also seem to say, or at least imply, that a strategy which involves selling assets to come up with the 4% is equivalent to DGI. That they both work just as well. But they are not equivalent and they do not work just as well. I hope to have an article published today to show this. I'll post the link here if SA accepts it.
    Dec 2, 2013. 10:17 AM | 4 Likes Like |Link to Comment
  • Marrying The 4% Rule With Dividend Growth Investing [View article]
    The risk of any one stock cutting its dividend is certainly there. But if you have a well developed DGI portfolio, with 30-50 stocks, or more, then the chance of the dividends of your entire portfolio falling is extremely low.
    Dec 2, 2013. 08:31 AM | 4 Likes Like |Link to Comment
  • Marrying The 4% Rule With Dividend Growth Investing [View article]
    AT,

    I know perfectly well what alpha is all about. Thanks for the condescending attitude.

    I have no idea what your comment was addressing. When I said that the risk of falling prices makes all the difference, I was referring to the difference between using dividends for your 4% vs selling assets. If you are using your dividends then the price of your assets is immaterial to your plans. But if you have to sell your assets when prices are down than that affect you immensely. So between those two philosophies, yes, the risk of falling prices makes all the difference.
    Dec 1, 2013. 08:53 PM | 4 Likes Like |Link to Comment
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