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SDS (Seductive Dividend Stocks)

SDS (Seductive Dividend Stocks)
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  • Must Read Information On Popular REITs For 2013 [View article]
    Why I must read it? - please make a paragraph about novelty and summary of your writing....
    Dec 25 01:33 PM | Likes Like |Link to Comment
  • Cedar Fair Growth Hits A Snag [View article]
    Thanks for review. I'm long FUN although they are less than 0.5% in my portfolio Iit seems they need to find business which peaks in winter time (X-mas decorations?)
    Dec 25 01:31 PM | Likes Like |Link to Comment
  • Larry Swedroe Positions For 2013: Resist The Temptation To Stretch For Yield [View article]
    Continued....

    5)" REITs for example are now trading at a P/E of about 40. The Alerian MLP Index has a P/E of about 24."
    Wau! I bought some REITs and MLPs in 2009 and didn't know that they probably overpriced now..... It seems too many investors chase yield.

    6) "With equities we <use> market cap weighting strategy".
    What do you think about fundamental indexing? I understand that a big portfolio isn't compatible with equal weighting strategy (which according to some scholar papers outperform cap weighting strategy even after FF factors) even if you "have a heavy value and size tilt" . Would you recommend equal weighting strategy for small investors who wait enough to buy till stock they like are on value side?

    7) CEFs are "no-no in our book".
    I also not a fun of CEFs because of bad transparency but some UK trusts (http://bit.ly/ZyfIVK) seems good to me (I do not invest in these trust because unfortunately have no access) .

    Happy Holidays!
    SDS
    Dec 25 01:23 PM | 1 Like Like |Link to Comment
  • Larry Swedroe Positions For 2013: Resist The Temptation To Stretch For Yield [View article]
    Larry & Jonathan - thank you for good interview. Being a scientists and a contrarian by nature I'd like to point
    1) " DFA ... that use “science” in their approach"
    My quick analysis (which is probably wrong) shows that DFA mixes brainwashing and multi-level marketing techniques to sell their products that indeed based on solid statistical research results. Unfortunately some of these results do not have good fundamental reasons that insure that past trends can be continued into future.
    It will be useful if somebody (e.g. from DFA) disproof brainwashing + multi-level marketing opinion.
    I might be biased here - see http://seekingalpha.co... .

    2) "When most investors/advisors see a bond that is trading at a higher yield than the market’s requiring from similarly rated issues, they tend to want to jump on that, thinking they have a bargain. Instead, we would avoid buying that bond because we believe the market is better at pricing risks than the rating agencies as ratings changes typically lag reality."
    Excellent! I'd expand it for equities except probably nano-caps or/and non-liquid stocks (http://seekingalpha.co...).

    3)"experts were convinced that the combination of easy fiscal and easy monetary policy would surely lead to and higher rates."
    I bet we'll see higher rates sometimes in next 10 years. I'd be very happy if US government will control inflation but history (see e.g. This Time is Different: Eight Centuries of Financial Folly / Carmen M. Reinhart, Kenneth Rogoff) shows that it will be very difficult.
    I agree that "there are no good stock & bond market forecasters".

    4)"Whenever interest rates remain at very low levels for extended periods investors begin to make the mistake of stretching for yield. This is especially true of those who make the mistake of managing their assets on a cash flow basis — meaning they live off of only dividends and interest, never touching principal."
    I agree that yield hunting isn't a smart thing but I disagree that assets should not be managed on a cash flow basis - see http://seekingalpha.co... .
    Few SA contributors (including myself) from dividend growth investment /DGI/ group argue this point with Larry in 2012 and I did not see a trustful evidence that DGI "is a loser’s game." It seems me that Larry doesn't understand or doesn't want to understand DGI probably because of DFA brainwashing (sorry I'm an inpolite person and English isn't my native, so I don't know how to put it nice). DG investors mostly watch total return but price changes are not so important for them as dividend changes.

    Hopefully to be continued....

    Happy Holidays!
    SDS
    Dec 25 11:09 AM | 3 Likes Like |Link to Comment
  • Longevity Risk, Through The Eyes Of An Actuary [View article]
    John,
    I should be more precise - IMO odds in annuities are significantly on issuers side (I have to point that I did read only couple popular books about annuities and by no means I'm not a specialist in this product).
    I would rather say ALMOST "any product that has ever been created was intended to deliver a profit" (BTW, there are lot of non-profits in US).
    SDS
    Dec 25 10:22 AM | Likes Like |Link to Comment
  • Longevity Risk, Through The Eyes Of An Actuary [View article]
    Annuities are issued by for-profit companies and it tells me everything.... I hope the average Joe from SA is smart enough to recognize that stats works against him.
    Dec 24 11:32 AM | 3 Likes Like |Link to Comment
  • It's Never Too Early To Invest For Retirement [View instapost]
    Good luck for your daughter! You have a good plan (I doubt only if she can find better adviser than you) and hopefully she'll follow.
    Dec 24 11:23 AM | Likes Like |Link to Comment
  • The 100% Yield Idea Makes No Sense [View article]
    "YOC is nothing more than a mental self-gratification. ... As for me, I want income, income, income. "

    Well English is not my native and indeed it is my enemy, but I think it is semantics.
    Let compare 2 stocks ABC and XYZ both were bought a 10$ and both had 3% yield, so you got 30c and 30c. After N years ABC gives you 1$ and XYZ gives you 2$ in dividends and you are not going to sell either.
    HOW DO YOU DEFINE AND COMPARE YOOR ABC and XYZ HOLDINGS?
    YoC and tax rate define real dividend income in a given year from a stock (see http://seekingalpha.co...)
    Dec 24 09:53 AM | 1 Like Like |Link to Comment
  • Retirement Investing For Patient Investors In Search Of High Returns [View article]
    Although I own many MLPs and REITs, I think that intrinsic high yield of them is NOT free - see http://seekingalpha.co...
    Dec 23 11:05 AM | Likes Like |Link to Comment
  • Fiscal Cliff Not Resulting In Dividend Cliff [View article]
    See http://bit.ly/XRf3gk on dividends versus buybacks
    Dec 23 10:04 AM | Likes Like |Link to Comment
  • Fiscal Cliff Not Resulting In Dividend Cliff [View article]
    It is still not too late to delivery your opinion on dividend taxes to Washington - see http://seekingalpha.co...
    Dec 23 10:02 AM | Likes Like |Link to Comment
  • Dividend Stocks Add Precision To Your Portfolio [View article]
    Any (ok to show importance let me put in capital - A N Y) company is not bullet proof and can cut dividends in hard time and even close doors - history shows us plenty examples ( see e.g.
    http://seekingalpha.co...
    and
    http://seekingalpha.co...)

    .
    Dec 23 10:00 AM | Likes Like |Link to Comment
  • The 100% Yield Idea Makes No Sense [View article]
    I think TIME PREMIUM is one of the main advantages long-term investors have. For a DG company YoC increases with time (by DG definition) and current yield is almost irrelevant for a long-term investor. For example I own XOM for few years, I know amount of money the company sent me in 2012 but I don't know 52 week high or low for the stock as well as the stock current price (yes it is easy to find but my indicators show me that dividends are reliable for 2013, so I don't care about the price public trade the stock).

    Although I agree with David Jackson that YoC doesn't count inflation and probably do not understand his not about " isn't annualized", I like some of my "fool-free" stocks with YoC >100% ( see http://seekingalpha.co...).
    IMO, as any time dependent factor YoC can be annualized but such information doesn't add anything to dividend change rate (DCR). Some companies like XOM used to have positive DCR for many years (so people often just talking about DGR), other companies used to have positive and negative DCR in different years, so data can be annualized.

    SDS
    Dec 23 09:54 AM | Likes Like |Link to Comment
  • Changes To The COLA Index And The Impact On Your Retirement Plan, Part 2 [View article]
    At least in California government wastes a lot of money. IMO budget should be reduced on n% each year for next N years and officials should have some rewards if they save even more.
    Dec 21 10:55 AM | Likes Like |Link to Comment
  • Retired Investors - How Do You Manage Risk? [View article]
    Bob,
    Thank you for good article.

    "minimum of 50 equal weighted positions " - I think you should have 50 and your wife should have 50 others 8-). On equal weight - see http://seekingalpha.co...

    "I use Fast Graphs and Morningstar to help establish value." - Did you find difference in fair value between Fast Graphs and Morningstar? Statistics for at least 50 your holding seems be interesting.

    "I have a brokerage account that provides 30 free trades per month." - Where?

    My main risk control is dividend reliability - example at http://seekingalpha.co...

    SDS
    Dec 21 10:48 AM | Likes Like |Link to Comment
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