What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
Great project. Been a DIY dividend growth investor for some time.
I own all of your list except: CVX, CINF, CL, EMR, EXC, HAS, MDT, RTN and SYY.
I also have positions in: AOS, CBRL, DEO and UGI stocks. MLP positions in EPD and KMP . And smaller positions in what I consider to be more short term: AGNC, MTGE, PNNT, ETW, and EXG.
The Essence Of Valuation Is Soundness, Not Rate Of Return [View article]
Now I have quantitative proof of why I use F.A.S.T. graphs on a regular basis. I am on the income (spending) side of investing rather than the accumulation (savings) side. It is still most important that I buy "great companies at a fair price" (Buffet I think) but yield and dividend growth are also important to me now. The graphs are another tool to help me preserve my capital and enjoy my retirement.
Has Buffett Got This Wrong? - Why IBM Does Not Appear To Be A Good Fit In The Berkshire Hathaway Portfolio [View article]
Thanks for the analysis. I too believe IBM is a great company.
I have invested in IBM since the mid 1970's and I believe that IBM is driven by its superior R&D. As long as IBM stays on top of the invention curve, can keep its top quality people and can navigate ever increasing regulations IBM will continue to do just fine. I have seen many companies try to unseat Big Blue, but most don't exist anymore because of their need for instant gratification and lack of vision.
Why Your Portfolio's Long-Term Dividend Growth Rate Is Your Total Return [View article]
DividendMantra,
"That's dangerous logic. Growing dividends are funded by growing earnings. Without growing earnings the dividends will eventually cease to grow. A company can game this for a while, but not forever."
Actually if a company has enough cash flow to buy back shares each year, they can continually raise dividends without earnings growth because the number of shares that receive a dividend are also continuously reduced. So the net amount paid out by the company does not increase, but the dividend amount per share does. This ofcourse assumes the company is buying back its shares at a discount, which may be a stretch.
Also, I am not suggesting that companies with high margins and high cash generation should by back shares. The effectiveness of share buy backs have been discussed elsewhere in SA.
Revising My Portfolio Business Plan [View article]
Bob, thanks for your articles. I always find them informative and well written.
I have basically been a dividend investor for over 35 years now and it has really worked well for me. I am now in the distribution years of my portfolio and life is good. If I had it all to do over, the one thing that I would change is to hold more in cash. More cash on hand would have allowed me to get through some tight years without selling some of my investments at their lows.
Intel's New Ultrabooks Focus Will Enable Massive Growth By 2013 [View article]
Intel and AMD are not competitors of IBM. Not even close.
Intel and AMD are hardware vendors in a commoditized, low profit margin environment designed for consumers. Yes, some companies try to use Intel and AMD processors in their IT servers (including IBM). But other than VMWare, there is very little in a way of sharing resources (virtualization ) in these server environments. The number of servers required makes cloud very difficult to implement with INTEL and AMD server environments. Not only is provisioning, management and security more difficult, the overhead of messaging between servers is very inefficient.
IBM on the other hand has been providing virtualized solutions that incorporate hardware, software and services that actually solve business problems for many years. I think IBM probably knows how to do cloud.
I find this analysis interesting and well presented.
However, when I look at each area of HP's business segments, it appears that HP derives too much of its profit from printer supplies, namely ink. Most of the other areas of their business appear to have very poor profit margins.
What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
I own all of your list except: CVX, CINF, CL, EMR, EXC, HAS, MDT, RTN and SYY.
I also have positions in: AOS, CBRL, DEO and UGI stocks. MLP positions in EPD and KMP . And smaller positions in what I consider to be more short term: AGNC, MTGE, PNNT, ETW, and EXG.
The Essence Of Valuation Is Soundness, Not Rate Of Return [View article]
I look forward to your articles.
Has Buffett Got This Wrong? - Why IBM Does Not Appear To Be A Good Fit In The Berkshire Hathaway Portfolio [View article]
I have invested in IBM since the mid 1970's and I believe that IBM is driven by its superior R&D. As long as IBM stays on top of the invention curve, can keep its top quality people and can navigate ever increasing regulations IBM will continue to do just fine. I have seen many companies try to unseat Big Blue, but most don't exist anymore because of their need for instant gratification and lack of vision.
Why Your Portfolio's Long-Term Dividend Growth Rate Is Your Total Return [View article]
"That's dangerous logic. Growing dividends are funded by growing earnings. Without growing earnings the dividends will eventually cease to grow. A company can game this for a while, but not forever."
Actually if a company has enough cash flow to buy back shares each year, they can continually raise dividends without earnings growth because the number of shares that receive a dividend are also continuously reduced. So the net amount paid out by the company does not increase, but the dividend amount per share does. This ofcourse assumes the company is buying back its shares at a discount, which may be a stretch.
Also, I am not suggesting that companies with high margins and high cash generation should by back shares. The effectiveness of share buy backs have been discussed elsewhere in SA.
Revising My Portfolio Business Plan [View article]
I have basically been a dividend investor for over 35 years now and it has really worked well for me. I am now in the distribution years of my portfolio and life is good. If I had it all to do over, the one thing that I would change is to hold more in cash. More cash on hand would have allowed me to get through some tight years without selling some of my investments at their lows.
HP: Don't Sell This Stock [View article]
Intel's New Ultrabooks Focus Will Enable Massive Growth By 2013 [View article]
Intel and AMD are hardware vendors in a commoditized, low profit margin environment designed for consumers. Yes, some companies try to use Intel and AMD processors in their IT servers (including IBM). But other than VMWare, there is very little in a way of sharing resources (virtualization ) in these server environments. The number of servers required makes cloud very difficult to implement with INTEL and AMD server environments. Not only is provisioning, management and security more difficult, the overhead of messaging between servers is very inefficient.
IBM on the other hand has been providing virtualized solutions that incorporate hardware, software and services that actually solve business problems for many years. I think IBM probably knows how to do cloud.
HP: An Unappreciated Steal [View article]
However, when I look at each area of HP's business segments, it appears that HP derives too much of its profit from printer supplies, namely ink. Most of the other areas of their business appear to have very poor profit margins.