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Ericbo

Ericbo
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  • Merck Strips Out Cubist [View article]
    I was delighted to read KJ5's comments. It brings back memories of the Merck that I was a part of. The many years I spent at Merck were always based on George Merck's wonderful quote. We truly did believe that, even in the most mundane aspects of our jobs (EVERY job has its mundane aspects!), our activities contributed primarily to provide people with the best in medicine that we could produce. Do Merck employees still feel that noble calling in their activities? I really don't know, because I'm long retired. I can only hope they do, and I suspect that if they do, Merck will once again regain its reputation as one of the most admired, and most productive, of the drug companies. Much has changed over the years; hopefully, George Merck's view of Merck's mission, hasn't.
    Mar 26, 2015. 11:32 PM | Likes Like |Link to Comment
  • My Dividend Portfolio: Adding Wells Fargo [View article]
    I've never found tax computations to be particularly difficult with my DRIPS (in the case of the few I've cashed in). For each of my DRIPS, I maintain an on-going spread sheet of every additional cash investment, every reinvested dividend. I can compute, at a glance, what my basis is, both long-term and short-term (of which there are usually few, since they represent only the most recent investments). In fact, I do this at the end of each quarter when I compute net worth figures for my investments. While this may sound onerous, if one records the most recent investment or dividend immediately after it appears in your account, it's really quite an easy approach to maintain. I will have to admit that I'm kind of a "record-keeping nut", so my approach is not only effective; for me, it's also kind of fun.
    Mar 18, 2015. 10:03 AM | Likes Like |Link to Comment
  • My Dividend Portfolio: Adding Wells Fargo [View article]
    Generally, you are right. If you've determined it's truly a good company with good fundamentals and a promising future, buy more of it when it has a periodic "sale price" on its stock. In a way, I try to do that with my DRIP approach. Obviously, my dividends will buy when they are paid out. But I make larger additional investments when the stock is a bit down, and often less additional investments when it appears a bit too pricey. Some of my largest additional investments in WFC were when the stock was in its mid-20s. Now that it's in the low-mid 50s, I'm quite happy about my decisions when to buy and to add the most to my WFC DRIP.
    Mar 16, 2015. 09:39 PM | Likes Like |Link to Comment
  • My Dividend Portfolio: Adding Wells Fargo [View article]
    I, too, like WFC. I have held it, and steadily purchased shares since 2005, adding to my position even during the "forced" significant reduction in the dividend in 2009. The accompanying reduction in share price also offered the opportunity to add shares at a bargain price for several quarters. I have always considered Wells to be one of the best managed banks; hence my steady continuous investments in the company. Obviously, I am delighted the dividend has returned to a more reasonable level, now exceeding the amount paid before the banks were forced to reduce their dividends in 2009.


    Your dividend portfolio, to which you add shares periodically, is a good idea. I have a similar approach. However, I use DRIPS to accomplish somewhat the same objective and wonder if you have considered that approach. I have 9 DRIPS, the earliest of which I started in 1992. My DRIP portfolio is diversified, although a bit heavy in the energy sector, since my earliest DRIP programs were in 2 large diversified energy companies. Not only do my DRIPS automatically purchase shares quarterly with the dividend; I also add my own additional investments in months in which there is no dividend. Admittedly a DRIP has some drawbacks (e.g. the inability to purchase stock on an exact date). However, it is an approach that has worked very well for me, with an objective similar to yours. I suggest you consider it as an alternate approach to building a dividend portfolio.
    Mar 16, 2015. 04:26 PM | 4 Likes Like |Link to Comment
  • Merck Strips Out Cubist [View article]
    I suggest that David Shlaes (or the person who may have quoted him) take a refresher course to relearn the English language. It's "their" money, (not there money), and "their" mouths, (not there mouths). It's a real shame how many supposedly educated people have simply forgotten the proper use of their own language.
    Mar 6, 2015. 01:01 PM | 7 Likes Like |Link to Comment
  • Procter & Gamble's 10%+ Dividend Raises Are A Thing Of The Past [View article]
    At least during recent years, MO (Altria) has been very good. Share price has continually increased, and the dividend is excellent in the current environment. Admittedly, MO is in a declining industry. However, so far this phenomenon has not affected its stock performance or dividend yield negatively.
    Feb 20, 2015. 12:35 PM | Likes Like |Link to Comment
  • Procter & Gamble's 10%+ Dividend Raises Are A Thing Of The Past [View article]
    Thanks for the comprehensive comments. This is one of the best comparisons I've seen about dividends related to income, versus FCF. I'm always learning, and this submission helped.
    Feb 19, 2015. 10:45 PM | 2 Likes Like |Link to Comment
  • Merck close to $7B deal to acquire Cubist Pharmaceuticals [View news story]
    Me too. I've held CBST stock since 2011, and have sold shares 3 times -- each time with a 45 - 70% gain. I continue to be a CBST shareholder and also have MRK as my largest stock holding. I guess that's positive for me on all fronts. I wish all stocks were like CBST has been for me. I knew I was holding on to my current shares for some reason!
    Dec 7, 2014. 04:22 PM | 2 Likes Like |Link to Comment
  • What Should I Do About Those Non-Dividend Paying Stocks I Received In A Spin-Off? [View article]
    I held on to my shares, and am glad I did, since the shares have appreciated nicely since the spin-off. Also, I have never understood an "all or nothing" approach to investing. Even a primarily dividend investor has room in his or her portfolio for some stocks which don't "fit" the narrow definition. Appreciation, regardless of what generates it (dividends, growth in share value etc.) is welcome, no matter its source.
    One of my favorite dividend stocks is Altria. I have bought it (and continue to buy it in a long-standing DRIP) primarily because it has a substantial, and welcome, dividend. But wow! It has also appreciated very nicely in share value during 2014 and even before. This is my idea of the perfect dividend stock: high dividends and more than average share value growth. There aren't too many of these creatures around!
    Nov 21, 2014. 12:57 PM | 1 Like Like |Link to Comment
  • 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, 2014. 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, 2014. 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, 2014. 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, 2013. 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, 2013. 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, 2013. 12:48 PM | 3 Likes Like |Link to Comment
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54 Comments
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