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  • REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill [View article]
    Haha, my goal was not to hurt your feelings FPI. I do own REITs as part of a diversified dividend portfolio. I also follow companies that offer bank bonuses - is that a crime? I believe it is not. I would not add to REIT positions in this market. What anyone does with their money, is their own business however. And my comment was related to REITs in general, so your comment on DLR doesn't really prove anything. What are the 5 and 10 year DG rates on the REIT's mentioned above? What happened to OHI dividends in the early 2000's? The only thing that your comments on this thread show is that you are way too emotional.

    It is unfortunate that you are so quick to judge a book by its covers. I hope you do a better research when you select stocks. Anyway, I have followed your comments on Seeking Alpha for the past few years and have usually enjoyed them. If you want to be successful in the markets, you cannot afford to be emotional about your investments.

    The tone of the responses to my original comment shows me that most REIT investors are way over their heads. I really hope that the rising interest rates do not reduce the available FFO for your dividends and that I am wrong so you get to keep your dividends. However, REITS do look overpriced and many like O and NNN are at all time highs and yields are at all time lows. P/FFO also seem high.
    Mar 12, 2013. 02:17 PM | 2 Likes Like |Link to Comment
  • Dividend Aristocrats + Equal Weighting > S&P 500 [View article]
    Dividend Growth Investor recently posted the five year total return performance of Equally Weighted Dividend Champions list, which provides a more complete picture of companies that raised dividends for over 25 years:

    http://bit.ly/13oQWIl

    I like the article, and idea of equal weighting. Great job!
    Mar 12, 2013. 09:44 AM | 2 Likes Like |Link to Comment
  • REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill [View article]
    I am not sure why anyone in their right mind would buy REIT's today. Holding them is perfectly ok, but given the low current yields today, investors today are not being properly compensated for the risks they are taking.

    The articles are well written by Brad, but unfortunately the only thing that matters is whether investors would make money or not. I view REITs as fine for current income, but at the end of the day investors would not get much in distributions growth to offset inflation. In addition, REIT's are priced for perfection today, and an uptick in interest rates will likely lead to cooling off in the sector.
    Mar 12, 2013. 09:41 AM | Likes Like |Link to Comment
  • National Retail Properties: Dividend Stock Analysis [View article]
    REIT's must distribute 90% of their taxable income to investors. However the author is referring to the FFO payout ratio. FFO is usually higher than income, as it includes depreciation. The warning sign of NNN is that it is distributing virtually all of its cash flows. Hence, distributions growth is very low, and if interest rates start ticking up, the chances of the dividend could being cut increase. Given the fact that there is no room for error, the chances of a cut increase.

    I am not sure why anyone in their right mind would buy REIT's today. Holding them is perfectly ok, but given the yields of 4 - 4.50%, investors today are not being properly compensated for the risks they are taking.
    Mar 12, 2013. 09:37 AM | 6 Likes Like |Link to Comment
  • Income Investors Take Note: Man Can't Live on Dividends Alone [View article]
    Hey I get your point that we need to monitor portfolios. But if you are dependent on just 3 stocks for your income, you are asking for trouble :-)

    I like your own approach of having diverse income streams. Dividends, SS, P/T job, pension, business income ( timber sls). I also have bond interest streams ready whenever I retire as well. I doubt I will get a pension ( unless you count the 401K I do for the company match) but my retirement income would be similar to yours.
    Mar 28, 2011. 06:15 PM | 1 Like Like |Link to Comment
  • Income Investors Take Note: Man Can't Live on Dividends Alone [View article]
    I would not call GM a dividend growth stock.

    The story you are telling about the family member being invested mostly in "AIG,GE and GM" sounds biased.

    There's a lot of holes in your story. I am just sayin'..
    Mar 28, 2011. 04:35 PM | Likes Like |Link to Comment
  • This Micro Cap Dividend Play Deserves a Spot on Your Watch List [View article]
    I find it interesting that most of the responses come from "individuals" who are making their first post to Seeking Alpha. This could mean several things:

    1) These are genuine first time readers who wanted to voice their experience with Cold Stone Creamery.

    2) This is one person, who has registered several accounts just so they could bash Cold Stone Creamery

    Which one is it? Well, decide for yourself.

    Full Disclosure: None whatsoever
    Mar 5, 2011. 10:04 PM | 1 Like Like |Link to Comment
  • Will High Dividend Stocks Help You Retire Comfortably? [View article]
    Botz,

    I looked at the Vanguard dividend growth fund portfolio, which consists of 47 stocks today. I found that that 4 of the components are not dividend growth stocks:

    personal.vanguard.com/...

    PFE ORCL WFC SLB

    PFE and WFC were dividend growth stocks a few years ago, but I wouldn't call them dividend growth stocks today.

    In addition to that, one of the largest holdings seems to be fixed income:

    personal.vanguard.com/...

    So obviously the example you chose is not representative of dividend growth investing.
    Nov 28, 2010. 09:19 PM | 4 Likes Like |Link to Comment
  • Will High Dividend Stocks Help You Retire Comfortably? [View article]
    I think the idea behind the article you are discussing Geoff, is that a company that yield 3% today for a $500K portfolio could generate $15K in dividend income today. But, if dividends grow at something like 6% per year, in 12 years that portfolio would be generating 30K in dividend income. If you had invested $1 million 12 years from now, and that yielded 3%, then you would have had the same level of dividend income.

    Oh and I don't know where you got the idea that DGI was talking about "high dividend stocks". He's talking about dividend growth stocks, not dividend yield stocks...
    Nov 28, 2010. 09:14 PM | 4 Likes Like |Link to Comment
  • 21 Foreign Stocks Yielding More Than 5% Dividends [View article]
    Surfgeezer,

    I am not an idiot.

    You can always hedge currency risk if you are that concerned.

    Currencies fluctuate up and down. If you look at the euro it is not far from where it was when it was launched in 1999.

    When I invest in a foreign company like DEO for example, I don't really care whether the british pound will be at $2 or at $1.50. I just care about growth in the company and rising profits and dividends.

    If you pick the right stocks, currency is the least of your worries. If you pick the wrong stocks, currency is the least of your worries as well.
    Oct 5, 2010. 05:29 PM | Likes Like |Link to Comment
  • 21 Foreign Stocks Yielding More Than 5% Dividends [View article]
    I don't see why the value of the dollar is relevant at all. But I also do not see why this article is titled editors pick given the fact that it is simply a list of stocks.
    Oct 5, 2010. 03:02 PM | 2 Likes Like |Link to Comment
  • Six Companies With 20% Yields on Cost [View article]
    Yes, but but a growing yield on cost indicates you are buying quality dividend stocks with rising dividends. It doesn't compound, but it is just one of the things that dividend investors look for.

    YOC shows that the dividend payment has increased since you pruchased the stock. If you bought a stock at $100 with yield of 10% but 1 year from now the dividend is cut by 50%, your current yield might be 10% still if stock price is at 50. But your yield on cost is 5%. So now you have less income..

    Stocks with rising dividends will produce not only a rising dividend income stream, but also rising stock prices. Whether you want to sell or not is up to the individual. Most often however individual investors are better off not doing anything with their investments, than buying when yield is 2.50% and selling when the yield on cost is double what it was, and the stock has gone up 100%.

    Yield on cost is not nonsense. Dividends are not nonsense. Dividend stocks have outperformed non div stocks over past 38 years. (Ned Davis Research). Whether future holds same - I don't know. You mention good companies - very few companies can afford to reinvest ALL of their earnings back at an incrementally high ROE. Berkshire is the exception, rather than the norm.

    You know how I see that you don't get yield on cost? It's with your example that you could sell the company with a high YOC but low current yield AND replace it with a company that pays a high current yield. I could argue that current yield is irrelevant, since it is just the dividend return you could reinvest your capital at for a single year/period. If you sell the 1976 stock now for a company yielding 10% that doesn't grow distributions ( hence yield on cost is always 10%) your purchasing power is lower in 2034 ( at 3% inflation). Thus you might have been better off in the 8% YOC initial investment (that yield 4% today). And that's because lower current yielding stocks of today, can grow dividends faster than companies with high current yields.

    I think you are projecting your negativism on the author's strategy, based on your own predispositions. The author has been writing about dividends, long before the bond bubble of 2010... So if you are implying something then it's just your concern, and it is far away from the truth. If not, then I have misunderstood you.
    Sep 19, 2010. 04:19 AM | 2 Likes Like |Link to Comment
  • Six Companies With 20% Yields on Cost [View article]
    BMC,

    After reading your comments I think that the article and you are basically saying similar things. Dividend Aristocrats are companies that have raised dividends for over 25 years. Dividend Growth Stocks are companies that can afford to raise dividends for many years.

    Only great companeis can manage to generate so much excess cash flow, that they cannot reinvest all of it in the business at high incremental ROE. So that's why those companies are great.

    I just do not understand, why you do not understand the article? You seem to understand the idea, yet you keep using bad language.

    As a retired investor I buy stocks that pay dividends. The goal is to buy outstanding firms that pay rising dividends, coming from rising EPS. I spend the dividends, and pay for my expenses. I need to eat, pay electric bills, shop every month ( I actually eat 3 times a day ;-)) So I have recurring expenses. That's why I prefer the stability of dividend payments - dividend returns are less variable than price returns. Sure I could buy the next GOOG or AAPL or whatever growth stock and sell portions of my portfolio to fund my lifestyle- but then I am at the mersy of the market and could theoretically end up diminishing my position in the stock. What happens if I keep selling when the stock price is flat or going down for an extended period of time? What happens if it takes the market a few years before realizing how great the company really is, despite the fact that EPS, revenues are going up, and expected to go up?

    With dividend stocks I get a portion of earnings as dividends, and don't have to sell and reduce my position, which would not be nice if the market is in a freefall/recession etc.

    Since there is inflation each year ( on average 3% I would say), I would need a source of income that increases enough so that it could at least match inflation. Dividend growth stocks do that for me. yield on cost is important, because it shows me that my dividend stocks are paying more, based on my initial investment. For a retired investor with $100,000 in 1976, who gets $4000 in dividend income and spends it, inflation is the worst enemy. Thus he needs his income to meet inflation. Because at 3% in 24 years, the purchasing power of the 2010 dollar is half what it were in 1976. Thus if your stocks in 2010 generate $8000 in dividend income, you are a happy trooper.YOC is 8% for you.

    However if your stocks generate $2K or $3K, you are not very happy. Maybe that's why you don't get the article - you are not the target audience for the writer. I am, and I get it. If you don't get it, read teh articles he/she has written before, to get a glimpse of their strategy..
    Sep 18, 2010. 04:04 PM | 3 Likes Like |Link to Comment
  • Six Companies With 20% Yields on Cost [View article]
    GM has never been a successful dividend stock. It has always paid a fluctuating dividend. The article specifically points out that.

    The author uses YOC ( bid yield is a silly term, that you are using inappropriately per my understanding of the definition) just as an example that solid dividend stocks could provide you with a higher income on a $100 investment, versus a $100 investment in bonds for example. I do not understand what is all the commenting about.
    Sep 18, 2010. 03:48 PM | 2 Likes Like |Link to Comment
  • Six Companies With 20% Yields on Cost [View article]
    BMC,

    I think you are using the term " bid yield" inappropriately. According to Fidelity:

    Bid Yield is: The highest annual rate of return on an investment (e.g., a bond) at which a buyer is willing to buy a security.

    scs.fidelity.com/webxp...

    What's wrong with the term " yield on cost"? Also, I think you are writing volumes of posts about the authors strategy, but you obviously haven't read anything else from him/her. If you really want to get answers to your questions, read the 400+ DGI has written on SA ( and more on his site).
    Sep 18, 2010. 03:45 PM | 3 Likes Like |Link to Comment
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