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rnsmth

rnsmth
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  • Are Dividend Growth Investors Doing It All Wrong? [View article]
    <<I tend to believe analyst fair value estimates are overly optimistic; do you think that is imprudent?>>

    I do not think it is prudent nor imprudent. I think it is imprudent to take analyst fair value estimates at face value without knowing how they arrive at their estimate and without further investigation.

    Based on what I have read about PG, its financial results over the past decade, Morningstar and FAST Graphs data, I would say PG is in the slightly undervalued to fairly valued range at this time. I am comfortable with that.
    Dec 14 03:08 PM | Likes Like |Link to Comment
  • Are Dividend Growth Investors Doing It All Wrong? [View article]
    <<PG is without a doubt a company I want to own in my portfolio but I will not start a position in it today. Considering current valuations against, 5 year declining EPS growth, slowing dividend growth, and a raising payout ratio. No - not today. I will wait until the fundamentals improve. >>

    PG is at 95% of Morningstar's fair value estimate of $87 a share. Its earnings and free cash flow per share increased this year, and its payout ratio decreased. Fundamentals, including book value per share and operating margin are improving

    I have a position started at $59.60 and I added to it last week at $84.81. Overall position cost is just under $68.

    I would not advise you to buy or not buy here. I like it. I expect the fair value estimate to increase over time. It is a slightly undervalued Dividend Champion.
    Dec 14 02:03 PM | 2 Likes Like |Link to Comment
  • Why It's A Mistake To Hold Cash In This Market [View article]
    << The problem with dividend stocks is that the dividends either vanish in a big downturn or they start losing money and still pay out which is catastrophic for share prices.>>

    1) Please provide the number and percentage of Dividend Champions, Contenders and Challengers which saw their dividends vanish during the 2008-09 recession.

    2) Please provide comparative price decline between two groups of stocks: a) Those which were Dividend Champions, Contenders or Challengers at the start of the recession (further subdivide this group into financials and non-financials) and b) Those that were not in group a.

    Thank you in advance for this little piece of research
    Dec 14 01:46 PM | 5 Likes Like |Link to Comment
  • General Electric's Dividend Growth [View article]
    Sheldon, Thanks for the extended comments.
    Dec 14 11:06 AM | Likes Like |Link to Comment
  • General Electric's Dividend Growth [View article]
    Hi cpa,

    Morningstar's DividendInvestor newsletter views GE as fairly valued here also - price is 99% of their fair value estmate. I do not mind paying fair value for good companies, and I think GE is pretty good going forward. I did add to GE last week, bringing my cost basis up to about $23.5 per share.

    I do not follow UTX, but its dividend is lower than GE's current or forward yield.
    Dec 14 09:23 AM | Likes Like |Link to Comment
  • General Electric's Dividend Growth [View article]
    T just announced their paltry dividend increase (2.2%). I hold higher yield stocks, but would not tolerate T's dividend growth rate for more than a year before selling and replacing it. I do own BCE as my high yield telecom company. Much better dividend growth than T and a 5.3% yield.
    Dec 13 09:00 PM | 1 Like Like |Link to Comment
  • General Electric's Dividend Growth [View article]
    It was wrong. If you are going to use TTM earnings, then you have to use TTM dividends. That is the only correct way to do it. That would give you a 57% payout ratio. It will be lower looking forward
    Dec 13 08:38 PM | 4 Likes Like |Link to Comment
  • Are Dividend Growth Investors Doing It All Wrong? [View article]
    A dividend growth portfolio, IMO, is like a symphony with different players playing different roles

    I have about 34 positions in mine. You can see them at my profile.

    Some from both of the author's lists, some on neither of them
    Dec 13 08:32 PM | 2 Likes Like |Link to Comment
  • General Electric's Dividend Growth [View article]
    The forward dividend payout divided by trailing 12 months earning.

    That is not an appropriate denominator for the payout ratio. If you use the current year earnings estimate from Yahoo (1.64) the ratio is 53.6%. If you use the Dec 2014 earnings estimate (1.84) the payout ratio is 50.6%.

    The use of the appropriate denominator(s) is important.
    Dec 13 08:17 PM | 2 Likes Like |Link to Comment
  • Telecom Stocks Offer High Yields And Fed Risk [View article]
    Mike, I thought about selling VOD earlier but decided I would wait for a likely VZ offer. I considered holding it after that offer, but I decided I got what I was waiting for so I would take the money and run :)

    I am pleased with BCE and RCI. RCI is way undervalued. I will be patient.
    Dec 13 08:10 PM | Likes Like |Link to Comment
  • Why It's A Mistake To Hold Cash In This Market [View article]
    <<We all want to buy and then see it zoom up.>>

    Not necessarily. If one is reinvesting dividends a flattish share price could be preferable
    Dec 13 06:55 PM | Likes Like |Link to Comment
  • Telecom Stocks Offer High Yields And Fed Risk [View article]
    I do not pay attention to Yahoo. Look at Morningstar Key ratios for a 10 year history. I suggest you do your own DD. Ignoring "foreign" companies - what happens to diversification when you do that. Also hold BMO and BNS in Canada. Good dividend growth companies up north.

    Used to hold VOD, but sold it when VZ bought out their share of Verizon Wireless
    Dec 13 05:16 PM | Likes Like |Link to Comment
  • Telecom Stocks Offer High Yields And Fed Risk [View article]
    Look north.

    I sold T quite a while ago. I own Bell Canada (BCE, 5% yield) and Rogers Communication( RCI 3.6% yield). Both have better dividend growth rates than T or VZ,I am pretty sure

    T and VZ are both dividend growth dogs - dogs not being a complimentary term
    Dec 13 03:49 PM | Likes Like |Link to Comment
  • Should McDonald's Be Added To My Dividend Growth Portfolio? [View article]
    I opened a MCD position in Nov. 2012 and added to it last week.

    Holding as long as dividend growth is safe and sustainable
    Dec 13 02:52 PM | 2 Likes Like |Link to Comment
  • Has General Electric Moved Up Too Far, Too Fast? [View article]
    It was a penny a quarter above what I had penciled in :)
    Dec 13 01:51 PM | Likes Like |Link to Comment
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