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  • The MasterCard Dividend Is Still In A Rocket Ship Mode  [View article]

    Yes it is getting difficult to find decent growth at a good price. In addition to MA and GILD I have been looking at AMGN (forward PE 13.2) and V. I have recently added to my UTX and BAX. UTX (forward PE around 15) is fairly valued I think but is strong financially and has consistent growth. BAX you might find interesting. They are splitting the bio-pharmaceutical and medical products businesses in 2015. BAX has a reasonable forward PE of around 13. It has fairly consistent growth and the split my unlock some value.
    Jun 23, 2014. 06:13 PM | 1 Like Like |Link to Comment
  • The MasterCard Dividend Is Still In A Rocket Ship Mode  [View article]

    The more I study it the more I agree with your comments about GILD. I do believe there is a lot of room for error concerning the forward earnings projections. But at the current price range, given the enormous market, it appears to be an excellent risk/reward value.
    Jun 22, 2014. 10:53 PM | Likes Like |Link to Comment
  • The MasterCard Dividend Is Still In A Rocket Ship Mode  [View article]
    >>>GILD and MA are the only stocks in my portfolio and I will hold them forever.<<<

    I agree they are both great companies. I am considering both. But there are risks. GILD for example is being questioned about that $84k price tag and other companies are working toward competing cures. Is this your entire portfolio or are you balancing the risks using funds or ETFs? Are you not concerned at all about the possible risks?
    Jun 22, 2014. 09:41 PM | 1 Like Like |Link to Comment
  • Dividend Yield Vs. Dividend Growth Revisited - Does It Matter?  [View article]
    I get the point. A return of say 12% is 12% whether it is dividends, interest, share price growth or whatever combination.

    However in reality I do not believe an investor can put together a portfolio of high quality businesses in high yield with low or no growth that is anywhere similar to the high quality businesses available with lower yield and higher growth. For example your 12/0 (12% yield with no growth) is PHK and it is a bond fund that is 41% leveraged. Without the leverage the yield is around 6.5 to 7%.

    These high quality dividend growth companies all returned over 10% annually over the past 10 years XOM 10.39%, CVX 13.09%, BAX 10.01%, NSC 16.73%, GIS 10.94%, EMR 10.67%, UTX 11.47%, and APD 11.55% among many others.

    Are there any companies that have paid 10% dividend yields annually over the past 10 years that are of the quality of these companies?
    Jun 20, 2014. 11:20 PM | 2 Likes Like |Link to Comment
  • Is The Bear About To Maul The Bull? Here's How We're Investing  [View article]
    I agree with you all on PG. I added to my position in late May. I considered it fairly valued so one could argue that there were better values available. But sometimes for me it is about what is the best fit at the best value at the time. I was and I am still a little under weight position wise for where I want PG to be in my portfolio so I added more. At forward PE of around 17.6 and yield of 3.2% I am comfortable with the investment.
    Jun 19, 2014. 10:54 PM | Likes Like |Link to Comment
  • Is The Bear About To Maul The Bull? Here's How We're Investing  [View article]
    >>>But I have to confess that I did invest in two "dogs" that went bankrupt. Avantek and Borden.<<<

    Buyandhold 2012,

    Thanks for pointing that out. I too have had two significant positions that went bankrupt (Worldcom and Washington Mutual) and a few smaller positions that did as well. But those are insignificant compared to the mistakes I had made in selling great companies. Selling ATT, Royal Dutch, Texaco and others back in the 80's cost me more in lost profits than the bankrupt companies. Luckily I learned from this and have sold rarely over the last 15 years or so. And as I have transformed the core of my portfolio to high quality dividend growth stocks I too plan to hold these and never sell. Just wish I had learned this a little earlier.  
    Jun 19, 2014. 10:22 PM | 7 Likes Like |Link to Comment
  • Recent Buy: Baxter International  [View article]
    Nice article on BAX. I have bought it several times over the last couple of years at prices from around $58 to $73. Seems to be a good value in a market where value is getting harder to find. And I do plan to add a little more if the price does not run up too far. I do wish the company was not splitting. But I have decided initially to hold both after the split.
    Jun 19, 2014. 08:33 PM | Likes Like |Link to Comment
  • Is Chubb Group A Safe Bet Or Risky Business?  [View article]
    I like MKL also but have not invested yet. Started studying it when it was around $617 and has since went past $642. Still trying to determine at what price I would be willing to invest at.

    CB has also been on my watch list for awhile. Seems to be an excellent, conservatively run company. Per S&amp;P, core earnings will drop this year to around $7.28 and come in around $7.80 in 2015. So I'm thinking mid 80's might be a good entry point.
    Anyway two good choices to consider.
    Jun 13, 2014. 06:52 PM | Likes Like |Link to Comment
  • Putting Companies On 'Dividend Growth Probation'  [View article]
    >>>Of course, I bought WCOM instead.<<<


    I feel your pain on that one as I was invested in it also. But I think it was more fraud on their part vs bad investing decisions. As I remember they were making the numbers look very good. And the once great Bill Miller was buying it heavily also.
    Jun 12, 2014. 12:47 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call?  [View article]

    I do get your point though. If you make correct picks concentration gives you a greater chance at top returns. But Buffett's top 4 positions are far more concentrated than I would be comfortable with. My view shaped by investments in worldcom (fraud) and washington mutual (more fraud).
    Jun 10, 2014. 10:18 PM | Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call?  [View article]
    >>>Here are Buffett's top four holdings. They make up 61.2% of his portfolio.<<<
    >>>“Diversifi... is a protection against ignorance. It makes very little sense for those who know what they’re doing”. -Warren Buffett<<<

    The top 4 make up 61% of his portfolio of public companies. As a percent of the total, counting the wholly owned investments, they make up around 28% of book value of BRK.

    Buffett has BRK very well diversified with investments in over 120 companies. So as to his quote, if he don't know what he's doing, then I certainly don't. So I too am staying diversified. For anyone interested read the Berkshire 2013 annual report. It's on their website. It is amazing the variety of businesses they are in.
    Jun 10, 2014. 09:31 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investors: Do They Have A Point Or Is It Too Close To Call?  [View article]
    >>>If we look over to Buffett for guidance we will see that historically he has 5 core positions. I follow his school of thought and hold 5-10 positions at any one time.<<<

    Mr. Buffett through BRK has positions in over 40 public companies and wholly owns over another 80 (reference annual report page 111). He does hold a higher concentration in his top holdings. But Buffett's BRK portfolio is hardly equivalent to the concentration of holding 5-10 positions.
    Jun 9, 2014. 09:16 PM | 2 Likes Like |Link to Comment
  • The Best Dividend Growers, Part 21: General Mills And Kellogg  [View article]
    Thanks for the article comparing these. I have been long GIS & K for several years now and have done well with both. And planning to continue to hold for years to come.
    Jun 9, 2014. 07:29 PM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend  [View article]
    >>>Often it takes as much research to find a good fund as it takes to find a good stock, perhaps more research since there are more funds than stocks.<<<


    That is a good point. Investing in mutual funds requires DD in getting to know and understand the fund managers and how they invest. But it does not end there if you want to out perform. For then you have to determine which manager and fund have the best strategy for out performing the others. No small endeavor. Otherwise it is simply leaving your results to chance.

    So yes when thought of in these terms investing in individual companies is somewhat simpler and to the point.
    Jun 8, 2014. 08:59 PM | 1 Like Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend  [View article]

    No I am not smarter, and we make our own luck and the Quicken calculations are fine.

    Dividend Growth and Indexing are both viable investment strategies. But you are not going to convince anyone who has been successful with DGI to go back to Indexing. And you are not going to convince successful DG investors that Indexing is superior.

    You state: "As I stated before, there are alternate "index" funds based on French/Fama research that have outperformed the S&P 500 by nearly 8% annualized since 1999 (15 years)."

    So I guess you mean that you can not just invest in any old index fund. To achieve the out performance an investor would have to study the markets and determine the best places to invest. And switch between indexes as needed. Kind of contrary to the idea of passive indexing don't you think.

    And I suppose that since there are some indexes that are out performing then logic would suggest that some are underperforming. So I would then suppose that investors in those indexes are also underperforming.

    So basically what I am saying is that in evaluating DGI, alternate "index" funds outperforming the S&P 500 by nearly 8% don't mean CRAP. 
    Jun 8, 2014. 08:31 PM | 3 Likes Like |Link to Comment