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SDS (Seductive Dividend Stocks)

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  • Dividend Growth Portfolio: Spring Checkup And Semi-Annual Review [View article]
    DVK
    Thank you for the review and congratulations with half-way to 10-10 goal.
    SDS
    Apr 8 03:59 PM | 1 Like Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Market Map
    "won't be greater than 9 - 11% "
    Please calculate ROIC after 25 years for initial yield 3% and DGR=7% (I use modest numbers for both, many DGis target higher yield and might achieve large DGR with re-investing).
    SDS
    Apr 8 12:41 PM | Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    DC
    It is correct. We know that average annual total return of US stock market is about 10%. DGI allows to have income only return ~ 10% in 10-15 years and even higher return in longer period. Hence a DGi can be NOT depend on price fluctuation if (s)he has enough patience and outperform US stock market.
    SDS
    Apr 8 12:27 PM | 2 Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Dale/Faye
    Can you estimate increase of BNS earnings/dividends in 2-3 years after ING merger?
    SDS
    Apr 8 12:19 PM | Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Varan,
    "Writers of newsletters..."
    I guess you was never expose to communist propaganda....
    SDS
    Apr 8 12:17 PM | Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Varan,
    Please remember that English is not native for some SA contributors and they might NOT intend to force anybody but just cannot shape idea properly.
    SDS
    Apr 8 12:13 PM | 2 Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Earnings can be manipulated more easily than dividends at least for quite long period of time.
    Apr 8 12:11 PM | 2 Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    ricksteph
    IMO you're right - we don't often know our "last" accumulation day. IMO DGI allows us to set it up by our will while Mr. Market sets our last accumulation day by his will in case of Total Return strategy.
    SDS
    Apr 8 12:09 PM | 2 Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    I prefer to keep emergency fund regardless my investment performance. Remember cases when whole country markets were shut down (Larry Swedroe provided several examples).
    SDS
    Apr 8 12:04 PM | Likes Like |Link to Comment
  • Actually It Is All About Total Return...Totally! [View article]
    Dale
    Thank you for good article.

    Some arguments against your thoughts:

    1) "In the accumulation phase the only thing that matters is total return. That is a mathematical fact"
    I'm now aware about any proof of this statement, please provide. On another side
    i. There is also NO proof that total return of DG strategy is lower than of any other stock strategy.
    ii. Any rep. from Human Resources Dept. confirms that their firm pays more for skills and experience. An investor gains skills and experience in DG during accumulation phase.

    2) "Total return is generated by a combination of capital gains (increase in asset prices) and portfolio income. "
    Yes this is correct. Just remember that in the long run 2nd component is ~ 95% of total return (http://seekingalpha.co...). So IMO it is OK to neglect the 1st part in learning (accumulation) phase.

    3) "The accumulation phase is about accumulating the highest level of assets, the highest portfolio value. "
    What is about toxic assets? Would you like to have 95% of them in your portfolio? (Just FYI: W.S. analysts consider that 95% of stocks cannot be winners /Mike Mayo/). Please remember that paper gain is NOT the money. As soon as you convert gain into money you loose some opportunities.

    4) "Investing is most often a risk/return proposition."
    Again NO proof of this common statement exit. Please point me one with proper definition of terms and good math behind.

    5)"The goal is not total return, it is growing income."
    So let's assume that the goal is 95% of potential max. Would you claim that for example social investing with the same 95% goal and decision not to invest in specific companies is the absolute junk? Would you prefer to get 100$ with probability 95% (2.5% significantly less and 2.5% significantly more) or 95$ with 100% probability? (Well this sound as a risk test but note here that 95$ is enough to satisfy all your live needs and you'll ruin your live if you got significantly less that promised 100$).

    6) "In fact, the transition to an income portfolio for the spending phase would be easy and seamless, and it would most likely happen over a few years."
    I'm not aware on such study (although it is easy to perform it). How long is " a few years" ? What retiree suppose to do during these "few years" esp. in bear market?

    7) "Know your risk level."
    Good advise IF it possible to know a priory (probably no) and if the level stays the same during whole accumulation or/and distribution phase (probably no again).

    SDS
    Apr 8 12:00 PM | 2 Likes Like |Link to Comment
  • The 8th Deadly Sin: Chasing Yield [View article]
    Income Surfer,
    Thank you for good article.
    Although I combine high yield /HY/ and dividend growth /DG/ stocks in my portfolio, I know that very high yield is indeed often a sign of forthcoming problems with the stock including dividend cut. So I do extra mile in DD for HY stocks in term of dividend reliability. Nevertheless I also bought GE before div cut and I also hold it. Investor needs not ONLY to listen market but also be confident in company long term perspectives.
    Just calculated 23% of my positions (18% of invested capital) are HY, the rest is DG stocks.
    SDS
    Apr 8 12:50 AM | 1 Like Like |Link to Comment
  • Dividend Champions Vs. Selected Dividend Funds Performance (12/31/2007-3/30/2012)  [View instapost]
    onsyis

    It is a good idea but unfortunately I don't have time now to explore it. I did analyzed CEFs dividends a few years ago and most had very unstable payments (amounts). I think this is not bad per se and rather mostly psychological effect, but such huge fluctuations of dividends make comparison not very reliable in limited time frame we have data for Dividend Champion (please note that the study in this blog is not perfect itself because of voids in CCC list at the time of the study, see http://seekingalpha.co... for "void-free" CCC list).

    I'm not expert in CEFs, but it seems that some of them are leveraged to obtain higher yield. CEFs are often trade for discount but investor needs to remember that this or even large discount might exist not only at entry but on exit point also.

    SDS
    Apr 6 12:53 PM | Likes Like |Link to Comment
  • Why I'm Focused On Dividend Growth Rates [View article]
    Well .... what will you do with portfolio management if couple companies jump dividends on 50%? 8-).
    SDS
    Apr 5 01:34 PM | Likes Like |Link to Comment
  • How To Handle A Big Gain [View article]
    Jeff,
    Thank you for good article.
    In most of investment books authors recommend to buy a stock if if fits to conditions A, B, C and sell the stock if conditions A or/and B or/and C is(are) not valid anymore. A,B,C are different for various investment/speculation styles and number of conditions can be large/smaller than 3 of course.
    Psychology might lead to "fool and free money" (http://seekingalpha.co...) approach. In most cases there is no discussion what to do with cash from the stock sold. It is assumed that investor i) will buy new stock which fits A,B,C or ii) hold cash or iii) use it outside investing. All these assumptions are valid, but only replacement i) creates profit for.... a broker.
    One of my motto for investing I borrow from Winnie-the-Pooh is “Don't underestimate the value of doing nothing, of just going along, listening to all the things you can't hear, and not bothering.” So I'm siting on 4X-6X gains from my 2009/10 purchases waiting when Mr. Market becomes crazy.
    SDS
    Apr 4 12:00 AM | 1 Like Like |Link to Comment
  • Insights From Our Meetings With Russian Energy Firms Gazprom And Novatek [View article]
    Christopher,
    Thank you for good report. I'm long on OGZPY and it seems they have kind of monopoly in Russia. As far as I know their natural gas is closer to China than to Europe. Of course pipeline is needed to delivery.
    SDS
    Apr 3 08:32 PM | Likes Like |Link to Comment
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