Seeking Alpha

SDS (Seductive ...'s  Instablog

SDS (Seductive Dividend Stocks)
Send Message
Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? /... More
My blog:
SDS blog in Seeking Alpha
View SDS (Seductive Dividend Stocks)'s Instablogs on:
  • Reconstruction Of January 2008 David Fish's List Of US Dividend Growth Companies

    David Fish list of US dividend growth companies (a.k.a CCC list) is really the best source of information any DGi can find. David started the list at the end of 2007 and improved it with time. Robert Allan Schwartz keeps old versions of CCC list at One improvement David almost constantly makes is inclusion of companies with long DG histories overlooked early.
    On another hand, several SA researches have compared performance of DG stocks with market using original January 2008 CCC list (see e.g. Unfortunately, these comparisons are incorrect because several DG companies were missed in January 2008 CCC list (it has 138 companies).

    I try to reconstruct the list as it should appeared 1 January 2008 if ALL information was known. I combined Mergent 2008 Winter Dividend Achievers Handbook (MDA), companies from May 2013 CCC list with 10+ years of DG history, and companies I found in the framework of Dividend Heritage Project ( which were qualified for MDA on 1/1/2008 (1,2).

    This updated list contains more than 400 companies, i.e. almost 3X more than number of firms in January 2008 CCC list. As expected, previously "unknown" companies are mostly banks and other (mostly small) finance firms which decreased or froze dividends in 2008-2010.

    From 403 companies in the updated list 127 reduced and 69 froze dividends between 1/1/2008 and 6/1/2013. Also 19 companies were involved in corporate actions like merge, spin-off, etc and were disqualified (I wasn't able to find market caps and other non-dividend info for 14 of them). The updated list contains 66 companies with small market cap /below 150 M$/ and/or average trading volume less than 20K shares. Probably not each investor included such companies in stocks portfolio. From remimning 337 companies 97 firms (~ 28.8%) cuted and 56 firms (~ 16.6%) froze dividends, and 15 firms (~4.4%) were involved in varios corporate actions.

    MS-Excel file with the updated list is available upon the request.


    (1) Please note that company must increase dividends each year to be qualified for MDA, while bi-annual increase is enough for eligibility for CCC list.

    (2) It is interesting that some companies included in Mergent's 2008 Winter Dividend Achievers Handbook were NOT qualified according to
    Mergent selection rules. I guess this poor quality leads to bad performance of MDA based index and ETFs along with other factors.

    30 June 2013

    Jun 30 8:34 PM | Link | Comment!
  • My 2 Cents On Market Benchmark For Dividend Investors

    Many dividend investors (Dis) dislike stansdard performance comparisons to market indexes and ignore to some extend the market prices. While the primary goal of a Di portfolio may be to produce a stream of income from dividends, it should also perform respectively against stock market benchmarks. I propose for Dis (esp. for DGis) to compare investor's dividend growth rate (iDGR) with market's dividend growth rate (mDGR) using for example a typical benchmark for US stock market such as S&P 500 index.

    Well knoww company's annual DGR = (D1-Do)/Do, where D1 is dividend per share company paid in year Y1, Do is dividend company paid per share in a previous year Yo. It is usually reported in % and calculated after D1 announced.

    Using direct analogy market's annual mDGR = (Dm1-Dmo)/Dmo, where Dm1 is dividend per share ETF or index MF that represent the benchmark paid in year Y1, Do is dividend the ETF or the index MF that represent the benchmark paid per share in a previous year Yo. Dmo and Dm1 depend on dividends of each company included in the benchmark and weight of shares of different companies in the benchmark. It should be noted that the benchmark composition can be different if various years.

    In analogy with cDGR we can consider investor's DGR from a company as iDGR = (d2-d1)/d1, where d1 is total dividends investor got in year 1, d2 is total dividends investor got in next year 2 from the same company. Because d1=D1*N1, d2=D2*N2 we have iDGR= (D2*N2-D1*N1)/(D1*N1). Note that without re-investing iDGR=cDGR and even for cDGR=0 a positive iDGR>0 is possible due to re-investing.

    In analogy with mDGR investor's portfolio dividend growth rate can be calculated as a difference between sums of all dividends the investor collected from her holdings during 2 consecutive years. It should be noted that the portfolio composition can be different if various years.

    IMO most of dividend strategies (like DG or HY) rely on long-term approach with holding period counted by several years, and in this case compound annual growth rate (OTCPK:CAGR) can be used (see /Note that annual, quarterly and even monthly reports of some SA members about their dividend portfolio performance in comparison with any benchmark do NOT make any sense/. CAGR is applicable for dividends: CAGRD(Yo,Yn) = (Dn/Do)^[1/(Yn-Yo)]-1, where Yn-Yo is period between 2 arbitrary years when a company paid dividends Dn and Do.

    Robert Allan Schwartz maintain database of dividends CAGRD for typical FG stocks (

    Amount of annual dividends paid by the ETF or the index MF that represent the benchmark is widely reported. Amount of annual dividends investor receives from her/his portfolio can be found in tax reports brokers send to investor.

    23 June 2013

    Jun 24 11:50 AM | Link | 2 Comments
  • Shortest Book Review: "The Physics Of Wall Street: A Brief History Of Predicting The Unpredictable" By James Owen Weatherall

    Must read.

    28 May 2013

    May 28 11:55 PM | Link | Comment!
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.