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SteveTheHawk

SteveTheHawk
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  • Can AT&T Save Your Retirement Portfolio? [View article]
    mbn and azureblue,

    I'm taking your comments to mean you believe the div for T and VZ is safe. I don't view either as being a great value right now, but the dividends are attractive.

    I do consider them utility type stocks with perhaps a little bond substitute thrown in there. Being retired, I want some of my stocks to be in the high yield category. T and VZ certainly qualify. I don't want to second guess management, but with T in particular, Peters' comments got me to wondering.

    Thanks for your comments.

    Steve
    Mar 4, 2015. 11:23 AM | 1 Like Like |Link to Comment
  • Can AT&T Save Your Retirement Portfolio? [View article]
    AT&T has been in our portfolios for several years and has provided some nice income during that time. For my wife and I, it's currently our second largest source of dividend income.

    I'm looking for the viewpoints of others as to the safety of the dividend. The div growth has been somewhat anemic, though that is offset by the high current yield. They also seem to have a lot of debt and very high payout ratio.

    Josh Peters on M*'s Dividend Investor also just sold T and replaced it with VZ. I realize that he may not be the ultimate authority, but he does make some reasonable points. He points out T's debt issue along with questionable acquisitions in recent years.

    Per Peters, on a cash flow basis T can barely cover the dividend whereas VZ's cash flow is about 1.5 times the dividend. VZ's current yield is about one point lower than T's, but Peters expects the VZ yield to grow faster and with more safety.

    I don't own any VZ but I'm thinking about adding a little at some point. Bouncing around in my head right now is whether I want VZ to be just an additional holding or a replacement for T.

    I have to think that T will make every effort to preserve the dividend, but they do seem to be pushing the envelope. Thoughts anyone? How risky is T's dividend?

    Steve
    Mar 4, 2015. 08:41 AM | 1 Like Like |Link to Comment
  • The Dividend House DGI Portfolio: The Good, The Bad, And The Ugly [View article]
    DH,
    Personally, if I had owned MAT it would be gone already. It's a bit more problematic than WMT. I'm in the same boat as you regarding WMT. I am definitely going to replace it, but with what I don't know. I suppose I don't have to be in a rush. WMT isn't a bad company at all. It just seems to have lost its focus on paying a decent dividend.

    My rollover IRA is still over 80% cash. That being the case, I want move my WMT funds to another DG stock rather than just move it to cash. Still searching at the moment.
    Mar 3, 2015. 11:04 PM | Likes Like |Link to Comment
  • The Dividend House DGI Portfolio: The Good, The Bad, And The Ugly [View article]
    DividendBug - I had exactly the same thought. Seems like the core stocks should be the foundation. Different perspectives for different folks I guess.
    Mar 3, 2015. 04:48 PM | Likes Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    Gagorian,

    >>I'd like to buy EMR for the dividend safety, better credit quality and discount to fair value estimate<<

    That pretty much says it all to me. I have wanted EMR in my portfolio for some time. I took a small initial position at the beginning of February and plan to build it to a core position over time.

    In that it's cyclical in nature, I'm guessing I'll run across some reasonable buy prices in the future. Hoping to grab some more below $55.

    Steve
    Mar 2, 2015. 09:20 AM | Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Mark my words.... Paul will be correct.... eventually.
    Feb 27, 2015. 06:43 PM | Likes Like |Link to Comment
  • Impeccable Quality, But There Are No Bargains Today In The S&P 500 Consumer Staples Sector: Part 8 [View article]
    Chuck,

    Thanks for the article. Seems like every time I read one of you articles, I take away some new way to look at FAST Graphs. Always appreciated. And for what it's worth, I agree that the bargains just aren't there.

    Steve
    Feb 25, 2015. 10:53 PM | 5 Likes Like |Link to Comment
  • Project $3 Million Dividend Results - Objectives [View article]
    Chowder,

    Warren got wise and has one of his staffers researching your activities on SA. I think I heard that he referenced the Chowder Rule at Berkshire's annual meeting.
    Feb 24, 2015. 08:38 PM | 7 Likes Like |Link to Comment
  • Wal-Mart: 2 Strikes... And You're Out [View article]
    No doubt, WMT is a solid company. I think though that a sell decision largely hinges on the investor's goals. If the focus is income growth, reasonable minds could conclude that WMT seems no longer focused on increasing the dividend in a meaningful way. Maybe someday WMT's earnings will grow enough to bring the payout ratio down to a level acceptable to the C-suite. More likely, it will simply mean lower dividend growth. Hard call to make I guess.

    The author isn't micro-managing WMT. He is evaluating what is right for his particular portfolio and goals. WMT has it's goals, and so does the author. In this case, I don't think it would be overly difficult to enhance income by moving the funds from WMT to another holding.
    Feb 24, 2015. 11:37 AM | 20 Likes Like |Link to Comment
  • No Dividend Conspiracy At Wal-Mart; Its Growth Has Simply Stalled [View article]
    Eric,

    Thanks very much for posting your watch list. I have holdings already in a fair number of them, with my most recent purchase being EMR. There are several on your list I want to own but have yet to find the price attractive.

    I haven't spent any time looking at ABBV. I'll add that to my review list. Thanks again.
    Feb 24, 2015. 11:13 AM | Likes Like |Link to Comment
  • No Dividend Conspiracy At Wal-Mart; Its Growth Has Simply Stalled [View article]
    dj,

    I took a small (1.8% weight) initial position in EMR early this month at just over $57. I'm going to let the dust settle on that for a bit before I buy more. Ideally, I would like to grab some more at $55 or below.

    EMR does seem to behave cyclically, but they do consistently grow the dividend. Some years are better than others for DG, but overall I like the company. I'll be selling WMT as well. Just have to decide where to put the funds.

    Steve
    Feb 24, 2015. 11:00 AM | Likes Like |Link to Comment
  • No Dividend Conspiracy At Wal-Mart; Its Growth Has Simply Stalled [View article]
    I'm an older investor and I'm looking to be rid of WMT as well. Sure, it's a pretty stable company but if your future outlook charts are accurate (and they just might be) I have no interest in the stock.

    The roadblock is that I can't find much to buy that I don't already own too much of. I'm going hunting for a 3%+ current yield that is still growing above 5%. As soon as I make a buy choice, WMT is history. My paper gains equate to over 6 years of WMT's dividend. My income will certainly improve by moving the funds elsewhere.
    Feb 23, 2015. 06:15 PM | 3 Likes Like |Link to Comment
  • What's Your Story? Dividend Growth Investing's Business Model [View article]
    It's on his SensibleStocks.com website.

    http://bit.ly/nNxzde
    Feb 22, 2015. 12:04 PM | 2 Likes Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    I made an initial buy of EMR early this month. Seems to be at a reasonable price based on the FAST Graph.

    M* Dividend Investor has it flagged for a "supporting" role and that seems about right. It's now about 1.8% in weight for me, and eventually I want to bump it up to about 4%. If we get a bit of a downdraft in the market, I might use my WMT proceeds to do that.
    Feb 22, 2015. 09:41 AM | 1 Like Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    Kolpin,

    My amateur thoughts are that every stock is subject to re-evaluation. If a company appears to lose interest in raising the dividend (for whatever reason) then I have to decide if it continues to assist me in reaching my goals.

    In the case of WMT, I'm assuming that a low yield combined with 2 consecutive piddly increases indicates their apathy regarding the dividend, so I'm selling. I probably would have sold GIS back then had I owned it, UNLESS the current yield was reasonably high already. Then I would have to debate whether or not to sell. Disclosure: I've never owned GIS.

    I may have bought back in if I believed the company was back on track in raising the dividend and they seemed likely to continue that practice. That's why I bought back into GE. It seems like they are moving forward on putting cash in my pocket and are at least helping to keep inflation at bay (unlike WMT). Just my .02.

    Steve
    Feb 21, 2015. 11:11 AM | 3 Likes Like |Link to Comment
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