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SDS (Seductive Dividend Stocks)

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  • Are Dividend-Focused Strategies Viable For Investors? [View article]
    Larry,
    If it possible please run also
    a) backtests from 1963 or early /I think CRSP files are from 1963/;
    b) equal-weight backtest;
    c) replace "top 20 percent of the dividend growth ranking each year" to top 20 percent of the companies with longest dividend growth history (it seems that your criteria is tilted to spikers).
    Thank you
    SDS
    May 1 11:56 AM | Likes Like |Link to Comment
  • Are Dividend-Focused Strategies Viable For Investors? [View article]
    Dear Larry,

    Please write SA article on dividend investing and we will discuss it.

    Meantime please read at least
    a) "Surprise! Higher Dividends = Higher Earnings Growth" /
    Robert D. Arnott and Clifford S. Asness. (Jan/Feb 2003). Financial Analysts Journal.
    b) "The High Dividend Yield Return Advantage" and "What Has Worked In Investing" /Tweedy, Browne Company
    c) "The quest for yield" /Elroy Dimson,
    Paul Marsh and Mike Staunton (London Business School) /I sent you this paper/

    Please keep in mind that 99% of finance papers about risk is pure junk, so please do not argue with this ill-defined term.
    Please forget about taxes - people use Roth IRA to avoid them and IMO double taxation must be illegal.

    I'm looking forward for you SA article. Please shut me SA email when you publish it.


    Sincerely,
    SDS
    May 1 11:36 AM | Likes Like |Link to Comment
  • Are Dividend-Focused Strategies Viable For Investors? [View article]
    Common UK1981.... Dividend investors were named idiots, fools, etc... at SA but it is not the reason to give up. Some people just think inside a box.

    BTW, couple years ago I faced big sign in a Mexican store:
    "In God we trust, all others pay cash". I apply this idea to stocks
    May 1 10:36 AM | Likes Like |Link to Comment
  • Dividend Stocks, Bonds And The Real Enemy [View article]
    See "Bonds: Return-free Risk" in my SA blog.
    Apr 30 08:23 PM | Likes Like |Link to Comment
  • WisdomTree Dividend ETFs, Plus Overall Conclusions About Dividend ETFs [View article]
    DVK, Thank you for good analysis. It seems some funds use DG in their names /see my SA blog/ but I didn't read their prospectus.
    BTW, Does anybody wonder why brokers like Fidelity suspended fees for ETF trading? IMO they recollect $ from ETF fees.
    SDS
    Apr 30 05:14 PM | 2 Likes Like |Link to Comment
  • Where Dividends And Emerging Markets Collide [View article]
    Good review, thanks.
    The main problems IMO that a) many companies emerging countries do not have US dividend culture; b) fees and taxes are quite high.
    SDS
    Apr 30 03:34 PM | Likes Like |Link to Comment
  • 3 More Dividend ETFs Under The Microscope [View article]
    As usually Wall Street has a dirty secret, now with dividend ETFs. Please read http://bit.ly/IoBu5Y and my comment to this good SA article.
    Apr 30 03:14 PM | Likes Like |Link to Comment
  • Using Dividend ETFs In A Dividend Portfolio [View article]
    As usually Wall Street has a dirty secret. Please read http://seekingalpha.co... and my comment to this good SA article.
    Apr 30 03:11 PM | 1 Like Like |Link to Comment
  • Why Does My ETF Dividend Fluctuate So Much? [View article]
    Michael,
    Thank you for good article and Morningstar for nice informative service.
    Let me take a simple and amplified case: Let ignore ETF fees. Let say I bought N shares of a dividend ETF when it had let say A*N shares (let's say A=1,000,000) that invest in M equally weighted companies each of these pays steady dividends (dividend change rate is zero). So I got K$ of dividends at attractive yield. In few years this dividend ETF became popular and now it has B*N shares (B>A, and let's say B=10,000,000) invested in the same M equally weighted companies. This ETF investment =(B-A)*N shares increased 50% stock price of each of M companies and caused yield decrease 50%. So in the result I'll have 50% capital gain but only 0.5K$ dividends(i.e. my yield drops 50%).

    I think if you count price factor I just outlined you agree with (rephrasing you)
    "... new ETF shareholders diluted the dividend received by the existing ETF shareholders" and income investors feel " that the existing shareholders were robbed".

    SDS
    Apr 30 03:09 PM | 1 Like Like |Link to Comment
  • Using Dividend ETFs In A Dividend Portfolio [View article]
    Do ETFs issue new shares for new customers - i.e. are they work as closed-end or open-end fund? The answer should shed light on dividends ETFs pay.
    Apr 30 12:05 PM | Likes Like |Link to Comment
  • 3 Lines Of Defense Against The Decline Of Dividends [View article]
    Although I do not think that DGR degradation is similar to radioactive decay, nevertheless it exist even with long (multi-decade) life-time (see http://bit.ly/JMCsbF). IMO the DGR decay should be considered for long-term portfolio plan of a DG investor. My estimation that average age of DGinvestor in SA (not scientific one, based on photos /including my 8-)/ and notes) is about 50 years. As infinite optimist I hope in progress in medicine and I hope average DGinvestor /including mysel 8-)/ will live 50+ more years, so halftime for DGR degradation ~30 years is a factor. Well if after 30 years my YoC will be 20%, I probably will be happy with DGR=0 for a solid good company.
    Apr 30 10:59 AM | 1 Like Like |Link to Comment
  • Single Factor Dividend Income Model. Part 1.  [View instapost]
    "My understanding is bank dividends are regulated." - it is correct at least if bank took money from government. Banks evolve but their main purpose and ability to earn money didn't change.

    "I do not think the long term basics of dividend growth have been radically altered by the great recession for other sectors, just financials." - In long-term (10+ years) hopefully yes.
    Apr 29 10:40 PM | Likes Like |Link to Comment
  • 3 Lines Of Defense Against The Decline Of Dividends [View article]
    Sorry for difficulties - English is my enemy 8-).

    Each company and their dividend history are unique. My point that in average DGR decays because company life-cycle (Kodak is quite fresh example of whole life-cycle). Data for CCC show this trend. But again characteristic times in each period (e.g. from idea to product, from growing biz to matured) are company dependent, so I cannot say that ABC will freeze out dividends or reduce DGR after NNN years.

    Apr 29 08:41 PM | 2 Likes Like |Link to Comment
  • A Fool And Free Money (27 Feb 2012) [View instapost]
    As far as I know there are only few good databases like COMPUSTAT and I think they are too expensive. You need to decide that you'll do with database and how much time you can spend for programming to convert data to information.
    Apr 29 08:28 PM | Likes Like |Link to Comment
  • Single Factor Dividend Income Model. Part 1.  [View instapost]
    Now it is correct at least for US banks. Because banks biz model is few hundred years old they know much more about leverage than I. The XXI century problem IMO - they became too greedy and unprofessional.
    Apr 29 07:14 PM | Likes Like |Link to Comment
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