No 'Right Time' to Buy a Long-Term Portfolio Stock [View article]
I respectfully disagree with your assessment. It is very important, even for the long term, to enter a Div stock at the proper time based on quantitative criteria: P/E, P/S, PEG etc..Same thing when you exit your position. You always have to review your position. Market timing is a consequence of a good and deep analysis. I could argue to a certain extent the same way about Div reinvestment. I call it discipline. What study are you referring to? I hold positions in JNJ and CVX.
Is Intel Destined to Remain Only a Dividend Play? [View article]
I respectfully disagree with your comments, institutional ownership is very high at 61% and increasing. I am sure you have access to Credit Suisse reports, please check the analysis of their 3 experts in this space. It will surely change your mind. Of course they back it up with numbers! Best report I have read about INTC, it was published on 1/13/2011. One more thing; out of 50 analysts ( major investment firms) following INTC, only one has a sell rating.
Please, tell me what AAPL can do with over $100B in cash without the intervention of any government? Not doing anything with this cash could be interpreted as a failure of AAPL's top management. Total return is essential for any shareholder. I am in favor of a DIV and see it as a decision taken by a responsible and pragmatic management. I own AAPL
The Great Growth Debate (Part 2): The Benefits of Dividend Growth Stock Investing [View article]
Excellent article as usual. Reinvesting the dividends is to me about balancing the portfolio as I do not want any position more influential than others. SYK went up 37% over the last 6 months, now the question is: Do I reinvest or not? Is it worth it to reinvest at such a value and what is the current % of my SYK position relative to my overall portfolio.Very simple rules that I set up for myself. As a management firm you need your quarterly payment of 1%, in other words you have to collect. When it comes to pure growth stock I do not own any, it is almost impossible for an amateur like me to follow up the trends and the numbers that closely. I tried and got burned many times. My "growth stock strategy" has been a Dividend capture strategy with stocks I own already such as PG, JNJ, ABT etc.. My records with this strategy are exemplary. Nevertheless I am still quite young and would love to find a fund of some sort about growth stock where 25% of my overall portfolio could be allocated. I never found any with great performance over time! Am I looking at it the wrong way? What should be the performance of such funds? Thank you again for sharing your ideas and experience.
Why I (Finally) Gave Up on Johnson & Johnson [View article]
You should buy at the sound of the guns! Mr. De Rothschild said it in the 19th century. JNJ is a fantastic company that should be in any portfolio "growth and income". It is as close to a sure thing as we can get on wall street! At the current price it is a buy. It can always be at the core of your healthcare portfolio allocation, it brings stability and sure growth and income over time. I hold JNJ, ABT and SYK.
I was very happy with the PG increase, I expected a 6% increase but we got 9%! With their cost structure being challenged on a global basis, I was shooting for 51 cents. A compression of margin I can understand and relate too. When it comes to JNJ, I was very disappointed by the increase that was well below their annualized 5 year growth of 10.6%. I understand their production issues over the last year, but still I expected an increase to 59 cents. "Johnson & Johnson <JNJ.N> is unlikely to see a return of double-digit profit growth any time soon due to global economic hurdles, but it still might happen longer-term, Chief Executive Officer William Weldon said." What will be the Div growth rate over the next 5 years? 3%? 5%? 7%? Both companies are in my portfolio and are the roots of my strategy. How fast can they grow back to double digit so that we can have a great yearly Div increase of around 10% year after year?
Wall Street Breakfast: Must-Know News [View article]
I am in favor of "capping" the swipe fees! These fees range usually from 1% to 3%, I call it: the modern "mafia". We can not even ask them where "our" money is for 2 or 3 days! I am surprised that it has not been deemed anticonstitutional!
It is certainly not a hold! It is totally undervalued today, especially based on history. There is absolutely nothing wrong with their balance sheet, the Div growth history or their dominant position. I have a hard time to read your conclusion!It will never get cheaper, PEG is under 1, and their earnings over time will definitely grow. Just look at their last 20 years. It is a must in a long term Growth/income Portfolio.
Is Intel a Value Play or a Value Trap? [View article]
Mr. DM,
If you had included the 2010 and the projected 2011 numbers throughout your analysis, the conclusion would have been totally different. The past is important in terms of continuity but the present and the future should be more important. Especially for a Dividend/growth portfolio. Furthermore, every company is quite complex and I disagree with you about the complexity of INTC! Is TXN easier to understand??. What about MMM, or GE financial accounting with industrial accounting, or AFL and the quality of its assets etc... INTC should be part of any Growth Income portfolio, especially at this low multiple. INTC is a secure stock for the next 10 years.My 2 cents.
Superb article. I agree with you regarding AFL, unfortunately I do not have detail access of their holdings to make an educated decision. The next 3 years might be hard for AFL. I own MMM and would advise you whether or not to sell it in December when they will announce the new dividend policy for 2011. Obviously this is one of the many parameters to make such a decision, especially this year! Expected earnings for 2011 is $6.70 which could translate into an increase of 13% of their dividend, based on historical ratio. If not more! MMM is the best industrial corporation in the US, firing on every cylinder. Their growth rate is in double digit and their PEG is under 1. Dividends should and will adjust naturally within the next 4 months. Frankly, this stock should be around $100. This is my way of thinking.
Wall Street Breakfast: Must-Know News [View article]
Moody's should be out of business, they look absolutely ridiculous.I can not believe financial institutions are still listening to this less than mediocre rating agency! Especially in light of what happened over the past 5 years! A1 to aa2 where are we in the US: a2a3b...What a timing.
Johnson & Johnson's Dividend Hike Should Be Substantial [View article]
Great company, great management, great long term investment. I just received their 2009 annual report, I will read it thoroughly. I love their "credo"! Simple and efficient.
3 Lines Of Defense Against The Decline Of Dividends [View article]
It does not make sense. You buy a Div stock at a certain YOC and what you want is the Div growth rate. An annual Div growth rate of 10% will beat any inflation. The risk is in buying a 5% div stock with no Div growth rate. It is the fine balance/relationship between the two that makes it great! My 2 cents.
No 'Right Time' to Buy a Long-Term Portfolio Stock [View article]
You always have to review your position.
Market timing is a consequence of a good and deep analysis. I could argue to a certain extent the same way about Div reinvestment.
I call it discipline.
What study are you referring to?
I hold positions in JNJ and CVX.
Building an Optimal Dividend Portfolio: Keep It Simple [View article]
Where do you invest then?
Small cap dividend stocks?
Is Intel Destined to Remain Only a Dividend Play? [View article]
I am sure you have access to Credit Suisse reports, please check the analysis of their 3 experts in this space. It will surely change your mind. Of course they back it up with numbers!
Best report I have read about INTC, it was published on 1/13/2011.
One more thing; out of 50 analysts ( major investment firms) following INTC, only one has a sell rating.
No To Apple Dividends [View article]
Not doing anything with this cash could be interpreted as a failure of AAPL's top management.
Total return is essential for any shareholder.
I am in favor of a DIV and see it as a decision taken by a responsible and pragmatic management. I own AAPL
The Great Growth Debate (Part 2): The Benefits of Dividend Growth Stock Investing [View article]
Reinvesting the dividends is to me about balancing the portfolio as I do not want any position more influential than others.
SYK went up 37% over the last 6 months, now the question is: Do I reinvest or not? Is it worth it to reinvest at such a value and what is the current % of my SYK position relative to my overall portfolio.Very simple rules that I set up for myself.
As a management firm you need your quarterly payment of 1%, in other words you have to collect.
When it comes to pure growth stock I do not own any, it is almost impossible for an amateur like me to follow up the trends and the numbers that closely. I tried and got burned many times. My "growth stock strategy" has been a Dividend capture strategy with stocks I own already such as PG, JNJ, ABT etc.. My records with this strategy are exemplary.
Nevertheless I am still quite young and would love to find a fund of some sort about growth stock where 25% of my overall portfolio could be allocated. I never found any with great performance over time!
Am I looking at it the wrong way? What should be the performance of such funds?
Thank you again for sharing your ideas and experience.
Why I (Finally) Gave Up on Johnson & Johnson [View article]
Mr. De Rothschild said it in the 19th century.
JNJ is a fantastic company that should be in any portfolio "growth and income". It is as close to a sure thing as we can get on wall street!
At the current price it is a buy.
It can always be at the core of your healthcare portfolio allocation, it brings stability and sure growth and income over time.
I hold JNJ, ABT and SYK.
2011 Dividend Investing Goals [View article]
Sorry about the "hateful" emails, it is hard to understand such people.
Best,
Dividend Champions for May 2011 [View article]
With their cost structure being challenged on a global basis, I was shooting for 51 cents. A compression of margin I can understand and relate too.
When it comes to JNJ, I was very disappointed by the increase that was well below their annualized 5 year growth of 10.6%.
I understand their production issues over the last year, but still I expected an increase to 59 cents.
"Johnson & Johnson <JNJ.N> is unlikely to see a return of double-digit profit growth any time soon due to global economic hurdles, but it still might happen longer-term, Chief Executive Officer William Weldon said."
What will be the Div growth rate over the next 5 years? 3%? 5%? 7%?
Both companies are in my portfolio and are the roots of my strategy.
How fast can they grow back to double digit so that we can have a great yearly Div increase of around 10% year after year?
Wall Street Breakfast: Must-Know News [View article]
I am surprised that it has not been deemed anticonstitutional!
Intel Corporation: Dividend Stock Analysis [View article]
There is absolutely nothing wrong with their balance sheet, the Div growth history or their dominant position. I have a hard time to read your conclusion!It will never get cheaper, PEG is under 1, and their earnings over time will definitely grow. Just look at their last 20 years. It is a must in a long term Growth/income Portfolio.
Is Intel a Value Play or a Value Trap? [View article]
If you had included the 2010 and the projected 2011 numbers throughout your analysis, the conclusion would have been totally different.
The past is important in terms of continuity but the present and the future should be more important. Especially for a Dividend/growth portfolio. Furthermore, every company is quite complex and I disagree with you about the complexity of INTC! Is TXN easier to understand??. What about MMM, or GE financial accounting with industrial accounting, or AFL and the quality of its assets etc... INTC should be part of any Growth Income portfolio, especially at this low multiple. INTC is a secure stock for the next 10 years.My 2 cents.
4 Reasons to Sell Dividend Stocks [View article]
I agree with you regarding AFL, unfortunately I do not have detail access of their holdings to make an educated decision. The next 3 years might be hard for AFL.
I own MMM and would advise you whether or not to sell it in December when they will announce the new dividend policy for 2011. Obviously this is one of the many parameters to make such a decision, especially this year!
Expected earnings for 2011 is $6.70 which could translate into an increase of 13% of their dividend, based on historical ratio. If not more!
MMM is the best industrial corporation in the US, firing on every cylinder. Their growth rate is in double digit and their PEG is under 1. Dividends should and will adjust naturally within the next 4 months. Frankly, this stock should be around $100.
This is my way of thinking.
Wall Street Breakfast: Must-Know News [View article]
Johnson & Johnson's Dividend Hike Should Be Substantial [View article]
I just received their 2009 annual report, I will read it thoroughly.
I love their "credo"! Simple and efficient.
3 Lines Of Defense Against The Decline Of Dividends [View article]
You buy a Div stock at a certain YOC and what you want is the Div growth rate. An annual Div growth rate of 10% will beat any inflation.
The risk is in buying a 5% div stock with no Div growth rate.
It is the fine balance/relationship between the two that makes it great!
My 2 cents.