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poortorich

poortorich
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  • Dividend Boosts Keep Getting Bigger but Dividend Stocks Are Snoozing. Reason to Worry? [View article]
    WMhilger

    I'll be a contrarian here. If you follow this methodology, you'll beat the s and p 500 by a few percentage points long term.
    Take the highest yielding s and p 500 companies (top 50-75) and buy them. Then 1 year later rebalance so that you maintain the highest yield. If you do this, you will beat the s and p 500. Picking among the S and P 500 ensures that in general, you are picking higher quality stocks. Of course, this would have to be done in a tax-deferred account. Transaction costs would also add up. Its a little variation of the Dogs of Dow strategy. So why am i not doing it? Because i love being an "owner" of companies. I also like investing in smaller companies.
    Mar 22, 2011. 05:12 PM | 5 Likes Like |Link to Comment
  • Dividend Boosts Keep Getting Bigger but Dividend Stocks Are Snoozing. Reason to Worry? [View article]
    WMhilger

    I was reading some of your comments about not buying something unless the yield is greater than 6%. In general, a yield that high means something is not right with the company.
    I read your profile. You took $300,000 in 1987 and increased it to $660,000 in 24 years. The annualized return on that is not very high. You could have done better owning KO or PEP and turned your $300,000 into perhaps $ 5,000,000 to $ 6,000,000. I'm not trying to be too critical here but if you own outstanding companies, there's no need to go in and out of companies. Let the economics of those outstanding companies allow your money to grow. Time is your best friend.
    Mar 22, 2011. 04:16 PM | 7 Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    The question of how many companies to own always comes up. I think it depends on what you are comfortable with. In my opinion, there are certain companies that are so entrenched and protected in their industry that you just cannot displace them. If another competitor comes, they either go belly up or get bought out. It happens in any industry. These companies are not very common, but it would literally take a nuclear war for some of them to go away. You only need to own a handful of these companies to be secure in your retirement. If you start diversifying too much you are essentially saying that you can do a better job of allocating money than some of these companies.
    Mar 22, 2011. 02:02 PM | 3 Likes Like |Link to Comment
  • J.M. Smucker: It's a Tasty Investment Idea Now [View article]
    Nice little company that I bought a while back. They paid a nice one time 10% dividend when they bought the coffee business from pg. I may use it to pay my children's college tuition.

    Mar 22, 2011. 02:30 AM | 1 Like Like |Link to Comment
  • 8 Likely Buyout Targets to Consider Today [View article]
    Some quick thoughts
    DPS being bought by KO or PEP? Antitrust issues?
    Hans being bought out by KO or PEP? KO makes more sense because Hans is already distributed by KO
    UA being bought out by NKE? UA hates NKE and already commands great respect in many retail stores already.
    Mar 21, 2011. 10:32 PM | Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    David Knapp

    The best way to drown out the noise is to only check your portfolio once every 5 years, provided the companies are outstanding companies. For people who do not have the temperment to handle the daily price swings, this may not be a bad idea. I'm being serious here.
    Mar 21, 2011. 06:27 PM | 3 Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    Zookbert
    Let me help you out here. Is 3.4% of your total portfolio value right now enough to pay your yearly expenses? If the answer is yes, you can do the following and never worry about money.
    Sell all your holdings and place all your money in these companies.( equal amount in each company)
    KO, PEP, ABT, JNJ, XOM, PG, WMT, KFT, UN, DEO. These companies will be around longer than you or any of us on this board. Although you may not get super returns, you may never need investing advice again. I bet you your financial advisor will say this is too risky. He'll probably say you need to diversify and have more bonds etc.
    Good luck.
    Mar 21, 2011. 04:20 PM | 6 Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    With regard to my last comment, David Knapp always provides common sense advice. If you read his articles and comments, you could tell he has both knowledge and experience. Ive always felt that you can read all the books in the world,but if you have not experienced at least two bull and bear markets, its hard to become a complete investor.
    Mar 20, 2011. 03:39 PM | 7 Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    Moon
    This is where stock selection is very important. Pick companies that have an extremely low likelihood of losing their competitive advantages in the future. This is what will ensure the future growth of earnings, intrinsic value and ultimately dividends.
    Right now dividend investing seems to be getting very popular. I fear that novice investors are not truly understanding the companies they are buying and merely relying on a list presented by "SA Contributor".Honestly, im also seeing too many contributors where their qualifications come into question. I hope I am wrong about this.
    Mar 20, 2011. 03:30 PM | 8 Likes Like |Link to Comment
  • Do Dividend Increases Keep Up With Inflation? [View article]
    I agree David. In a carefully designed dividend portfolio, the dividend increases will easily outpace inflation.
    Think about it. What is inflation? Its the increase in price of goods and services. Who provides goods and services? Companies. The lesson is stick to companies with pricing power.
    Mar 20, 2011. 12:48 PM | 9 Likes Like |Link to Comment
  • Top Technology Stocks With Highest Upside Potential [View article]
    Isn't that funny. Buffett said the same thing, except for the part on selling
    Mar 17, 2011. 01:45 PM | 1 Like Like |Link to Comment
  • Top Technology Stocks With Highest Upside Potential [View article]
    Dr. Osman
    I totally agree with your assessment of Apple. People who are expecting a repeat of Apple's performance over the past 10 years are delusional. When you get to a market cap of 300 billion plus, even a 20% growth over an EXTENDED period of time is very difficult. Is it possible? Yes. Is it likely, most definitely not. Don't say this on an apple thread though.
    Mar 17, 2011. 01:37 PM | 2 Likes Like |Link to Comment
  • Top Healthcare Stocks With Highest Upside Potential [View article]
    One more comment. Perhaps the most difficult aspect of investing is the qualititive analysis. What makes some companies great? Why do some companies flame out? An good understanding of business is essential. Thats why investing is part art and part science.
    Mar 17, 2011. 01:09 PM | 1 Like Like |Link to Comment
  • Top Healthcare Stocks With Highest Upside Potential [View article]
    Dr. Osman
    I applaud your attempt to help others with this formula. Do i use it? Yes. But its only good as the numbers you plug into it. The earnings growth, the terminal earnings, discount factor.....all of these can have a huge impact on the final number you get.
    Mar 17, 2011. 01:01 PM | 1 Like Like |Link to Comment
  • Top Healthcare Stocks With Highest Upside Potential [View article]
    The problem with using this formula in evaluating drug companies is consistency and predictability of earnings. Drug companies can have unpredictable earnings. I place a high premium on predictability.
    Mar 17, 2011. 12:42 PM | Likes Like |Link to Comment
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