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SDS (Seductive Dividend Stocks)

SDS (Seductive Dividend Stocks)
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  • Dividend Growth Investors Are Perhaps Doing It All Right [View article]
    Tradevestor,
    Although title of your article is less provocative than Mr. Smith 's one - it is quite good. I critiqued Mr. Smith on similar basis in comments to his article.
    The weak point (IMO) of your article:
    "The longer the streak, the greater the company's commitment to shareholders." - please proof if you can.
    SDS
    Dec 15, 2013. 11:12 AM | Likes Like |Link to Comment
  • Why Holding Cash May Not Be A Bad Idea In Today's Market [View article]
    Adam,
    Thank you for good article.

    IMO there is no universal recipe for all investors at almost any given moment of time. I hold some cash now because do not see good investment opportunities. My investments grew ~3.3X in 15 years I invest (vs. ~ 2X for SPY), and I was at 0% and ~90% cash levels at different times during this period. Being sometimes 100% invested I lost couple excellent opportunities to invest, so after this lesson I keep at least 1 "capital unit" (see http://bit.ly/x96XEi) as reserve for ideal stock (I have a few in my watch list).

    SDS
    Dec 14, 2013. 11:36 AM | 1 Like Like |Link to Comment
  • Small Cap Stocks For Income Investors [View article]
    Russell 2000 is NOT designed for income. Investor might (and IMO should) find good income in selected small caps:
    http://seekingalpha.co...

    http://seekingalpha.co...

    http://seekingalpha.co...

    At long run the investor can safe on ETF fees:
    http://seekingalpha.co...
    and of course diversification is important.

    SDS
    Dec 14, 2013. 08:20 AM | Likes Like |Link to Comment
  • Why It's A Mistake To Hold Cash In This Market [View article]
    Wau! 367 comments now. I need to retire to read them all 8-).....
    It would be nice if somebody summarize the comments. Let me summarize the article in few words:
    ALTHOUGH MARKET IS NEAR ALL TIME HIGH THERE ARE STILL UNDERVALUED STOCKS IN WHICH INVESTOR MAY INFUSE CASH AFTER DD.
    So what is the battle in these 367 comments?
    SDS
    Dec 14, 2013. 07:40 AM | 3 Likes Like |Link to Comment
  • Young 'Incomers' Portfolio: An Introduction [View article]
    Cal77

    Yes, and bankers are not always right but they are usually quite good in calculating risk/reward ratios. Lending Club fills the nische and passes most of risk to individuals who want to play in usury...

    SDS
    Dec 13, 2013. 07:51 PM | Likes Like |Link to Comment
  • Young 'Incomers' Portfolio: An Introduction [View article]
    Still hope to find a free cheese?
    Well. short quiz: We know that greed causes recent collapse (2008/9) of financial institutes. What premium they had in AAA mortgage-secured instruments to compare with regular AAA bonds?
    Compare you answer with rates at Lending Club vs current junk bonds yield.
    SDS
    Dec 13, 2013. 07:41 PM | Likes Like |Link to Comment
  • Are Dividend Growth Investors Doing It All Wrong? [View article]
    Nelson
    Thank you for good article.
    There are about 500 DG firms (big and small) and IMO portfolio of a dividend growth investor /DGi/ should contain 100+ stocks (I do it with almost equal weight from giga- to nano-caps - see http://seekingalpha.co...). So, concentration isn't problem.
    Yes many DGis hold and talk about well known firms just because KO has much more investors than FLO and article about e.g. UBNK will not attract many SA readers.

    It is non-sense now for Buffett to invest in 100M$ company stock which can be perfect for a small investor.

    Although I own most stocks from your portfolio, I'd disagree with "let's assume that this portfolio could reasonably expect a 10% dividend growth rate going forward" - IMO it is too much at least in long run (see Robert Allan Schwartz articles and my blog). I think that any expectation above 7% is a dream. So called "typical dividend growth investor's portfolio" (and I also own most of these stocks) starts from lower yield because these firms are more financial solid, have wider moats and investors usually pay full price for their stocks. Hence we have well known risk/reward combination. In relative short (for DGI) period you calculated (i.e. 5 years) HY usually overperforms DG, so you didn't discover anything new .

    Saying this, I 100% agree with yours "Look at moats, look at payout ratios, and still do your due diligence, but expand your reach beyond the Walmarts and Coca-Colas of the world."

    I would like you to proof your statement "It's time for dividend growth investors to broaden their horizons." Why it wasn't correct let say 10 years ago, and why this will be less important in 10 years from now? Honestly to me it sounds like advertising & propaganda.

    Good luck!

    SDS
    Dec 13, 2013. 07:33 PM | 3 Likes Like |Link to Comment
  • My 5 Simple Rules For Investing Stability [View article]
    I was vague, sorry.

    I mean: it seems /I didn't collect statistics yet/ that cuts happened more often for DG companies than for firms with stable dividends (DCR=0).

    SDS
    Dec 13, 2013. 06:54 PM | Likes Like |Link to Comment
  • Young 'Incomers' Portfolio: An Introduction [View article]
    YI
    I checked site like Lending Club a while ago. Main question - why these folks agree to take loan at interest much higher than regular bank loan - is often unanswered. So I consider it is too risky for me.
    SDS
    Dec 13, 2013. 03:23 PM | 6 Likes Like |Link to Comment
  • My 5 Simple Rules For Investing Stability [View article]
    It seems (http://seekingalpha.co...
    http://seekingalpha.co...)
    that stability of dividends is higher for companies with DCR=0 than for firms with DCR = DGR >0.

    SDS
    Dec 12, 2013. 11:23 PM | Likes Like |Link to Comment
  • My 5 Simple Rules For Investing Stability [View article]
    What is the data source behind Longrundata.com, how reliable is it?
    SDS
    Dec 12, 2013. 11:21 PM | 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
  • Why It's A Mistake To Hold Cash In This Market [View article]
    1) I'd agree that market MOSTLY unpredictable. In peaks (like 1998-200) or bottoms (like 2008-2009) it is possible to say "It would not rise/fail forever" but again without precise timing. I did quit stock market in Feb 2000 (by pure luck - I was needed cash to buy my house) and in spring/summer 2008 (analysis, talks with friends, luck). I jump back in summer fall 2009 (analysis, luck) but I doubt that can do it so precisely next time. Saying this I hold some cash because do not see good investment and because of other factors outlined in http://seekingalpha.co...

    2) I agree that we can figure out what WAS a good business/stock. A period we can predict that it remain good (let's say next 5 years) is shorter than my desired investment time-frame (ideally forever). Saying this and being dividend investor I try to fool myself that I can predict that company will pay dividends in next 3+ years (see http://seekingalpha.co...). But I know that dividends are function of company culture which can be changed by a new CEO (average CEO rules company for ~ 5-6 years, see also http://seekingalpha.co...)


    SDS
    Dec 12, 2013. 11:11 AM | 1 Like 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
  • Book Review: Retirement GPS [View article]
    There are plenty of such books. One common feature they have - about 200 pages length (I guess publishers required it to sell a book for about $20). Most of such books are pure junk (well David says it more politely)....
    SDS
    Discoluse: I didn't read this particular book but I read 200+ books on investing
    Dec 11, 2013. 09:24 AM | Likes Like |Link to Comment
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