Seeking Alpha

Contraria2

Contraria2
Send Message
View as an RSS Feed
View Contraria2's Comments BY TICKER:
AAPL, BAC, BF.B, BP, BRK.A, BRK.B, COP, DGRS, DGRW, DLR, GD, GE, GIS, IBM, KO, LINE, LMT, LNCO, LO, MCD, MDLZ, MKC, MO, O, OHI, PG, PM, SDRL, SO, T, UTX, V, VZ, WM, WMT, XOM
Latest  |  Highest rated
  • General Mills: Dividend Growth Rate Will Probably Decline [View article]
    Usiah,

    Correct.

    Also, this author has a tendency to write and then disappear. He seems to be looking for page clicks and not being informative.

    Still, sorry for sounding abrupt.
    Aug 5 12:23 AM | Likes Like |Link to Comment
  • General Mills: Dividend Growth Rate Will Probably Decline [View article]
    Hey,

    Aren't you the guy who sold MO?
    Aug 4 05:47 PM | 2 Likes Like |Link to Comment
  • A Way To Reinvest Your Dividends Based On Yield [View article]
    Building,

    Good comment. However...

    The beauty and effectiveness of auto dripping is that you *will* buy more shares no matter what. Whether you're busy at work, on the golf course, or swimming on the top deck of a cruise ship: you will get more shares of XOM COP SO and VZ etc.

    The other method requires work and time, with the ultimate result being you won't buy more, or you'll end up buying a second tier stock because you 'missed' your desired entry point.

    When I look at the purchases of my drip stocks, even some of which charge fees, over a 15 year period, I'm convinced I would never have reached this point had I opted (insisted) to sit at my computer/smartphone to make this buys.
    Jul 30 11:18 AM | 3 Likes Like |Link to Comment
  • The Linn Energy 2-Step: Reinvest, Then Stop Reinvesting [View article]
    Tim,

    I personally would never re-invest in a stock like LINE (LNCO.) Too risky.

    In one of my accounts with Scottrade I actually take the dividends to pay for a certain monthly expense. For a few years, while accumulating, I re-invested the dividends via buying new stocks (no drip available @ scottrade) or, more recently, fripping.

    Once my income goal was close I purchased 'relatively' small amounts of PSEC SDRL and LNCO. That thank G-d brought me to the necessary monthly amount.

    So, say, in 5 years either one or all 3 crash and burn, at least I have something to show for the effort. But I would never consider re-investing in a highly risky stock. For me it's either spend that money, or use it to build the portfolio with lower risk securities.
    Jul 29 11:59 PM | 4 Likes Like |Link to Comment
  • Should I Invest In AT&T And Verizon For Their High Dividend Yields? [View article]
    Mike,

    WIN is forming a REIT. The implication is, VZ T etc. may follow suit.

    Don't know if or why this is "good" news, and I'm not selling anyway, so it's nice but inconsequential to see some green on the screen
    Jul 29 10:06 AM | 3 Likes Like |Link to Comment
  • Does Higher Dividend Growth Lead To Higher Dividend Income? [View article]
    The six million dividend man
    Jul 24 05:28 PM | 2 Likes Like |Link to Comment
  • Are Growth Stocks Appropriate For Retirement Portfolios? [View article]
    Chuck,

    Thanks for your response.

    ‎I don't disagree with you. I just don't think this is the time to be buying growth stocks. The market is too high and these stocks have increased fast and furiously. Sure they may go higher. But real growth, and real money are made after a fall. 

    If history repeats itself all stocks will drop during a crash. Growth stocks will fall harder. ‎

    If *Chuck Carnevale* writes a pro growth stock article, we are probably close to the top. :)‎

    PS during any substantial correction buying growth stocks or ETFs is probably the quickest ‎way to make a lot of money. But many people are not interested in the emotional roller-coaster.
    Jul 24 03:59 PM | 1 Like Like |Link to Comment
  • Are Growth Stocks Appropriate For Retirement Portfolios? [View article]
    Chuck,

    Nice article.

    However, I would never buy turbo-charged growth stocks unless there was a market meltdown. While stocks like the ones you mentioned can make one handsomely wealthy, they can just as quickly send one to the poorhouse. Anyone who thinks otherwise just needs to take a look at 2000-02 and 08-09. (People have very short memories.) Or just look at the "lows" on Chuck's graphs, in those years. Also, if one purchases such a stock and it starts swooning, 9 out of 10 investors *will* sell in panic.

    Moreover, if one bought a stock at the bottom ($10,000 worth), at least 8 out of 10 will sell when it reaches $50,000 or perhaps $75,000 etc. Hardly anyone can contain their emotions and wait patiently for it to reach $500,000 - $1,000,000.

    Beginning in '09 (thru '11) I traded TNA and QLD. Thank G-d I did very well, but I wouldn't touch those or ANY growth-only situation until the market had a serious correction. (Much more than Buyandhold's criteria of 20%.)

    If you hold PG (KO PM XOM etc) and it drops 25% + you just yawn. You know it'll recover. "Growth" stocks, not so simple.
    Jul 24 12:55 PM | 2 Likes Like |Link to Comment
  • Does Higher Dividend Growth Lead To Higher Dividend Income? [View article]
    Robert,

    "Yes, the higher-CAGR companies in my data set paid 2 cents or less, annually."

    Imagine what BAC's CAGR will look like in 10 years (hopefully.)
    Jul 23 07:16 PM | Likes Like |Link to Comment
  • Does Higher Dividend Growth Lead To Higher Dividend Income? [View article]
    Hilo,

    "1] Last January, when they didn't increase their dividend, I sold 4/5 of my position in INTC. They didn't meet "my metrics" for inclusion in DG portfolio. I whined that my dividends didn't go up by the expected 8 cents per share and sold out of 800 shares because they didn't give me my $64. Sixty four dollars. What was I thinking?
     
    I missed out on $8,000 of gains because I didn't get my expected $64.
    Lesson learned.*2
     
    [2] (Richjoy, you were right, I was wrong. Just want to get that on the record.)"

    I did the same and feel the same. I had 400 shares. When COP missed their expected dividend raise I held, when KRFT didn't raise for 2 years pre-MDLZ I held, but INTC I sold :(

    I think perhaps because I didn't really want to own it in the first place. Either way, like you, lesson learned.

    I would buy BAX and SBUX but only after a large drop.
    Jul 23 04:01 PM | 2 Likes Like |Link to Comment
  • Dividends Do Matter - Especially In Retirement [View article]
    Varan,

    "As I said a few days ago in a comment above, there is a Seinfeldian quality to this tiresome debate."

    I agree. So why do you debate so much?
    Jul 22 02:46 PM | 6 Likes Like |Link to Comment
  • Dividends Do Matter - Especially In Retirement [View article]
    Varan,

    I'll speak for myself.

    I personally prefer DG investing for two general reasons. (I would love to enter retirement today with 50 shares of BRKA, 4000 shares of AAPL, 2000 shares of SBUX, 1000 shares of PCLN, GOOG etc. However,) DGI offers something growth stocks don't:

    1. No emotion. If I'm up, say, 5000% in my portfolio the absolute ONLY way to access money is to sell. Every time I sell some shares the emotions kick in, did I sell too early? Should I sell more/less? I made a lot of money in the 90s in growth stocks. But you really don't make any money in those stocks until you sell. So if AAPL traded @ $700 and a year later it's $550 you have nothing to show for it. I don't want to be in a position to make emotional transactions, or have future regrets.

    2. Even if one is in their 30s, they can create an income stream. Buy dividend stocks and take the monthly/quarterly money for living expenses. So if I earn $75,000 at work, and I have another say $10,000 in dividends that allows me to possibly buy a bigger home, travel more, help family, etc. If you do it consistently by the time you reach your late 40s - early 50s, dividends can easily replace work-income and you have the freedom to choose to keep working or not. Or live better. Or re-invest. Meanwhile, the principal *remained intact.*

    If I owned AAPL since 2000, or MA since '07, or GOOG since '06 etc. WHEN DO YOU SELL? At $100? $200? $400? $600? If I don't sell it may drop like a stone. If I do sell it may have a meteoric rise? "I" don't want to have to make those decisions.

    Buy (consistently - on dips), hold - and decide what to do with the dividends, as needs change.

    Meanwhile, as the decades pass - the portfolio remains whole.
    Jul 22 11:35 AM | 7 Likes Like |Link to Comment
  • Dividends Do Matter - Especially In Retirement [View article]
    Whenever one presses the Orange Button on the top right to read comments, one is mostly hoping for something constructive, educational, or enlightening to advance their investing success.

    Not blather, silliness, kookiness, bickering and moronic claptrap

    There are SO many other place on the internet to express those inclinations.

    Thank you
    Jul 22 10:26 AM | 1 Like Like |Link to Comment
  • Seadrill: High Dividend And High Debt [View article]
    Risk,

    "Buy & Hold is costing you a lot of money. "

    How?

    What have you done to squeeze the most out of the market? Who said BadDog wants to do that? Who says that works long term? Most traders close shop within a year.

    Either way I hope you continue making loads of money
    Jul 20 08:17 PM | 1 Like Like |Link to Comment
  • Philip Morris: The Dividend Will Eventually Be At Risk [View article]
    You really think you *quit* smoking, and now trash tobacco stocks, after THREE weeks without a cigarette?

    And you carry that over to all smokers?

    When you've quit for 5 years you'll have my attention.
    Jul 17 08:41 PM | 1 Like Like |Link to Comment
COMMENTS STATS
390 Comments
654 Likes