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hjtheuns

hjtheuns
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ABT, AFL, CAG, CAT, CBRL, CL, COP, CVS, CVX, DE, GE, GIS, HAS, HDV, IBM, KMB, KO, KRFT, LEG, MCD, MDT, MKC, MRK, NKE, PFE, PG, PM, PSX, RAH, ROST, SPY, SYY, T, TEI, TGH, TIP, VFC, WAG, WFC, WMT, XOM
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  • Enviable Demographics And The Baby Boomer Retirement Myth [View article]
    Thanks Jay, the best of health to you too. I’d love to come to Chicago and take you and Rick Santelli to dinner after touring the CBOT :-)
    Mar 30 01:00 PM | Likes Like |Link to Comment
  • Enviable Demographics And The Baby Boomer Retirement Myth [View article]
    I find it interesting that many investors love to find reasons for not being invested. Demographics, financial crisis, war, debt, taxes… the list goes on. Take a look at a very long-term chart, log10 scale works best, and you’ll see that the US stock market keeps advancing. Sure there are downturns and prolonged sideways movements, but the long-term trend is higher. Stay healthy and stay invested, the best advice I ever got!
    Mar 30 11:19 AM | Likes Like |Link to Comment
  • S&P 500 Earnings, Dividends And Prices Over Past 30 Years - Dividends Were Critical [View article]
    WallstreetPete - Another nice aspect of dividends is that they provide a growing source for additional investments during your 30 year accumulation phase. My experience is that the dividends from my DG stocks have been greater than the dividend and capital gain distributions from my index funds.
    Mar 29 01:24 PM | 1 Like Like |Link to Comment
  • $2 Million Needed To Retire? [View article]
    bg6638 - You're right, Obama isn't going to suddenly begin to go crazy, he has been doing it for a long time.
    Mar 28 06:50 AM | 3 Likes Like |Link to Comment
  • Starting My $10,000 Dividend Growth Portfolio [View article]
    What to do with the $500 for investment each month is a very pertinent question. My general recommendation would be to make one purchase each month to minimize transaction costs. Investing when cash is available is better than trying to time the market. I don’t know if the market, or the 10 stocks you’ve selected, will be higher or lower in price next month. If you still believe in the fundamentals of your 10 stocks, buying the worst performing has merit. Additionally, I would continue to monitor other stocks for an opportunity to add an eleventh stock. Remember that your time horizon is 30 years or more, so a $1 difference in price today will have very little impact down the road.
    Mar 27 12:35 PM | 1 Like Like |Link to Comment
  • 12 Dividend Stocks For A Powerful Income Stream [View article]
    Dividends4Life - Another great article and 12 sound companies identified for further analysis. I understand that you would like readers to join your premium service but it would have been nice if you included the numerical results for the other metrics discussed in the article. But as you say, cash is king.
    Mar 27 12:11 PM | 1 Like Like |Link to Comment
  • S&P 500 Earnings, Dividends And Prices Over Past 30 Years - Dividends Were Critical [View article]
    This article should make it clear to all that dividends are a considerable part of total return over any significant time period. With baby boomers retiring it’s critical that that fact continues to be true. Let’s hope that Obama joins them in retirement so dividends are not penalized.
    Mar 27 11:37 AM | 2 Likes Like |Link to Comment
  • Starting My $10,000 Dividend Growth Portfolio [View article]
    PilegPicks - Congratulations on your recent graduation and starting your investment strategy. These two events will be instrumental to your financial success. The DGI strategy and stock picks you outlined in your article are sound. You did not mention if these holdings are to be held in a taxed or tax-advantaged account. In what type of account these stocks are held has a great influence on the rebalancing strategy employed. I would not be overly concerned with the dollar weighting of your holdings. For instance, MRK develops a cure for cancer tomorrow and the stock doubles, is that a reason to sell? I would say no, as they are now in a better position to increase their dividend at a greater rate which is your primary goal. I would recommend letting your winners run and focus on shedding stocks that are not meeting your dividend growth objectives. Would it have been a good idea to cut Michael Jordan because he scored 30% of your team's points?
    Mar 27 10:28 AM | 6 Likes Like |Link to Comment
  • Number Of S&P 500 Dividend Payers Rises: A Closer Look [View article]
    David Jackson - I do not know of a study that looks specifically at rolling fifteen year periods. I’m confident in saying that dividend paying stocks have outperformed non-dividend paying stocks over MOST rolling fifteen year periods based on a report by Ned Davis Research, and books by Jim O’Shaughnessy (What Works on Wall Street) and Jeremy Siegel (Stocks for the Long Run).

    The Ned Davis Research showed that Average Annual Total Return for Dividend Growers and Initiators was 10.9%; Dividend Payers with No Change in Dividend was 8.9% while Non-Dividend Paying Stocks was 2.5% for the 35 year period of 31 Jan 1972 through 30 Sep 2007.

    The O’Shaughnessy and Siegel books both spoke of the long-term advantages of dividend stocks over non-dividend stocks but I don’t recall the specific numbers. I own both books and could dig out the numbers if it would be useful to you.

    Thanks for all your work with Seeking Alpha and congratulations on the 1-million member milestone!
    Mar 26 03:34 PM | 3 Likes Like |Link to Comment
  • Number Of S&P 500 Dividend Payers Rises: A Closer Look [View article]
    David - Thanks for the link to the diversification article by Jeff Benjamin, I found it interesting. What an individual investor should do, if anything, in response to asset classes becoming so highly correlated is a very pertinent question too. The variety of solutions Jeff presents speaks volumes to the complexity of a potential answer. Abandoning a current diversification strategy has risks and costs that add further complexity. Certainly, no one solution would be appropriate for all investors. I have sought diversification through investing in indexes representing US, International and Emerging Markets; REITs, US Corporate Bonds and Emerging Market Bonds; and individual stocks that have a history of consistently raising their dividend, strong free cash flow and manageable debt. I would like to add commodities to this mix but have not found a suitable investment vehicle.
    Mar 26 07:58 AM | Likes Like |Link to Comment
  • Number Of S&P 500 Dividend Payers Rises: A Closer Look [View article]
    David - It seems that we can conclude that for the past fifteen years, an investor that hadn’t invested in healthcare, financial and non-dividend paying companies would have outperformed the index significantly. I feel confident in saying that over almost all rolling fifteen year periods dividend paying stocks have generally outperformed non-dividend paying stocks. So the pertinent question becomes, can an investor recognize and react to industry specific macroeconomic influences quickly enough to avoid loses. This is certainly not an easy thing to do. All of this suggests to me that a prudent long-term strategy is to have broad exposure to the index and favor individual companies that have a history of significant dividend growth rates. Do you concur?
    Mar 25 09:40 PM | Likes Like |Link to Comment
  • Colgate-Palmolive Dividend Stock Analysis [View article]
    geneh - Thanks for the clarification.
    Mar 25 04:12 PM | 1 Like Like |Link to Comment
  • The Seduction Of Market Timing [View article]
    If an investor is in the accumulation phase and is only interested in buy transactions, market timing is a straightforward and simple endeavor provided the investor has access to cash. The process only involves picking an index(s) and making weighted purchases at selected percentages down. The distribution phase associated with sell transactions is much more complicated given the need for the proceeds at a given time interval.
    Mar 25 10:12 AM | 1 Like Like |Link to Comment
  • Colgate-Palmolive Dividend Stock Analysis [View article]
    All of the consumer staple companies mentioned in the article and comments above (CL, PG, CLX, KMB, NSRGY & UL) are excellent DGI holdings but non of them are cheap at current valuations IMO. I have shied away from NSRGY & UL due to the foreign tax withholding complications and that I already have positions in CL, PG & KMB. Finding DGI stocks to put new money into is becoming more difficult. My current choices would include CINF, LEG & HAS.
    Mar 25 09:38 AM | 3 Likes Like |Link to Comment
  • 5 Myths About Dividend Growth Investing [View article]
    RAS - Thanks. I see that value in what you are doing. Perhaps some rainy day I'll go through my spread sheet and see if I can restructure the data. I'll also have to calculate my overall YOC. When you say portfolio YOC is that based on what is currently in the portfolio or every investment you have owned?
    Mar 16 04:19 PM | Likes Like |Link to Comment
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