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  • 2 Key Tests For The True Dividend Growth Investor [View article]

    Great food for thought. It will be interesting to see what happens when the market eventually has a big swoon, and not necessarily to the levels you described. I take heart in the fact that during the 2007-2009 period, when I was mostly invested in mutual funds through my 401k, I just kept right on contributing -- didn't alter my investments bit. (In retrospect: I should have moved my future contributions into equity funds, anticipating an eventual recovery. But at least I didn't stop my contributions and get out of the market to stop the bleeding, like several of my colleagues did.)

    Based on 2007-2009, many DGI stocks that I currently hold fell less and recovered more quickly, and one would hope that those conditions would prevail again. Because I focus more on growing my dividend income, rather than capital gains, it would be much more distressing for me if I started seeing a wave of dividend freezes or cuts. That's where my real test lies.

    Great article, as usual.

    Aug 14 03:54 PM | 2 Likes Like |Link to Comment
  • Why It Can Be Self-Destructive To Compare Yourself To The S&P 500 [View article]

    Apparently mkemac is willing to dismiss this entire article because he thinks it's all an effort to push your e-book. Please do me a favor and be more overt with your book selling in future posts. Apparently I was too easily distracted by the valid and logical points you were attempting to get across to notice your sinister ulterior motive. Shame on you, Tim -- shame!

    Jul 29 09:24 PM | 15 Likes Like |Link to Comment
  • Fallen Dividend Champions: I Still Have No Fear Of A Market Crash: Part 2 [View article]
    chowder: "Market goes up, I get paid. Market goes down, I get paid."

    Two simple sentences that sum up why I'm a DGI. If someone wants to make things more complicated using a different process, then good luck to you....
    Jun 20 06:35 PM | 7 Likes Like |Link to Comment
  • Procter & Gamble: Expect A Dividend Yield On Cost Of 3.7% In 2 Years [View article]
    compound annual growth rate
    Jun 20 05:55 PM | Likes Like |Link to Comment
  • Why Annaly Is In My Retirement Portfolio [View article]
    I bought at roughly the same level. Dividend reinvestment, some averaging down -- my cost basis is now in the high 12's. I hate the paper loss too but it's slowly heading in the right direction.....some more patience will get me back to even, then put me slightly ahead over time.
    Jun 12 11:21 AM | 2 Likes Like |Link to Comment
  • Why Annaly Is In My Retirement Portfolio [View article]
    Really like this series on your individual holdings. And not just because we have similar positions across portfolios.

    Also, while I'm at it......You've taken a lot of crap for "flip-flopping" on NLY, but I appreciate the fact that you've clearly articulated your thought process each time. You're just doing what all of us should all do from time to time -- look at a holding, determining whether something has changed and whether it still fits our investment strategy.

    I believe you sold your NLY at the time; I held. I'm happy with my decision, and I'm sure you're happy with yours. There are no one-size-fits-all investing solutions.
    Jun 12 10:46 AM | 8 Likes Like |Link to Comment
  • Dividend Buy Of The Month: Target Corporation [View article]
    Nicely done, and good purchase…..for the right reasons. I also have equal weight holdings between TGT and WMT -- the only retailers I think I need to own, as they cover a lot of territory all by themselves. (And, as we know, not necessarily the same territory.)

    I think all the data theft and Canada stuff will eventually play out. A few years ago, when I took my initial position in WMT, there was a lot of SA chatter about the investment being a "decade of dead money," etc. Charts supported that, but they also showed that divvys and earnings were growing throughout that period. Eventually WMT broke out of its range for good and -- ya' know what -- I don't see that argument being made about the company any more. I'm fairly certain TGT will get over these hurdles and we won't be talking about them at all in 3-5 years.

    I've really enjoyed your blog and the fact that you're now contributing to SA more frequently. Good luck, and keep up the great writing!
    Jan 15 06:51 AM | 1 Like Like |Link to Comment
  • Seasonality Suggests Owning Railroads In Q1 [View article]
    No Norfolk Southern? Would like to know your thoughts on that RR……Thanks!
    Jan 3 06:59 AM | Likes Like |Link to Comment
  • Blue-Chip Investing And The Back End Of Compounding [View article]
    Great answer – since I was already using a hybrid approach, and I’ll put some more thought into simply DRIP-ing a few of my “tentpole” holdings.

    The only problem I’ve ever had with pooling divvys is similar to arguments I’ve seen about selling DGI stocks: Sure, you can sell a winner if you want, but do you have a replacement stock that’s as good or better? In other words, is it better to DRIP the JNJ long-term and keep building that position, or is it better to add to an already-full position in IBM because the market temporarily doesn’t like the company? I know, I know – there’s no true way of knowing which answer is correct until all is said and done……

    What nice first-world problems to have.
    Nov 7 03:46 PM | Likes Like |Link to Comment
  • Blue-Chip Investing And The Back End Of Compounding [View article]

    Great article, as usual. But it got me debating the DRIP vs. strategic deployment of divvys question…..What’s your opinion and approach?

    Personally, I tend to take the divvys as cash, then redeploy them at some point to purchase either a new (preferably undervalued) position, or increase my holdings in a current position trading at fair value or less. However, with free DRIP services I modify that approach on occasion – right now, I’m taking my dividends in cash except for my positions in CAT, DE, IBM, GE, etc., where I feel like I can DRIP them at a nice discount. Once every couple of weeks I’ll review my DRIPs and decide whether to add or remove holdings – depends on valuation and where the market is taking them at that point in time.

    I’m always conflicted because your JNJ examples, I assume, include regular dividend reinvestment along the way. That’s a good argument for DRIP-ing your core holdings, but there are plenty of other good arguments for strategic redeployment.

    There isn’t a clear right or wrong answer here, but I am curious about your thoughts…….Thanks!
    Nov 7 11:37 AM | Likes Like |Link to Comment
  • Dividend Growth Investing And Beating The S&P 500 [View article]
    Dave -- Excellent article, as usual. I measure my results like you do, so I have no idea how I fared against the S&P (nor am I curious to find out). To me this is one way that DGI folks might differ when applying their principles. Just as you and I may have different entry/exit criteria, someone else may need to benchmark their results against the S&P. Nothing wrong with that approach -- it's just not something I do myself.

    BTW -- did you get to see any of Seattle on your Alaska trip? I'm a longtime Seattleite currently doing time in Georgia. It's been a fun experience, but I definitely don't get the South.....yet.
    Aug 6 08:19 PM | Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    This may be one of my favorite SA articles, which is saying something when you're writing alongside Crosetti, Van Knapp, Carnevale and McAleelan. Every "habit" rings true -- even the ones where I need to show some improvement. Thanks for the inspiration, and thanks for the great read!

    Disclosure: For the record, I'm not praising this article just because I made a sizable purchase of $WAG last November......which I'm still holding.
    Jul 31 09:09 PM | 1 Like Like |Link to Comment
  • Dividend Stocks: Lose-Lose-Lose Proposition In Intermediate Term [View article]

    I'm a DGI, and I not even I can support your comment.

    ** It's not a new paradigm. Dividends have been the bulk of market returns for well over a century. If anything, it's an "old-fashioned" way to invest.

    ** There are lots of academic studies supporting DGI. It's not the only way to play the market, but a proven one.

    ** It's not immune from market fluctuations. However, from time to time Mr. Market makes it a little harder or a little easier to identify opportunities, as the case may be.

    ** Not all DG risks can be determined in advance. Some dividend cuts or evolving business conditions can't be spotted from a mile away.

    ** DGI is neither fool-proof or risk-free. No investing method is.
    Jun 7 05:42 PM | 10 Likes Like |Link to Comment
  • Dividend Stocks: Lose-Lose-Lose Proposition In Intermediate Term [View article]
    I guess I'm not following -- if dividend stocks head lower by 6%-8% at some point over the next few years, my entry point at that time just got better. Lower entry point, higher yield...what's not to like?
    Jun 7 12:19 PM | 14 Likes Like |Link to Comment
  • Dividend Stocks: Lose-Lose-Lose Proposition In Intermediate Term [View article]
    I certainly hope you're correct. As a dividend growth investor, my long-term goal is to grow my income stream year over year and utilize the power of compounding. That's not to say I don't care about capital gains, but it's not my main focus. Personally I would welcome a few years when I could purchase JNJ for a P/E of 14 or less, so I'm not necessarily troubled by any of those three scenarios on the surface.

    I have a 25+ year time frame, so what happens in the market over the short term (and to me the next couple of years is short term) doesn't matter. As long as company fundamentals remain intact, that to me is a buying opportunity. Investors made it through the 1973-1974 recession, the October 1987 crash, the tech bust and the mortgage meltdown. "Blood in the streets," as it's often said -- downturns are a great time to zig while investors zag. Dividend investing won't go away, it just won't be as popular as it has been recently.
    Jun 7 12:12 PM | 11 Likes Like |Link to Comment