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Rhianni32

Rhianni32
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  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    David Van Knapp: I think your 5 year bull market comment is spot on.
    Its very easy right now to talk about how capital gains are the way to go and dividends don't matter when we are up 100% in that time frame. 20% average gain and dividends only contribut 2%-3% makes dividends do seem unimportant.

    However going with a long term average of 8% total returns and dividends contribute 2%-3% of they quite plainly contribute a great deal.
    Now if capital gains or dividends are more important to an individual is an individual preference and opinion. But they certainly matter.

    A friend of mine quite accurately put it ...
    "Everyone is a financial genius in a bull market."
    Mar 21 10:36 AM | 1 Like Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Mike Nadel: Absolutely I have to be careful of hypocrisy of generalizing. There are exceptions. My comments are based on my own personal, limited view of the impressions I get from commentors and contributors.

    I'm a 30 something myself so I break my own comment LOL.
    Mar 21 10:26 AM | 1 Like Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    "First of all, my perspective is as a retiree"

    Once again I am seeing a familiar pattern.
    The people actually having to live off their portfolio are pro dividends.
    The people who say dividend strategies aren't good are the 20 and 30 somethings working off of spreadsheets and economic theory.

    I hardly ever see a retiree talking about how dividends don't matter nor the young investor talking about dividends. Certainly a few notable exceptions but I'm talking about generalities.
    Mar 21 07:21 AM | 6 Likes Like |Link to Comment
  • When Cutting Dividends Adds Shareholder Value [View article]
    " From a totally rational point of view, a dividend doesn't give to a shareholder anything that he did not already have before."

    If the markets were rational than I might agree with you here but tell that to an investor whose stock drops below book value.
    Mar 20 12:14 PM | 1 Like Like |Link to Comment
  • When Cutting Dividends Adds Shareholder Value [View article]
    I'd love to know who exactly focuses only on dividends and nothing else as part of their strategy.
    To evaluate if a company can grow their dividend you'd have to look at debt, management, growth of the business, EPS.... all the things that a capital gains investor would look towards.
    Mar 20 12:05 PM | 2 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    What I love about these dividends don't matter debates is WHO is saying WHAT.

    The people in their working years using equations and theories in what their retirement years will be like are the ones generally wanting the company to keep all profit and that dividends don't matter.

    The people actually retired and having to deal with the reality of living off their portfolio are the ones wanting dividends and income.

    I'm in my 30s and I look to the retired commentors and what they are thinking and doing for what to expect.
    Mar 14 10:54 AM | 3 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    Jan Mazak: I presume then that Slovakia has a 0% capital gains tax because at some point when you want the money you would still face taxes.
    Let me know which companies can get 20%-30% returns consistantly and how that then translate to the same share price growth because I'd buy those in a heartbeat.
    Mar 14 10:48 AM | Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    If I started a pizza restaurant business I would start with one store and I work towards growing it into a chain.
    Problem is... I have to live off this because I am doing it full time. I need to pay my rent, eat, pay utilities.

    If we were to take the whole "If you want income just sell a few shares" mentality then what is this restaurant owner supposed to do? Sell a table and chair set? Perhaps sell one of his pizza ovens as he is selling some of the business.

    Or would he pay himself a steady income within the confines of the profit and leave the rest to grow the business? Isnt this the same thing as paying himself a dividend with a reasonable payout ratio where the company has plenty to grow?

    Seeing as how every business I have heard of goes with the second business model, I don't even know why this debate keeps coming up.
    Mar 14 10:32 AM | 2 Likes Like |Link to Comment
  • Dividend Growth BDCs For 2014 [View article]
    Yes they can cover with their reserves.
    There is lag time between a SPO that has new dividends needing to be paid and the time it take to deploy the funds into loans and increase NII.

    However, not all BDCs have to resort to this and how long does a company need to dip into its reserves before it goes from no big deal to a problem.
    Mar 10 02:51 PM | Likes Like |Link to Comment
  • Dividend Growth BDCs For 2014 [View article]
    I agree with BDC Buzz here. PSEC isn't consistantly covering their dividend with NII at the present time. Thus a mid range score.
    When they do, then they can receive a better score.
    Most investors don't score companies on what they plan to do or want to do but the reality of how they are doing.
    Course then again most investors are interested in research and making money more so then making wagers about who is right or wrong.
    Mar 10 02:06 PM | 1 Like Like |Link to Comment
  • Is American Realty Capital A Monster Or A Machine? [View article]
    I would agree that ARCP management is now finally and currently having their interests aligned with shareholders. Its one of the big reasons I held onto ARCP instead of selling.
    I do think things will get better but time will tell and I'd be happy if my concerns ended up being wrong.
    Mar 3 01:19 PM | Likes Like |Link to Comment
  • Is American Realty Capital A Monster Or A Machine? [View article]
    ARCP has a lower P/FFO and higher yield because the jury is still out on if they are another O or not.
    I initially got in with them thinking they would be. Build up the company conservatively and over time.

    Nick and his external management team wanted their bonuses and that is why ARCP had the growth at the speed they wanted.
    They made 1 offer to COLE that was turned down.
    They made a second offer that was turned donw.
    Then they had a press release of "We will entertain any offer."
    Of course they would, they are getting the bonus and shareholders are getting a high load of debt.
    I'm all for rewarding people but it cannot be the primary reason for doing business which it seems to me happend here with ARCP.
    Not only with Cole but all the other ones too.

    No surprise that now at this size they have moved over to internal. I would not be surprised to see Nick retire in a couple years and move on to something else. That or we find out about private REITs ARCP 5, 6, 7 that also get bought out.
    Mar 3 09:53 AM | 7 Likes Like |Link to Comment
  • Seagate May Be Overvalued [View article]
    Newman13: If you are an IT professional then you should realize that there are others types of storage then desktop HDDs. Just because people are moving away from desktops doesn't mean that storage needs go away. All of those cloud storage services that are going to kill off PCs have server farms filled with HDs.
    Feb 21 09:41 AM | 1 Like Like |Link to Comment
  • Seagate May Be Overvalued [View article]
    Bottom up Investing: Have you taken into account the amount of share buybacks still coming? Their plan was to be at 250m by end of 2014. Thats another 20% reduction in the company.

    I also find it odd you place so much importance on P/B in a company vs P/B of the S&P. As other's have noted, there are companies with terrible P/B ratios that aren't close to being overvalued.
    Feb 21 09:39 AM | Likes Like |Link to Comment
  • Whiting USA Trust Is Likely To Lose Half Its Value In The Coming Days [View article]
    Agree with Michael Cutler. WHX is overpriced and will fall someday but I don't see anything to make me think in the coming days.
    Feb 18 11:02 AM | Likes Like |Link to Comment
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