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gfmn2000

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  • 3M: Is This Dividend Champion Attractive At Current Levels? [View article]
    MMM is one of the great companies. Wish I owned more. If I didn't own any I certainly would consider after the recent drop. It makes a good addition to a conservative dividend growth portfolio.
    Feb 3, 2014. 09:51 PM | Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    ci 1,

    Assuming KO raises the div to around $1.20, KO would have to drop to $24 to get to 5% yield. At that price the pe would be a little over 10. To get there it would take something worse than the great recession of 2008-2009. And if that happens, KO investments will be the least of our worries.

    And I agree that there are companies with greater potential. And I seek those out also. Some will do well and some will not. But when KO is trading around 3% yield with current fundamentals I like to add a little. KO, I don't have to worry about. That leaves more time to worry and look after the others.

    Feb 3, 2014. 09:22 PM | Likes Like |Link to Comment
  • Stocks For 2014: Fairly Valued Dividend Growth Stocks With An Emphasis On Dividends - Part 4 [View article]
    Bill,
    Your story is similar to my parents. In the early to mid 1990's when my dad retired he rolled his 401k into an ira with a brokerage firm. Over several years their broker invested most of their money into individual high yield junk bonds. After several tanked (went into bankruptcy). They "fired" him and moved their account to Vanguard. Invested in dividend stocks, mutual funds, CD's, and some bond funds. Later concentrated on dividend growth, focusing on the Highest Quality Companies.
    My dad passed away in early 2013 but my mother is still living off the dividends. And still reinvesting some. She has given me orders to buy some COST and add to her CVX tomorrow.
    They stayed the course through the 2001-2003 and 2008-2009 downturns and have been well rewarded for it. I wish for you similar success.
    Feb 2, 2014. 02:44 PM | 4 Likes Like |Link to Comment
  • Preliminary Review Of Enterprise Products Partners' 4Q 2103 Results [View article]
    Ron,

    Thanks for the review of EPD. It has grown into my 2nd largest individual holding behind only MMP. Your knowledge and expertise certainly helps improve my understanding of MLP's.
    Feb 2, 2014. 02:24 PM | 2 Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    Careful investor 1,
    When we compare valuations, the stock price is likely the least useful and most misleading.
    1998 / 1999 shows an irrational market when KO and other stocks were way overvalued.
    In 1998 KO sold at an average pe of 51.3 and the dividend yield was less than 1%.
    Today KO sells for around a pe of 18 based on 2013 est earnings (and around 15 to 16 pe based on 2014 earnings forecast). The dividend yield is around 3%. 2013 sales and earnings per share will be 3 times 1998 levels. Book value is nearly 5 times 1998 levels.
    For your $40 today you are getting 3 times the earnings and dividends in KO as you would have got in 1998.
    For KO's stock price valuation today to be equal to 1998, KO would be in the $100 to $120 range.
    Feb 2, 2014. 01:59 PM | 1 Like Like |Link to Comment
  • Dividend Champions For February 2014 [View article]
    Thanks David for the excellent resource. I look forward to it each month. Glad to see WPZ promoted.
    Feb 2, 2014. 01:02 AM | 3 Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    maybenot,

    The internet with sites like longrundata.com make it too easy to calculate the cost of our mistakes. I can recall the Duke example so well because I live near one of their plants, I am a customer of Duke Energy and I know a lot of people who work there. They all have the big houses on the lake. My broker at the time who recommended it tried to tell me to just buy it, but no I was hard headed. And of course I get reminded every month when I pay the power bill.
    Feb 1, 2014. 11:02 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: Myths 16-20 [View article]
    applying what i have learned here i will start doing squats and wearing tight britches. after 20 years of marriage it can't hurt.
    Jan 31, 2014. 11:41 PM | 3 Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    DM, SUM02006,

    Excellent comments. Building a dividend growth portfolio that will serve you for decades to come is built by investing in the highest quality businesses. When I have accumulated enough dollars to invest and one of these companies is within my fair value range I buy it. I don't worry about it hitting a specific price target. Again we are talking about the highest quality businesses that you would like to own for years or decades to come, not speculative investments.
    Jan 31, 2014. 11:22 PM | 2 Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    Fidelity,

    That is fair enough. Having a good process and sticking to it will serve you well. However when you mention "opportunity lost" it reminds me of this. In late 1983 to early 1984 I had a limit order in to buy around $3000 of Duke Power (now Duke Energy). It got within a nickel. That dad gum nickel has cost me around $100,000.

    For the highest quality companies like KO, JNJ, GIS etc getting within my "ballpark range" of fair value is good enough for me.
    Jan 31, 2014. 11:02 PM | 3 Likes Like |Link to Comment
  • Another Dividend Buy This Month: Coca-Cola Company [View article]
    >>>>I've been chasing KO for almost a decade and never got it.<<<<

    fidelity comment

    Good grief. I checked my Fidelity account during lunch today and they had posted my last contribution this morning. KO at forward pe of 15.5 and after the next dividend increase next month yield will be above 3%. So it took about 30 seconds to decide to add to my KO today at $38.15. And I don't care if it does drop to $37 or $35 or whatever over the short term, just think about the next decade and the one after. Just update your target to $38.20 and buy it in the morning. You will thank me in 2024.
    Jan 30, 2014. 09:10 PM | 2 Likes Like |Link to Comment
  • Coca-Cola Yields 3% And Everyone Should Know It [View article]
    ajaydesai,

    I am with you on the KO. Added to mine today at $38.15.

    Do you invest in emerging markets through funds or individual stocks? I have a small amount in an emerging market fund though my 401k. It is down over 12% for the past year and I am thinking of putting some of my new contributions into it.
    Jan 30, 2014. 08:50 PM | Likes Like |Link to Comment
  • Unilever: European Alternative For U.S. Peers [View article]
    Thanks for the article on UL. We bought it for my mother's account last year. And I am considering to add it to mine as soon as I get a few current positions topped off. UL certainly has an impressive portfolio of brands. Visit their website for information on all their brands. For what its worth Morningstar gives them an A+ credit rating. Appears to be a relativity good value under $40.
    I do have one question. Why the large spike in earnings in 2005 and 2006 and then a return to normal levels thereafter (per Morningstar data)?
    Jan 28, 2014. 10:30 PM | Likes Like |Link to Comment
  • A No-Brainer Dividend Growth Investment [View article]
    taobabe,

    My daughter, wife and I love DisneyWorld. But the fast food there is not the best. After several days and getting tired of the food we took a ride out looking for somewhere else to eat. My daughter (who was about 8 at the time) yelled as she spotted a McDonald's, "Look Dad, now we can get some decent food to eat!"
    Jan 27, 2014. 10:08 PM | 3 Likes Like |Link to Comment
  • Dividend Growth Investing: Myths 16-20 [View article]
    >>>>However, if my portfolio has higher total return, then several years down the road I can sell my stocks, buy exactly the same securities you own, and have higher dividend income than you. Focusing on GD as a means of achieving high div. income at retirement makes no sense.<<<<

    pat12357,

    That's a mighty big "IF" there.

    What "IF" you don't have higher total return? Then I guess I will have higher income.

    Just because an investor seeks "total return" doesn't mean he is going to get "more return". Most likely he has just as good a chance of getting less returns.
    Jan 27, 2014. 09:54 PM | 5 Likes Like |Link to Comment
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