Better In The Long Term: Dividend Superstars Or SPY? [View instapost]
David,
No problem and I appreciate you bringing to light that a lot of these are part of the S&P, that had not dawned on me (what a blatant error on my part). Anyway, my goal with this (and the reason for posting to instablog rather than as an SA article) was just to see if others could extend the research. I did not want to draw any conclusions from the very basic research I did on my own. I hope that clarifies my stance.
Time To Buy Cliffs Natural Resources: An Undervalued Dividend Stock [View article]
Snoopbob, It's hard to tell what going to happen in 2013, in my opinion. I am holding on to this stock right now because I'm in for the long run (10+ years) but I'm not too sure what it will do in the next year or two. I had initially thought the divie was safe but obviously, I was wrong. I wouldn't look at this company as a dividend investment, I'd look at it as a value investment right now.
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
While you're welcome to agree or disagree with the final conclusions I make, the numbers themselves are factual as reported by Reuters. As some of the other comments have pointed out, they did in fact payout more than 100% of earnings, though it was through a special dividend (which you can argue can be excused for tax purposes).
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
I'm glad you're reconsidering the safety of the dividend. I think dividend investors should be the ones that are most weary of this stock, at least until they prove some sort of dividend consistency.
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
You're absolutely right, my mistake. I should have been more careful, as they paid 177% of EPS, not FCF.
Reuters reports an increase from $925 M to $1.287 B which means you are correct about the 40% increase. However, consider the fact that in 2010 they paid out 102% of EPS and 146% in 2012 (according to F.A.S.T Graphs). I agree that it's nice when companies distribute excess capital to shareholders but not at the expense of future growth.
They only paid out a maximum of 20% before 2008 when the recession hit and payouts have been anything but stable since (46% in 2008, 49% in 2009, 102% in 2010, 56% in 2011, and 146% in 2012). While it's up to you to determine what this may mean, I don't believe the potential for reward here outweighs the risk, especially for a dividend investor.
I appreciate your critique and it helps me make sure that I check and double check everything I write about so please keep it coming!
Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
I'm not sure I agree with sticking only to dividend stocks. With all the people out there following the "dividend stocks only" mentality, we may have a bubble on our hands.
Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
Hey James, thanks for the comment. I should have clarified but the industry is referring to basic materials, not just iron ore. The figures were obtained from OneSource Information Services.
5 Stocks Ready To Swing Up For A Diversified Portfolio [View article]
It wouldn't make sense to dissolve a completely new type of business that's been profitable since inception despite investing as much as they have in growing their fleet, and I think Avis will see that. They may slow down expansion until they get more of a gauge at how successful this type of business can be but if it still proves profitable I expect them to speed up expansion to cities across the US. The bottom line is you're investing in ZIP being the "next big thing" in car rentals and you have to give it time to grow in to that role.
3 Undervalued Dividend Paying Financials Attractive For Earnings Growth [View article]
Better In The Long Term: Dividend Superstars Or SPY? [View instapost]
No problem and I appreciate you bringing to light that a lot of these are part of the S&P, that had not dawned on me (what a blatant error on my part). Anyway, my goal with this (and the reason for posting to instablog rather than as an SA article) was just to see if others could extend the research. I did not want to draw any conclusions from the very basic research I did on my own. I hope that clarifies my stance.
Time To Buy Cliffs Natural Resources: An Undervalued Dividend Stock [View article]
Better In The Long Term: Dividend Superstars Or SPY? [View instapost]
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
The Bearish Case For American Eagle Outfitters: An Overvalued Dividend Stock [View article]
Reuters reports an increase from $925 M to $1.287 B which means you are correct about the 40% increase. However, consider the fact that in 2010 they paid out 102% of EPS and 146% in 2012 (according to F.A.S.T Graphs). I agree that it's nice when companies distribute excess capital to shareholders but not at the expense of future growth.
They only paid out a maximum of 20% before 2008 when the recession hit and payouts have been anything but stable since (46% in 2008, 49% in 2009, 102% in 2010, 56% in 2011, and 146% in 2012). While it's up to you to determine what this may mean, I don't believe the potential for reward here outweighs the risk, especially for a dividend investor.
I appreciate your critique and it helps me make sure that I check and double check everything I write about so please keep it coming!
Time To Buy Cliffs Natural Resources: An Undervalued Dividend Stock [View article]
3 Stocks With Outstanding Ratios To Buy Now [View article]
3 Stocks With Outstanding Ratios To Buy Now [View article]
Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
Revisiting Cliffs Natural Resources: A Dividend Payer Set To Make A Comeback [View article]
5 Stocks Ready To Swing Up For A Diversified Portfolio [View article]