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Dmarque@

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  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Hi Paul:

    Not retired and due to the quality of my professional life I can continue to serve in this capacity well into my later years (assuming I have the longevity of my father who is 93 and outpacing most people that are 55). However, any credibility associated with my comments would be based on 35 years as as Financial Advisor. In all my years in this capacity I have to say that Rising Dividends combined with a ladder of fixed income (CDs or ST Bonds) are a great way to manage your way through the volatilities of the market. Dividend cuts can be very rare if you select carefully. It is more often the case that a well chosen collection of securities assembled over time is likely to see significant income appreciation to the point where an occasional dividend cut is a non-factor. A minimum of 25 securities for diversification is part of reducing the element of signal security risk. Be safe Paul~
    Mar 24, 2015. 01:58 PM | 3 Likes Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Not a bad either.... if you can sustain on 50% of your portfolio's income.
    Mar 24, 2015. 01:49 PM | Likes Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Well, it's always best to prepare for the worst and have a plan to work through it and reap that benefits of knowing that 7 out of evey 10 years historically are positive in the market. As such, Rising dividends do nicely in flat markets as well. A portfolio of companies that provide rising dividends provides a stable of holdings that decline considerably less than the S&P or Non-Dividend paying entities. So yes flat markets, down markets and up markets it is hard to beat the scenario of drawing income from a portfolio composed of Rising Dividend Stocks.
    Mar 24, 2015. 01:47 PM | 2 Likes Like |Link to Comment
  • 3M lower premarket on downgrade [View news story]
    Compelling and Lucid explanation...
    Mar 24, 2015. 01:37 PM | Likes Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Dividends are CONSIDERABLY more predictable than capital appreciation. It is the "predictability" of dividend cash flow that permits an investor in retirement to stay in the stock market during volatile times knowing that dividends in the short run will continue and that capital appreciation in the long run will be realized. An investor that tries to live off the combination of capital appreciaiton and dividends will find himself on the short stick during periods of weak market performance. This results in having to sell shares to maintain the income anticipated. In the long run this amounts to klling off your engines of cash flow resulting in a potentially reduced dividend income. A strategy that I like to employ is to establish a 4 year ladder of fixed income investments in conjunction with my much more sizeable "Rising Dividend Holdings". Each year the amount of cash flow for any given year is determined by the amount of the (4 yr. fixed income investment) purchased 4 years earlier. In this way you only do one thing each year. You purchase a (let's call it a 4 yr CD) with the income generated by the Rising Divend Portfolio over the previous 12 months and collected in your MMF. As Income increases and your short term CD matures into your spending account you can utilize the enhanced icome from the "Rising Div Portfolio" to either....purchase a larger 4 year CD or you can take the excess and use it in the current year. In this manner you always know your income 4 years in advance.....(for budgeting) and most importantly it gives you the confidence to be able to weather a bear market knowing that your income is going to remain intact. Most bear markets resolve themselves in much less than 4 years. The ladder is a crutch that provides the long term dividend investor the added confidence to stay with his strategy and be successful in his "Rising Dividend Strategy".
    Mar 24, 2015. 09:53 AM | 4 Likes Like |Link to Comment
  • Why Dividend Investors Could Withdraw More Than 4% Of Their Portfolio [View article]
    Paul:

    I think you might be missing the point. Dividends are CONSIDERABLY more predictable than capital appreciation. It is the "predictabbility" of dividend cash flow that permits an investor in retirement to stay in the stock market during volatile times knowing that dividends in the short run will continue and that capital appreciation in the long run will be realized. An investor that tries to live off the combination of capital appreciaiton and dividends will find himself on the short stick during periods of weak market performance. This results in having to sell shares to maintain the income anticipated. In the long run this amounts to klling off your engines of cash flow. A strategy that I like to employ is to establish a 4 year ladder of fixed income investments. Each year the amount of cash flow for any given year is determined by the amount of the (4 yr. fixed income investment) purchased 4 years earlier. In this way you only do one thing each year. You purchase a (let's call it a 4 yr CD) with the income generated over the previous 12 months and collected in your MMF. As Income increases you can either....purchase a larger 4 year CD or you can take the excess and use it in the current year. In this manner you always know your income 4 years in advance.....(for budgeting) and most importantly it gives you the confidence to be able to weather a bear market knowing that your income is going to remain intact. Most bear markets really resolve themselves in much less than 4 years. The ladder is a crutch that provides the long term dividend investor the added confidence to stay with his strategy and be successful.
    Mar 24, 2015. 09:48 AM | 9 Likes Like |Link to Comment
  • 3M lower premarket on downgrade [View news story]
    REALLY? It was newsworthy to report that 3M was down in pre-market .2%?
    Dec 24, 2014. 09:54 AM | 1 Like Like |Link to Comment
  • LyondellBasell Trades Like An Oil Service Firm, Making It A Great Diversification Play [View article]
    Observation:
    According to Ben Graham, a discussion of earnings on a cyclical co. such as LYB necessitate an earnings calculation on the basis of a full business cycle as opposed to a single year. With that in mind the conclusion is the same however the more appropriate earnings (5 year avg.) to insert for the P/E is $5.26 per share which is 13.6X earnings calculated and using (today's $71.5 / share). Now a comparative application to DOW puts DOW (today's $43.3/share) and a 5 year avg. earnings of $2.36 = 18.35X. So yes, LYB is also considered a significantly better value on the basis of Graham's insistence on using avg. earnings over a full business cycle for cyclicals. Additionally, DOW's debt is 2x EBITDA versus LYB @ 0.6X EBITDA. Bottom line: Same conclusion but maybe a more appropriately calculated measuring stick?

    Respectfully,
    Dec 15, 2014. 01:18 PM | Likes Like |Link to Comment
  • Microsoft Corporation's (MSFT) CEO Satya Nadella Hosts 2014 Annual Shareholders Meeting (Transcript) [View article]
    Jesse Jackson~!?

    Martin Luther King said, we should be judging one another on the character of one's soul and not the color of one's skin. Manipulating hiring practices on the basis of skin color is racist. Hiring and promotion should be on the basis of merit. I've been a shareholder of Microsoft for quite some time. Having JJ vent racial overtures in a meeting such as this has me reconsidering my long term plans for Microsoft stock and that of the hundreds of clients whose portfolios I manage.

    mcd
    Dec 3, 2014. 08:25 PM | 8 Likes Like |Link to Comment
  • Dividend Growth Investing Doesn't Work: Intel And Philip Morris Edition [View article]
    This would have been a far more objective and truthful article had it included the element significant share repurchases that have occurred at INTC from 2010 thru 2014. Share buybacks are also an inherent calculation in valuing this investment philosophy. Shareholders have seen significant asset accumulation on a per share basis which will also be recognized by the market.
    Nov 24, 2014. 07:27 PM | 2 Likes Like |Link to Comment
  • Why Halliburton Stock Is A Good Investment Opportunity [View article]
    Arie:

    I'd be interested in your view of Hemlerich & Payne in comparison to HAL on valuations. Seems like a reasonable alternative with a better dividend history.
    Nov 21, 2014. 11:02 AM | Likes Like |Link to Comment
  • Third Point Reinsurance's (TPRE) CEO John Berger on Q3 2014 Results - Earnings Call Transcript [View article]
    Hey Kai......just want you to know. Ok, that's great.
    Nov 7, 2014. 02:32 PM | 1 Like Like |Link to Comment
  • Pouring A Little Cold Water On Apple Investors [View article]
    CVS and Rite Aid can choose to go their own way.....Millions of Apple customers will make that choice too and to Walgreen's benefit. I think that in this case that it will cost CVS and Rite Aid as people get very accustomed to Apple Pay and become addicted to the convenience and enhanced security which is the primary driver here (Security). I know it is hard to envision what future behavior mods come with new technology. When the automobile became a new social change few could imagine the implications it meant beyond just transportation but the complimentary technology that advanced around the automobile were astounding. It wasn't just transportation.....just like the iWatch is not just about telling time and the initial advanced services it promises to offer.
    Nov 5, 2014. 03:46 PM | 3 Likes Like |Link to Comment
  • Stifel purchases Legg Mason Investment Counsel [View news story]
    Great addition to an already great and well managed firm.
    Jun 4, 2014. 07:39 AM | 1 Like Like |Link to Comment
  • Apple Stock Price Likely To Peak Before Long [View article]
    Everyone has the right to speak......In the USA even ignorance has the right to be heard. I'm not saying this article is based on ignorance......but the odds are against the guy. Every minute of every day we have the ability to voice our opinion ......buy or sell. It is the only vote that really counts. However, if you educate yourself about a company before you vote you might be better served in the long run.

    m
    May 27, 2014. 10:28 PM | 6 Likes Like |Link to Comment
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