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SteveTheHawk

SteveTheHawk
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  • Why Wal-Mart Is A Sell [View article]
    A p/e of 15 may seem reasonable, and it might be. However, looking over the last several years, that equates to the high p/e for the year. That leads me to believe that the market is high on the stock, which is not when I normally like to buy. Thus, I view it as being a little expensive.

    I'm also a dividend growth investor. The fact that it yields below 2.5% and that we won't see an increase for another year doesn't appeal to me. Just my 2 cents.
    Apr 3, 2013. 06:26 PM | Likes Like |Link to Comment
  • Why Wal-Mart Is A Sell [View article]
    I didn't read it as Walmart bashing. I thought the author listed out some issues that WMT faces or may face in the future. And to be honest, I don't recall ever reading much that makes me feel like WMT takes good care of their employees. That perception is out there and may have an impact on sales to some extent. Hard to say.
    Apr 3, 2013. 06:20 PM | Likes Like |Link to Comment
  • Why Wal-Mart Is A Sell [View article]
    Overpriced indeed. Got a little tiny bit in our portfolios. Had the intention of growing it with more purchases but it shot way out of my buy range. Now I just wait. I don't know if I should bother keeping it, but I'm sure not buying it right now.
    Apr 3, 2013. 01:50 PM | 1 Like Like |Link to Comment
  • Kimberly-Clark : A Great Dividend Growth Company, But Not At Its Current Price [View article]
    But a current P/E of 22 seems to be at the top of its historical range. It has a payout ratio well in excess of 60%. It seems like the market is expecting great things but I'm concerned that a slight disappointment will take a major bite out of the stock. That's when I hope to buy some.
    Apr 3, 2013. 10:13 AM | Likes Like |Link to Comment
  • AEP Is Not The Best Out There, Despite The Earnings Beat [View article]
    I feel your pain on EXC. I dumped it a couple months ago, taking a loss of course. I had to admit to myself that it didn't meet my criteria as a dividend stock. Will take a lesson from it and move forward.
    Apr 2, 2013. 08:58 PM | Likes Like |Link to Comment
  • Is Dividend Investing The Perfect Strategy For Any Age Group? [View article]
    A sincere congratulations, Robert. You are wise in going after DGI type stocks. I can only wish that I had done so when I was young. Now that I'm almost 60, I can barely imagine how much money I would have today had I started in my 20's. Just a basic, conservative DGI approach would have provided me with more money than I probably would really need. No young and restless needed (unless it's just for fun).
    Apr 2, 2013. 01:23 PM | 1 Like Like |Link to Comment
  • Cisco Raises Dividend: Apple Should Be Next [View article]
    If Apple wants to be viewed as a dividend stock, it has some work to do. First, a serious increase is needed. Second, management needs to actually (or at least pretend to) acknowledge the importance of the dividend and publicly make clear their intentions in that regard. Apple behaves at times as if they are some sort of secret society.
    Apr 2, 2013. 01:14 PM | Likes Like |Link to Comment
  • Exxon Mobil (XOM) is downgraded to Perform from Outperform at Oppenheimer, which believes XOM can't maintain its $20B annual share repurchase even at higher oil and gas prices. Also, XOM is challenged just to maintain - not grow - its production organically, no discovery could be big enough to impact its valuation, and further meaningful cost savings are unlikely. [View news story]
    The market is apparently not even noticing.
    Apr 2, 2013. 11:53 AM | 1 Like Like |Link to Comment
  • Why Interest Rates Matter For Your Stocks [View article]
    Nice article. It seems like most everything with income attached to it is being snarfed up, causing high valuations. My wife and I have our Roth accounts at about 25% cash for just that reason. The only time we buy these days is when enough dividends accumulate to allow for a reinvestment in one holding or another.

    Waiting for rates to rise a bit, but clueless as to when that might happen. When it does happen, the level of interest in dividend stocks will wane a bit I suspect.
    Apr 1, 2013. 11:54 AM | Likes Like |Link to Comment
  • Dividend Champions For April 2013 [View article]
    Absolutely agree. A tremendous resource.
    Apr 1, 2013. 10:47 AM | Likes Like |Link to Comment
  • Invest Like Your Grandparents With These Dividend Payers [View article]
    I agree. I am long AEP and PPL but hold them both with a YOC exceeding 5%. I generally look for a 5% yield on utility stocks. Not easy to find these days.
    Mar 30, 2013. 08:46 AM | 1 Like Like |Link to Comment
  • Is Walgreen A Forever Stock? [View article]
    Yeah, our (wife and I) Roth accounts are about 25% cash. We are reinvesting dividends as the funds accumulate, but I'm leaving the cash level about where it is. I want more dividend stocks, but most are too expensive in my view. Wish I wasn't clueless as to which way the market was going to swing.

    I agree that limit orders using metrics would be a great feature. I guess that at least for now, we'll just have to calculate that on our own and set the price accordingly. It would be much easier though to just set the metric and wait.
    Mar 28, 2013. 08:45 PM | 1 Like Like |Link to Comment
  • Is Walgreen A Forever Stock? [View article]
    JD:
    Thanks for your reply. Congrats on your success with C. Bold move. Back then, I was afraid of anything financial.

    I see where you are coming from. I suppose that since I am up a little over 50%, I could do something like sell a third of my WAG holdings and find another stock to buy. Finding something to buy has been a challenge for me lately, but that's another discussion. I will give this some thought.
    Mar 28, 2013. 04:49 PM | 1 Like Like |Link to Comment
  • Is Walgreen A Forever Stock? [View article]
    Hi JD:
    I agree that the issue of future dividend growth complicates things a little. Thus, my waffling on taking gains or riding the income train. I realize that I only have 15 years worth of CURRENT yield in gains.

    I created a quick Excel sheet with the dividend growing 15% a year for the next 10 years. This might be too generous, but I certainly don't believe WAG can keep increasing the dividend by 25% a year. Maybe I should make it 10% just to be conservative, I don't know. Their current payout ratio is 47%, which is not high but not low either. It seems that at some point, the rate of increase will need to slow a bit.

    At any rate, using a 15% annual growth rate, the dividend in 10 years will be $4.45, about 4 times what it is now. At that growth rate, it will take me roughly 9 years worth of dividends to equal what my capital gains are today. Taxes are not a concern in that the shares are in a Roth.

    I would love to have others chime in on my logic here (or lack thereof). If my logic is correct, then my question becomes one of taking the money now or picking it up slowly over 9 years. Of course, the potential for capital gains over 9 years is a wild card. The final question would be on finding an alternative dividend stock to replace WAG if I sold.

    Comments, thoughts, questions are welcome.
    Mar 27, 2013. 09:22 PM | 1 Like Like |Link to Comment
  • Has the rally in consumer staples (XLP) stocks run its course? A group of large well-known defensive stocks have been on the offensive in 2013 with all-time highs falling left and right to stretch some valuations beyond historic norms. Though upgrades on the sector are still piling in, skeptics are advising investors to tread carefully. On watch: PG, CLX, KO, K, GIS, CL, BUD, EL[View news story]
    I will probably hang on to the few of these that I own. I won't be buying any of them though. I feel like every single one of them is either fairly valued or over valued.
    Mar 27, 2013. 12:14 PM | Likes Like |Link to Comment
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