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hjtheuns

hjtheuns
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  • General Electric: Long-Term Investing Vs. Short-Term Thinking [View article]
    Welcome to SA. May you sit on a "major pile of cash" someday!
    Apr 16, 2015. 03:10 PM | 2 Likes Like |Link to Comment
  • General Electric: Long-Term Investing Vs. Short-Term Thinking [View article]
    Considering opportunity cost is a way to drive yourself away from investing, even crazy. There are about 10,000 stocks in the US to invest in. That means that 9,999 will have a negative opportunity cost over any time horizon. If I had just picked that 1. Wait there was a international stock that did even better. Darn I lost an opportunity... It's already making me crazy :-)

    A choice between two investments must be made. It would be an easy decision if we knew the end outcome in advance.
    Apr 16, 2015. 02:52 PM | 3 Likes Like |Link to Comment
  • General Electric: Long-Term Investing Vs. Short-Term Thinking [View article]
    Congratulations Eli, excellent article. A long-term net buyer of a stock is better served by a declining stock price. Many young (inexperienced) investors are scared away from a declining stock price and often sell when they should be buying. If you are buying a stock it should because you like the long-term prospects of the company. If the market is offering you a short-term reduction in price, be happy and take advantage of the opportunity. Congratulations again Eli, you get it.
    Apr 16, 2015. 02:17 PM | 1 Like Like |Link to Comment
  • General Electric: A Golden Dividend Growth Opportunity Is Never Offered Twice [View article]
    I contacted GE Investor Relations and they confirmed that GE plans to maintain the dividend in 2016 and raise it in 2017. Shareholders should not expect a dividend increase until January 2017 at the earliest.
    Apr 13, 2015. 10:00 AM | 4 Likes Like |Link to Comment
  • General Electric: A Golden Dividend Growth Opportunity Is Never Offered Twice [View article]
    There has been some confusion in the media recently regarding the timing of the next anticipated increase in the dividend. Some are reporting that the dividend will be maintained until 2016 while others are stating it will be maintained until after 2016. The GE press release does state that GE plans to maintain its dividend at the current level in 2016 and grow it thereafter which suggests the latter reporting may be correct. GE previously stated how important a growing dividend is to their return of capital philosophy and their sorrow with having to cut the dividend. It seems imprudent to break the dividend increase streak again just when faith was being restored. It may be likely that GE is going to break their commitment to long-term shareholders counting on a growing income stream again! This may cause me to exit my position in GE. A decision to take Friday's 10% price gain and reallocate to a more trustworthy company does seem to make sense.
    Apr 12, 2015. 09:03 AM | 7 Likes Like |Link to Comment
  • General Electric: A Golden Dividend Growth Opportunity Is Never Offered Twice [View article]
    GE said “it will maintain its dividend at the current level until 2016” with plans to grow it “thereafter.” While that statement is not specific as to when the dividend will be increased in 2016 it does clearly state that the dividend will be increased in 2016. The next dividend increase announcement was expected in December 2015, payable in January 2016. Nothing in the statement suggests that this expectation is off the table.
    Apr 12, 2015. 07:23 AM | 11 Likes Like |Link to Comment
  • ConocoPhillips' (COP) CEO Ryan Lance Hosts Analyst & Investor Meeting (Transcript) [View article]
    COP is all about the dividend. It was mentioned 50 times in the transcript!
    Apr 9, 2015. 11:22 AM | Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]
    Adam – One can contend that it is not certain that when the market drops it will bounce back, but assuming that it will is the way to invest. We all know that historically markets prices move from “bottom left” to “upper right” over time. Using this knowledge that stock markets fluctuate up and down but increase in value over the long-term is paramount to successful invest and own (to borrow Chuck’s phrase) investing.
    Mar 30, 2015. 08:50 AM | Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]
    In March I have purchased TROW, EMR, ABBV and KO.
    Mar 29, 2015. 02:54 PM | 2 Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]
    I utilize a mixed approach to purchases. Generally, I make a few purchases each month with the dividend income I receive in a taxable account. When the market is at extreme lower levels, and I am finding many investable opportunities, I will add money to the account to make larger or additional purchases. Conversely, when the market is at extreme upper limits, and I am finding few if any investable opportunities, I accumulate cash for several months before beginning to buy again. I like to think of this approach as tidal market timing. When the market is trading at 10 times earnings (low tide) I am anxious to buy and when it is trading at 20 times earnings (high tide) I am hesitant to buy. In between, I am happy to ride the tide.
    Mar 29, 2015. 12:49 PM | 3 Likes Like |Link to Comment
  • Kraft Foods, H.J. Heinz Merger To Drive Significant Potential Synergy And Dividend Growth Opportunities [View article]
    The following was sent to KRFT Investor Relations this morning: "I would like to know if and when you intend to announce how the Kraft-Heinz special dividend will be classified for tax purposes. Specifically, will the special dividend be considered in whole or in part a return of capital, a capital gain or ordinary income?"

    I'll post any reply I receive.
    Mar 27, 2015. 07:37 AM | 2 Likes Like |Link to Comment
  • Kraft Foods, H.J. Heinz Merger To Drive Significant Potential Synergy And Dividend Growth Opportunities [View article]
    I will be contacting KRFT IR to ask if and when they will have guidance on the tax treatment of the special dividend.
    Mar 26, 2015. 06:49 PM | Likes Like |Link to Comment
  • Kraft Foods, H.J. Heinz Merger To Drive Significant Potential Synergy And Dividend Growth Opportunities [View article]
    I hope your CPA/CFA is correct. We will know for sure when we receive our Form 1099-DIV. It has been my experience that only dividends paid out of a corporation's earnings and profits are taxed as dividends. Payments labeled dividends that aren't paid from earnings and profits (BRK and 3G are paying the special dividend) are considered a return of capital. Any amount received as a ROC is taken as an adjustment in the cost basis of the shares and no taxable dividend income is created. The Kraft–Heinz special dividend is further complicated by the fact that it will likely exceed 10% of the value of the stock at time of distribution. This is referred to as an “Extraordinary Dividend” making it less likely to be classified as a qualified dividend solely. If you are having trouble sleeping reading Section 1059 of the Internal Revenue Code may help.
    Mar 26, 2015. 06:16 PM | 1 Like Like |Link to Comment
  • Kraft Foods, H.J. Heinz Merger To Drive Significant Potential Synergy And Dividend Growth Opportunities [View article]
    Voting online is certainly better than the old way. Broadridge Financial Solutions, BR, is the company behind being able to do this. BR has been a great dividend grower since being spun out of ADP.
    Mar 25, 2015. 05:06 PM | 1 Like Like |Link to Comment
  • Kraft Foods, H.J. Heinz Merger To Drive Significant Potential Synergy And Dividend Growth Opportunities [View article]
    After the announcement today KRFT began trading with consideration of the merger details, discounted by the risk of the deal not being completed. In this deal that risk is very small. There is some additional risk given that Heinz is a private company so there is less visibility into its financial statements. The market will revalue the Kraft Heinz share price as more information becomes available.
    Mar 25, 2015. 03:44 PM | Likes Like |Link to Comment
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