Seeking Alpha

Graybeard44

Graybeard44
Send Message
View as an RSS Feed
View Graybeard44's Comments BY TICKER:
Latest  |  Highest rated
  • 3 Blue-Chip Stocks To Consider [View article]
    During the past 6 years, GE has over $35, and well-below $10.00

    Having bought GE at both prices, I'm not the one to tell you whether $27 is a "fair" price. What I CAN say is that I strongly believe that GE is a core stock for my portfolio, and that it will continue to innovate, make money, and pay dividends far into the future.
    Nov 24, 2014. 12:43 PM | 3 Likes Like |Link to Comment
  • 3M: A Dividend-Growth Investor's Dream [View article]
    When I bought MMM in the early '90's, I had this same argument with my (non-discount) broker. If only I had listened, I would have missed out on 2 splits, and all the annual dividend increases, to say nothing of the capital gains (my cash basis is now less than $25.00/share). Alas, alas, I'm crying every quarter when I have to haul my dividend check to the bank.
    Oct 27, 2014. 08:38 AM | Likes Like |Link to Comment
  • What To Do When A Stock Reaches Your Price Objectives: An Example From 3M [View article]
    Gary:

    I guess that my comment is based on a truth that I have learned about myself and my investing prowess over the years.

    That is that when I find a great company (ie: MMM, GIS, CVX, JNJ, etc) and trade it away because I think it has "gone about as far as it can go," I find that after several months (or years) of trading other things, I am no further ahead (in total return) than if I had held my original position.

    Fortunately, I never sold my 3M stock, which has split twice and paid a good, increasing, dividend along the way. I can't sell, because my cash basis is about $25.00/share. If only all my other positions had done as well...
    Sep 17, 2014. 09:01 AM | 2 Likes Like |Link to Comment
  • What To Do When A Stock Reaches Your Price Objectives: An Example From 3M [View article]
    So, if you sell, what will you replace it with?

    For many of us who have held MMM for years, and who have doubled, quadrupled (or, in my case, more) our money, the tax consequences of selling out-weigh the possible profit so heavily that it is no longer a viable alternative.

    I would submit that owning 3M is a fundamental building block of ANY portfolio.

    Show me another company that has:

    1) RAISED ITS DIVIDEND EVERY YEAR FOR THE PAST 55+ YEARS.

    2) Set a corporate goal of generating 30 percent of sales from products
    introduced within the past 5 years.

    3) Operates around the world, providing standard-setting products in all its
    markets.

    4) Manufactures things that people (or industries) need on a daily basis, in
    Consumer Goods, Healthcare, Electronics, Electrical (think fiber optics),
    Adhesives and Tapes, etc, etc

    If there is another company like this, PLEASE let me know, I want it.

    I'm NOT an investment professional, and I DON'T give advice. It just seems to me that if there was ever a stock to hold forever, it is MMM. I WON":T SELL -- Now or ever!
    Sep 16, 2014. 08:14 PM | 3 Likes Like |Link to Comment
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]
    Pendragon:

    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, 2014. 11:13 AM | Likes Like |Link to Comment
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]
    BeHereNow:

    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, 2014. 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, 2014. 11:36 AM | 1 Like Like |Link to Comment
  • Yield On Cost: A Vitally Important Consideration For Retired Investors [View article]
    Chuck:
    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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 11:23 AM | 3 Likes Like |Link to Comment
COMMENTS STATS
117 Comments
180 Likes