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cpa28761

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  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    >>>If you are looking to accumulate capital, then you need to consider dividend stocks that have growth potential. If you are looking for an income stream, then you may want to look at low beta stocks with larger dividends.<<<

    Then again, combining both types may be even better. High yielding common stocks along with bonds, MLP's, and preferred stocks will provide the bulk of immediate income needs. Dividend growth stocks will provide the bulk of inflation protection while contributing to income. A third leg may be added, which is NOT to spend all income, but to save a portion to provide an additional cushion.
    Aug 16, 2011. 07:44 AM | 5 Likes Like |Link to Comment
  • Johnson & Johnson: A Regal Dividend Stock Going Cheap [View article]
    >>> I can show you companies that have a 95% correlation between their dividend hikes and their price growth. <<<

    I'm sure you can. However, was there a correlation between earnings and dividends? Was there a correlation a correlation between earnings and price growth?
    Aug 16, 2011. 06:48 AM | 1 Like Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    toobad, you are 100% correct in what you state. However, neither you nor I have an alternative. I would love to buy an 8% FDIC-insured CD. They were available thirty years ago. If capital preservation is one's only objective, he could have $2 Million invested in bank CD's and be earning less than $30,000 per year. High quality corporate bonds, with maturities of ten years or less, would generate, say, $50,000 per year on a $2 Million investment. AT&T stock, at today's price, does far better. T is in my portfolio, but only as part of a diversified group of holdings.
    Aug 15, 2011. 04:03 PM | 3 Likes Like |Link to Comment
  • 6 Oversold Global Giants Offering Major Dividends [View article]
    Hugh, be very careful when looking at Yahoo Finance on non-USA based companies. TOT's dividends are not at fixed amounts or a equal quarterly intervals. In 2010, their payments were:

    XD May $1.39
    XD Nov $1.54

    In 2011, their scheduled distributions are:

    XD May $1.61
    XD Sep $ .82
    XD Dec $ .81

    The XD Dec 2011 will be paid in 2012. How this is annualized, is up to the investor.
    Aug 15, 2011. 01:10 PM | 2 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    >>>Here's a negotiation point for the next Chrysler contract:

    "If you smoke pot or drink beer on break, you're fired" <<<

    Ducky, you must think you're dealing with Asian management to say that.
    Aug 15, 2011. 12:50 PM | Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    mikeurl, good luck to you!
    Aug 15, 2011. 12:48 PM | 2 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    bcfran, I own ETP and two other MLP's for their yield. I don't own EXC, but hold several utilities. Beyond those two, the high yields for which you are reaching are, principally, risk premiums for lower quality investments.
    Aug 15, 2011. 07:20 AM | 3 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    Jeff, what you are saying, with which I agree,is that there will always be risk if one is reaching for yield. The paradigm of stocks and bonds differs. To make money on stocks, a company must grow and be prosper. To make money on bonds, the company need only survive. However, in today's environment, meaningful yields on bonds entails the risks of lower quality companies, leverage, and no protection from inflation. This is why I am prepared to increase my exposure to the class of equities rather than fixed income even in retirement.
    Aug 14, 2011. 11:00 PM | 3 Likes Like |Link to Comment
  • 6 Oversold Global Giants Offering Major Dividends [View article]
    NVS does. It amounted to less than fifteen one hundredths of one percent of the dividend. It seems to be a lot cheaper than trading on the Zurich stock exchange.
    Aug 14, 2011. 04:40 PM | 3 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    >>>A diversified bond portfolio could easily yield 4%, and the correlations differ from the market so that can add to the low volatility. <<<

    Please show me how and I'm not trying to be a wise guy. If I were to buy bonds of the companies whose stock you recommend, and want to minimize interest rate risk, I doubt that I could do much better than 2.5% to 3.0% without going out over fifteen years. Last time I looked, a JNJ 10-year maturity was yielding less than 2.4%.
    Aug 14, 2011. 04:30 PM | 4 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    >>>PBI is very well managed. Despite shrinking revenue they have held their free cash flow steady for several years. As of 2010 their FCF was almost 3 times the size of the dividend. They hold enough money, in cash, to pay the dividend for 2 full years if need be. And they have held their debt ratio steady.<<<

    Their free cash flow is steady because they are liquidating the company. Over the last four full years, their depreciation of $1,405 million was $616 million greater than their capital expenditures. In the last year, depreciation of $304 million was over two and a half times capital expenditures of a mere $120 million. During the first six months of 2011, depreciation was almost twice capital expenditures.

    Long-term debt has risen over the last four full years from $3.8 Billion to $4.2 Billion while losses have caused stockholder equity into the red (i.e., more liabilities than assets).

    The negative equity is without impairment charges to intangibles. I am not against seeing intangibles on the balance sheets of pharmaceuticals or defense companies because those guys have proprietary technologies that were paid for. What proprietary technology could PBI have to be carried into the century after things such as email, EDI, and EFT that could justify carrying $2.6 Billion (with a B) in goodwill and other intangibles?

    I will admit they are doing a good job of managing thru the circumstances. However, an 8% yield is not for the quality of any company. It is a risk premium and a big one because their dividend is not sustainable.
    Aug 14, 2011. 04:21 PM | 7 Likes Like |Link to Comment
  • 6 Oversold Global Giants Offering Major Dividends [View article]
    If you hold foreign stocks in a taxable account, you must file one additional form to get the taxes withheld by a local government back. That takes about two minutes on TurboTax. If you hold foreign investments in an IRA, those foreign taxes withheld are gone for good except for the minor benefit derived because there is less money to be withdrawn to fund retirement.
    Aug 14, 2011. 01:30 PM | 3 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    So, Jeff, you DO look at business models. I agree with your conclusions.

    NOK, at one time, made the best mobile phones. Then they deliberately commoditized their to compete in the Chinese market. They forgot to consider that their costs, in Europe, were too high to compete with lower cost Asian manufacturers.

    FLEX is a contract manufacturer and NOT a technology company. Their margins, since they compete on price only, are not sufficient to include debt service on the money they borrowed to buy their competitor Solectron.
    Aug 14, 2011. 01:21 PM | 4 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    Jeff, I am probably about your parents' age. Let me explain my point again. Given my own background as a retired CFO, I have read PBI's financials after people on SA recommended the stock, and made my determination that dividends were being paid by liquidating the company. However, my mother-in-law, aged 88 and living in an "old folks home" communicates via email. She knows that investing in snail mail companies has no future just from watching TV. Why should anyone accept dividend cuts that are predictable?
    Aug 14, 2011. 01:12 PM | 8 Likes Like |Link to Comment
  • McDonald's: Serving Up Burgers and Dividends [View article]
    >>>This may have no affect on profits, but I do look at social good in my investments as do some others.<<<

    There need not be a conflict between profits and social good. Helping people to escape from grinding poverty thru economic activity may be defined as the highest level of charity.

    "Give a man a fish; feed him for a day. Teach a man to fish; feed him for a lifetime."

    Article Source: EzineArticles.com/512280
    Aug 14, 2011. 01:03 PM | 8 Likes Like |Link to Comment
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