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  • Philip Morris: Be Cautious And Step Back  [View article]
    I agree with your assessment, it's still a nice dividend position to hold. Let's not forget the increasing debt :)
    Apr 9, 2014. 01:16 PM | Likes Like |Link to Comment
  • Pepsi: More Downside Than Upside Potential And Slowing Dividend Growth  [View article]
    Anybody want to just sell me their shares for $58? If not, I'll counter at $73?
    Mar 28, 2014. 10:20 AM | 1 Like Like |Link to Comment
  • Young Incomers Portfolio: Q1 2014 Update  [View article]
    I'm young but about 3-5 years ahead of you in investing. I remember the days of $1k purchases.... I also use dividend investing as a young investor so don't let the naysayers stop you. Actually if you bought the growth stocks they recommended you could lose quite a bit of money in GOOG or PCLN. They could be pretty overvalued now, when the growth stops, the PE will likely compress to more reasonable rates. AAPL is likely not overvalued. I wouldn't buy WAG now, it's likely pretty overvalued at this price. While you have lots of time to invest, you don't want to give up 5 years of compounding, plus it's yield is 2%. I remember when it's yield was above 3.5%. Stay out of T, it's not going to grow it's yield (typically around 2% DGR) and therefore it's price won't increase much and it does have a lot of debt. Look at the dividend growth, history, payout ratios, earnings, cash flow and balance sheet asset strenth. Companies like TGT will do well with (off memory) $20-35 in book value and a great dividend growth history. I wouldn't be surprised to see a 4% YOC on TGT in 2 years. Even just 10% a year DGR in TGT would be 4% in 3 years. Plus, the future growth potential there. I would say TGT is undervalued below 65 and I wouldn't wait for 55 again to get in. It will be worth $75-100 in the next 2-3 years as it's dividend grows. COH is another interesting name to look at right now. I own KO, HCP, MO, O and I have a limit order to buy OHI.

    My Advice, Sell T (No Growth, if you do invest in dividend stocks as a young investor, you should lean towards growth dividend stocks and ones that increase their yield by a good amount)
    Buy something else with T money (i.e. TGT, BBBY, CVX, CATO, DLR, ESV, IBM, MAT, MCD, TIS, TUP etc)
    Sell KMR (You have KMI and KMR as well over-weighted positions as pretty much your two biggest positions for ~33% of your portfolio. However, wait until KMR rebounds, it's too good of an undervalued stock and company to eat a loss on)

    Don't sell anything unless you've made money on it (likely 20-30%) and are switching to another stock that increases your yield and expected growth.

    Make sure to fully fund your ROTH IRA. Contribute to your 401k only to the match if any.
    Mar 28, 2014. 08:57 AM | Likes Like |Link to Comment
  • Why I'm Long Cisco Even After Barclays' Downgrade  [View article]
    I'm not waiting for Warren Buffet to retire.
    Mar 21, 2014. 11:21 AM | Likes Like |Link to Comment
  • Rich And Retired? It Is ALL About Capital Preservation, Folks!  [View article]
    RS - I agree with Diver Dave and it's the first thing I thought when I read your article as well.
    The original article required that the capital be preserved and grow to keep up with inflation so that the kids keep all of the initial investment. It was already known that he had enough money to stuff it away in a security deposit in cash and retire but that was not the goal. I re-read the article and you only mentioned the income that it would grow to and not the total dollars that would keep the initial capital preserved and meet with inflation. The 15 million growing with inflation over 30 plus years is also much higher than 15 million. To properly answer the scenario, you should show the amounts the 15 million would be if he passed away in x amount of years that uses an assumption for inflation. Say 1-40 more years. That would show the dollar amount that must be preserved that keeps up with inflation. Then you have to show your plan to provide the desired income that also keeps up with inflation and preserves the initial investment with inflation. You only show income levels based off $1.5M for the BTDP and $1M for the annuity but not total dollar values that meet the stated goal from the last article.
    Mar 17, 2014. 02:41 PM | Likes Like |Link to Comment
  • Thoughts On Seadrill's Dividend  [View article]
    I just did a brief financial analysis this weekend on SDRL vs RIG vs ESV for cash flow and balance sheets and ESV was by far the most financially secure company in this group and that's what I decided to invest in today as I wanted a small position in rigs since it's been strongly sold off and could be an attractive entry price. RIG's dividend has been all over the place and cancelled at times. SDRL has a nice dividend streak but with the debt, I feel more comfortable with the 6+% yield in ESV which will better the cyclical nature of these businesses with their book value and less debt laden finances.
    Mar 17, 2014. 02:14 PM | 2 Likes Like |Link to Comment
  • Rich And Retired? Don't Buy Dividend Stocks  [View article]
    You could have also received the money in inheritance, the lottery etc. and previously never had a CPA or adviser. I agree, with little details it was likely for click bait.
    Mar 13, 2014. 01:54 PM | Likes Like |Link to Comment
  • Rich And Retired? Don't Buy Dividend Stocks  [View article]
    Because your example likely doesn't keep up with inflation and may withdraw into the original principal amount, which are part of the goals. The problem with providing a recommendation is the risk/growth reward and investor goals aren't fully clear and in this situation are easy to achieve so they can occur many different ways and investment choices and vehicles.
    Mar 13, 2014. 01:34 PM | Likes Like |Link to Comment
  • Rich And Retired? Don't Buy Dividend Stocks  [View article]
    I think the details would be even more helpful even if it is just a US tax code scenario. Anyone else can modify the situation to their tax code. How much is he invested in stocks now and in what types of accounts? What positions, allocations, and % unrealized gain. The overall goal he is trying to meet would be too difficult to mess up. He only needs a 1.33% yield that keeps up with inflation which can be done in so many ways. Even a 3-4% or more yield that keeps up with inflation would be fairly do-able. The question is not how, the question is what are some of the best scenarios of allocation mix and even more importantly inheritance transfer optimization through trusts and other vehicles are key here. There's a lot of personal preference based on his goals and how much growth he is looking to get and at what level of risk.
    Mar 13, 2014. 01:22 PM | Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number?: Part 3  [View article]
    It says re-investing dividends
    Mar 13, 2014. 10:33 AM | Likes Like |Link to Comment
  • The Paradox Of Target's Recent Share Price Gain  [View article]
    They did announce an expected 20% dividend increase this year, which at the time put the forward YOC over 3.6%!! With TGT's history of high dividend growth this stock typically trades around 2.4-2.6% yield.
    Mar 12, 2014. 12:00 PM | Likes Like |Link to Comment
  • Exxon Is A Sell After Weak Guidance  [View article]
    I agree with the author. Not that Xom is bad but they had a reduced dividend growth rate last year and CVX is clearly the better buy with the much superior dividend and lower PE. I have purchased CVX around 113 and think its a great opportunity. If CVX increases the dividend 10%, the yield will be in the upper 3% while XOM will still likely be at or below 3% at current prices.
    Mar 5, 2014. 08:07 PM | 1 Like Like |Link to Comment
  • How To Think Like A Long-Term Dividend Investor  [View article]
    I would sell a call on it after it reaches a price that correlates to a 2.8-3% dividend. Possibly a price of 40-42. Otherwise, you are giving away capital appreciation opportunity and a steady name like that won't offer much premium for the calls, especially on a weekly basis but also several months out and you could miss the move up and then be forced to buy in at a higher price.
    Mar 5, 2014. 12:04 PM | Likes Like |Link to Comment
  • 7 Stocks About To Boost Dividend Payouts  [View article]
    You beat me to it! Also, to expect an increase of 5% several of the names mentioned above seems like speculation as this doesn't match the recent 1-3 year DGR's. The earnings weren't that bad for CVX or XOM and their payout ratio is low. I would expect 7-11% for CVX and 8-15% for XOM but that's also speculation but at least more in line with previous increases.
    Mar 5, 2014. 12:00 PM | Likes Like |Link to Comment
  • Target Corporation Q4 2013 Recap  [View article]
    This is one of several reasons why the stock is cheap and ultimately a great buy at this price regardless of Canada.
    Mar 5, 2014. 11:09 AM | Likes Like |Link to Comment