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BigIslandBum

BigIslandBum
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  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    I know both Fidelity and Schwab give the reinvestment discounts on certain issues. You would have to call them to see if they do for IPPLF.
    Jan 30, 2015. 03:34 PM | 1 Like Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    FWIW, had he reinvested dividends since 1988, the KO position would be somewhere around 711 million shares worth nearly $30 billion.
    Jan 30, 2015. 01:56 AM | 8 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    It is reported Buffett made his KO purchase in 1988 with over $1 billion. KO traded between $37 and $44 in 1988. $1 billion / $40 = 25 million shares. KO has split 2:1 four times since 1988 which means those 25 million shares would be 400 million shares today... which is exactly what is in the Berkshire portfolio.
    Jan 30, 2015. 01:24 AM | 8 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    Hilo,

    You are correct in regards to basis used for taxes but not so much for calculating total return.

    Say you invest $10K in company XYZ. Ten years later you sell the investment for $30K. Your annualized total return would be:

    (30K / 10K)^1/10 - 1 = 11.61%

    Whether XYZ paid a dividend and you reinvested it or pays no dividend is irrelevant to determining the performance of the investment.
    Jan 27, 2015. 02:26 PM | 1 Like Like |Link to Comment
  • Diageo At The 3% Dividend Sweet Spot [View article]
    "They cut their dividend during the recession in 2008 and 2009 (from their high in 2007). It took until 2011 for DEO to exceed its 2007 dividend."

    I don't see a cut. The decrease appears to be due to currency exchange rates, or am I missing something?
    Jan 2, 2015. 01:29 PM | Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Mike,

    "RICH:

    I appreciate your concern for my privacy, but I have to say I agree with the commenter that if you had such concerns for my privacy, you might have contacted me by private message instead of posting it here for all to see and Google searchers to find!"

    The majority of people visiting and posting on sites like SA (non-technical social sites) are not very internet savvy. This is not a denigration but simply a fact. Although Rich's post seems to have ruffled the feathers of a few, the fact is, he mentioned some very valid points about internet privacy and personal safety. Sending this information via private message would have robbed many of a valuable teachable moment. As you and many others have stated, SA is a great place to share and learn, even if we don't like the lesson.
    Dec 21, 2014. 02:18 PM | 5 Likes Like |Link to Comment
  • Dividend Growth Investors Focused On Income Earn Higher Total Returns [View article]
    You can track a total return CAGR of a portfolio with money added by using units of NAV (Net Asset Value). Here's an article with a pretty good explanation: http://bit.ly/1qYvNSF
    Dec 16, 2014. 09:49 PM | 2 Likes Like |Link to Comment
  • Myth: Dividends Don't Mean Much When You 'Lose' A Bunch Of Capital [View article]
    "Morningstar shows average annual total return for T over the past 15 years as 0.10%."

    Plug the dates in here: http://longrundata.com
    Dec 11, 2014. 09:17 PM | Likes Like |Link to Comment
  • Myth: Dividends Don't Mean Much When You 'Lose' A Bunch Of Capital [View article]
    Those that bought T at 58.88 on Nov 16, 2000 haven't done great but were bailed out by the dividend : 0.75% annualized total return
    Dec 11, 2014. 02:08 PM | Likes Like |Link to Comment
  • Valuations, Goals And The Stock Selection Process [View article]
    Expanding into articles from a strong base in the blogosphere should drive the bulk of Chowder's 2015 performance; while two fingered hunt-and-peck typing will be near term headwinds. We believe the Chowder's exemplary stewardship will continue to deliver quality experience-backed knowledge to support his wide common-sense moat.

    Great article Chowder, keep them coming!
    Dec 10, 2014. 01:03 AM | 13 Likes Like |Link to Comment
  • 3 Reasons I Prefer Dividend Growth Investing [View article]
    Thanks for another excellent article David. If DGI is stupid, I don't wanna be smart!
    Dec 3, 2014. 02:07 PM | 3 Likes Like |Link to Comment
  • Dividend Stocks Are Not In A Bubble, But Many Of Them Are Pricey [View article]
    No snow, but 71 and rainy this morning is a bit chilly for a thin blood! There is snow in the weekend forecast for the summit of Mauna Kea :)
    Nov 21, 2014. 03:24 PM | 3 Likes Like |Link to Comment
  • Dividend Stocks Are Not In A Bubble, But Many Of Them Are Pricey [View article]
    DVK,

    Thanks for the great article. It caused me to look into the Capital IQ star ratings and I discovered that it is a 12 month total return performance expectation rating and not so much a valuation metric. Capital IQ also has a fair value ranking of 1-5 (1 is overvalued, 5 is undervalued). Could you please elaborate on your understanding of these 2 metrics and why you choose to use the star rating for valuation?

    Aloha,
    BIB
    Nov 21, 2014. 02:05 PM | 3 Likes Like |Link to Comment
  • The Problem With 'Just Exchanging Your Shares' [View article]
    "You can create your own dividend though by selling the necessary number of shares. The remaining shares would be worth the same as the shares in the dividend paying company, if everything else about the companies is the same, except for the dividend payments."

    Yes, and if we lived in a vacuum, I'd open an oxygen concession.
    Nov 13, 2014. 04:10 PM | 2 Likes Like |Link to Comment
  • The Problem With 'Just Exchanging Your Shares' [View article]
    "Interesting read, but did you consider taxes on dividends as well?"

    During accumulation, my dividend taxes are paid from my job income and lower my investable income. If I was using a "growth" strategy, essentially no taxes until retirement/conversion, then the taxes would need to come out of the portfolio. The "growth" portfolio should have a larger basis (the money not sent to pay taxes on dividends) but has to give some portion of that back upon liquidation. Given the variables that go into taxes, it could be argued that it's pretty much a wash.
    Nov 13, 2014. 03:48 PM | 3 Likes Like |Link to Comment
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