Seeking Alpha


Send Message
View as an RSS Feed
View Graybeard44's Comments BY TICKER:
Latest  |  Highest rated
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]

    When I first had enough cash (in my own mind) to open an investment account, I made a conscious decision to reinvest all dividends (no DRIPS), and pay the taxes on the dividend income from other sources. In that way, the investment account grew automatically. For my own purposes, I did NOT distinguish between cash that was available to invest that came from dividends from that which came from capital gains on sales of stock positions.

    While it may seem simplistic, this approach has worked quite well for me.
    Sep 14 11:13 AM | Likes Like |Link to Comment
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]

    You are correct that the KMR div/split does not change your cash basis in the position. However, since the position is made up of more shares, your COST PER SHARE does go down.

    It is very interesting to see what happens when you sell KMR after the x-div date but before the date when the dividend is actually paid.
    Sep 14 11:00 AM | 1 Like Like |Link to Comment
  • 3M Company Seems Overvalued Relative To Historical Averages [View article]
    There are reasons that 3M is"pricey."

    1 They are a great company, with a diversified (over 60.000 different products), in consumer goods, electrical supplies ((think fiber optics), medical supplies and equipment, industrial supplies, car parts, etc, etc, etc

    2 They are an honest company, providing good value for their customers AND good returns for their shareholders. One doesn't have to be embarrassed to admit owning 3M stock.

    3 They are an "Innovation Machine." One of the stated goals of the company is to generate 30% of sales from products introduced within the past 5 years. At the same time, they still make sandpaper (their original product) that sets the industry standard.

    4 The company has raised its dividend every year for over 50 years.

    5 The stock was trading with about a 2.5% dividend when the dividend hike was announced. Almost immediately the price was bid up to its current level, to keep the dividend return at 2.5%.

    Since I first bought the company in the early 1990's, ($104/share & $0.30/quarter dividend) it has split twice and increased in value by about 7 fold (not counting the dividends I received all along the way). I only wish that every stock I own had been as good to me over the years

    Go 3M !
    Sep 6 11:36 AM | 1 Like Like |Link to Comment
  • Yield On Cost: A Vitally Important Consideration For Retired Investors [View article]
    Thanks for another great article, outlining what good stock selection can do.

    I agree that good companies, selected for their potential to grow earnings and the willingness to share a portion of those earnings with their owners, can provide a stable source of growing income with which one can fund retirement.

    For example, I first bought 3M (MMM) in about 1994. Since that time, the stock has split twice, and has increased its dividend payment every year. My current "yield on cost" is something over 13%. At the same time, my "cost basis" is so low that if I were to sell, the capital gains tax consequence would be astonishing.

    I submit that the most important aspect of successful investing is still stock selection, with the goal being to find the stocks that will be on David Fish's list of "Aristocrats" twenty years from now.

    Companies that provide goods and services that people need, and the ability to innovate for the future (ie:3M's stated goal of generating 30% of sales from products developed within the past five years") are my prime targets.

    Good luck to all.
    Sep 4 10:00 AM | 1 Like Like |Link to Comment
  • Dividend Investors Will Make Money Even If The Stock Market Closed For 10 Years [View article]
    When I first bought 3M stock in the early '90s, I paid just over $100.00 per share. With 2 stock splits, my cost basis on those shares is now less than $30.00/share.
    When 3M shares approach that $30.00/share figure in the market, I'll consider selling. Until then, I'll collect the dividends (something around 11%, based on my cost) that support my retirement.
    Jul 18 07:40 AM | 3 Likes Like |Link to Comment
  • Is Annaly A Sleep Well At Night Investment? [View article]
    As a Schwab customer, I've watched their ratings for many years. The A-F rating system is basically a popularity contest, being based on opinion surveys and "momentum," rather than fundamental research. As a result, I have found their ratings to contain clues to market timing. If you believe in a company's "Story" (their prediction of future prospects) and they have decent fundamentals, a "D" or even "F" really indicates an "out of favor" stock that may well be poised for good growth.
    Jul 2 08:42 AM | 2 Likes Like |Link to Comment
  • Why 3M Is Ridiculously Overpriced [View article]
    Dividend Sleuth:

    So, you think that DOV @ $60.00/shr, paying a 2.5% dividend, is "compelling," but that MMM @ $140, (currently a 2.45% dividend yield) is "ridiculously" over-priced?

    I think THAT is ridiculous.
    May 27 08:54 AM | Likes Like |Link to Comment
  • Kinder Morgan Management, LLC: The Wise Choice [View article]
    No UBTI, no 1099, no complications in my IRA..... What's not to love?

    I've held both KMR and EEQ for many years, and they've been very good to me!
    May 20 07:15 AM | 5 Likes Like |Link to Comment
  • Why 3M Is Ridiculously Overpriced [View article]
    At $96.00 per share, MMM would be paying a 3.5% dividend. If that were to happen, it would mean that one could buy one of the longest, strongest growth stories, with 10 % growth AND one of the best managed (and most ethical) companies in the world at a truly "bargain basement" price compared to the current investment environment. The author may wish that MMM would go "on sale," but that is only his wishful thinking.

    One long-standing corporate goal is to "...generate 30% of our sales with products that have come to the market in the past five years." How many other companies can you name that even attempt such a thing?

    I first purchased MMM in 1994. At that time, it was $104.00 per share, and paid a $.75 per quarter dividend. Since that time it has split twice, and raised the dividend EVERY year. (In fact, it has raised its dividend every year for over 50 years). During the "Great Recession", it lost less value than any other stock I owned. Such performance is what makes MMM a highly valued company which has earned the premium valuation that it is afforded in the market.

    It is truly a great company AND a great stock.
    May 6 08:45 AM | 7 Likes Like |Link to Comment
  • The Only 20 Companies That Matter [View article]
    Thanks for the interesting and well-reasoned article.

    I don't understand why T and VZ were left off the list, but then mentioned separately. According to your numbers, they are more profitable than others that were included.

    It also seems to me that a common thread running through this list is "Innovation"

    If we are looking for sustained profitability over the foreseeable future, it seems to me that the future belongs to the innovators, On your list this would include XOM, AAPL, CVX, GE, WFC, INTC, GOOG, and VZ.

    Innovators OF THE PAST: WMT, IBM, MSFT, PG, ORCL, AND T.

    I would add companies like MMM, BMRN, DOW, KMP, and FCEL to your list based on the likelihood that they will create the future.
    Apr 6 09:25 AM | Likes Like |Link to Comment
  • Requiem For Fallen Dividend Aristocrats [View article]
    kraft(KFT) got knocked off the list when they split into Mondolez (MDLZ) and Kraft (KRFT). Still a great company, with great products and a great dividend.
    Mar 30 11:23 AM | 3 Likes Like |Link to Comment
  • Resource Play (Chesapeake) Or Wildcat Exploration (Taipan Resources) - A Case Of The Tortoise And The Hare [View article]
    So, with Taipan Resources you have better odds of winning than in Las Vegas. At $0.39/share, why not risk a few hundred dollars?
    Mar 25 09:22 AM | Likes Like |Link to Comment
  • Big Plug Power gains ebb as Citron says fair value is 50 cents [View news story]
    If Citroen Research is as reliable as the car, then I guess I'll stick with PLUG.
    Mar 11 01:51 PM | 4 Likes Like |Link to Comment
  • Fuel Cell Energy By The Numbers [View article]
    FCEL hit $4.17 (up 13%) this morning, trading over 60MM shares. According to Schwab, that's over 20% of the total shares outstanding.

    Apparently, someone is afraid to miss out (or have to cover their short positions) after earnings are announced tonight.
    Mar 10 11:44 AM | 2 Likes Like |Link to Comment
  • This Undervalued, Oversold High-Dividend Stock Now Has 4 High-Yield Dividends To Offer [View article]
    With the new ships being built, the shipping companies are having trouble renewing the leases at profitable rates. As the existing long-term leases expire, and there is a glut of ships (container and bulk) available for lease, the market is becoming ever more "cut-throat."
    Mar 9 09:22 AM | Likes Like |Link to Comment