Dividends4Life's Comments

Pocket Change Portfolio Update: November 2009

Mon, 28 Dec 2009 16:13:53 -0500

MissAnthropy: Online earnings are just the source of funding. They are not considered in the calculation of the performance returns. One of the messages of the portfolio is that a small amount saved over long periods of time will produce significant earnings when invested judiciously.

Best Wishes,
D4L

From Dividend Cuts to 'Irrational Exuberance': What's On for 2010?

Sun, 27 Dec 2009 14:25:25 -0500

David: Most of the dividend cuts related to ETFs and some old high-yield holdings that I purchased during my "yield chasing" days. I still have a few of those left that I will sell when they cut their dividend. I always sell a stock in my income portfolio when it cuts its dividend, and will usually sell it when the dividend is flat year-over-year. I had a few stocks that I sold that were flat year over year. Not meeting my goal was more of a function of setting the goal when the market was close to its low and having to purchase relatively higher priced stocks, and the lower yields that come with purchasing at a higher price.

Best Wishes,
D4L

26 Hot Stocks for 2010 and Why I Won't Buy Them

Tue, 22 Dec 2009 19:14:08 -0500

@optionsgirl: The Seeking Alpha editors add their own titles to articles published here. The title on my site for this article is "Best Stocks For 2010". I think the "and Why I Won't Buy Them" detracts from the focus of the article - the different perspectives of various stock pickers. As DGI pointed several of the stocks are worthy of consideration, some are ones that I already own and would buy more if the valuations and dividend fundamentals were right. The reason I would not buy most of the above stocks is because they don't have a history of increasing dividends and/or their dividend fundamentals are inadequate.

@robert.b.ferguson: I would never personally pick 10 stocks for a given year. In my database I track 130+ stocks and update market drivers once a week and financials quarterly. When I buy, I select the stock that is the best buy at that time based on its valuation, dividend fundamentals and my allocation needs.

Best Wishes,
D4L

Dividend Progress Report: October 2009

Mon, 09 Nov 2009 08:18:13 -0500

David: You are correct on the YOC. On of the ironies is that you have to go back several years to see the real story. The 2008 market implosion allowed me add positions at prices not seen for quite a longtime for many securities.

Best Wishes,
D4L

Dividend Progress Report: October 2009

Sun, 08 Nov 2009 16:49:42 -0500

David: Purchases are primarily new money. As you noted, it also includes reinvested dividends and any sold securities. It is roughly 90% new money 10% dividends reinvested, with any sales layered on top of that.

Best Wishes,
D4L

Weighing Free Cash Flow Payout vs. Dividend Payout

Fri, 16 Oct 2009 19:40:20 -0400

Levered free cash flow subtracts out interest payments on debt. Generally, it is a good number except when there are uneven interest payments. I prefer to look at free cash flow as a source of cash and look at upcoming debt/interest payments separately as a use of cash.

Best Wishes,
D4L

Six Double Digit Dividend Stocks Increasing Their Yields

Fri, 25 Sep 2009 13:01:51 -0400

Mike: You are correct, I am long in MCD. I had originally wrote the article with 5 companies before MCD's announced last night. After MCD's announcement of its dividend increase, I quickly updated the article, but failed to update the disclosure.

Best Wishes,
D4L

Getting Ready for Retirement

Tue, 22 Sep 2009 18:31:21 -0400

Mad Hedge Fund Trader: I found your recommendation of PCY intriguing. Having never looked at it before, I ran some quick numbers on its dividend comparing it to LQD. Surprisingly, its standard deviation from 11/07 to 9/09 was 0.01489 compared to 0.02817 for LQD over the same period (Yahoo data + iShares to fill in some LQD blanks). LQD is one of my core bond holdings, but it is quickly approaching full allocation, so I've been looking for some other alternatives. A higher yield and lower standard deviation on its dividend makes PCY worth looking deeper into.

Thanks for mentioning it!

Best Wishes,
D4L

On Sep 22 02:51 PM Mad Hedge Fund Trader wrote:

> mgx A number of readers have asked me to come up with a safe, high
> yielding investment in which to hide out in case the equity markets
> swoon again. That means they are looking for a security that offers
> a high fixed return, denominated in a strong currency that will benefit
> from future upgrades that will boost the principal over time. All
> of that is another name for the Invesco PowerShares Emerging Market
> Sovereign Debt ETF (seekingalpha.com/symbo...). The fund
> has 40% of its assets in bonds issued in Latin America and 31% in
> Asia, with the bulk of the maturities exceeding ten years. The two
> year old fund now boasts $340 million in market cap and pays a handy
> 6.42% dividend. This beats the daylights out of the nine basis points
> you currently earn for cash, the 3.40% yield on 10 year Treasuries,
> and still exceeds the 6.42% dividend on the iShares Investment Grade
> Bond ETN (seekingalpha.com/symbo...), which buys predominantly
> single “A” US corporates. The big difference here is that foreign
> bonds are issued in strong foreign currencies instead of weak dollars,
> and have a rosy future of further credit upgrades to look forward
> to. It turns out that many emerging markets have little or no debt
> because until recently, investors thought their credit quality was
> too poor. No doubt a history of defaults in Brazil and Argentina
> in the seventies and eighties is at the back of their minds. With
> US government bond issuance going through the roof, the shoe is now
> on the other foot. A price appreciation of 125% over the past year
> tells you this is not exactly an undiscovered concept. Still, it
> is something to keep on your “buy on dips” list.

13 Consistent Dividend-Raising Companies Currently on Freeze

Sun, 13 Sep 2009 16:21:16 -0400

Jarco: A straight payout calculation may not be representative of the company's financial position after such a large acquisition due to the write-up of assets and the associated higher depreciation. I use a TTM Free Cash Flow Payout instead. CTL is at 46% with this metric. Somewhat more concerning to me is its Debt to Total Capital. I generally, like to see this less than 45%. CTL is currently at 48%. Not bad, but a little higher than I like.

CTL is a hold for me at this point. I will continue to watch it closely.

D4L

On Sep 13 12:56 AM jarco wrote:

> How does one justify owning CTL especially now that it has taken
> over (or been taken) Embarq? A $2.80 dividend = 90% payout.
>
> Yield stocks must have some positive fundamentals.
>
> Your owned list is impressive but look too much like most stodgy
> Mutual Funds.

13 Consistent Dividend-Raising Companies Currently on Freeze

Fri, 11 Sep 2009 23:29:29 -0400

CenturyTel is changing its name to CenturyLink after its merger with Embarq.

www.centurylink.com/

On Sep 11 09:40 PM SafisKusai wrote:

> you listed CTL incorrectly as CenturyLink when it is actually called
> CenturyTel. Just a heads up.

3 Stocks Providing Positive Shareholder Feedback with Higher Dividends

Sun, 06 Sep 2009 14:37:57 -0400

BlueOkie: Thanks for your kind words. My one hard and fast rule for my income portfolio is if the stock cuts its dividend, immediately sell it. Here is an article I wrote on it:

dividendsvalue.com/143.../

Best Wishes,
D4L

On Sep 06 10:10 AM BlueOkie wrote:

> Always enjoy your posts as I'm big believer in Dividends. I'm long
> EMR, HRS, VZ. There are a few firms that stopped or cut dividends
> that I'm not ready to bail on, yet! PFE, DOW, BBT, TSS. Do you
> make exceptions to your rules? Or is it "OFF WITH THEIR HEADS"

Portfolio Update: Trimming ETF Income Holdings

Mon, 10 Aug 2009 09:18:33 -0400

Dave: The annualized income is forward looking and based on my current holdings. As for my YOC rising in the future, it is a result of building my investment base so current investments represent a smaller % of total invested capital, thus new capital will have have less an effect on YOC. For example, a $5,000 investment into a $20,000 portfolio will have a dramatic effect on its YOC, where the same $5,000 investment into a million dollar portfolio will produce a much smaller effect.

Best Wishes,
D4L

Are REITs and Utilities Good Dividend Investments?

Thu, 30 Jul 2009 08:22:11 -0400

Aber: An oversight on my part, TEG did pass the Debt test, but failed the FCF test. I do have concerns about TEG's ability to sustain its dividend, but I am not yet selling my position.

Best Wishes,
D4L

On Jul 30 05:25 AM aber wrote:

> Hi and thanks , like always, for your articles
> why TEG did not pass the test ? you wrote :
>
> "Integrys Energy Group, Inc. (seekingalpha.com/symbo...)
> – 3 Stars
> Debt to Total Capital: 18%
> Free Cash Flow Payout: -47%
> I look for a maximum of 45% Debt to Total Capital and a maximum of
> 60% Free Cash Flow Payout"
>
> is seems to me much better than NNN , or i'm missing somenthing ?
>
> do you think the TEG's dividend is at risk ?
> please explain , thanks a lot indeed
> Alberto (long on TEG )

Why the Right Moment Is Approaching for Dover

Tue, 21 Jul 2009 13:23:01 -0400

Tom: Click on "Dover Corp." in the first sentence.

Why the Right Moment Is Approaching for Dover

Tue, 21 Jul 2009 13:21:33 -0400

Tom: Click on "Dover Corp." in the first sentence.

United Technologies: Dividend Stock Analysis

Tue, 07 Jul 2009 13:09:59 -0400

Kipling: It is "tangible" book value, which is book value less intangibles. At the end of 2008 UTX's book value was $15.9 billion while intangibles were $18.8 billion. Doing the math would yield a negative number.

D4L

On Jul 07 10:17 AM Kipling wrote:

> How is it possible that UTX's book value is NOT meaningful?
> That makes no sense at all. Do you mean the book value is "0"?
AAAUUGGHHH

Dividend-Paying Utilities for a Well-Rounded Portfolio

Thu, 26 Feb 2009 20:33:06 -0500

Kewgardens: I am working on a followup post to what happened to TEG. There are some interesting observations to made, and obviously lessons to be learned.

Best Wishes,
D4L

Legg Mason: No More Dividend Increases?

Wed, 28 Jan 2009 19:13:16 -0500

Gina: I have found funds to be less effective since most are based on an index and therefore forced to buy stocks that I would not buy. With that said, I do hold quite a few ETFs and CEFs, but I will likely liquidate most of them over time.

Best Wishes,
D4L

Pfizer's Acquisition of Wyeth Could Be Short Boon to Shareholders

Mon, 26 Jan 2009 13:56:15 -0500

PFE needs a shot in the arm. For the last several years it has been wandering in the wilderness. After freezing its dividend, it is one I am watching closely.

Best Wishes,
D4L

Best High Yield Dividend Stocks for 2009

Tue, 30 Dec 2008 11:42:32 -0500

ED and O are strong picks - I own both of them.

Best Wishes,
D4L

Three Stocks Increasing Dividends, But Not Signaling Strength

Fri, 26 Dec 2008 15:53:21 -0500

All: Thanks for the correction on D dividends. 3 sites had 3 different sets of numbers. I generrally use S&P data, and this time it was the most incorrect. On Yahoo the Q4/2007 dividend was not split adjusted. Here is a link to the dividend data on D's website:

media.corporate-ir.net...

Note: that the 9/20/2007 and prior dividends have not been spit adjusted.

Running the correct numbers through my model, the NPV of MMA Differential was $2,179, well below the $10,000 I would require for a company that has raised its dividends less than 10 year.

D4L

The Pursuit of Wealth and Its Consequences

Tue, 23 Dec 2008 15:41:20 -0500

A very good read - lest we forget.

I fear the path we are taking to "fix" the problem will end up greatly magnifying it. At some point we must swallow the medicine instead of looking for the easy fix.

Best Wishes,
D4L

Dividend Stocks for the Long Run

Tue, 16 Dec 2008 11:05:49 -0500

Very good read. A well allocated dividend based portfolio should out-perform the market over the long-term.

D4L

Ten Dividend Increases

Mon, 01 Dec 2008 21:23:01 -0500

Jeff: Take a look at the Dividend Champions spreadsheet at:
dripinvesting.org/tool...

I don't have a newsletter, but you may want to check out my blog at:
www.dividends4life.com/

I usually have about 6-7 posts a week.

Best Wishes,
D4L

Ten Dividend Increases

Mon, 01 Dec 2008 12:50:36 -0500

Generally, I quote dividend increases on a sequential basis (current vs. last dividend).

D4L

Strategically Managing Your Dividend Portfolio During a Downturn

Thu, 27 Nov 2008 09:27:06 -0500

User 138602: CVX is high on my buy list. I have just been waiting for the right price.

Best Wishes,
D4L

5 Best Performing Dividend Stocks in 2008

Tue, 04 Nov 2008 16:12:15 -0500

I am pretty high on BBT also. Just recently added to my position.

Best Wishes,
D4L

A Buy & Hold Forever Dividend Stock Portfolio

Mon, 03 Nov 2008 18:30:39 -0500

Why not just reinvest in the stock with the lowest market value?

D4L

Johnson & Johnson: Still Adding to My Position

Thu, 30 Oct 2008 12:16:39 -0400

Keith: It is hard to comment directly to Weinstein's note without seeing the supporting analysis.

As to the comment "J&J’s premium in particular to its pharma peers has gone hyperbolic.", I am not sure it is fair to compare JNJ with pure-play pharms. Most pharms have taken a hit due to pipeline concerns (I hold PFE and LLY and have felt it). In this instance, it appears that the pure-pharms are falling faster than JNJ, thus creating the premium.

He does note that "However, beyond 2009, the JP Morgan analyst sees things accelerating again thanks to the company’s relatively strong pipeline." As a long-term, buy-and-hold investor, I view this as ambient noise.

Best Wishes,
D4L

Intel: Attractively Priced

Tue, 14 Oct 2008 12:31:12 -0400

MSFT is still a little overpriced based on my current valuation. I have calculated a $21.03 buy below price.

Best Wishes,
D4L