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SDS (Seductive Dividend Stocks)

SDS (Seductive Dividend Stocks)
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  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    DVK
    Thank you nice effort but I guess it will come to dead ears.
    Anybody who knows that number of shares cannot be infinity should understand that "create his own dividend by selling a few shares" is a stupid proposal which benefit stockbrokers but not shareholder.
    SDS
    May 8, 2014. 03:17 PM | 25 Likes Like |Link to Comment
  • Dividend Champions For January 2014 [View article]
    David,
    Thank you for update and new info. I recently wrote "David Fish reaches fantastic ability (~ 90%) to time dividend increases for DG stocks (see his numerous SA articles). I do not know any other financial forecast with even 80% correct rate for quite huge number of stocks (~ 500 in CCC list). " This is 1 more reason why CCC list is very important.
    SDS
    Jan 2, 2014. 12:31 AM | 20 Likes Like |Link to Comment
  • How Obama's 'MyRA' Plan Will Impact The U.S. Economy [View article]
    Well IMO myRA is a government trick to sell U.S. treasury bonds (bought in bulk from bank in last few years) to Joe who doesn't understand inflation.
    SDS
    Jan 30, 2014. 08:18 PM | 16 Likes Like |Link to Comment
  • Why It's A Mistake To Hold Cash In This Market [View article]
    OFF-TOPIC:
    SA new design is not friendly for dividends and income section, it become harder to find. IMO SA authors should complain.
    SDS
    Dec 12, 2013. 10:49 AM | 13 Likes Like |Link to Comment
  • Why It's A Mistake To Hold Cash In This Market [View article]
    OFF-TOPIC
    David Crosetti wrote to wmateri
    "Can you put that comment into some form of regular English so that we all would be able to discern what you are trying to say?"

    Sometimes I say "English is not my second language, it is the language I don't know but have to use in hope that other will try to understand what I think".

    We come to SA from different backgrounds....

    SDS
    Dec 12, 2013. 01:13 PM | 12 Likes Like |Link to Comment
  • Health Care REITs: Factors Behind 5.5% Payouts [View article]
    1 year data...... to long for traders, too short for investors. Just IMO.....
    Dec 22, 2013. 08:28 AM | 11 Likes Like |Link to Comment
  • Rebalancing My Dividend Growth Portfolio For Diversification And More Yield [View article]
    Thanks for the article, David!
    I'm in minority camp with 100+ quasi-equal weighted positions at the purchase moment 8-). I believe a well-diversified dividend investor should have 100+ and if time allows will explain why. Being a long-term investor, I don't care that some of my DG and HY stocks appreciated more than 300% and some drops about 70% (but company has good business) and as Winnie-the-Pooh says -“Don't underestimate the value of doing nothing".
    SDS
    Feb 8, 2013. 09:25 AM | 10 Likes Like |Link to Comment
  • Vanguard Dividend Growth - Beating The Market With Regularity [View article]
    May be Vanguard's Managed Dividend Growth fund is really good but as adage says "There are only 2 coins in business - cash and experience". In case of any managed fund an investor makes bad business: she pays cash to the manager and the manager not the investor gets experience.

    It was shown that in average a person needs ~ 10,000 hours of practice to become an expert in the field and I prefer to get experience in DGI for "free" before I retired.

    I think that SA allows to squeeze this 10K hours, hence I'd like to thank Dale and ALL other SA activists for sharing their experience and ideas (I often critique to make SA even better). I hope that in some future The Vanguard Dividend Growth Fund manager Mr. Kilbride will be happy to pay SA for lessons in DGI.


    SDS
    Dec 5, 2014. 09:40 AM | 9 Likes Like |Link to Comment
  • Misguided Interest In Dividend Paying Stocks [View article]
    Larry,

    Thank you for good article. Some points:

    Ned Davis Associates show that dividend payers strongly outperformed SP500 in 1972-2012. So couple bad years do not informative.

    "The typical portfolios we build for our clients contain over 10,000 stocks." - DiWORSification? I analyzed briefly more that 25K stocks, only about 2K are worth for investor (not speculator) IMO.
    Diversification should reduce different risks not to be the goal per se. See http://bit.ly/J0r2m2 and http://bit.ly/102frew

    "...the aggregate stream of dividend payments is subject to the same broad, macroeconomic risks that affect capital gains."
    Agree but how you Larry or any other equity investor get money from a company capital gains? I know only 2 ways - dividends and next fool search.

    As far as I know it is not forbidden to combine value and dividend investing. Many DGis here on SA buy ONLY undervalued stocks and sell overvalued stocks. I consider my DG/HY approach as subset of value investing, where I impose additional restrictions on stocks. This restriction didn't prevent me to build well diversified 100+ stocks portfolio. I started to invest in 1998, became DGi in 2006 and my gain for this period is about 3.3X versus about 2X for S&P500.

    "The above data makes clear that the expected returns for both SDY and VIG are well below that the expected returns of the two large value strategies." The key word here is expected. Please read "How to lie with statistics" / Darrell Huff

    SDS

    SDS
    Dec 16, 2013. 03:30 PM | 9 Likes Like |Link to Comment
  • My Dividend Opportunity Portfolio Philosophy And Beginning Picks [View article]
    Nicholas,
    I'm not a polite person, so let me put cold water on your head:
    a) Expect yield Y=8% in current situation IMO is a way to see troubles with dividend cuts, etc... For what heck do you need such Y "having 30+ working years left"?
    b) Have goal YoC=9% at Y=8% means that your holding time about 2 years, it is IMO not compatible with dividend investing (esp. DGI).
    c) "The Dividend Core stocks are sold only if their yield drops below 5% or their dividend is cut several times I may review them as well for sale. " Although single cut might be OK (http://bit.ly/rrrjkX) I do not recall any good case for firms with 3+ cuts.
    4) What fee as % to investment you pay when you buy 5 shares? Is you goal to feed your stock broker?
    5) "I plan to have an article updating the status every three months unless there are significant changes and then I'll update monthly. " Check who said "Be silent if you cannot say anything important".

    SDS
    Sep 10, 2013. 01:04 AM | 9 Likes Like |Link to Comment
  • Equity Investing Or Index Investing [View article]
    Harm Elderman

    From http://bit.ly/12ljViQ: "an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology...."

    Here index is S&P500. We know that there are people who decide on S&P500 components, so formally it is active fund often used as benchmark of US stock market. Chowder portfolio is a passive index (as far as I understand) with the simple calculation methodology.

    Indexes of dividend stocks have outperformed broad market benchmarks in USA and Europe - see e.g. http://bit.ly/1t12Mnt in terms of total return.

    Did Chowder portfolio outperform another dividend index? I don't know.... What I know that Chowder probably followed Albert Einstein's idea "Make everything as simple as possible, but not simpler" and many Wall Street proffi still cannot (or don't want to) grasp this idea.

    Finance academics "discovered" quality only couple years ago. Chowder dictum "High Quality + High Current Yield + High Growth Of Yield = High Total Returns" was know to SA readers for a long time. Only this fact tells me that Wall Street proffi's self-esteem is often doesn't have a base.

    SDS
    Dec 2, 2014. 07:32 AM | 8 Likes Like |Link to Comment
  • Dividend Growth Investing, Total Return, And Indexing Revisited [View article]
    West Coast Investor
    Thank you for article. IMO 5 year period is TOO short for any conclusion. Long-term data (~ 50 years) show that dividend stocks outperformed broad market indexes in US and Europe in terms of total return. But the total return (capital gains + income) is NOT the prime goal of many dividend investors and this point is somehow difficult to understand for people who learned Wall Street propaganda about priority of capital gains. Posts from 2011 and 2012 in my SA blog (esp. http://bit.ly/xFpiPl) and several SA articles of David van Knapp and others explain why there are many dividend investors who can ignore the propaganda and prospect in another stock game. Indexes are not available for investor's money but if you don't want to do any homework you can choose ETFs based on any good index, pay tithe (http://bit.ly/ZABWCl) and hope that economy behind the index will prospect during your investment life-time (should be much longer than 5 years). Japanese investors have learned that the last point is just a hope.

    SDS
    Nov 23, 2014. 09:17 AM | 8 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    viperman:
    "The trick is to find those companies whose earnings will grow BEFOREHAND."
    Yep for earnings this is really trick lot of Wall Streeters try to play each quarter. For dividends trick is quite simple - open CCC list and select companies with with growing earnings AS DETERMINED AFTER THE FACT in last 5 years and DG above 20 years. With ~ 99% probability these companies WILL increase dividends within next 2 years.
    I prefer to play the simple game and there is math behind such preference.
    SDS
    Aug 15, 2014. 12:52 AM | 8 Likes Like |Link to Comment
  • Buying Aristocrats Can Result In Long-Term Dividend Growth [View article]
    on NOBL
    a) Fees 0.35% are too high in long run (I guess will be even higher after "Contractual Waiver ending 9/30/15").
    b) Time period for comparison NOBL with anything is tooooo short. (index behind exists only from from 2005).
    c) Rebalance is too often in NOBL/index for this investment style.

    Long-term investor might do better him/her-self (http://seekingalpha.co...)
    SDS
    Mar 28, 2014. 09:45 PM | 8 Likes Like |Link to Comment
  • How To Get The Most Out Of Dividend Growth [View article]
    Cranky

    Any good investment style in stock delivers the market, or less or more in various periods. Now the market price (e.g. SPY) itself is fluctuates quite strongly. For simplicity let's say stock market spends 10% of time near peaks, 10% near bottoms, 50% below and 50% above average for medium term history (~ 15 years).

    As far as I understood you proposal can be simplified as following 3 step process /you see physicists always simplify the reality 8-0/:
    1) invest in SPY till day 1 of retirement (D1R)
    2) convert SPY in DG ETF (assume such exists) in this day
    3) enjoy your retirement
    It seems that you presume that SPY will be at least 50% above average or better at 10% near peak at D1R. We know that it is not always the case.

    IMO if person starts DGI well before D1R she does not depend on stock market conditions at this D1R so she can avoid all worries about SPY direction in D1R-365days or D1R-999days or so. As the result this DGi will be more healthy than SPY investor at D1R.
    Second benefit: the person who starts DGI well before D1R will gain hands-on experience in DGI (unfortunately it is needed because no good DG MF or ETF exists and good DG-MF even impossible).
    Third benefit: the person who starts DGI well before D1R will have opportunity to pick up good stocks at cheap prices during pre-D1R journey,

    Therefore the step 3) "enjoy your retirement" might be better for a DGi than for SPY investor.

    SDS
    Mar 12, 2014. 07:35 AM | 8 Likes Like |Link to Comment
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