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citizenleung

citizenleung
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  • Raven Industries: Unknown Dividend Growth King You Should Know About [View article]
    What do you make of Raven not increasing its dividend last month? I don't think a company would stop a 27-year streak of dividend increases without good reason.
    May 1 03:24 PM | Likes Like |Link to Comment
  • Twitter's full-year revenue outlook disappoints [View news story]
    Why couldn't Twitter fit its report in 140 characters?

    #ToLongToRead
    Apr 29 04:34 PM | 4 Likes Like |Link to Comment
  • Express Scripts: Just What The Doctor Ordered [View article]
    Express Scripts has a moat in its industry, but how valuable is the moat if the industry itself does not serve any true purpose?

    Ultimately, PBMs are useless middlemen that add costs to the system. No one would miss them if they weren't around.
    Apr 29 04:25 PM | 4 Likes Like |Link to Comment
  • Dividend Challengers: 15 Increases Expected In The Next 11 Weeks [View article]
    Long NOV. Last year's 100% boost seemed to signal that management is slowing the pace of acquisitions and paying more attention to the dividend. I'm predicting a 15% increase to $1.20. I hope I'm wrong on the low end.
    Apr 15 02:35 PM | Likes Like |Link to Comment
  • Wal-Mart sues Visa for $5B over swipe fees [View news story]
    Wal-Mart is looking for ways to make up for lost food stamp money. Suing Visa made the cut.
    Mar 27 09:06 PM | 6 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    "Drip"

    For people who say that dividends decrease shareholder value, there's the rub.
    Mar 20 04:53 PM | Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    You just don't get it, do you.

    The Nifty Fifty fell because of absurd valuations, not because they are blue chips. If dividend stocks fall in similar fashion, it will because they are vastly overvalued. Throughout the fall, DGIs will continue buying and receiving dividends and companies will continue raising dividends.

    Why do you think Buffett loves market corrections?

    Rising interest rates will slaughter bond funds much more than dividend stocks. The bond funds that in which the likes of Swedroe believe deserve a 10-40% allocation because infallible studies tell them so.
    Mar 20 07:47 AM | 11 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    @varan

    "However, I am fascinated by the aspect of human behavior that leads people to immediately attack him when he writes something that does not comfort them."

    You say that the comments are attacks. I say that people are calling out Swedroe on his bull. Seriously, can you fathom the mental jujitsu required to simultaneously support efficient market hypothesis and follow the greatest exploiter of market inefficiencies? I wish I could be right all of the time, too.

    One group that Swedroe definitely does not comfort is his clients. How can one look a client in the eye, tell the client that minimizing expenses is a pillar of his investment philosophy, and then turn around and charge him a fee to invest him in funds that themselves charge fees?
    Mar 19 09:15 PM | 11 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    I accept that my dividends are anecdotal, but my other comments are not.

    It is a simple fact that one can construct a fully diversified portfolio using only dividend-paying stocks. To dismiss that as anecdotal is lazy.

    It is a simple fact that borrowing when rates are low is wise. In what universe is that statement anecdotal?

    You never addressed your incessant reliance of Buffett and Berkshire to support points. Berkshire is a once in a lifetime phenomenon that defies explanation by simplistic portfolio theories. Your using Berkshire as an example of an excellent non dividend payer is like suggesting that baseball players should drink, smoke, and eat to excess because Babe Ruth hit 714 home runs doing so. Please find examples of other cash generating machines that 1) do not pay dividends AND 2) do not regularly set fire to their piles of cash through ill-timed share buybacks and or ill-advised acquisitions. By the way, Buffett would be as dismissive of your ideas about dividends as you are about dividends themselves. I suspect he will enjoy loading his elephant gun with the ~$560 million and the $488 million that Wells Fargo and Coca-Cola will pay Berkshire this year in dividends, respectively.

    Ultimately, the problem with your article is that your statements are not correct. They are merely your beliefs of how numbers should work in a controlled vacuum shaped by your biases rather than how things work in the real world. As an academic in finance, you probably know that even the flimsiest financial theory can be supported by seemingly bulletproof evidence if the theorist selects the correct parameters and correct data. I appreciate some aspects of what you espouse, such as minimizing expenses and diversification, but when it comes to dividends, you cannot see the forest for the trees.
    Mar 18 10:34 PM | 2 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    "It's amazing what beliefs people will hold onto simply because they are long held and they have much vested in the belief. They find it hard to accept even the obvious because somehow it goes against their accepted beliefs."

    The same can be said about your beliefs. You remind me of the Laputans in Gulliver's Travels--your reliance on seemingly irrefutable logic and reason result in ideas that are ridiculous when applied to the real world. We do not live in a fantasy world in which humans are robots and every investment decision is governed solely by arithmetic. Emotions frequently cloud our judgment. Dividends operate as a buffer to soften the blows during the down times and to reinforce discipline during the good times. They help investors and companies perform better.

    Until your fantasy world becomes a reality, I will stick with Carnevale's view of dividends over yours.

    "Do dividend fans believe it is wise for the company to take on more debt in order to fund new projects and also maintain its dividend?"

    When interest rates are as low as they are right now, yes--as long as the company does not become overleveraged.

    "And since done properly diversification is the only free lunch, you might was well eat as much of it as you can."

    One can easily develop a 20-25 stock portfolio of quality dividend-paying stocks diversified among industries and currencies--one in which adding even the best non-dividend-paying company would not meaningfully impact the portfolio's performance.

    "[Dividends] are not as tax efficient as home made dividends."

    Not mine. Given continued contributions, continued dividend growth, and continued dividend reinvestments, my wife and I are looking at over $100K a year of tax-free dividends in our Roths when we retire.

    "And while some companies spend cash unwisely, many others, like Berkshire Hathaway for example, have never paid a dividend - and I don't think anyone would argue that investors would have been better off if BRK.B had paid dividends."

    Thanks to Buffett's acumen, Berkshire is the exception rather than the rule. Berkshire is a lazy fallback for people who claim dividends don't matter. Use examples of the "many others" you cite if you want your point to be taken seriously.
    Mar 18 11:05 AM | 8 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    Chuck is not saying that companies that do not pay dividends are bad or that dividend paying companies are better than those that do not pay dividends. He is merely saying that dividends are good, and that statement is neither silly nor pointless. It is a simple fact.
    Mar 13 04:43 PM | 15 Likes Like |Link to Comment
  • Retail bear emerges on Starbucks earnings call [View news story]
    Just wait until Bezos starts Amazon Cafe, which will deliver your caramel macchiato by drone.
    Jan 24 12:56 PM | 7 Likes Like |Link to Comment
  • AMEX to allow reward points for payment [View news story]
    VISA and MasterCard have nothing to do with rewards points. The points are given by the issuing bank (Chase, Bank of America, Citi, etc.).
    Oct 21 09:09 AM | Likes Like |Link to Comment
  • Visa And MasterCard Remain Ridiculously Expensive With Unjustified Growth Premiums [View article]
    I've read quite a few of your articles. I can safely say that analysis is your Achilles heel.
    Oct 8 11:05 AM | 1 Like Like |Link to Comment
  • Cramer's Kid-Friendly Portfolio Is Very Unfriendly For Your Kids [View article]
    Here are stocks I have in my kids' portfolios:

    AAPL, DIS, JNJ, KO, MCD, PEP, PG, and XOM. Dividends are reinvested.
    Jun 16 10:15 PM | Likes Like |Link to Comment
COMMENTS STATS
249 Comments
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