Seeking Alpha

Ericbo

Ericbo
Send Message
View as an RSS Feed
View Ericbo's Comments BY TICKER:
Latest  |  Highest rated
  • Ford's High Yield Is Great News For Dividend Growth Investors [View article]
    Ford is one of my favorite investments, too. And, I've heard these viewpoints/arguments that when a stock price falls, its dividend yield goes up. I know that! However, if I bought the stock years ago at a particular price, its falling stock price doesn't make me happy, and its higher yield really doesn't give me anything more than I had before. As I see it, the only way a lower stock price would reward an income investor is if he bought more stock at that lower price. His previous holdings would produce only the same income, but the value of the stock producing that income would be down. And, that's not nice in my viewpoint.
    Feb 13 12:04 AM | Likes Like |Link to Comment
  • Altria - Dividend, SAB And Cost Cuts Can't Make Up For Troubled Core Business [View article]
    cd....did you notice the recent announcement (yesterday 2/6/14) by the president. He has already indicated he will not lend his talents (?) to the 2014 congressional campaigns. Could it be that he feels he'd be embarrassed when none of the Dems want his visible support and do not want to be identified with him? I suspect that is his true reason for staying out of the fracas.
    Feb 7 12:34 PM | 1 Like Like |Link to Comment
  • Altria - Dividend, SAB And Cost Cuts Can't Make Up For Troubled Core Business [View article]
    I really can't identify with all the cautions about MO over the past 5 years, or so. I've heard again and again, that the tobacco business is going down the tubes. Here's my experience. I hold MO in both a DRIP (from 2010) and from other purchases made first, in late 2009. In 2009/2010, MO was about $19.50 a share. Now, it is $35+. Not too shabby a share growth for a stock that, based on all the cautions and predictions, should have been on the decline since I have been buying it. In addition, between my two different holdings, I now am getting just over $7000 a year in dividends. Those dividends represent a far greater return than on many other available investments. Plus, most of mine are qualified and subject to appropriately lower tax treatment. I continue to invest gradually into MO as long as it keeps creeping up (creeping up is far better and more sustainable than leaping up, if you haven't noticed). I continue to listen to, but somewhat ignore, the naysayers I've heard for all of the past 5 years. The MO I have continued to buy has returned a very acceptable, and even envious, return -- far more than many other investment choices. I will keep investing in MO and I will keep enjoying my very competitive rates of dividend income, unless there is more of a compelling, and valid, reason to change my MO investing behavior of the past 5 years.
    Jan 31 11:53 PM | 7 Likes Like |Link to Comment
  • Altria Group Inc declares $0.48 dividend [View news story]
    Very welcome! And since my MO is in a DRIP, the added dividend will buy more shares. Always a nice development.
    Aug 23 02:53 PM | Likes Like |Link to Comment
  • Will other large companies play follow the leader after UPS cuts spousal benefits? [View news story]
    Did you forget that Medicare is rapidly going broke? Expenditures and projected future committments far exceed Medicare funding. Unless major changes are made in both Medicare funding, benefits and even perhaps eligibility, the program will either go bust, or will need to be significantly scaled down in what it provides.
    Aug 23 12:05 PM | Likes Like |Link to Comment
  • Will other large companies play follow the leader after UPS cuts spousal benefits? [View news story]
    As Nancy Pelosi said, we are now seeing "what's in the bill", AFTER we voted for it. And......it seems that more and more people, including Obama's jaded supporters, don't like what they see. This program, as currently structured, with its fees, regulations and penalties, will prove to be one of the most unworkable programs the liberals have ever conceived.
    Aug 22 12:48 PM | 3 Likes Like |Link to Comment
  • Cubist removed from Conviction Buy list at Goldman [View news story]
    It's interesting to note that during the same hour that Goldman downgraded CBST from Conviction Buy to Neutral, Credit Suisse upgraded CBST from Neutral to Outperform because of a positive assessment of the acquisitions and the prospects for their drugs. No wonder we amateur investors are sometimes confused. For what it's worth, it seems that the market today (7/31 at 11:25 AM) tends to go with Credit Suisse's assessment. CBST is up around 12%. I'd be interested in hearing others' observations about this.
    Jul 31 11:26 AM | Likes Like |Link to Comment
  • Merck Vs. Johnson & Johnson: Dividend Yield Vs. Dividend Growth [View article]
    It might be interesting to do a similar study, but with the "Vioxx-impact years" removed from the study. Merck's historical dividend growth rate would be significantly higher, had the Vioxx problem not occurred. It continues to be surprising to me that Merck was able to maintain its dividend during the years where Vioxx litigation and the lack of Vioxx revenue were a major drain on company revenue. Many companies would have suspended, or reduced their dividend under similar circumstances. I make these comments not as a previous Merck employee (which I am), but as an investor who welcomes the dividend that Merck has provided me over the years.
    Jul 18 11:49 AM | 1 Like Like |Link to Comment
  • Smithfield Foods Buyout By Shuanghui May Cause These U.S. Food Companies To Pop [View article]
    Love your "fart-in-a-windstorm" adjective. Never heard that before. I'll have to remember it to use in the future sometime :). I'm sure there will be an opportunity.
    Jun 1 01:48 PM | Likes Like |Link to Comment
  • Smithfield Foods Buyout By Shuanghui May Cause These U.S. Food Companies To Pop [View article]
    While a sale of SFD to the Shuanghui Group may be a plus for both SFD shareholders and also a competition-removing plus for the many other meat-centric U.S food producers (e.g Hormel, Tyson, Hillshire Farms etc.), it may eventually be a strong negative for the American consumer and for American food independence (which is being diminished year after year). SFD is the largest hog producer: not just in the U.S., but in the world. As such, it represents a valuable natural resource for the U.S and the U.S. consumer. While SFD management says there will be no major changes under Chinese control, that is speculative at the least. Chinese control will open up the possibility of reduced supplies to the U.S., as the Chinese population increases its appetite for "safe" American foodstuffs. Chinese control will certainly present the consequence of higher prices for the American consumer, and as China's appetite for American meat grows, and its availability is made easier by total control of the largest hog-producer, hog farms and hog processed meats in the world. Should an unforeseen farm disaster occur in the future, lack of U.S. control of a firm as large as SFD removes from American control a major source of food. Admittedly all of these potential consequences are speculative. But sale of SFD makes them eminently more possible. And, as we know, we as a nation (and particularly our governing congress) have been dismal in our prediction of eventual "unintended consequences." Sale of SFD to the Chinese is fraught with many such consequences. Hopefully our Congressional Committee on Foreign Investment will see, and conclude, that. Unfortunately Congressional common sense and potential problem analysis have been sorely lacking in recent years.
    May 30 08:08 PM | 3 Likes Like |Link to Comment
  • Seadrill (SDRL) announces 3.5% increase in quarterly dividend to $0.88/share, representing an annual yield of 8.81%. (PR[View news story]
    I'm glad I'm not the only one who does things like that sometimes!
    May 28 09:07 AM | Likes Like |Link to Comment
  • Freeport McMoRan's (FCX +2.7%) planned acquisition of Plains Exploration (PXP) likely will close in June despite objections, Morgan Stanley predicts as it maintains an Outperform rating on the shares. Long-term FCX shareholders should be rewarded with strong growth through 2015 and lower political uncertainty, the firm says, adding that copper inventories are starting to decline. [View news story]
    I predict that FCX will eventually prove all of the nay-sayers wrong with this acquisition. The diversification will prove to be good for the company and the stock. Just a feeling I have!
    May 8 08:31 PM | Likes Like |Link to Comment
  • Chevron Corporation Dividend Stock Analysis [View article]
    You're welcome. As you can tell, I really like CVX!
    Apr 12 01:33 PM | Likes Like |Link to Comment
  • Chevron Corporation Dividend Stock Analysis [View article]
    It's my opinion that a CVX stock split is, by no means, a sure thing. In recent years, more and more companies have allowed their stock price to rise to unusually high levels. (Consider IBM, GOOG, MA, AAPL, PCLN). Contributing to companies' reluctance to do a stock split is the fact that splits are quite expensive for a company. First there are substantial administrative costs. And, second, if the company is repurchasing their shares, buying twice as many shares on the open market can also be substantially more expensive. That said, I personally would welcome a stock split. Although most analysts say that a split does not improve a stock's future performance, I don't completely agree with that. Stocks I have had that have split have tended to do quite well after the split. Would they have done similarly well without the split? Perhaps. If anything, a split does make the stock easier to buy for more people. That is usually a plus for a stock's reputation as an investment.
    Apr 8 12:42 PM | Likes Like |Link to Comment
  • Chevron Corporation Dividend Stock Analysis [View article]
    I don't really understand (or don't take the time to understand) all the analysis above. All I know is that my CVX Drip, in which I've invested steadily (but only in small added increments) since 1992, has doubled in value over that period of time. That doubling includes the reinvested dividends. Also, I am now enjoying the results of a very steady and consistent year to year increase in dividends, resulting in a quarterly dividend income now of over $3000 each quarter. By any comparison, CVX has treated me well, in comparison to most of the stocks in which my friends have invested. I have increased my investment in CVX whenever its share price is low; I decrease it when it looks a bit pricey. I will continue to invest in CVX most months and I think the stock has a great future of continued growth, based on all market indicators.
    Apr 1 10:20 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
45 Comments
56 Likes