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Big Island Bum

Big Island Bum
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  • Why Kraft Is Not A Good Investment Candidate [View article]
    Blacktop,

    If you own 100 Kraft, after the merger, you will own 100 Kraft Heinz (the combined company) and receive the $16.50 dividend.
    Mar 30, 2015. 10:39 PM | Likes Like |Link to Comment
  • 'Krafting' Success For My Dividend Growth Portfolio [View article]
    " I am ok with food chain, being that we are at the top of it."

    Tiger sharks would disagree ;)
    Mar 27, 2015. 02:07 PM | 1 Like Like |Link to Comment
  • 'Krafting' Success For My Dividend Growth Portfolio [View article]
    "Nobody would combine mac & cheese with ketchup!"

    What I find quite tasty is mac & cheese with Heinz 57 sauce. Sounds weird, but don't judge until you try it!
    Mar 26, 2015. 11:31 AM | 1 Like Like |Link to Comment
  • AT&T: Total Income Growth Scenario Analysis [View article]
    Cherry picking is cherry picking. Best of luck with your investments, if you have any.
    Mar 25, 2015. 12:23 AM | 4 Likes Like |Link to Comment
  • The Bear Claws My Dividend Growth Portfolio - Will I Cut And Run? [View article]
    Mike,

    "... as this price represents many, many years of dividend payments."

    I don't see it. Say they pay a $10 premium to today's closing price, around $71. That $10 equates to about 4.5 years of dividends assuming a 4% annual increase. Giving up 20,30 or more years of dividends for a little over 4 doesn't seem like a good deal to me. I'll gladly buy all your $50 bills for $10 a piece!
    Mar 25, 2015. 12:19 AM | 1 Like Like |Link to Comment
  • AT&T: Total Income Growth Scenario Analysis [View article]
    It doesn't matter what the investment vehicle is, it's a combination of an investment and a time period. You're cherry picking both. For example, your same SPY/VFINX/FUSEX underperformed T since 2005. So you apparently "have some convincing arguments to show that the things will drastically change in the future."
    Mar 25, 2015. 12:02 AM | 3 Likes Like |Link to Comment
  • The Bear Claws My Dividend Growth Portfolio - Will I Cut And Run? [View article]
    Chowder,

    You get cash, usually a premium and that's it. I hope this doesn't happen (again). To me, the premiums are insufficient to cover the loss of long term income. The Heinz premium equated to about 4 years of dividends (after taxes), pretty cheap imho.
    Mar 24, 2015. 08:47 PM | 1 Like Like |Link to Comment
  • AT&T: Total Income Growth Scenario Analysis [View article]
    Selective use of evidence to support your argument is cherry picking. Fits this context like a glove.
    Mar 24, 2015. 06:44 PM | 2 Likes Like |Link to Comment
  • AT&T: Total Income Growth Scenario Analysis [View article]
    And APPL would have been better than SPY/VFINX/FUSEX over the last 25 years. Unless you have a time machine, your nearly constant cherry picking is meaningless.
    Mar 24, 2015. 03:08 PM | 3 Likes Like |Link to Comment
  • The Chowder Rule [View instapost]
    My Pick-Six is similar:

    KO, XOM, CVX, EMR, T and EPD

    A few more days like today and UNP would be on the list.
    Mar 23, 2015. 03:24 PM | Likes Like |Link to Comment
  • Why AT&T's Total Income Growth Is Important [View article]
    User 1888646,

    The differing payout ratios are due to some looking backward and some looking forward.

    AT&T reported 1.19 EPS for 2014 and paid 1.85 in dividends for a payout ratio of 155%. AT&T is estimated to make around 2.50 in 2015 and pay 1.88 in dividends for a payout ratio of 75%.
    Mar 22, 2015. 11:52 PM | Likes Like |Link to Comment
  • Mr. Valuation's Best Ideas For Retirement And Dividend Growth Portfolios: Emerson Electric [View article]
    Here's a source for EMR dividend history: http://bit.ly/1DIuexq

    I calculate: (.47/.335)^(1/5)-1 = 7%
    Mar 21, 2015. 12:33 PM | 1 Like Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    scubastevo80,

    Just in case you needed another variable to consider, EPD offers a 5% discount on distribution reinvestment.
    Mar 19, 2015. 04:34 PM | Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    AuCoaster,

    "But, that value includes the retained earnings. If the company keeps the dividend instead of paying it, the company will be worth more, and be better able to grow."

    The company will have more book value but as we all know, book value is only one of many variables that go into the price of a stock. In my opinion, irrational human behavior effects prices with more magnitude and frequency than book value.

    Whether the company will "be better able to grow" is based on the assumption that every CEO always allocates capital efficiently. There is only one Berkshire Hathaway for a reason.

    This oft-repeated academic argument only holds up in a vacuum festooned with stickers stating "all else being equal", but in reality, it never is.
    Mar 17, 2015. 09:02 PM | 7 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    sbally4,

    I know Schwab and I believe Fidelity will pass along the 5% discount. I had to call Schwab to get the discount setup for my EPD shares.
    Mar 14, 2015. 02:26 PM | Likes Like |Link to Comment
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