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SDS (Seductive Dividend Stocks)

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  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Dividend Dynasty
    It is up to you but
    a) I don't understand precisely usage of the word "hurdle" in your reply /it is not in my vocabulary and dictionary gives too many translations/;
    b) if you look on history for example of D-J index in which only top companies were selected it might re-asses risk
    BTW, the CCC list will be expanded in May 8-).
    SDS
    Apr 14 02:51 PM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    David,
    Thank you for detail answer.
    SDS
    Apr 14 10:09 AM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Chuck,
    It seems interesting to compare KO and PEP with your new tool. Couple years ago their 10-y-average DGRs were different 2X but initial yields before this 10 years period were also different 2X. (BTW, such balance tells that EMH isn't absolutely wrong).
    SDS
    Apr 14 01:30 AM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    pershing83@comcast.net
    An article or blogpost about Harrry Browne approach will be interesting - please write it.
    SDS
    Apr 14 12:52 AM | 1 Like Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Hamilton55,
    What do you think about J. Bogle 8-).? He almost proof that simple indexing makes all proffi useless.
    SDS
    Apr 14 12:44 AM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Dividend Dynasty wrote "But 21 is more than enough."
    Well, 20 stocks = 5% in each, 25 stocks = 4%. Average DGR was 6.5% (see http://seekingalpha.co...), so after average 3.5% inflation real growth is 3%. If one of your companies eliminates dividends next year you face drop of real income to compare with this year.
    So it is your choice....
    SDS
    Apr 14 12:31 AM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    BruceM comment on 13 Apr, 12:07 PM echoes some my thoughts about DGI and 'big boys'. There are a few possibilities:
    a) they didn't know about DGI;
    b) they knew and rejected as underperformed strategy;
    c) they knew but cannot use it;
    d) they use it but keep it secret.
    I don't know correct answer.... Do you?
    SDS
    Apr 14 12:22 AM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Does "our logarithms" mean our algorithms?
    Apr 13 10:33 PM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    My question is about "company-sponsored DRIPs" - why company wants to spend resources (e.g., money) for DRIP?
    Apr 13 10:29 PM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    David Fish:

    IMO for some investors DRIP is "a must". I'd like to know what motivates a company to have DRIP. Except more sticky investor and kind of sign "we are thinking about our shareholders" I do not see any economical reason for the company to have all this headache with DRIP maintenance (buy shares, keep database, etc...).
    Any input?
    I'll forward this message to David just in case - I think he might write a good article.
    SDS
    Apr 13 09:33 PM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    YH: see http://bit.ly/Mpfq86 about historical div streaks.
    Folks:
    In 2012 annual report and letter ITW says "ITW has increased its dividend for over 50 consecutive years*" with footnote "* except during period of government controls in 1971".
    Does anybody know that happens in 1971? What did government control?
    SDS
    Apr 13 09:23 PM | Likes Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Varan,
    I’d agree that some DGis wrote like they found the pot of gold at the end of the rainbow but I don’t know another good not time-consuming approach to achieve goal of many DGis – replace salary for non-destroyable income at retirement. Another good and even less except time-consuming approach is indexing but there is no ETF or MF that replicate DGI yet in US (UK is a way ahead –s ee http://seekingalpha.co...).
    SDS
    Apr 13 08:27 PM | 1 Like Like |Link to Comment
  • The Truth About The Impact Of Dividend Reinvesting [View article]
    Chuck,
    Thank you for good article. I didn't read comments yet, so my input might be not original. Anyway I disagree with your statement "My motivation was to dispel widely accepted myths such as the majority of return comes from the dividends. " because:
    a) You consider 10 years span - it is too short (for most companies) to show real contribution of dividends -see how it change with period of time in graph presented in http://seekingalpha.co...
    b) You simulated DRIP only while (as you mentioned) many DGis re-invest dividends differently. In this case average market data should provide more valuable information for DGi's realistic expectations. Re-investing in undervalued stocks increase contribution of dividends in return mostly by YoC for expected DGR (in my definition undervalued stock is one which has low price for historical yield and DGR)
    c) Gordon and Bogle approaches can be simplify for dividend stocks (http://seekingalpha.co...) and non-speculative return might be modeled by YoC and DGR (more correctly set of DCRs) only. Total return also includes speculative part (that can be modeled via current yield /again for dividend stocks only/) which probably more stock dependent than YoC selected by investor and DGR selected by by BoD. Non-non-speculative return is the only return "buy-and-hold" investor has (see http://seekingalpha.co... for disadvantage of "buy-and-hold") and it 100% dividend.
    So IMO statement that "majority of return comes from the dividends" is not a myth but a statistics valid ONLY for US market in XIX and XX centuries (probably it is also correct for some foreign stock market but not for all countries).
    SDS
    Apr 13 08:02 PM | Likes Like |Link to Comment
  • There Is No Such Thing As A 'Dividend Strategy' [View article]
    Brucejfern just confirms that i'm pushing - it is NOT always smart to sell stock when dividends are cut - see http://seekingalpha.co...
    Now it seems that dividend investing become more popular, so I expect that at the cut more panic people will try to run through "a narrow door" and stock price will drop significantly. IMO it might create good buying opportunity.
    SDS
    Apr 12 07:35 PM | 2 Likes Like |Link to Comment
  • A Method For Weighting Your Dividend Paying Stocks [View article]
    Doug,
    Thank you for good article. While DGR is in BoD hands, they cannot control yield, and D/E ratio depends /usually lightly/ on accounting tricks. So I doubt that your weighting scheme is optimal. Did you run any back-test?
    I use quasi equally weighting approach (not back-tested) described in http://seekingalpha.co... where I also analyze different weighting schemes.
    SDS
    Apr 12 08:38 AM | Likes Like |Link to Comment
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