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cpa28761

cpa28761
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  • Dividend Zombies - Colgate-Palmolive: 5 Facets To This Jewel (Part 7) [View article]
    I have to agree with justanother. I made money on CL. However, given its PEG of 3.5 and its yield of just a bit over 2%, I think PG is a better value and so is KMB.

    Two dates that might be considered in the grid. The first would be when PG beat CL to the punch with fluoride toothpaste. The second might be when and if triclosan, the differentiating ingredient in CL's premium tooth is banned.
    Nov 21, 2014. 10:07 AM | 1 Like Like |Link to Comment
  • AT&T's Continued Solid Performance Earns The Stock Another Bullish Thesis [View article]
    >>>No one gets very rich with T and I continue to be intrigued by those daring to recommend it.<<<

    No one ever said that T or any other stock should be the only stock in an investor's portfolio. As a retiree, I look to T's current yield. That it's higher than a 4% benchmark makes it possible to have positions in lower yielding stocks (say, HON, MMM, and UTX) that have greater growth potential and still have the cash flow needed for the day-to-day.
    Nov 18, 2014. 04:27 PM | Likes Like |Link to Comment
  • Is Johnson & Johnson A Stock Worth Having In The Portfolio Right Now? [View article]
    What so many in this particular thread seem to be missing is that JNJ is a GROWTH company. S&P classifies it as a growth stock. Other than total market and index funds, the funds that are the major holders of JNJ (say, Fidelity Contrafund) are growth funds. The notion that JNJ's price is driven by yield, as if it were a bond substitute, is removed from the objective of the majority of its investors.
    Nov 17, 2014. 10:20 PM | 1 Like Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>Then do you think PG were mistaken in their dispositions? And how would you explain them?<<<

    I don't think it was a mistake, but I have to take it brand-by-brand. In the case of Folgers, I think American tastes are gravitating to Arabica beans. Even Walmart has numerous Arabica bean coffees. PG was embarrassed every time Folgers was in a taste test.

    Edible oils are commodities. They are vulnerable to private label competition as everyone knows they are identical.

    Generally speaking, margins on grocery products are lower than those of the products receiving greater emphasis currently at PG. By those I mean OTC medications and cosmetics. UN/UL trades at a lower multiple than PG, perhaps, because a major portion of their business is grocery products. As a retail investor, that's my view from the outside in.
    Nov 17, 2014. 12:56 PM | Likes Like |Link to Comment
  • 10 Stocks Providing Positive Feedback With Increased Dividends [View article]
    Andrea:

    It is not possible to feed a poor family from the income earned by a $10,000 portfolio. Therefore, there must be some other sources of income.

    If available income must be supplemented, then higher yielding stocks such as T should be pursued. Investments such as MLP's and preferred stocks are alternatives. At the same time, I would avoid risky investments that involve yield chasing. A poor family can't afford that.

    If, in turn, the family is able to pull itself up by its bootstraps, growth should be pursued with stocks that pay dividends.

    Sheldon
    Nov 17, 2014. 10:29 AM | 1 Like Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>PG's decision may simply have been the result of an assessment of the particular food brands they held, of their growth potential, and as to whether the the scale or "critical mass" of PG's food brands justified the marketing efforts and expense needed to build the distribution channels and volumes for food.<<

    PG's food business was far more than Pringles, which they sold to K, which I would NOT exactly consider a legacy brands company that lacked the capabilities and critical mass to develop brands on their own. In the 1970's, GIS tried to compete with Pringles with a product called Chippos. In the 1970's, the last box of Chippos was sealed in lucite.

    Folger's was taken from a regional brand to the number one brand of coffee by PG.

    Crisco (the original formulation) was a a technological breakthru in its day. The shortening brand was applied to liquid edible oils and was and is a leading brand.

    Duncan Hines is a leading brand of bakery products.

    Jif was made the leading peanut butter by PG.

    I really don't think PG's food brands lacked "scale" or "critical mass".
    Nov 16, 2014. 03:56 PM | Likes Like |Link to Comment
  • Johnson & Johnson: Growth-Growth-Growth; Win-Win-Win - Part V [View article]
    >>>Wish some real nasty market downturn would hit JNJ s I could stock up on it.<<<

    The flaw with this wishful thinking is that JNJ has a low beta driven by the quality and consistency of its earnings.
    Nov 16, 2014. 08:22 AM | Likes Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>I hold PG too for diversification, but do not consider its sectors, personal care and household products, to be as desirable as food and beverages.<<<

    What's interesting is that PG divested itself of its food businesses. They had numerous leading brands, but decided that there was insufficient growth in those lines.
    Nov 16, 2014. 12:49 AM | Likes Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>The Warren B name alone will do more for the batteries then the P&G name.<<<

    Oh, my, yes! People will flock to stores to buy batteries once the word is out that Warren Buffett is behind the company.

    Long: PG
    Nov 14, 2014. 07:53 AM | 2 Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    >>>a loss is not a loss till you take it, same with a profit<<<

    That paradigm applies to stocks as their financial life is undefined. Bonds have maturities and, in the absence of default, they WILL and DO revert to par. Therefore, the amortization of premiums must be considered. Just because bond funds do not have the transparency to reveal this axiom does not mean that it does not exist.
    Nov 13, 2014. 03:53 PM | Likes Like |Link to Comment
  • McDonald's - An Unhealthy Choice For Your Portfolio Despite An Attractive Dividend [View article]
    >>>I will be the first to admit that this target price ($57.12) seems unrealistically low.<<<

    You won't be the last either. That price would put the yield to nearly 6% for a company with a TTM payout of 64% and Interest Coverage of 14X.

    It would be interesting were you to apply the same methodology to competing investments and see how the competition does.
    Long: MCD
    Nov 13, 2014. 08:22 AM | 4 Likes Like |Link to Comment
  • The Tax Inefficiencies Of Dividends [View article]
    Owner, it ALWAYS happens. It's just that it is not the only event or circumstance that influences stock price.
    Nov 11, 2014. 02:52 PM | 2 Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    Rebel, you make a good point, but there is more to the issue. You miss several points.

    First, since you were an investment professional, you should know that every bond fund in which we would invest today has considerable premium values in its holdings. These premiums will evaporate over time (even if interest rates do not increase) and your return to maturity will be considerably less than the current yield.

    Second, JNJ, in addition to its dividend, has given me appreciation of 63% in the portfolio value that I accumulated from 2008 thru 2014. Its likely that some level of appreciation will continue. There is a lesser chance that there may be depreciation. However, that the premium values in the bond fund you hold will evaporate. That's not Wall Street's caprice. It's math.

    Third, JNJ is not the only thing in my portfolio. I have structured and managed my portfolio to yield 4%, which is more than adequate to maintain my life style. I have supplemented stocks with individual bonds, MLP's, and preferred stocks. Thru this structure, I plan to have dividend increases and stock appreciation as my hedges against inflation. Bonds and bond funds provide no inflation protection.

    Fourth, I relocated from the NYC metro area to Florida, where the cost of living is lower.

    I don't claim a monopoly on judgment and wisdom, but I believe my plan is pretty-well thought-thru.
    Nov 11, 2014. 02:24 PM | 3 Likes Like |Link to Comment
  • Cramer's Lightning Round - I Curse The Day I Bought General Motors (11/10/14) [View article]
    MRK and PG are both into OTC medications. However, as investors, we are in the investing business. Therefore, we look to profit growth. I see more of it in PG than in MRK, but my reason for commenting was the Cramer comment where he put the two together.
    Nov 11, 2014. 11:17 AM | Likes Like |Link to Comment
  • Cramer's Lightning Round - I Curse The Day I Bought General Motors (11/10/14) [View article]
    >>>Cramer prefers Merck to Procter & Gamble<<<

    I don't see how anyone can get excited about MRK with a PEG of 6.34 and a TTM dividend payout of 96%.
    Nov 11, 2014. 08:51 AM | 3 Likes Like |Link to Comment
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