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  • Treat Your Portfolio Like A Private Equity Fund [View article]
    >>>Solely zeroing in on dividend aristocrats, dividend champions, or triple-A rated dividend stocks will only serve to close off limitless amounts of investments waiting for their potential to be discovered.<<<

    This is very true. What is equally true is that zeroing in on high quality investments will close off the likelihood of one spending his or her retirement as a Wal-Mart greater.
    Apr 20 10:21 AM | 10 Likes Like |Link to Comment
  • A Simple Dividend Strategy That Will Get You 4%, Lower Volatility and More Sleep Part 1 [View article]
    Over half of the stocks listed are among my largest holdings, so I can't be too critical. The notion of evaluating stocks based on Beta's is also a concept that perhaps I should add to my own methodology.

    That said, the notion of choosing stocks with the highest yields omits the notion of evaluating business models. Even if an investor lacks the sophistication to analyze PBI's financials, he can see the press the Post Office is receiving with regard to needed layoff's. PBI is levered to the last century and can only go down.

    Is CTL's yield driven by how good its management is or is it a risk premium because they may not be that good? Ditto for CINF.

    Still in all, this article presented an excellent concept.
    Aug 14 07:57 AM | 10 Likes Like |Link to Comment
  • Top 5 Quality Dividend Paying Companies: A Performance Assessment [View article]
    Every drug has a risk and a reward. As long as rewards are greater than risks, a drug remains on the market. Automobiles and cell phones can be misused, but they provide valuable transportation and communication.

    Tobacco has no redeeming worth to those who use it, to those in proximity to those who use it, and to those who enter the space where it was used. It has a deleterious impact on all.
    Feb 13 12:56 PM | 10 Likes Like |Link to Comment
  • 22 High-Yield Large-Cap Stocks With PE/G Ratio Less Than 1.5 [View article]
    "But isn't there a good reason why the stocks you list have a low PEG."

    That's why we have to look at the business model. This is a screen. It is not a decision maker. Only judgment should make decisions.
    Feb 4 10:42 AM | 10 Likes Like |Link to Comment
  • Top 40 Dividend Stocks for 2011 Based on Concordance Analysis [View article]
    This seems to have been the most in depth mathematical analysis I've seen on SA. It also points out the limitations of relying on extrapolation for the future. PBI comes out on the top of the list. However, it is a business model of the last century, levered to snail mail. LLY (third on the list) faces patent expirations. In both cases, a simple look to fundamentals provides more horse sense than statistical theory.
    Dec 30 12:50 PM | 10 Likes Like |Link to Comment
  • Four Dividend Stock Picks for 2011 [View article]
    I am long JNJ, having recently increased my position. Just to add some perspective, consumer products are only about 25% of JNJ's business. The balance of the company is divided between prescription drugs, and devices and diagnostics.

    In turn, problems seem to be concentrated in certain consumer products: analgesics and cold remedies. Many JNJ brands have their own equities not associated with Tylenol or Motrin. Some examples are Band Aids, Listerine, and Johnson's Baby Shampoo. The "tarnish" (which is transient) did not transfer to those brands. It's not just that baby's mother had her hair washed with Johnson's Baby Shampoo; baby's grandmother had her hair washed with Johnson's Baby Shampoo.

    In addition, many JNJ brands are global with presence in the developed world and in emerging markets.

    I'm sticking with JNJ.
    Dec 30 08:38 AM | 10 Likes Like |Link to Comment
  • Dividend Growth Vs. Fixed Income Challenge: Can You Grow Dividends On Fixed Income? [View article]

    I entered the distribution phase in August of last year. Things do not change much. The principal dilemma is what to do with the principal I receive from maturities of 5% tax-free bonds. I have been putting most of it into a combination of dividend and dividend growth stocks. Even with dividend stocks (4%-6% yields), there is some growth. It would take over a decade for cumulative distributions of DG stocks (2.5%-3.5% yields) to equal those of dividend stocks.

    My point, however, is not to chose one strategy over the other. Indulge me two cliches. Diversification is the only free lunch. Nothing works every time, but everything works sometimes.

    Nov 7 12:11 PM | 9 Likes Like |Link to Comment
  • Dividend Growth Vs. Fixed Income Challenge: Can You Grow Dividends On Fixed Income? [View article]
    >>>The trade-off? You still have to reinvest 40+% of your dividend income to make it happen ....I’m positive, again, that spending nearly half your yearly fixed income dividends in order to keep pace with inflation was not your ultimate retirement plan.<<<

    My portfolio includes both DG stocks and income vehicles such as higher yielding telecom's and utilities, preferreds, MLP's, and bonds. However, "reinvest{ing} 40+% of your dividend income to make it happen" is not the worst thing in some particular cases. PG is my single largest position. It yields 3.3% with a five-year dividend growth rate of over 11%. Certainly 11% growth should keep me even with inflation. I also hold BACPRI, which yields 7.34% and distributions will not grow at all. If I must save 40% of my 7.34% yield, I still have a 4.4% yield to spend.

    The strategy works in both cases. The ideal structure of a retirement portfolio includes both sufficient current income and inflation hedges. Its "execution" should also include a life-style that still enables saving. Adding that third ingredient (saving) can make the portfolio as close to bullet-proof as is practicable.
    Nov 7 10:05 AM | 9 Likes Like |Link to Comment
  • Johnson & Johnson: Steady Dividend Payout but Slow Outlook [View article]
    >>>JNJ certainly is not a weak company, but its overall revenue growth is stagnating - it is not nearly as impressive as it was in the early 2000's.<<<
    >>>...ultimately JNJ stock isn't too dissimilar from a fixed-income instrument. Since its growth is probably not something you want to rely on in a portfolio, the dividend is where you will likely make your gains.<<<

    Since the early 2000's, JNJ dividend has more than tripled from $.18 per quarter to $.57 per quarter. That is quite dissimilar to a fixed-income instrument. Yes, the dividend is where we will likely make our gains. There is nothing wrong with that, especially when we cannot buy quality fixed income investments that yield as much as JNJ common unless we open ourselves up to a variety of additional risks.
    Aug 21 12:31 PM | 9 Likes Like |Link to Comment
  • Sparkling Dividends Face-Off: Coca-Cola vs. Pepsi [View article]
    >>>Since both companies' fundamental metrics are so similar to each other, it is very hard to choose between the two.<<<

    While not trying to take words out of context, it seems that the best tactic is to own both. Why choose? Why split hairs? Both are great companies.

    Long: KO and PEP
    May 23 08:45 AM | 9 Likes Like |Link to Comment
  • Dividends in Danger? Worries About Sysco, Hudson City, Pitney-Bowes [View article]
    "...some question marks over whether they can start growing earnings again..."

    If these question marks cannot be addressed, everything else is a non-starter. The following is from my post of 3/14/2011:

    "PBI's business seems to be tied to physical communications. Go to their web site and look at the products and services they offer as business solutions. Ask yourself if you believe these are principally 21st century solutions or just warmed-over 20th century solutions. Ask if they are selling "solutions" that are already provided for free by FedEx, UPS, and even the Post Office. Where you see 21st century solutions, ask if they aren't taking on competitors with whom they never had to contend before who may have as much or more expertise in those niches than they do.

    Then look at PBI's financials. Declining sales and earnings. Negative stockholder equity, but increasing dividends and net share buybacks over the years. It looks to me that management is more concerned with supporting their stock price than investing in their business. Maybe they don't see opportunities. In 2010, the sum of dividends and stock buybacks ($390 Million) was well over three times their capital expenditures ($120 Million)."

    It seems that PBI management is taking steps to support their stock price during an orderly liquidation of their company.
    Mar 25 09:54 AM | 9 Likes Like |Link to Comment
  • 5 Stocks Meeting My Entry Criteria for Dividend Investments [View article]
    "It is important to remember that dividend investing should not be seen as a mechanical process. Investors should further analyze in detail the companies which their list generates and evaluate their competitive advantages, understand their business model and decide for themselves whether future dividend growth could be maintained."

    Very well said.

    Long: PG, CVX, KO, MCD, PEP
    Mar 2 09:23 AM | 9 Likes Like |Link to Comment
  • What's a Safe Withdrawal Rate? These 10 Dividend Stocks Are the Answer [View article]
    dybydx, I have found that participants on this board prefer to choose their own stocks and share that information.
    Dec 30 04:30 PM | 9 Likes Like |Link to Comment
  • My Six Favorite Dividend Stocks [View article]
    I'll add one more thing. Consumer products and OTC's are only 25% of JNJ. Many of the brands under this umbrella are independent of Tylenol. BandAids, for example. One fact is that it goes beyond baby's mother having had her hair washed with Johnson's Baby Shampoo. Baby's grandmother had her hair washed with Johnson's Baby Shampoo.

    The current problems will be fixed. JNJ will prosper.

    Long: JNJ
    Nov 24 01:06 PM | 9 Likes Like |Link to Comment
  • How Safe Is BP’s Dividend? [View article]
    There is an additional factor here. Despite the politically-motivated statements of Schumer, BP is not an American company. Schumer can demagogue all he wishes, but he cannot dictate to a British company.

    Additionally, as longoil points out, dividends are retirees pensions. Politicians such as Schumer never seem to recognize this.

    Long BP
    Jun 4 08:45 AM | 9 Likes Like |Link to Comment