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  • Why I Choose To Reinvest My Dividends [View article]
    DC -- I was just kidding about the "doctrine" part.

    If anything, your articles and comments have made amply clear that you're describing a process that has done well......for you. Hence the oft-used subhead "What I Know." (Sadly missing from this article.) Not "What You Should Know," not "The Only Thing That Works," and not "Do This or Fail Miserably."

    Too bad you have some frequent SA commenters who apparently haven't picked up on that.

    Good work as always.....
    Oct 20, 2015. 12:25 PM | 7 Likes Like |Link to Comment
  • Why I Choose To Reinvest My Dividends [View article]
    Interesting that David Crosetti and David Van Knapp (2 of the best DGI writers on SA) have different approaches to reinvesting dividends. Perhaps the takeaway isn’t which one works better, but that both methods can and do work -- it just depends on your investment goals.

    It’s been mentioned in similar articles but hasn’t (so far) in this one: Reinvestment doesn’t have to be an all-or-nothing proposition. My accounts are with Fidelity, and they allow me to be selective about which dividends I automatically reinvest and which I take in cash. I’m sure other brokerages operate the same way.

    At the end of each month, I go through all 29 of my holdings on Morningstar. If M* considers the stock at fair value or better (3 or more stars), I get into my Fidelity account and make sure that any divvys received will be automatically reinvested. If M* considers the stock overvalued (2 stars or less), I flick the switch and take those divvys in cash. When I finally have enough cash in my accounts (the majority of my holdings currently get reinvested, so it takes a while), I make a selective purchase.

    I used to take all my dividends in cash, but found that certain companies/sectors tend to trade at more favorable valuations than others. KO and JNJ are two of my core holdings, for example, but they don’t often fall into "bargain" territory. Automatic reinvesting allows me to own more of these high-quality companies that I might not make it through a search for undervalued holdings.

    Since I tend to like the companies I already hold, this method has provided me simplicity (the Crosetti Doctrine) with the ability to selectively reinvest on occasion (the Van Knapp Doctrine).

    Having it both ways works for me.
    Oct 20, 2015. 08:33 AM | 14 Likes Like |Link to Comment
  • Starbucks makes good on pledge to open stores in lower-income areas [View news story]
    Finally -- someone on this stream that doesn't make every decision via his/her wallet.

    It's only 15 stores, which amounts to nothing in the SBUX world. But it aligns nicely with their "social responsibility" corporate mantra, which many people (although, apparently not on SA) find appealing.

    If it works, great -- they have a good story to tell, and may expand the effort. If it doesn't, it's swept under the rug with little fallout. I give them credit for trying.
    Jul 16, 2015. 05:32 PM | 7 Likes Like |Link to Comment
  • Lessons Learned From The Grand Canyon [View article]
    Dave, you're my favorite writer on SA. I particularly like how you use personal experiences (financial or otherwise) to demonstrate important investing and/or life concepts. For those of us who actually read your articles and take the time to digest what you're saying -- thanks.

    I have to tell you though: I am secretly delighted when the comment stream goes awry. Whether on your articles or in the comment streams of others, you go from "Okay, let's engage in a dialogue" to "No, I don't think you understood what I was saying" to "How on earth can a person get their head THAT far up there?!"

    Educational and entertaining. Sometimes I'm not sure how you can be so patient with some of these folks. Perhaps that's another lesson I need to learn from you....
    May 27, 2015. 12:42 PM | 7 Likes Like |Link to Comment
  • The Perfect Portfolio For Retirement Is An Illusion [View article]
    (looks like I accused the wrong person of not getting it.....)
    Apr 18, 2015. 11:46 AM | 6 Likes Like |Link to Comment
  • The Perfect Portfolio For Retirement Is An Illusion [View article]
    Regarded -- there you go again with your income stories. The only true way to invest is through total return. If you need income, just sell something. You know -- perhaps sell the guest bathroom to the condo when you're running a little short. And maybe part of the balcony and the breakfast nook if you need a little bit more. Master bed/baths command top dollar, so hold out longer on those. Then......oh, wait, we're running out of square footage, aren't we? Well, surely you took some of that income you generated and bought ANOTHER condo, which you can soon begin parting out.

    It's all so simple. Why you don't get it, I'll never know. ;-)
    Apr 17, 2015. 05:47 PM | 29 Likes Like |Link to Comment
  • Practicing Patience With General Electric [View article]
    He responds.....the ball is in his court on this one.

    Took a look at your other SA comments. For your sake I hope GE gets to $30, if only so you can get out. I get tired of the GE haters that always complain about the company and any author with a bull stance, but continue to hold the stock themselves. If you hate it that badly, sell and move on. It IS that simple.
    Feb 6, 2015. 10:12 AM | 10 Likes Like |Link to Comment
  • Practicing Patience With General Electric [View article]
    On the other hand.......I read a lot of articles on SA that are either bull or bear on a particular stock or industry. The author presents his case, doesn't respond to comments, then seemingly disappears altogether. There is ZERO follow-up on whether he made a good or bad call, or whether the situation for that company or industry has changed.

    Dump on this author if you want, but at least he'll respond to comments and provide updates on the calls he's made. And if he starts to change his mind on a company, he'll tell you exactly why he's forming a new opinion. Those people are in short supply on SA. Whether I agree with him or not, his work much more valuable to me than many of the "hit-and-run" pieces that typically get posted.
    Feb 6, 2015. 08:40 AM | 9 Likes Like |Link to Comment
  • Don't Worry About Missing The Bottom [View article]

    I love your articles -- you have a great way of identifying very commonplace investment issues and providing clear examples to prove your point.

    I have a handful of times that I've hit the bottom or timed the top, but that rarely happens. I have a lot of times that I've come relatively close.....or, I've simply done good enough. I think of it this way: At the end of the day, if I get to my own investment goals, why should I care if I bought KMI $3 higher than I could have? (Full Disclosure: In the short term, that's exactly what I did.) I bought at $38, someone else bought at $35 -- if we both meet our long-term individual investing goals, good for both of us.

    I'm in this game for a while, and I believe in KMI (as I believe in the other companies in my portfolio). In 5+ years, I probably will not recall whether this was "the best" time to buy KMI or "a good" time to buy KMI. And that sentiment goes for anything else I purchase.

    Dec 25, 2014. 03:45 PM | 5 Likes Like |Link to Comment
  • AT&T Vs. Verizon: Which Is Best In A Highly Competitive U.S. Wireless Space? [View article]
    Buffett also publicly said that his best case scenario on IBM was that the stock price should languish for 5 years or so. Perhaps a CBI move from $80 to $40 represents a great long-term scenario, letting him average down.

    Buy hey, if your long-term scenario extends only to next Thursday, then maybe you're the genius here.....
    Dec 25, 2014. 02:28 PM | 1 Like Like |Link to Comment
  • Young Investors - Why Increasing Risk Is A Bad Idea For Your Portfolio [View article]
    There are an awful lot of SA readers who started out with a "high risk/high reward" strategy, and eventually moved to DGI. Their stories are similar -- soared high at times, fell low at times, then decided there must be a better way. I'm sure there are some who stick with high risk/high reward, but those folks generally aren't reading and commenting on the same articles I am.

    Great article. When my kids start this process in a couple of years, I will tell them that the 2 biggest investing gifts they have are time and persistence. You can have lots to invest or just a little, but time and persistence are things they'll have in both up and down markets. Tight on cash? No problem -- reinvested dividends will continue growing their accounts. Market tanked? No problem -- if they've done their due diligence and picked good companies, those companies will typically find their way back. And in the meantime, those regular, persistent contributions -- no matter how small -- plus their divvys will be buying shares at a discount.

    You don't need to swing for the fences -- a good game of "small ball" will still get you all the way around the bases.

    Aug 28, 2014. 12:34 PM | 2 Likes Like |Link to Comment
  • 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, 2014. 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, 2014. 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, 2014. 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, 2014. 05:55 PM | Likes Like |Link to Comment