Seeking Alpha

SDS (Seductive Dividend Stocks)

SDS (Seductive Dividend Stocks)
Send Message
View as an RSS Feed
View SDS (Seductive Dividend Stocks)'s Comments BY TICKER:
Latest  |  Highest rated
  • Income Investing Strategy: Are You A Closet Market Timer? [View article]
    Hmmm..... Is a sale of stock an emergency event? My dictionary defines emergency quite different.....
    SDS
    Mar 30, 2015. 02:27 PM | Likes Like |Link to Comment
  • Income Investing Strategy: Are You A Closet Market Timer? [View article]
    B&H/Mike

    S&P 500, inflation, CD rates are known for last 45 years. Numbers should shed a light on your disagreement.

    SDS
    Mar 30, 2015. 02:06 PM | Likes Like |Link to Comment
  • Income Investing Strategy: Are You A Closet Market Timer? [View article]
    Adam,

    Thank you for good follow-up. As I commented to Bruce Miller article:
    Usually in my investment account "cash is inversely proportional past opportunities: if there were many opportunities in last N month my cash is small and vice versa. Of course special situations (like bonuses at work or huge expenses in near future) change this status quo."

    I do not invest in indexes, so "special situations" with companies plus my contrarian mind create cash movements opportunities. Economy might create such "special situations" also. I went to almost 100% cash in Feb. 2000 and spring 2008, so I lock high yields in summer-fall 2009. Were these movements "time of market"? Yes and no. I was not a dividend investor in 2000 and simple needed all cash to buy a house. I was a dividend investor in 2008 and understood in 2007 that economy of zero% mortgages for homeless on streets of San Franciso is not sustainable. I figured out in 2009 that the bottom is over and invested, although many pundits talked about W-shape market. Will I time market in future? - Only in case of economy craziness like in .com era. Will I precisely time market? - Most probably NO, I'm not the smartest guy on street.

    "If you are betting on lower equity prices to raise your income, but have only nominal ability to do anything about it, I would argue you're not thinking about this the right way." - Hmmm... I didn't find argument(s) in the article. Also I'd like to know why I must "to do anything about" cash. Why NOT to do is bad?

    I'd agree that "often investors become traders", so IMO they are not really investors (it is impossible to be pregnant and virgin at the same time).

    I agree 200% that hope is not an investment strategy, but I disagree that investor always and all time must "to do: something. I rather agree with Winnie-the-Pooh “Don't underestimate the value of doing nothing, of just going along, listening to all the things you can't hear, and not bothering.”

    SDS
    Mar 30, 2015. 12:56 PM | Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]
    Bruce
    Thank you for good article.
    IMO taxes should play secondary role in investment decisions. I didn't catch why do you want lower price for taxes. Let's say you want to replace ABC (bought at 10$ price now 20$, price in N days will be 16.25$) for XYZ (price now and in N days the same - 15$) and tax is 20%. If you sell ABC now, you get 18$ after tax and can buy 1.2 shares of XYZ. If you sell ABC in N days, you get 15$ after tax and can buy only 1 share of XYZ.
    IMO cash is inversely proportional past opportunities: if there were many opportunities in last N month my cash is small and vice versa. Of course special situations (like bonuses at work or huge expenses in near future) change this status quo /Ha! It sound like I'm styding Latin 8-) /.
    SDS
    Mar 29, 2015. 06:23 PM | Likes Like |Link to Comment
  • Building A Better (Balanced) Dividend Growth Portfolio [View article]
    Hmmmm.. "spanning a myriad of sectors and industries " - Can you estimate how big is the myriad? 8-)

    I'd agree that DGR might decrease (let say to zero) with company maturity, but YoC might be quite significant (e.g. 20%) if stock is bought long time before DGR becomes zero. In this case dividend investing in other (e.g. high DGR) firms. So young investor who doesn't need dividends as income now can neglect high yield stocks with non-perfect quality. I also agree that any DGi should combine different yield/DGR stocks.
    SDS
    Mar 27, 2015. 08:27 PM | Likes Like |Link to Comment
  • The Future Of Seeking Alpha [View article]
    As far as I understand SA follows Amazon and Ebay model when a seller creates a shop inside the popular www site. The difference that sellers in Amazon/Ebay have tangible goods which can be return while CFAs and other so-called proffi have thoughts in the field where experience doesn't help much. The proffi (as well as Amazon sellers) can have their own www sites but cannot create good traffic. Most Amazon traffic and SA traffic are from buyers/amateurs (like me). Would I pay Amazon/Ebay/SA for opportunity to participate in the traffic? Of course NOT because I can find the same products without such expense.
    SDS
    Mar 27, 2015. 07:47 PM | Likes Like |Link to Comment
  • Investing In High Dividend Yield Stocks: A Sucker Bet? [View article]
    I briefly scan this article & will try to read tomorrow.
    Meantime - Is "Juicing the Dividend Yield" a kind of dividend capture strategy?
    SDS
    Mar 26, 2015. 01:12 AM | Likes Like |Link to Comment
  • Dividend Growth Strategy: Benchmark Your Way To Success [View article]
    I checked the math shown the picture - it is correct. Of course, 90+% are for long run...
    SDS
    Mar 25, 2015. 03:43 PM | Likes Like |Link to Comment
  • The Great 401(k) Experiment Has Failed? [View article]
    I'd agree that many people do not have big enough 401K, but do not be fooled by $18,433 number. It includes 401K of folks who just started to work for a company (they might have huge rollover IRAs if it is not their first job). Although there is a record number of retiree in USA, the demographic curve shows that not everybody is 60+ years old.

    $18,433 is a common journalists bla-bla-bla.... IMO. A single number (with exclusion of all other relevant numbers) says nothing real and can be used only as a propaganda.

    SDS
    Mar 25, 2015. 12:28 PM | 5 Likes Like |Link to Comment
  • Dividend Growth Strategy: Benchmark Your Way To Success [View article]
    Adam,
    Thank you for good article.
    I consider myself as a dividend growth/high yield (DG/HY) investor with income stream as the prime target and capital gain as the secondary one. So even such approach is a kind of total return (TR) strategy, gain/loss component is not really important because of the following 2 aspects.
    I’m going to release capital gains only when stock is crazily overvalues (a’la 1999) and preserve capital only when country economy WILL decline with high probability (a’la 2008). Will is important word in the last sentence, because if economy (or industry) is already significantly down and I didn’t recognize the drop, I’m going to hold my well-selected stocks of wonderful companies which should sustain the decline or at least should recover within few years.
    Another aspect why gains/losses are secondary is more simple: more than 90% of TR are due to dividends and dividend growth in the long run (http://bit.ly/xFpiPl). So, why should an investor put attention to significantly less important component?
    So I use yield on cost YoC to monitor my progress, and usually I don't know current market value of my portfolio as well as my house (both are not for sale).

    In my mid 50th I guess that the probability to see another 1999 and 2008 is less than 50%, while for 25 y.o. investor it might be ~ 90%, so I'd agree that a young DG/HY investor should evaluate her stock picking skills (but they should be better with time, although SA is quite helpful to shape these skills) and learn how prepare to 1999/2008-like events.

    SDS
    Mar 25, 2015. 09:58 AM | 1 Like Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    mjs_28s
    Look on Japan....
    I think emergency fund is a must, it value depends on investor ability to have earnings beyond stock portfolio.
    A simple rule of thumb I often suggest to my friends is:
    [at least expenses for 6 months + (expenses for 1month *(you age-30))] for ages in range 30-90 years, at least expenses for 6 months if you're younger than 30 and keep at 5.5 years if you are older than 90 years.
    SDS
    Mar 24, 2015. 08:51 PM | Likes Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Hmmm... When I was a pupil in elementary school we spent couple lessons on pool problems. All pool problems were similar: you have a pool with volume (V in gallons) and 2 tubes - one for incoming water (I in gallons/hour) and another for water going out of the pull water (U in gallons/hour), and you need to define when the pool becomes empty (obviously initial V > 0, U > I >0) or full (obviously V has max limit, I>U>0). A general equation for these pool problem is Vf=Vo+I*ti-U*tu, where Vo and Vf are initial and final water volume, ti is the time when I tube works and tu is the when U tube works.
    I fall to see the difference between these pool problems and dividend portfolio (actualy DVK uses very similar example). Of course I and U are not the tubes but other flow providers (dividend, spending) and money replace water.
    So I guess pupils in elementary school can understand DGI while some CFAs are not 8-).
    SDS
    Mar 24, 2015. 08:35 PM | 1 Like Like |Link to Comment
  • The Bear Claws My Dividend Growth Portfolio - Will I Cut And Run? [View article]
    My be it is my bad English but for me UNREALized capital gains/losses are just unreal i.e. illusory, imaginary, artificial, etc.... or just fake to be non-polite (and I'm a non-polite person). So why should I put my attention to fake? People who suggest to monitor fake closely do not understand DGI in my opinion (IMO).

    About 10% of my portfolio is in different oil companies. I guess prices of their stocks drop down in 2014/5, but why should I worry? I'm not going to sell any of these stocks /even one of them (CRR) reduced dividends/ because oil crisis will be shorter than my investment time horizon.

    The case is probably different for DGis who must sell some stocks for living or to comply with IRA tax code, but even for them some cash emergency fund is useful IMO.

    SDS
    Mar 23, 2015. 01:28 PM | 5 Likes Like |Link to Comment
  • Rating Opportunities In The Utilities Sector [View article]
    Thank you Chowder!

    " I have seen reports that indicate who is and who isn't."
    Link(s) if possible, please.

    I also thinking to add "green footprints/coal usage" as sector criteria but didn't investigate yet.

    My price target for WEC is smaller in relative terms than for ED (both in my shopping list), so I agree.


    SDS
    Mar 20, 2015. 12:22 PM | Likes Like |Link to Comment
  • Rating Opportunities In The Utilities Sector [View article]
    Chowder,
    I agree that regulatory environment should be count but HOW?
    I use very naive approach: to have several utilities in different regions and "pride" that they will not screw out by local governments.
    SDS
    Mar 20, 2015. 11:37 AM | Likes Like |Link to Comment
COMMENTS STATS
3,710 Comments
2,755 Likes