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Emerald

Emerald
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  • Dividend Growth Investing: Is Total Return A Useful Metric? [View article]
    Dave, thanks for the article. I always enjoy your writings. Every time I read one of these plus the comments, I think of "seed corn". I was always a passive total return investor until 2005, when I started a DGI portfolio. I read comments about how investors can do just as well buying the S&P index and/or a bond index. Perhaps, but this ignores the seed corn argument. Let's say Mark and I have a $500,000 portfolio by age 65. Mark's portfolio has a 1.5% dividend, mine has a 4% dividend. Mark will have to spend more of his seed corn to pay his bills and he will delete his $500,000 much faster than me. I will pay more of my expenses with my dividends than Mark and preserve my portfolio. Regards

    The MPT model of spending no more than 4% of your principal in retirement means watching your bank balance decline at an increasing rate as each year goes by. Granted, Mark may be lucky and have strong capital gains and have a stable or rising stock market in retirement. But, what are the odds? As Chowder noted, stock prices can suffer a significant reversal, but most of the dividends remain intact. I like these odds. My DGI portfolio is like a paycheck in retirement and, most importantly, I sleep well at night.
    Apr 10 10:20 AM | 2 Likes Like |Link to Comment
  • JPMorgan Chase: Distancing Further From The Pack [View article]
    I believe there is tremendous upside in both Citi and B of A, given that they are the late bloomers of the big banks and are selling below book value. Both will institute dividends again later this year and will grow them next year. JPM is now fully valued. I also own WFC, JPM and LTG. Regards
    Apr 8 10:01 AM | Likes Like |Link to Comment
  • Dividend Growth Portfolio: Spring Checkup And Semi-Annual Review [View article]
    GVK, thanks for the update. I sold Darden a few months ago given the same store sales decline and apparent lack of strategy by management. The company is trying to operate at both the fine dining and middle class price points. I believe the lack of additional purchasing power in the middle class due to wage stagnation is a longer term problem for the likes of Olive Garden and Red Lobster. I'm usually reluctant to sell, but I became convinced over time that Darden is not close to "best in class". I took my money at a small profit and bought more KO and started a position in O at the December low. Regards
    Apr 8 09:53 AM | 3 Likes Like |Link to Comment
  • High-Yielding Cisco Increases Dividend 12%, But Is It A Buy? [View article]
    As a long term owner of Cisco, I am always weary of buying this stock at anything north of $18.50 per share. Fair value is somewhere around $20.00 on a sunny day. With Chambers at the helm, the stock will remain stagnant. I like the dividend, but management is vastly overpaid for mediocre performance.
    Apr 7 10:04 AM | Likes Like |Link to Comment
  • Realty Income: One Heck Of An Ark That's Prepared For The Storms Ahead [View article]
    FCARONE, sorry sir, but you are misguided. Many of the analyses you cite use simple computer modeling programs using GAAP accounting and earnings per share as benchmarks. Fidelity's, as well as many other firms, use the simple modeling. They don't want to pay for meaningful analysis. I can tell you that the mutual fund manager for Fidelity's Real Estate Investments fund does his homework.) See comment above from Bryce-in-Texas. Any analyst who actively covers REIT's uses Funds From Operations, not EPS. This method basically adds back depreciation to get a more clear picture of cash flow. Realty Income is fairly valued today in the low $40's. Long: O, VTR, HCN, EQR
    Apr 5 07:24 PM | 4 Likes Like |Link to Comment
  • Seadrill: Should You Buy Or Run For The Hills? [View article]
    sixshot, as a big picture comment, you may be correct. However, the major oil companies want the newer, more efficient rigs that have more safety features. Its the older rigs that are in less demand. Drilling demand may decline, but its not going to stop. As such, Seadrill has an advantage.
    Apr 2 03:35 PM | 2 Likes Like |Link to Comment
  • Seadrill: Should You Buy Or Run For The Hills? [View article]
    goose, there are two separate, but affiliated companies. Seadrill (SDRL) is the driller. Seadrill Limited Partners, is a relatively new MLP that Seadrill, the parent, created and has been dropping down hard assets into the MLP, namely rigs, to get them off the balance sheet of SDRL. SDLP raises its own capital and buys the rigs from SDRL who gets the cash. Regards
    Apr 2 03:29 PM | Likes Like |Link to Comment
  • Apple's Dividend Will Hit $20 Within 5 Years [View article]
    Tim, the comments here reflect such a multitude of opinions, as is usually the case with Apple. I understand why some investors view any company in the technology sphere as risky, especially one with high profit margins. However, I would point out that many companies in varying industries have solid margins at the high price point of their market segment. I own Apple shares and their products because of the overall quality of their platform. Products synch relatively seamlessly. Management is strong and innovative.
    Of course, margins will slip as competitors nip at their heels and Apple could blow a new product roll-out like "New Coke". Did KO disappear and fall? I believe it is a reasonable expectation that Apple will consistently raise their dividend over the next five years due to recurring cash flow. By some readers comments, Microsoft should have failed by now but they still have enormous cash flow to support their dividend, do nor pull any rabbits out of any hats and might even find some mojo with a new CEO. Apple is far superior to Microsoft and competes well with Google, Amazon and Samsung. Long: APPL, MSFT
    Mar 29 11:43 AM | 4 Likes Like |Link to Comment
  • Citigroup: No Dividend Hike Now, But What About The Long-Term Future? [View article]
    Tim, I agree with your analysis that Citi is a longer term play for both dividend growth and capital appreciation. I am, again, very disappointed that Citi can't get its act together, ala Mexico. I am a long term holder who will have patience to see how this story unfolds. The upside will first come to BAC. Long: C, WFC, CS, JPM, BAC, AROW
    Mar 29 11:19 AM | Likes Like |Link to Comment
  • Is Equity Residential A Fortress REIT Brand To Buy Now? [View article]
    Brad, I can tell from a number of comments that many people don't really understand the apartment business. If you want a stable and growing company, look to where home prices are very high, namely the costal markets. These markets are also where young people want to be and where the cost to build anything is high and permitting takes forever. That's what is known as a multifamily moat. Yes, people also go to Austin and Atlanta, but there is still land to build on at a reasonable price that keeps rent growth in check. Good for the renter, not the investor.

    Companies Like Equity Residential and AvalonBay figured this out and headed for the coasts. Both companies have solid management and great financials. There are a number of well managed, public apartment REITs out there including Home, United Dominion and Camden, but these are only buys when the apartment REITs are on sale. Home prices are more reasonable in the second and third tier cities and more young people will buy them as the economy improves.

    As for the stock price, I agree $45 to $50 or a max of 16 times FFO is about all you should pay for a solid REIT like EQR. Long: EQR, O, HCN, VTR
    Mar 28 11:07 PM | Likes Like |Link to Comment
  • Detroit In Chapter 9: Orr Plays Hardball [View article]
    TAS, all politicians borrow money to fund pension shortfalls, even Republicans. Some defer payments. It's a shell game, hoping economic growth will bail them out or they will get out before the system crashes. Ask Chris Christie in New Jersey, another bottomless pit. Regards
    Mar 28 12:33 PM | 1 Like Like |Link to Comment
  • General Electric Shareholders Will Do Fine Without Radical Cuts [View article]
    Tim , good article and I like Gary Schuster's comments about an analysis of each business and division. Regarding the stock, I believe there is no margin of safety at a 20 P/E today. Long: GE, EMR, ITW, GPC Regards
    Mar 28 11:14 AM | Likes Like |Link to Comment
  • Rich And Retired? Don't Buy Dividend Stocks [View article]
    Uncle Pie, I understand your investing parameters and own a number of non-U.S. stocks. However, your assumption that the U.S. dollar will depreciate more or faster than other major currencies is a risk factor. For example, the Canadian dollar has dropped 10% versus the $USD from the beginning of 2013. Investors in Canadian stocks, such as myself. have seen a decrease dividends this year when converted to $USD. The companies are fine, they raised their dividends, I received less. The Euro has held up, but the Japanese are trying like crazy to appreciate their currency. It's a mixed bag. Regards
    Mar 13 10:21 AM | 2 Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    May be, thanks for this post. I thought I had every beneficiary issue handled until I did a review of all my accounts recently. I found a number of missing "contingent beneficiaries" on life insurance, IRA's, etc. It's a good idea to do a complete review. Regards
    Mar 11 12:39 PM | 4 Likes Like |Link to Comment
  • Pembina Pipeline: 4 Different Insiders Have Purchased Shares During The Last 30 Days [View article]
    Holding TRP, ERF, PBA in Canadian energy. Also, RCI and BCE. No reason to sell. Regards
    Mar 10 11:44 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
1,284 Comments
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