Dividend Growth Investor

http://www.dividendgrowthinvestor.com
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123 Comments

    • Wed Jun 18th 15:58 PM | Rating: 0 0
      Commented on:
      The 20 Highest of the High-Yield Dividend Aristocrats
      Actually my timing for posting this couldn't have been better - FITB just cut their dividends today.
      I am still wondering whether BAC will cut or not. Most investors are told to buy when everyone else is selling. The $1mln question is to buy financials or not to buy them.
      In early 2000 Phillip Morris ( Altria) was yielding higher than average yields at a time when the tobacco industry was under tremendous scruitiny. Fast forward 8 years from that point and MO has performed pretty well. I haven't bought any financials yet ( other than the ones which I have disclosed), and the reason for that is because the payout ratios are pretty high for me.
      I wonder if 8 years from now I would be kicking myself for not purchasing all of the 20 stocks listed above or not..
      View article »
    • Wed Jun 18th 11:25 AM | Rating: 0 0
      Commented on:
      Target: Consistent Dividend Growth History
      I simply cannot get comfortable enough in buying low yield stocks not matter what their dividend growth rate is. Thus I think WMT is a better pick that WAG or TGT
      View article »
    • Sat Jun 14th 14:35 PM | Rating: 0 0
      Commented on:
      Dividend Analysis: Target
      BlueOkie,

      You are correct that my entry price for TGT is much lower than what the stock is trading at. With the current dividend of 64 cents/share, TGT would have to trade at $32 in order for the stock to yield 2%.
      Hope that helps.
      View article »
    • Sat Jun 14th 14:30 PM | Rating: 0 0
      Commented on:
      The 20 Highest Yielding Dividend Aristocrats
      Stewie,

      It seems to me like you are still overanalysing what I have said and putting words in my mouth without fully understanding what I am talking about. I don't think I have mislead any investors in anything. I simply showed a list of stocks. What you are asking me to do, is put 1000 disclaimers covering 1000's of possible scenarios for a post that has less than 500 words. I think that at the end of the day, you need to have a little bit of common sense when interpreting information that you read.

      Example - I never mentioned that I owned KEY or FITB. I also never specifically recommended buying any of the stocks in the list.
      Yet I was asked how this worked out for me ( pretty well actually). I did give Stewie partial credit for finding out that TRADING bonds could give someone capital gains/losses. Yet he still didn't understand that I am referring to long-term investing, as opposed to short-term trading. etc..

      In your rebuttal on capital gains on bonds, you mentioned ABS and MBS. I am not going however to falsely assume that you own them, simply because you mentioned them. Or should I?
      How have those investments performed for you Stewie? I hope you haven't lost any money on them.

      By the way Stewie, I am willing to reimburse you for the losses that you have suffered in the stocks in the list above from the profits that I earned from publishing this article. Please send me scanned copies with your actual trading transactions history in the abovementioned stocks from June 12, 2008. If they are also legally verified, I would be even happier. My e-mail is dividendgrowthinvestor at gmail dot com.

      This is the last message that I am going to write on this particular message board. Unfortunately It is not cost effective for me to answer to every single confrontation. I realize that different people are going to have different opinions on everything. If you have 10 investors, you will definitely have more than 10 likely investment predictions. That's what makes the market tick on daily basis.

      Good Luck to everyone!

      D.S.

      PS I always found ihttp://investopedia.com helpful in finding what different abreviations such as DPR ( Dividend Payout Ratio) mean.
      View article »
    • Fri Jun 13th 09:00 AM | Rating: 0 0
      Commented on:
      The 20 Highest Yielding Dividend Aristocrats
      Actually you are partially correct that bonds/fixed income could provide you with capital gains. The size of the bond market versus the stock market is irrelevant. However, longer-term passive bond investors ( people holding till maturity) do not really get much in capital gains.

      View article »
    • Fri Jun 13th 08:53 AM | Rating: 0 0
      Commented on:
      The 20 Highest Yielding Dividend Aristocrats
      Stewie,

      I know what I am talking about. Good luck in your investments. I hope that you are better at investing than reading or spelling.

      PS. I check my disclosure.
      View article »
    • Thu Jun 12th 15:19 PM | Rating: 0 0
      Commented on:
      The 20 Highest Yielding Dividend Aristocrats
      I want to ask all the critics above: Which part of "This portfolio is just for illustrative purposes only, however" didn't you understand?

      It's really easy to criticise and to put words in one's mouth especially when you are anonymous.

      I challenge you ( Stewie and MajorG) to publish any article using your real name on the internet or in a newspaper. Something constructive and brilliant.

      By the way Stewie, try telling your clients that you are going to invest in bonds for the capital gains, and they will look at you as if you are coming from the woords.

      Oh yeah MajorG, i didn't know that CPA's ONLY check tax returns? In addition to challenging you to write an article on Seeking Alpha I also challenge you in finding a third grader who will write any article on stock investing on his/her own.

      I do realize that this list is not a comprehensive list. It wasn't intended to be. It's just a starting point.
      Investing is not a black and white process. What has worked in the past might not work in the future. What might work for me, might not work for everybody else. But if you pick enough bits and pieces, then you can construct a pretty good picture and then make your own decision.

      If you have read any of my previous articles, you'd have seen that I don't like purchasing stocks with DPR which is too much above 50%.

      View article »
    • Wed Jun 11th 15:51 PM | Rating: 0 0
      Commented on:
      Abbott Labs: Dividend Analysis
      Comment2,

      I have already done my homework - the above short description of the company is the same as the first several lines on Yahoo Finance. Please do not criticize without doing the homework yourself :-)

      Below you could find the whole description of the "Vascular Division" :

      The Vascular Products segment provides a line of coronary, endovascular, and vessel closure devices for the treatment of vascular diseases. It also offers blood glucose monitoring meters, test strips, data management software, and accessories for people with diabetes. Abbott has a 50% owned joint venture with TAP Pharmaceutical Products, Inc.; a strategic alliance with Celera Group; and a collaboration with Genentech, Inc. to develop anti-cancer compounds. The company was founded in 1888 and is based in Abbott Park, Illinois.

      View article »
    • Tue Jun 10th 11:09 AM | Rating: 0 0
      Commented on:
      Abbott Labs: Dividend Analysis
      SivBum,

      There is indeed a long way to go before it reaches $46. What you could do is sell naked puts at $45 strike. If you wanted to purchase 100 shares of ABT, sell one contract for example. Picking the expiration month could be tricky, however. That way you are basically paid for you "limit" order.
      View article »
    • Thu Jun 5th 08:49 AM | Rating: 0 0
      Commented on:
      Safety in Dividends?
      This is a great article from a contrarian perspective. I would love the dividend companies to fall even further down ( 20% would be great). Why? Because with dividend companies, even when there's a disconnect between fundamentals and market price, you can get a good stock at a bargain price that will keep throwing dividend payments in your way, no matter if the market goes up 10% this year or falls by 5%.
      In other words if a stock is showing good eps growth, good dps growth, and has a not too high DPR and P/E ratios, I would buy it. What if the price fell by 20%? I would keep it as long as the dividend payment is sustainable and growing.
      View article »
    • Sat May 31st 11:17 AM | Rating: 0 0
      Commented on:
      When to Sell: Coca-Cola
      ing_rivera,

      I don't know how you are calculating the results, but if you check the adjusted returns for KO and MO you will see that MO actually produced positive total return results for the period, although still lower than KO.

      Ticker 1/30/2007 1/30/2008 5/30/2008 % Return
      MO 19.25 23.35 22.26 15.64%

      KO 46.32 57.4 57.26 23.62%

      It's always easier to critisize and be rude to people, when you are hiding behind an alias. Trust me, it is tough to make calls on the market, when you are using your real name.

      Best Regards,

      Dividend Growth Investor
      View article »
    • Fri May 30th 11:50 AM | Rating: 0 0
      Commented on:
      Dividend Analysis: Consolidated Edison
      Mr Wheat,

      I didn't account for taxes or commissions. Taxes will vary from person to person so then the issue of why I chose higher or lower tax rates would arise :-). I do agree with Mr barnburner, that you could invest in stocks in a tax deferred account and let it compound tax free.

      However, if you are in the business of living off of your investments ( which i hope I will be one day), you have the choice of either selling portions of your stock or getting a nice dividend check. When you sell the stock you pay a commission, you also pay capital gains taxes ( which could be higher than the dividend income taxes). In addition to that stock prices fluctuate greatly and more than the dividend rates.
      With dividends on the other hand, you do have more stability in the payments over common stock prices. You do pay taxes, based off of your tax bracket, which currently are lower than cap gains. You don't have to sell any stock and you don't have to pay commissions to do that.
      Capital gains could turn into capital losses if you don't sell your stock at a good time. Dividends,on the other hand are yours to keep. You could reinvest them, spend them, use them as wallpaper :-)
      In fact reinvested dividends have accounted for the majority of returns of long-term investors.
      View article »
    • Thu May 29th 14:13 PM | Rating: 0 0
      Commented on:
      iShares Austria: Exposure to Rapid Growth in Post-Communist Europe
      The so called " New Europe" has been a great investment opportunity. If the US housing crisis does spill over, however, these markets will suffer tremendously.. I have been watching the Bulgarian Market Index fall from 2,000 in october 2007 to 1,100 currently..
      View article »
    • Wed May 28th 19:27 PM | Rating: 0 0
      Commented on:
      What I Like About Dividend Achievers
      Outperforming the S&P 500 with a passive investing strategy is not what I am really looking for. This list only provides a starting point for further research into dividend stocks. The past 10 years is just a sample, from which I draw conclusions. If you own a somewhat diversifed portfolio with more than 30 stocks in it, you are more likely to perform close to the stock market averages over a large periods of time ( 10+ years).
      If you have checked my posts before, you might have noticed that I don't like every dividend stock simply because it is a dividend grower. I am looking for companies that could afford to increase their dividend payments to shareholders for as long as possible. If I could achieve $1 in income for 20 years from a $1 investment now, I would be a happy person :-)
      View article »
    • Wed May 28th 19:07 PM | Rating: 0 0
      Commented on:
      Realty Income Offers a Stable 7.4% Yield
      When I first stumbled upon the ordinary shares of Realty Income, I was pretty harsh on the company:

      dividendgrowth.blogspo...

      After some further research however, I found that this is a pretty decent company and I added it to my portfolio. I wouldn't own the preffereds, because the dividend won't increase. I try focusing on common stocks, which have more risk than bonds, but also offer better returns.
      View article »
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