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
  • Principal Protection For Preferred Stock Investors During A Low Rate Environment [View article]
    Thanks even yield ~ 7% at almost zero price gain is NOT attractive.
    Some European stocks seems be better investment now.
    Jan 7 07:07 PM | Likes Like |Link to Comment
  • Dividends: Still The Best All-Season Investment Strategy [View article]
    Rising
    Thank you for the good article. Econometrics of DGI is almost empty field there hopefully some good results might be obtained. Contact me if you/your son want to go beyond AI.
    SDS
    Jan 7 07:03 PM | Likes Like |Link to Comment
  • Dogs Of The Dow: A Look At The Results For 2012 [View article]
    I think that Fish-30 index can be created from CCC list (e.g. 15 firms from Champions, 10 from Contenders and 5 from Challengers with highest market caps) and I'd not surprise if Dogs of Fish (highest yield ) outperform whole Fish-30 index.
    Jan 4 12:01 PM | Likes Like |Link to Comment
  • Don't Let The Dividend Well Run Dry [View article]
    Edddie,
    Thank you for good article - IMO it is a perfect intro.
    Happy New Year!
    SDS
    Jan 4 09:12 AM | 1 Like Like |Link to Comment
  • Dogs Of The Dow: A Look At The Results For 2012 [View article]
    "In my opinion, the Dogs of the Dow is a dividend growth strategy. "
    IMO dogs is a value strategy. It can be DGI ONLY if all Dow stocks are DG because any of them can be a dog in some year.
    Jan 3 03:50 PM | 2 Likes Like |Link to Comment
  • 3 Dividend Predictions For 2013 [View article]
    divdata.com
    Jan 3 11:05 AM | 1 Like Like |Link to Comment
  • January 2013 Dividend Champions, Expanded Edition [View article]
    36 DG companies had special dividends (average about $2.53) and in average special dividends were in more than 2.5 times large than regular annual dividends.
    My database for Q4-2012 specials contains more than 230 companies (including all from your latest CCC list plus some that are not qualified for CCC) with average special dividends $2.27 and some of these companies had yield above 50%. I think that some this extra-large dividends will cause decrease of regular dividends in 2013. IMO the primary candidates from CCC list are HEI NEU COST NATL WLK ATRI BF-B RLI but let's see. My position for extra-large special dividends is simple - I got this gift and will keep stock even if company will reduce (but not suspend) regular dividends.

    BTW you missed special dividend $0.33 from Southside Bancshares Inc. (SBSI).
    Jan 3 02:22 AM | Likes Like |Link to Comment
  • Retiring From Active Portfolio Management In 2013? What Is Your Plan B? [View article]
    Bob,
    Thank you for intro in plan B. I didn't think seriously about this topic yet but I'd consider UK DG trusts - see http://seekingalpha.co...

    NB on comment:
    "I'm considering opening a bank account in Mongolia. "
    IMO it is better to give your local used car dealer your money to keep.....
    SDS
    Jan 3 01:53 AM | Likes Like |Link to Comment
  • The Safety Net Of Dividend Investing [View article]
    For a "regular" stock investor covariances of stock prices is important. The tightening of correlations during last 60+ years leads to increase of minimal reasonable portfolio from ~ 25 to ~ 50 stocks (there are plenty papers on this). Normal prices volatility is about 15-30% for such portfolio.

    For a DGi covariances of dividends is important. The probability of dividend cuts has increased (i.e. negative correlations) during the same periods when stock market (i.e. prices) are down. Typical cuts are in the range of 20% but 50% and even 100% cuts happens quite often (http://seekingalpha.co...). Therefore, a DGi should have wider diversification than "price" investor. My kind of back of envelop estimation leads to 100+ stocks for average DGR ~7%. For most bonds GR=0 by definition and proper diversification in the range of 500 (I did see this number in a book but unfortunately forgot the title).

    SDS
    Jan 2 11:45 PM | Likes Like |Link to Comment
  • The Safety Net Of Dividend Investing [View article]
    Tim
    I think your numbers for YoC =4% and accordingly 4.25% to offset are a bit arbitrary and more factors should be considered.
    Historically about 4% of companies cut dividends each year (http://seekingalpha.co...), average DGR for US stocks was ~ 6.5% during last 100+ years (http://seekingalpha.co...) while CCC stocks /excluding freezers and cuters/ had DGR ~ 10% during last decade according to the latest CCC list, and inflation after WWII was ~ 3.5%, so a DGi should be about even in real money if we count all these factors.

    SDS
    Jan 2 08:54 PM | Likes Like |Link to Comment
  • The Safety Net Of Dividend Investing [View article]
    It seems that growing popularity of dividend (and DG) investing can lead to OVERCROWD panic effect when most of investors sell stock at dividend cut. IMO it is not always wise http://bit.ly/rrrjkX.
    Happy 2013!
    SDS
    Jan 2 08:42 PM | 1 Like Like |Link to Comment
  • Small Bank On The Prairie - Why Jacksonville Bancorp Is Undervalued [View article]
    Rajiv,
    Thank you for god article. I agree that their dividends are safe - see http://bit.ly/ze92Oq on ability of small banks sustain dividends but IMO JXSB has few red flags: small yield, very small volume, no dividend growth, no long-term price trend. Anyway I glad to see good analyze of obscure company at SA and hope you'll continue to find gems.
    SDS
    Jan 1 07:53 PM | 1 Like Like |Link to Comment
  • January 2013 Dividend Champions, Expanded Edition [View article]
    David,
    Let me explain. A company paid regular annual dividends $1, $2, $3,...,7$ so it was qualify for CCC, when it paid special dividend $25, and next year paid regular $3 dividend. As far as I understand and remember you did delete such company from CCC in the past.
    I'd not surprise (from results of dividends heritage project) if some companies that paid special dividend in 2012 will decrease regular dividends in 2013 even compare with their regular dividends for 2011.
    BTW, I touch recent specials and some patterns for regular dividends in recent blog "Who decide about my dividends" - see http://bit.ly/UCfQyx

    SDS
    Jan 1 07:40 PM | Likes Like |Link to Comment
  • Replacing Income: The 4, 5, 8 Dividend Growth Program [View article]
    Mitchell,
    Thanks for good article.
    Historically DGR for US stocks during last 100+ years was ~6.5% (http://bit.ly/PSYFbn) while dividend champions from CCC list had ~10 during last 10 years, so your 5% seems on safe site.

    SDS
    Jan 1 06:15 PM | Likes Like |Link to Comment
  • January 2013 Dividend Champions, Expanded Edition [View article]
    David,
    You already do very big job but it seems useful if you mention UN/UL reason for deletion (and similar currency "deaths") in the table for Changes (Notes column).
    I guess we will see several companies which will reduce regular dividends after huge special (it happens before) in this Changes table in 2013 and proper note might be fruitful for a long-term DGi.
    SDS
    Jan 1 03:05 PM | Likes Like |Link to Comment
COMMENTS STATS
3,173 Comments
2,332 Likes