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  • 2 Key Tests For The True Dividend Growth Investor [View article]
    Agree. IMO emergency cash should not be linked strongly to investment position but rather to your basic annual expenses (without fancy vacations, new car, etc..). I think cash should be increase with age from about 1/2 to 2-3 years of average annual expenses.
    SDS
    Aug 19 06:37 PM | 1 Like Like |Link to Comment
  • Dividend Contenders: 15 Increases Expected By The End Of October [View article]
    David
    Thank you for the update. I own BBL, will check news.
    SDS
    Aug 19 03:06 PM | 2 Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Can. DGI
    I'd only suggest to watch your trading fees. Purchase of 10 shares for 40$ with 8$ broker commission eats 2% which is too high IMO.
    SDS
    Aug 19 02:58 PM | 1 Like Like |Link to Comment
  • The Characteristics Of The Highest-Yielding Dividend Champions [View article]
    Eli,
    Thank you for good analysis. As you know "plural from anecdote is not evidence", so IMO you need to analyze more firms to make your conclusions statistically more sound. Saying this I hope your are right just more facts are needed...
    SDS
    Aug 19 02:37 PM | Likes Like |Link to Comment
  • Retirement Strategy: How Dividend Income Grows To Staggering Levels By Reinvesting And Compounding [View article]
    RS
    Thank you for good article. IMO double taxation on dividends is a crime.
    SDS
    Aug 17 08:39 PM | 3 Likes Like |Link to Comment
  • Can You Rely On Income From Equities? [View article]
    I had time to return to the article, here are couple notes:
    It seems you're biased:
    "1.8%, not far behind the 10-year Treasury yield of 2.6%" Well difference is above 30% -IMO it is not small.
    "dividend growth was positive in 39 of the years from 1968 to 2013" Well more than 15% was negative. Whole stock market is NOT good proxy for dividend investing.
    It seems your result agrees with early paper "Surprise! Higher Dividends = Higher Earnings Growth" by Robert D. Arnott and Clifford S. Asness (Financial Analysts Journal, 2003). Why did you cover only 1968 through 2004 period?
    SDS
    Aug 17 07:29 PM | Likes Like |Link to Comment
  • Dividends Matter, But Not For The Reason You Think [View article]
    Sconnie Warrior
    Thank you for continuing discussion. Some points:

    Alpha is MPT's idea. Forget alpha (beta, etc...) if you want to speak beyond MPT
    Reward in stocks investing is function of skills, risk AND luck. Risk management ONLY wouldn't help.

    Diversification schemes for DGI and let say momentum investing are different (http://seekingalpha.co... ). Most indexes are diversified for TR investors. I don't think that DGI is a "try to improve on indexing by purchasing specific stocks at fair valuations." There are indexes for value investors.

    I agree with "dividends can be cut or eliminated. This is my biggest concern for dividend growth investors". The best way is to learn from history (e.g. http://seekingalpha.co...
    and http://seekingalpha.co...) and be proactive.

    SDS
    Aug 16 09:13 PM | Likes Like |Link to Comment
  • 2 Key Tests For The True Dividend Growth Investor [View article]
    Eric,
    Thank you for good article.
    I became DGi in 2006 but left the stock market in spring/summer 2008 because I felt it collapse. I park all my money in CDs for 1 year and made mistake in May/June 2009 not to close CDs (because of penalty although I didn't know how big are penalties and was too lazy to ask). When my CDs expired I bought DG stocks as drunk sailor wine up to 20 positions per day. Well some of my stocks are up 7X, some drop -70% but I hold most of them even if some cuted/froze dividends. Some are not all - I sell a few stocks with gain (non-core holdings bought for capital gains), and a few with loss (mostly because dividend cuts).

    Can I predict next big depression/recession? - I doubt.... Can I sustain -50% loss of DG portfolio? I can but it will be hard. Will I use next big drop to increase my portfolio? Sure - I'm a contrarian. Do I keep cash for next big depression/recession? -Not exactly - I just do not see many good opportunities now but we are in market of stocks not in stock market, so Target security issue created IMO good opportunity for DGis even in the middle of bull market.
    SDS
    Aug 15 12:49 PM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    TimmiesRegular
    See http://seekingalpha.co... on buybacks
    SDS
    Aug 15 01:09 AM | Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    DVK
    "I am sensitive to others suggesting to me, or telling me, what my goals should be."
    Try to live couple years in a communist country 8-).
    SDS
    Aug 15 01:05 AM | 5 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    David Fish
    What is about companies which prefer buybacks to dividends? Are they similar to teens who believe that only their music is worth to listen?
    SDS
    Aug 15 01:02 AM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Dave
    I think initial price is irrelevant for this comparison. If you invest at the same moment in 2 "slightly" different indexes (like all SP500 and all CCC) you probably will have quite similar TR in N (N>30) years after this moment. Result may be not so good if moment is chosen wrongly (Jan 2000) and quite impressive for a good moment (March 2009).
    SDS
    Aug 15 12:57 AM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    viperman:
    "The trick is to find those companies whose earnings will grow BEFOREHAND."
    Yep for earnings this is really trick lot of Wall Streeters try to play each quarter. For dividends trick is quite simple - open CCC list and select companies with with growing earnings AS DETERMINED AFTER THE FACT in last 5 years and DG above 20 years. With ~ 99% probability these companies WILL increase dividends within next 2 years.
    I prefer to play the simple game and there is math behind such preference.
    SDS
    Aug 15 12:52 AM | 8 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    firstinsnow
    See http://seekingalpha.co...
    SDS
    Aug 15 12:39 AM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    DVK,
    Thank you for good article.

    1. Earnings power vs dividend yield - it seems that problem just in semantics (see definition in Farlex Financial Dictionary http://bit.ly/1t12Bsb).
    2. Ned Davis Research examination should be taken by DGis with grain of salt (http://bit.ly/1t12Mnt)
    3. I disagree with "I think that "Do dividends matter?" is the wrong question. The right question is, "Do dividends matter to you?"" position: in some countries dividends are ONLY positive part of stock total returns /TR/ for whole XX century (based on data set from Elroy Dimson, Paul Marsh and Mike Staunton ). I agree that "Total return is not the central focus for many investors" but even TR investors try to get M' above M in classic Karl Marx equation M-C-M' where M,M' are money and C is commodities (e.g. stocks). Dividends are also matter for a company behind the stock - dividends guarantee that company generates cash.

    SDS
    Aug 15 12:34 AM | Likes Like |Link to Comment
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