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  • Prospect Capital And Required Returns [View article]
    I bought PSEC for one reason only. To take the dividends in FRIP (Scottrade) and, every month, use that money to buy another (high quality) stock. Been at it for almost a year. Counting dividends, thank G-d, I'm around break even. Meanwhile, the AVA MO GE O purchases, (with PSEC dividends), are chugging along.

    Obviously PSEC can drop to $8, 7, 6 etc, but until then, the strategy continues.
    Nov 21, 2014. 01:38 PM | 1 Like Like |Link to Comment
  • Lockheed Martin Changes Rules, So This Dividend Growth Investor Drops DRiP [View article]

    <<Most people who use the purchase option within DRiPs are buying relatively small amounts. If one has to pay $2.50 every time one invests $100 -- and one will when these new terms take effect -- that is a 2.5% service charge. >>

    If you buy $250 worth per transaction, that's a 1% charge, and you're charged only once. As opposed to mutual funds where you get fee'd to death every year. Not unlike some posters here who won't buy a stock until they've accumulated ~$1000 in order not to pay more than 1%.

    My decision, for now, is to invest $250 p/m, and take the dividends in cash.

    Just as an illustration: I've been dripping with MO since '03/'04. That turned into KRFT PM and MDLZ. I then monthly invested and dripped with said 3, for a while. Now I just monthly invest into KRFT (completely free NOW, as of 04/14, that was a nice surprise), take the MDLZ dividends in cash, and reinvest MO and PM.

    MO PM MDLZ (and KRFT) all charge(d) fees for investing and dripping. I hated it. But it was the only way to accrue a meaningful sized position. When I looked back at all the investments made over the years, I realized it would take about 1 1/2 dividend payments in cash from MO or PM to recoup all my expenses.

    To some people that's annoying enough not to do it, for me, though, it is/was well worth it. I don't "intend" to ever sell any of my DRIPs in CS or WF accounts. When the time comes, I will just take the dividends in cash.

    O KRFT GIS XOM COP PNY are still completely free. SO & GE charge for investing but not for re-investing. Reverse for VZ.
    Nov 16, 2014. 08:30 PM | 2 Likes Like |Link to Comment
  • Lockheed Martin Changes Rules, So This Dividend Growth Investor Drops DRiP [View article]

    I look at this a little differently.

    I've been "dripping" (buying monthly and re-investing) via Computershare (CS) and Wells Fargo (WF) for over 15 years. [Many of the stocks were originally done through various other firms who were later bought by CS or WF.]

    I started with IBM then MO then GE (all charged fees) then BAC (no fees.) The amount of shares thru monthly purchases and div reinvesting I accumulated, would not have been possible had I waited to accrue x amount of money in a brokerage -- and then buy. It was on cruise control. Every month, an affordable amount was purchased, regardless of what I was doing with my life at that time.

    The way I see it, once one eventually decides to take the dividends in cash, (after hopefully buying and accumulating $1000s worth of dividend income) by the first or second payment all their fees will have been recouped, and they have a large stream of income.

    The ability to buy small and steady amounts of shares is (mostly) only possible thru a transfer agent.

    Since LMT now sort of forced my hand, and it is somewhat over valued, I chose to stop the DRiP and take the dividends in cash. The thing I like about CS and WF is: they send the dividends electronically straight into your checking account. Fee free.
    Nov 16, 2014. 12:42 PM | 1 Like Like |Link to Comment
  • The New Nifty Fifty, Part 3: Dividend Growth Ideas And Valuations [View article]

    <<(Shortly after sending him this list I realized I had left off Altria (MO) and Philip Morris Int'l (PM)...which I would have included (if I hadn't had a "brain freeze") and I'm not sure which two other companies I would have "killed" is what it is...;) >>

    Would MO and PM have had an asterisk? ;)

    They are, by far, my two biggest holdings.
    Nov 1, 2014. 11:06 PM | 1 Like Like |Link to Comment
  • Altria Is Priced Like A Riskless Stock [View article]
    For decades it's been priced as a risky stock. Those risks never materialized. Currently it's going through one of its rare "overvalued" moments. I'm sure there will be some negative news to bring it back to historical levels.

    For the past 60 years MO has practically been one big buying opportunity. Today is an exception.
    Oct 29, 2014. 08:01 AM | 7 Likes Like |Link to Comment
  • When Opportunity Knocks, It's Wise To Open The Door - Low Valuation Trumps Growth [View article]

    Great comment.

    Those same words can be said about many, many stocks which are hammered and mass berated here on SA. Mostly by people who hardly know what they're talking about.

    I say the same thing about the current oil sector "crisis." Everyone wants to pick on one or two stocks, while the entire industry, including giants like COP XOM CVX are getting slammed.

    I'm selling nothing here, including/especially IBM, and will watch this play out. By 2025 it should all be ok.

    These same posters will be buying IBM at 350 and SDRL at 75.
    Oct 27, 2014. 06:53 PM | 2 Likes Like |Link to Comment
  • My Dividend Growth Investing Epiphany [View article]

    <<And DGI sounded like a heck of a lot easier way than being landlords in our 60s and 70s! We got out of the mutual funds and began investing in individual stocks and have just recently exceeded our $1,000/mo goal.>>

    That is GREAT. Congrats!

    I did something similar. I have one (relatively new) monthly expense which surfaced. Didn't want it to come out of petty cash. So I opened a separate account, scrimped and saved for three years -- took that saved money and slowly invested it into DG stocks. Very recently the goal was reached and now thank G-d the dividends foot the bill. Any excess money is (will be) reinvested.

    If you make specific goals rather than just a hodgepodge of random investments; it's easier and more likely to reach the intended objective.
    Oct 24, 2014. 01:33 PM | 3 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 2: Dividend Growth Investing's Greatest Hits [View article]

    Nice follow up.

    Miz, I'm not really looking to add new stocks, but you have me really intrigued with VGR. Gonna start keeping an eye on it.
    Oct 22, 2014. 10:47 PM | 3 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 1 - Dividend Growth Style [View article]
    <I'm curious, why do you reinvest your PNY dividend's into other stocks when PNY offers a 5% discount on reinvested dividend's?>

    Scottrade doesn't offer the conventional reinvestment option. Thus, in Wells Fargo I reinvest, while in Scottrade the dividend gets 'pooled.'
    Oct 20, 2014. 02:25 PM | 3 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 1 - Dividend Growth Style [View article]
    I've owned PNY for a few years now. I auto-buy it every month, and re-invest dividends, in one account (Wells Fargo), and take the dividends and pool it with others to buy other stocks, in another account (Scottrade.)

    It's one of those really boring unassuming stocks, that keeps bleeding dividends.
    Oct 19, 2014. 10:52 PM | Likes Like |Link to Comment
  • Kraft Foods: Price Is Near Buying Zone From Dividend Investing Perspective [View article]

    Added to my KRFT COP and T positions today.

    If you add "smidges" you'll have dry powder if the market keeps dropping :)
    Oct 15, 2014. 01:08 PM | 1 Like Like |Link to Comment
  • Why Altria Could Become A 'Must-Have' Holding [View article]
    This article may be about 47 years late
    Oct 8, 2014. 04:38 PM | 15 Likes Like |Link to Comment
  • Retirees, You CAN Count On Dividend Stocks To Deliver From Here [View article]

    Are you still holding KRFT?

    They raised the dividend 4.76%. Yield 3.96%

    Chowder rule: 8.72%
    Oct 7, 2014. 09:31 PM | Likes Like |Link to Comment
  • Why Seadrill Is Not A Falling Knife [View article]

    You do realize, ultimately you don't know what you're talking about. (Not in the conventional meaning, just figuratively speaking.)

    You sold COP INTC SYY (VCT or something like that) too early. You have said many times you did not (and never will) own BAC or GE during their meltdown. They've practically recovered. You sold BP after the spill. It's higher than where you sold it.

    (Similarly, in the last two years RichJoy has been scaring tobacco shareholders, [**I know he means well**], about their doomed future and taking profits for his "special" dividend. Meanwhile they keep going higher and raising the dividend.)

    None of us know where anything is headed, and when. We try to make educated choices with quality investments. But even "lower" quality can be extremely profitable over the long haul.

    SDRL and ESV make up about 4% of my portfolio. I am not selling. It may be a dumb decision but one I'm willing to take. I don't believe they're going out of business and *IF* they cut the dividend - it will be temporary.

    If I would sell here, or even two weeks ago in the low 30s it would have been a nice feeling, but in 5 years if it's $60 +, selling would have been the dumb choice.

    Always appreciate your insight.
    Oct 5, 2014. 09:00 PM | 4 Likes Like |Link to Comment
  • My Dividend Growth Portfolio Business Plan [View article]

    I agree with you. The only thing I can add to what Chowder said is, the 11th year might make all the difference. Stocks like JNJ KO PG GIS etc can sit dormant for years and suddenly explode. Out-performance can happen in a blur.

    If I were you, with your mindset, I'd do both for 10 years. Whichever method wins, shift the money from the loser to the winner.

    PS, when we see stats of how the S&P performed over periods of time, it assumes a one time investment 5, 10, 20 years ago. Had one bought a lump sum 20 years ago, then another lump sum in '00-'03 and again in 08-09, the returns would be *substantially* higher. Very misleading to investors who constantly add (on dips) to their portfolio. Same applies, obviously, for individual stocks.
    Sep 22, 2014. 10:47 PM | 1 Like Like |Link to Comment