Taking Advantage Of Volatility - A Diversification Opportunity For Dividend Growth Investors [View article]
Keep in mind that as the stock price lowers and the dividends stay the same or rise - reinvesting in more stock can pay off quite well when the prices move back up...........
A 'New Normal' For Dividend Yields - Or Temporary Distortion? [View article]
Please keep in mind that Gold will not drop 75% all at once (if it really does that at all), but will more like go up and down just as it has for many decades. Over those past decades, that 15% came out WAY ahead of Bonds as an investment and I see no reason to think the future will be any different.
You should also keep in mind that Gold, Silver and Platinum have all been wealth preservers - a kind of insurance policy againt fiat currency problems. Those same problems that have raised the price of all things over time as they became worth less and less over that same time period.
I see nothing in the World's finances to make me think that the situation will change anytime soon. IF the US goes back on a form of Gold Standard - Gold will very likely Sky-Rocket up and I (and my substantial family) will do very well.
One more thing, the 15% solution would have you doing exactly the opposite of what you say - if it drops down 75% - I would be buying not selling in order to keep it at 15% of my portfolios. When it went back up in time as it always does, the 15% solution will have you selling at a higher price than you paid for it.....
Let me see, I think that buying low and selling high is not a bad idea over time - it does not really matter if the time period is a week, a month, a year or several decades. Gold and the other PMs are real money - not fiat.........and it really does make a difference over time.
" What I don't really talk about in that article is something that we have been discussing on the DGI article threads, and that is that I welcome a pullback as an opportunity to go shopping for deals. Of course, a 2008-2009-like crash is not something any of us hope for, I think, but I'm building up some dry powder and have my ducks lined up to shoot down when the prices are right."
I do not if "hope for" is quite the right term, but I stayed fully invested through that crash, reinvesting dividends, and putting a bit of fresh cash into it as well.
By the time it was over and I had recovered to the "break-even" point (roughly three months after my absolute low portfolio value) and went past that quite easily. By the time that most people were recovering from that market - I had darn near doubled my portfolio value........
Hoping for it, maybe not - BUT I would really not find it scary at all, more like a massive sale that could be joyfully participated in.
BlackRock: An Undervalued, Industry Leading Asset Manager [View article]
Earnings Report came out 10 August and it would seem that the information in it has not been put on different sites yet. Give it a bit more time and see if the information is out then.
I have owned MO for a LONG time as a Core Stock and intend to keep right on owning it. I look forward to the Earnings Report coming out on 18 July to really see how they are doing in this global market.
By some metrics such as Price/Free Cash Flow (5081.29), they are indeed grossly over-priced and keeping an eye on them is a wonderful idea. However, keeping an eye on ANY stock you own is a wonderful idea at any time........
Currently, they have $2.04/Share in the bank to pay that $1.64 annual dividend, their Return on Equity is rising (74.59% now) and their Operating Margin is rising also (25.92%) and that price the writer is so worried about is very near setting a new 52 week high with all of the Moving Averages well above that price.
I would not sell the stock until it either stops that rise and starts heading down or it rises enough to get out of balance with the rest of my portfolio - then I would sell just enough to bring it back into balance.
As for buying more, it is still rising and it is hard to see where it might stop so reinvesting the dividends or buying more while not a bad idea (Jesse Livormore said that no stock is too expensive to buy or too cheap to sell when the trends are moving that way and the momentum is still rising at this point) those metrics like Price/Free Cash Flow might be used to point out that taking cash instead of reinvesting might be the best idea here.
That would be up to the individual investor's comfort level here as you can make a decent case either way.
Yield On Cost Vs. 4% For Your Retirement Income Stream [View article]
My only point is that the snowball effect of reinvesting the dividends takes more than 5 years to show up usually. The normal time frame is between 7 and 10 years.....
Never the less, dividend reinvesting over a long period of time is a huge and almost idiot-proof way of becoming wealthy. I like YOC but use it a slightly different way. I like to subtract the dividends paid from my investment in the stock to see how long it is until I have no money left in the stocks - having received my investment back in those dividends.....
Having been a professional gambler in my checkered past - I like being on the house's money instead of my own.......
The Most Successful Dividend Investors Of All Time [View article]
Keep in mind also that the only thing a bear market does is let you find the outstanding companies at sale prices. It is not now and has never been something to be scared of. It is the time you find things to buy so when the bull market hits (as it always does eventually) you get the value from the rise. Millionaires come from investing during the bear.
The other thing to keep in mind is that historically - bull markets last far longer than bear markets.
Are You A Buyer Or A Seller In This Market? [View article]
Robert, The main drawback of BMI measurements is that they do not take into account muscle mass very well. A lot (or even a fair amount) of muscle can give a false reading of obese because of that.
A better measurement is Waist to Height Ratio. This was written up in a medical journal only about a month ago. If your Waist is less than half your Height in inches - you are okay.....
Don't fudge it - measure the waist around the largest part. For me, that is between the belly button and the solar plexus. If it is less than half your height - you are okay. If not - then you still need to get that last 5-10 lbs or so gone.....they do seem to be the hardest... :)
Are You A Buyer Or A Seller In This Market? [View article]
John, RS: My wife and I also share entrees, but a bit differently. She has a much smalller appetitie so she usually eats half of one, while I eat 1.5 of them.....team work all the way....
Are You A Buyer Or A Seller In This Market? [View article]
Many years ago, when I was still dealing cards in Las Vegas, I had a regular customer who was 90+, came in almost every day and we allowed him to play penny roulette and get some free drinks and tell his stories about things he had done and people he had known.
Marvelous story teller - his favorite drink was a variation of a ScrewDriver (Orange Juice and Vodka). He called it a Phillip's ScrewDriver (Milk of Magnesia and Vodka)........
I think I would like an "Arnie Palmer" better....LOL
Are You A Buyer Or A Seller In This Market? [View article]
"So Kelly, I ask you, given the extent of the panic and tragedy of the period, do you really believe the typical investor HELD onto his/her stocks, was also able to REINVEST DIVIDENDS, so as to realize the statistically possible gains you referenced? "
Quite a few did just that - "typical" I have no idea what the typical investor did during that time - but more millionaires were made during that time than from almost any other time in our history and it is a good chance that they did it by a similar (if not exactly the same) method. A story by CNBC below shows that the Great Resession worked pretty much the same way and that is the lesson here for the future. When the market crashes - it is an opportunity for those who look at it that way and stay in for the duration - not a tragedy at all - as has been said elsewhere by one of the Davids - you do not have a loss until and unless you sell and lock it in. Simply being down in price is not the same thing at all as it is only a paper loss.
Many More Millionaires Formed in 2009 CNBC Story on 20100804
667,200 millionaires with $1 Million or more in invest-able, liquid assets in New York City today – up 18.7% in 2009 from 2008. Los Angeles is up 13.3% during the same period. This is spendable net worth......not including housing, for instance.
Once again - the lesson here from the history is clear. If you panic and sell out - you have locked in losses and it will take a great deal of time to recover those real losses. If you stay in the market and reinvest your dividends at the sale prices from the market drop - you not only come out of that drop faster but you will also have a much larger value portfolio at the end of it than you did at the beginning of it.
My own experience over better than 50 years says exactly the same thing. I ALWAYS come out of a market drop with a larger portfolio than I had at the start of the drop.......If you reinvest the dividends in the companies with broken stocks rather than broken companies - you come out ahead....a lower stock price is NOT a scary thing for the dividend investor....but a buying opportunity.
Best Practices For Dividend Growth Investors [View article]
A couple things here to comment on...
It is not needed (as DVK says) to know what a stock is going to be like in 3-5 years. You make your best choice and find out with time if it was right or wrong. If you learn enough to make good choices, you will do well and your poorer choices all have something to teach you. Abraham Lincoln said: "The best thing about the future is that it comes only one day at a time." and he was exactly right.
It is also not needed to stay out of a stock that has cut or completely eliminated it's dividends. Since the stock price itself tends to crash following a cut - out of the stock is a good place to be. When it has finished dropping - it may be a good buy once again. It will not be in my Core Portfolio again until it rebuilds that record of raising dividends, but it can be placed in the trading portfolio to wait until it does rebuild that record. When a company that has completely quit paying a dividend, starts to pay it again - it can be a fine investment once again - especially since companies that start paying a dividend tend to outperform the market as a whole historically.
The Most Successful Dividend Investors Of All Time [View article]
I have not died quite yet, so we do not know the final results but I have had a great deal of success doing pretty much the same thing over a better than 50 year time period.
Even with putting money into the budget simply for fun - the long term results have been well ahead of any benchmark you would like to use and my family is pretty well set to say the least.....
Well done article - please keep up your fine work here on SA.
Are You A Buyer Or A Seller In This Market? [View article]
Oh yes !!! Kiddie meals do not come anywhere near what I need for a meal....portion size does work though...I lost over 50 pounds a few years back by cutting down to what any 2 healthy people might eat instead of what any 4 healthy appetites might eat.
I still eat a lot compared to just about anyone I know, but it is all good food - not junk - and I do a lot of walking when I can. I gained a few more pounds than I am comfortable with during the winter but am losing again going to the local park with the Chocolate Lab...
Are You A Buyer Or A Seller In This Market? [View article]
Good Morning RJ:
While it is true that it took 24 years for the Dow to recover - that does not take dividends into account. If you stayed in the market during the Depression and simply reinvested your dividends during that time - you recovered your losses and started moving ahead in as little as 3.5 years - not 24 at all.
Another thing to take note of is simply that while stock prices fell more than 80% during that time - dividends only fell 11%.....if you simply have a number of dividend raisers rather than just one - your chances of really getting hurt are quite low....
Check the story at this link and pay good attention to the chart at the end of it and the implications of it:
Taking Advantage Of Volatility - A Diversification Opportunity For Dividend Growth Investors [View article]
A 'New Normal' For Dividend Yields - Or Temporary Distortion? [View article]
You should also keep in mind that Gold, Silver and Platinum have all been wealth preservers - a kind of insurance policy againt fiat currency problems. Those same problems that have raised the price of all things over time as they became worth less and less over that same time period.
I see nothing in the World's finances to make me think that the situation will change anytime soon. IF the US goes back on a form of Gold Standard - Gold will very likely Sky-Rocket up and I (and my substantial family) will do very well.
One more thing, the 15% solution would have you doing exactly the opposite of what you say - if it drops down 75% - I would be buying not selling in order to keep it at 15% of my portfolios. When it went back up in time as it always does, the 15% solution will have you selling at a higher price than you paid for it.....
Let me see, I think that buying low and selling high is not a bad idea over time - it does not really matter if the time period is a week, a month, a year or several decades. Gold and the other PMs are real money - not fiat.........and it really does make a difference over time.
Think about it......
Buy Intel At The 4% Yield Price [View article]
" What I don't really talk about in that article is something that we have been discussing on the DGI article threads, and that is that I welcome a pullback as an opportunity to go shopping for deals. Of course, a 2008-2009-like crash is not something any of us hope for, I think, but I'm building up some dry powder and have my ducks lined up to shoot down when the prices are right."
I do not if "hope for" is quite the right term, but I stayed fully invested through that crash, reinvesting dividends, and putting a bit of fresh cash into it as well.
By the time it was over and I had recovered to the "break-even" point (roughly three months after my absolute low portfolio value) and went past that quite easily. By the time that most people were recovering from that market - I had darn near doubled my portfolio value........
Hoping for it, maybe not - BUT I would really not find it scary at all, more like a massive sale that could be joyfully participated in.
BlackRock: An Undervalued, Industry Leading Asset Manager [View article]
Altria Is Now Grossly Overvalued [View article]
By some metrics such as Price/Free Cash Flow (5081.29), they are indeed grossly over-priced and keeping an eye on them is a wonderful idea. However, keeping an eye on ANY stock you own is a wonderful idea at any time........
Currently, they have $2.04/Share in the bank to pay that $1.64 annual dividend, their Return on Equity is rising (74.59% now) and their Operating Margin is rising also (25.92%) and that price the writer is so worried about is very near setting a new 52 week high with all of the Moving Averages well above that price.
I would not sell the stock until it either stops that rise and starts heading down or it rises enough to get out of balance with the rest of my portfolio - then I would sell just enough to bring it back into balance.
As for buying more, it is still rising and it is hard to see where it might stop so reinvesting the dividends or buying more while not a bad idea (Jesse Livormore said that no stock is too expensive to buy or too cheap to sell when the trends are moving that way and the momentum is still rising at this point) those metrics like Price/Free Cash Flow might be used to point out that taking cash instead of reinvesting might be the best idea here.
That would be up to the individual investor's comfort level here as you can make a decent case either way.
Yield On Cost Vs. 4% For Your Retirement Income Stream [View article]
Never the less, dividend reinvesting over a long period of time is a huge and almost idiot-proof way of becoming wealthy. I like YOC but use it a slightly different way. I like to subtract the dividends paid from my investment in the stock to see how long it is until I have no money left in the stocks - having received my investment back in those dividends.....
Having been a professional gambler in my checkered past - I like being on the house's money instead of my own.......
The Most Successful Dividend Investors Of All Time [View article]
The other thing to keep in mind is that historically - bull markets last far longer than bear markets.
http://bit.ly/K60xux
http://bit.ly/K60vCL
http://bit.ly/MtbaDl
These 3 articles give a nice look at what I am talking about....my thanks to the writers.....
Are You A Buyer Or A Seller In This Market? [View article]
The main drawback of BMI measurements is that they do not take into account muscle mass very well. A lot (or even a fair amount) of muscle can give a false reading of obese because of that.
A better measurement is Waist to Height Ratio. This was written up in a medical journal only about a month ago. If your Waist is less than half your Height in inches - you are okay.....
Don't fudge it - measure the waist around the largest part. For me, that is between the belly button and the solar plexus. If it is less than half your height - you are okay. If not - then you still need to get that last 5-10 lbs or so gone.....they do seem to be the hardest... :)
Are You A Buyer Or A Seller In This Market? [View article]
Are You A Buyer Or A Seller In This Market? [View article]
Marvelous story teller - his favorite drink was a variation of a ScrewDriver (Orange Juice and Vodka). He called it a Phillip's ScrewDriver (Milk of Magnesia and Vodka)........
I think I would like an "Arnie Palmer" better....LOL
Are You A Buyer Or A Seller In This Market? [View article]
Quite a few did just that - "typical" I have no idea what the typical investor did during that time - but more millionaires were made during that time than from almost any other time in our history and it is a good chance that they did it by a similar (if not exactly the same) method. A story by CNBC below shows that the Great Resession worked pretty much the same way and that is the lesson here for the future. When the market crashes - it is an opportunity for those who look at it that way and stay in for the duration - not a tragedy at all - as has been said elsewhere by one of the Davids - you do not have a loss until and unless you sell and lock it in. Simply being down in price is not the same thing at all as it is only a paper loss.
Many More Millionaires Formed in 2009
CNBC Story on 20100804
667,200 millionaires with $1 Million or more in invest-able, liquid assets in New York City today – up 18.7% in 2009 from 2008. Los Angeles is up 13.3% during the same period. This is spendable net worth......not including housing, for instance.
Once again - the lesson here from the history is clear. If you panic and sell out - you have locked in losses and it will take a great deal of time to recover those real losses. If you stay in the market and reinvest your dividends at the sale prices from the market drop - you not only come out of that drop faster but you will also have a much larger value portfolio at the end of it than you did at the beginning of it.
My own experience over better than 50 years says exactly the same thing. I ALWAYS come out of a market drop with a larger portfolio than I had at the start of the drop.......If you reinvest the dividends in the companies with broken stocks rather than broken companies - you come out ahead....a lower stock price is NOT a scary thing for the dividend investor....but a buying opportunity.
Best Practices For Dividend Growth Investors [View article]
It is not needed (as DVK says) to know what a stock is going to be like in 3-5 years. You make your best choice and find out with time if it was right or wrong. If you learn enough to make good choices, you will do well and your poorer choices all have something to teach you.
Abraham Lincoln said: "The best thing about the future is that it comes only one day at a time." and he was exactly right.
It is also not needed to stay out of a stock that has cut or completely eliminated it's dividends. Since the stock price itself tends to crash following a cut - out of the stock is a good place to be. When it has finished dropping - it may be a good buy once again. It will not be in my Core Portfolio again until it rebuilds that record of raising dividends, but it can be placed in the trading portfolio to wait until it does rebuild that record. When a company that has completely quit paying a dividend, starts to pay it again - it can be a fine investment once again - especially since companies that start paying a dividend tend to outperform the market as a whole historically.
It is worth keeping in mind.
The Most Successful Dividend Investors Of All Time [View article]
Even with putting money into the budget simply for fun - the long term results have been well ahead of any benchmark you would like to use and my family is pretty well set to say the least.....
Well done article - please keep up your fine work here on SA.
Are You A Buyer Or A Seller In This Market? [View article]
I still eat a lot compared to just about anyone I know, but it is all good food - not junk - and I do a lot of walking when I can. I gained a few more pounds than I am comfortable with during the winter but am losing again going to the local park with the Chocolate Lab...
It is all good....
Are You A Buyer Or A Seller In This Market? [View article]
While it is true that it took 24 years for the Dow to recover - that does not take dividends into account. If you stayed in the market during the Depression and simply reinvested your dividends during that time - you recovered your losses and started moving ahead in as little as 3.5 years - not 24 at all.
Another thing to take note of is simply that while stock prices fell more than 80% during that time - dividends only fell 11%.....if you simply have a number of dividend raisers rather than just one - your chances of really getting hurt are quite low....
Check the story at this link and pay good attention to the chart at the end of it and the implications of it:
http://bit.ly/KGcrMn