SDS (Seductive Dividend Stocks)

SDS (Seductive Dividend Stocks)
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  • Why Dividends Matter: A Review Of Recent Research  [View article]
    I invest around globe BUT only in companies with good dividend policy. Most of these companies are in USA, UK and other former UK colonies.
    On another hand we live in globalization time, so correlations between stock markets are strong esp. in bad times (e.g. recent Ukraine crisis), so diversification between different industries is probably more important than around the globe.
    SDS
    Mar 5, 2014. 12:40 AM | 2 Likes Like |Link to Comment
  • Why Dividends Matter: A Review Of Recent Research  [View article]
    Larry

    1) Stock investment output = difference in prices (bought vs sold) + dividends. As you know in long run 2nd component (dividends) is ~ 95% of output (http://seekingalpha.co...
    ). Okham razor principle says that factors are NOT needed here.
    We discussed it zillion times already, I don't understand why it is so difficult to distuinguish "a milkman from a butcher".

    2) You need to define quality or profitability factor. As you know it was introduced in scholar papers in a little strange way.

    SDS
    Mar 5, 2014. 12:36 AM | 2 Likes Like |Link to Comment
  • Dividend Suspensions I Like  [View instapost]
    Thank you Craig. I didn't check my account yet.
    Mar 4, 2014. 06:40 PM | Likes Like |Link to Comment
  • Why Dividends Matter: A Review Of Recent Research  [View article]
    Nobel price is not awarded for economy. Pseudo-Nobel was given to Fama and Shiller who have quite opposite points of view.
    Mar 4, 2014. 06:33 PM | 2 Likes Like |Link to Comment
  • Dividend Suspensions I Like  [View instapost]
    Ckent323
    I think time is on your /and my/ side.
    I consider telecoms as HY stocks and use their dividends to expand my portfolio. I also long on ORAN, RCI, T, VZ, VOD, CTL. I need to figure out cost basis of VOD/VZ (as far as I understand some of my VOD will be replaced by VZ shares).
    SDS
    Mar 4, 2014. 03:14 PM | Likes Like |Link to Comment
  • Dividend Suspensions I Like  [View instapost]
    I just got 2013 tax report - TEF paid me dividends in 2013. Although it is still in red (just checked), I'll holt the stock. My BP is in black now but I don't care.....
    SDS
    Mar 4, 2014. 01:50 PM | Likes Like |Link to Comment
  • Retirement Strategy: When Should We Sell Stocks From Our Portfolio?  [View article]
    RS,
    I'd mostly agree with your selling principals although I made exclusion for dividends omission (http://seekingalpha.co...) and probably will do if it temporary. Also I use Winnie-the-Pooh principle: “Don't underestimate the value of doing nothing, of just going along, listening to all the things you can't hear, and not bothering.”
    SDS
    Mar 4, 2014. 01:47 PM | 1 Like Like |Link to Comment
  • Why Dividends Matter: A Review Of Recent Research  [View article]
    Larry

    I agree and remember "Paper wealth is not money" principle. I trust that GOOG or AMZN are good business but "In God We Trust, All Others Pay Cash” Also "The future could be different" so I'd like to see crop in 1st year I own farm using recent WB analogy.

    Is usury a kind of investment in your opinion?

    SDS
    Mar 4, 2014. 11:55 AM | 4 Likes Like |Link to Comment
  • Why Dividends Matter: A Review Of Recent Research  [View article]
    IMO double taxation (e.g. of dividends) is a crime.
    Mar 4, 2014. 11:41 AM | 1 Like Like |Link to Comment
  • Why Dividends Matter: A Review Of Recent Research  [View article]
    Geoff,
    Thank you for good article.

    IMO ad hoc models like 3-factor FF or 4-factor you mentioned or 6-factor (add quality and liquidity) or 1000-factor one (add everything to fit data) have NO scientific value. (These models might be good as any engineering ad hoc model but nothing more). I guess if a pundits combines for example quality and value /properly defined/ or any "uncommon factors" she can obtain results as good as FF92.

    So a discussion of dividends importance in terms of FF-like model isn't fruitful IMO. There are few books (e.g. by Daniel Peris, I suggested some others to Larry Swedroe in my comment to his SA article) which outlined why dividends are really matter for an investor.

    Misfortunately I squeezed from couple books about Warren Buffett his opinion on investing vs speculation. (Misfortunately because he spelled this in condensed form in 2013 letter. I had the same misfortune when I wrote SA blog W.B. and dividends in Jan 2012 and W.B. discussed dividends couple months later in 2012 letter). According to Warren Buffett an ownership of a stock based on expectation of it higher price in future is a speculation. Hence an ownership of a stock based on expectation of it dividends in future is an investing. Therefore dividends are really matter for investor. 100+ years of history confirmed this point of view (http://seekingalpha.co...).

    One very important aspect often ignored in studies like you cited (BTW what is the title of Bryan's article?) is re-investing and compounding of dividends. Try to replace annual portfolio formation and rebalance to a longer period (e.g. 3 or 5 or 10 years) and re-invest dividends meantime - I guess dividend portfolio in this case (which is more realistic for investors not speculators) outperforms non-dividend porfolio significantly.

    SDS
    Mar 4, 2014. 08:35 AM | 6 Likes Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review  [View article]
    PTI,

    1) Initial CCC list from Jan 2008 didn't contain many qualified stocks because David Fish was not aware about these stocks. I guess that reconstructed Jan 2008 list (http://bit.ly/1djMu1G) leads to different numbers than you presented here. This reconstructed list contains more than 400 companies, i.e. almost 3X more than number of firms in David's January 2008 CCC list.

    2) I probably scanned the article too fast and missed - Do you calculate without re-investing?

    SDS
    Mar 4, 2014. 01:04 AM | 1 Like Like |Link to Comment
  • Retirement Strategy: Our New Portfolio Takes Flight  [View article]
    RS
    I'm not a polite person + English isn't my native. So sorry if I abuse you and please consider that IT IS MORE IMPORTANT WHAT I SAY THAN HOW I SAY.

    Actually I think you have the same fallacy as e.g. buying 52wl. If stock is 52wl today, how do you know tomorrow price or price in 1 week? Will be today's 52wl assigned as 52wh in a year?, etc..... Why 52w is better than 49w or 55w?

    I always buy at dips but without reference to arbitrary mark.

    SDS
    Mar 3, 2014. 10:16 AM | 1 Like Like |Link to Comment
  • Retirement Strategy: Our New Portfolio Takes Flight  [View article]
    Hmmmm.... Well I can know 52wh and 52wl as well as today price. If it is above e.g. 51% of 52wl how can I know next 52wh?
    SDS
    Mar 2, 2014. 09:12 PM | 2 Likes Like |Link to Comment
  • Dividend Champions For March 2014  [View article]
    Thank you, David!
    Mar 2, 2014. 01:23 AM | 1 Like Like |Link to Comment
  • Investors Ignoring Dividend Growth? More For You!  [View article]
    I guess the source is http://bit.ly/1hu8sR4. I "love" the end of it: "As always, it's important to work with your Merrill Lynch Financial Advisor to help make sure your investment choices are suitable to your needs..... " 8-).
    SDS
    Mar 1, 2014. 12:16 PM | 1 Like Like |Link to Comment
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