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Dividend Investment Myths [view article]
Excellent article ReplyDividend Investment Myths [view article]
agree with captain ccs: the point (a point) of buying dividend stocks is to take advantage of long term compounding. A ten year period would be more persuasive. ReplyDividend Investment Myths [view article]
Thanks captainccs for your comments. You are absolutely right about the fact that I'm data mining. However, as with any stock purchase you face the potential for downside risk when you buy. For this reason, I only data mine the stocks that are part of Mergent's Dividend Achiever Index (approximately 350 companies) so that I don't experience buyer's remorse once I'm in a stock. If the price falls after the purchase, I can easily "justify" my position with the mantra of "buy and hold." In the meantime, I'll be compensated for my wait.As you pointed out, I selectively examine only those that pay dividends. Of course, in reality I only chose those that are current and former Dividend Achievers. This means that I forego the opportunity to get the highest yields and the stellar performing non-dividend paying stocks. However, I am assured by the fact that management has an interest in seeing that the shareholders are compensated for their wait for the "promises" to deliver to materialize.
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Dividend Investment Myths [view article]
Intentional or not, what you listed as yearly performance appears to be performance off a recent 52-week low, two very different things. ReplyDividend Investment Myths [view article]
Buy dividend payers and avoid financials! ReplyDividend Investment Myths [view article]
Using the growth since the last 52 week low as an indicator of long term grow is just pure nonsense. All it shows is that these companies do bounce back and that is just reversion to the mean working. The only other path would have been to zero. This is an example of data mining,Also note these two statements:
>> I always focus on those Dividend Achievers that are within 5% of their 1-year low
>> When considering stocks to buy, avoid those that are in industries which are at or near a new high.
Dividends are used to select a universe of stocks but nowhere is there a comparison between this universe and a universe of non divided paying stocks. All the above says is buy low, sell higher.
Of the above list I hold FDO, the 5th or 6th highest bouncer-back on the list at 70.45%. I bought it three years ago when I thought it was at a low. Current Average Growth Rate (CAGR), a dismal 4.4%. Dividends did little to support this stock. Reply
Diving Into the Water ETF [view article]
GE is definitely a broadly diversified company. It just takes a fully loaded freight train to move the stock. ReplyWater Investments: Staying on Land - For Now [view article]
Richard put his finger on the future for water:the need for progressive breakthroughs in the development of membrane technology in the desalinization process + running those plants on alternative energy. There are several companies, like Consolidated Water, that have already shown this to be a magnificent opportunity! ReplyM.
Diving Into the Water ETF [view article]
Have you looked at PICO ?- this is primarily a southwest co. that develops and markets warter rights and currently building a water pieline into Reno - i have owned it for a couple of years and it has done well ReplyWater Investments: Staying on Land - For Now [view article]
Stuart,Good points about water shortage issues.
The World Bank warns of "catastrophic consequences" if water use and supply are not brought into balance.
They say that worldwide we are "mining water" by pumping more water out of the ground than is being replenished -- and that once our pumping depletes the aquifers our pumping will be limited to the recharge rate (no statement about ability of desalinization to make up the difference, I suspect it can't keep up).
The impact of a future physical limits reducing water pumping rates would have direct impact on food production levels and related social unrest.
Apparently, even fossil aquifers (water trapped in geologic formations for which there is no replenishment) are being pumped in some cases.
Rivers are being diverted upstream to various uses, which causes conflicts with downstream users. Water wars are local now, but could enlarge to be between countries in the future.
About 70% of world water use is for irrigation, about 20% for industry and about 10% for residential use.
The world needs more efficient methods (such as drip irrigation instead of surface water irrigation, and recycling of industrial waste water for industrial reuse). The world also needs more desalinization capabilities.
As water shortages become more evident, there should be an increasing number of investment opportunities to benefit financially from those companies that will help solve the problem.
Utilities may not be the best option, but those technology companies that create solutions for greater water efficiency or the creation of more water supply from the oceans may be good opportunities.
Richard
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Diving Into the Water ETF [view article]
I forgot to mention Canadian water companies that have also been bought out (by GE), but a number remain. I own LGV which used to be GLAGF. Also, look in medical instruments field for companies that manufacture devices that measure water purity. I know it sounds like a wide net, but water is a wide net and touches strongly on food companies as well as agri companies. ReplyDiving Into the Water ETF [view article]
Many of the stocks analyzed have had their run-ups. Fortunately for me, I was on water years ago and bought CWCO (desalinization), SBS (Brazilian water utility), CBI (water transport and containers), Valmont (agricultural equipment) and both Itron and Badger Meter after seeing a tiny article in WSJ about landlords thinking of installing water meters alongside gas and electricity measurement. For pipelines see Ameron. But in the last 4 years, literally dozens of water related companies have been bought out at premiums by GE (Ionics and a few others) and Teledyne (it purchased a water meter company). American Water Works has been an incredible investment. I bought it under 20; it was bought out by the German behemoth RWE at $44. When that purchase was announced, arbitragers made a fortune because the gap remained at 39 and 40 while the deal cleared AND continued to pay dividends during the wait. I bought RWE after its AWK purchase and rode it to $117. Now AWK is back as an IPO, with some early financial issues, but essentially the same company that fetched $44 a few years ago. Similarly, Nalco was bought out at a premium and subsequently returned as an IPO.While the criticism of individual companies in PHO is quite valid, in many cases it is because the ETF (and much of the public) is jumping on water very late. Mario Gabelli had been preaching water for years!
As for other water related companies: check many of the basic chemical companies for water purifying chemicals. Check some of the agri equipment companies. Pipe companies (plastic and metal)have been bought out but others remain. There are companies that own water rights. Check out CADIZ and PICO. And as one of the other comments suggested, check on global water companies, from Austria's BTW to Japan's Kurita, France's Suez, and companies in Italy, Finland, and elsewhere. But still here in USA: Mueller Water, Chart Industries (though it has had a run-up) and various fluid flow control/measurement companies.
Unfortunately, by the time CNBC and others get around to a topic, it's too late to make the initial big money. I know casually one of the hosts on CNBC and have bugged him for years about not reporting on water. He blew me off each time, finally telling me that when water really becomes scarce, the govt. will take it over and no one will make money off water! Sure, just like with oil and gas!
So do research. There are a number of private companies that are good with water. Keep an eye out for IPOs. But if Immelt would make GE Water a stand alone company, it would be better than VE because it has gobbled up every water related company it could over the last few years. Basin Water has been a notable failure in water, due to financial shennigans and I have not made any money off Euro Tech Environmental, but there are still possibilities out there even if the early money (as with CCC and others in PHO) has been made. Tom Reply
Diving Into the Water ETF [view article]
Obviously, you haven't tried to hire engineers or scientist lately. I like PHO for the human resource angle. Tetra Tech is the major engineering group, so is URS. Aqua American and Southwest Water and Watts Water are long on experienced people. When you look at the demographics of many urban utility departments, there will be a mass exodus and these folks will step in and keep the the taps flowing. I own it unbder a Roth umbrella for the long-wave aspect. ReplyWater Investments: Staying on Land - For Now [view article]
Excellent article which I'm glad to see as I've been consideringinvesting in this sector. As with author, I'll stay on sidelines for now.
Thanks. Reply
Diving Into the Water ETF [view article]
Timely and interesting article in Business Week by S&P Equity Research on desalination:www.businessweek.com/i...?
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