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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]
    I see three 20th century marquise names struggling to regain their status in the 21st century word: EK, PBI, and XRX. Each in its own way was tethered to the printed image. In this century, images have gone virtual.

    Maybe these guys will reinvent themselves. However, they face competitors who have been in the virtual or digital image business far longer than they have been. Maybe they'll go the way of the steam engine that built the industrial revolution of the 19th century. There are enough attractive investments where I do not have to make such a bet.
    Aug 16, 2011. 11:42 AM | 5 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    Robert, LIZ was a multi-billion dollar juggernaut. People in the fashion business were in awe of them. Macy's, because of their consolidation of department store business, acquired the critical mass to do everything LIZ did by themselves. They replaced LIZ with private label. That was a double-whammy for LIZ. First, they had to become a private label for JCP. In other words, they had to become a franchisee, rather than owning the franchise as they did, for survival. Second, becoming a JCP label destroyed all credibility of their own outlet stores.

    If Macy's could do that to LIZ, they can replace anyone with private labels.

    Sheldon
    Aug 16, 2011. 11:34 AM | 4 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    Norman:

    I retired a year ago and maintain a balance between income and income growth. T is typical of my "income" holdings. I am commenting only because you mentioned SJM. I would prefer, among others PG and GIS as "dividend growth" stocks. Those are leaders. SJM is, principally a collection of legacy brands for which PG and GIS decided that growth potential is limited.
    Aug 16, 2011. 11:19 AM | 4 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    >>>I Iike to invest in a basket of both capital growth dividend stocks AND "dead money" safe stocks that pay big dividends--like T.<<<

    I'll bet your portfolio and mine are very similar.

    >>> If you still aren't happy, then sell the darned thing and buy VFC or something else.<<<

    Our opinions are shaped by our experiences. I spent most of my career (a) in the fashion business and (b) admiring LIZ. For those reasons, I would never invest a penny in an apparel company.
    Aug 16, 2011. 08:29 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]
    >>>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
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