What The Yield? Beware The Temptations Of Emerging Markets Debt [View article]
I have a relatively small investment in the T. Rowe Price Emerging Markets Bond Fund, PREMX, that I initiated in 2009 and have been pleased with the performance. I believe that a well diversified portfolio should have some exposure to government and corporate debt securities of emerging and frontier nations. However, to date I would say that it is not as non-correlated to say the S&P500 as I had thought it would be. Time will tell...
U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
Mr. Shaw - Thanks for your series of articles concerning 2013 taxes. I found all three to be informative and well presented. Unfortunately, many are not interested in the data if it doesn’t support their preconceived notions or are not capable of assimilating the information. This is evident from the plethora of comments that are basically just envious of the more successful.
It appears that democracy is destroying capitalism. The majority of people have come to understand that they can vote themselves largesse from the public treasury but are incapable of understanding the consequences of that policy. Thomas Jefferson rightly warned that to preserve the independence of the people, we must not let our rulers load us with perpetual debt and that it is disastrous to take from one because he has acquired too much in order to spare others who have not exercised equal industry and skill.
The Rich Will Not Abandon Dividend Stocks [View article]
If you live in a state that is almost exclusively run by democrats you will have higher taxes and more poor people. Why this basic fact doesn’t change voting preferences is amazing.
The most relevant statistic is that about 25% of Americans are totally dependent on the government for their existence and another 25% think that is okay.
I don’t believe that analyzing where dividend paying stocks are held (tax or taxed deferred) is particularly relevant to the discussion of the ramifications of the disparity between the anticipated dividend tax rate and the capital gain tax rate. The members of the board of directors will allocate capital based on what they believe is best for their shareholders. This decision will be largely skewed to what is best for their largest shareholders. A dividend tax rate twice as high as the capital gain tax rate will result in favoring share buybacks over dividends. This will mean less income from dividends. Bringing dividend payments forward and issuing special dividends are clear evidence that this is true.
It is interesting that consumer confidence dropped significantly as reported this morning. The loss of confidence was largely from those in higher income brackets. The economic policies of the democrats will have negative consequences that the majority of Americans don’t comprehend.
McDonald's Offers A 3.7% Yield And 10% Dividend Growth Rate [View article]
AA - Thanks for pointing out the virtues of MCD. Historically, when MCD has a misstep it has been a good time to take or add to a position. I don’t think this time is any different. MCD will continue to generate huge amounts of cash and be investor friendly in returning a sizable portion of it to shareholders. I added to my position about a month ago at $88 and again on Friday at $83.46. IMO MCD should be at the top of a DGI buy list. Its 3.70% yield, a 20-year DGR of 17.07% and a 10-year DGR of 27.38% make it very compelling.
Why Kimberly-Clark Will Fall To The Low $70s [View article]
"The company looks fairly valued at this time. We expect the firm (KMB) to trade within our fair value estimate range for the time being. If the firm's share price fell below $53, we'd take a closer look."
KMB closed at $85.03 yesterday (16 Nov). Is the $53 price a typo? At $53 the yield would be 5.6%. KMB has a 40 year history of raising their dividend with the next increase due the end of Feb 2013. KMB isn't going to $53 unless it trades up to $106 and splits 2:1.
Fair value for KMB is about $78 so it isn't cheap or overly expensive currently. Below $80 I would be adding to my position.
Dividend Payers In The S&P 500 May Become More Scarce In 2013 [View article]
Changes in tax rates cause investors to react accordingly. I see no logic in the government constantly changing rates. There are factions that benefit when capital gains taxes are relatively lower and other factions benefit when dividend tax rates are relatively lower. I see no economic benefit in favoring one over the other. I also don't believe that dividends or capital gains should be taxed at the same rate as income from a job. Approximately 1/2 the rate seems appropriate. Having a job and investing a portion of post income taxed dollars should be encouraged. Our government seems intent on discouraging both of these productive activities.
A Sober Wake-Up Call The Morning After [View article]
If the comments here are representative of America, let the revolution begin. It is going to be long, hard and bloody, so we might as well get started. Wake up; there was no clear winner yesterday. It doesn’t matter if Obama or Romney is in the white house. It doesn’t matter who controls the house or the senate. They are all doing what you are crying for, entrench and fight for my side. Quit your crying and blame games. America was dividend yesterday well within the margin of error (corruption). This isn’t about if Democrats or Republicans win, it is about America winning. Get out of the cart and start pulling!
McDonald's: The Advantage Of Maintaining Dividend Growth When Earnings Lag [View article]
Tim - You have described DGI beautifully. When the share price goes up I’m happy because my net worth is increasing. When the share price goes down I’m happy because I get to buy more shares at a higher yield. I have been frequently asked which of these scenarios I prefer the most. I always answer the latter scenario and add that unless you need to liquidate your holdings you should pray for a market correction before you go to sleep at night. This comment always gets inquisitive looks from young people, who should pray the hardest for it. You are way ahead of most of your age group.
The American economy is worse than many thought. Stock prices are likely headed lower and unemployment headed higher. We better start fixing our structural problems. Monetary easing is played out and Obama's fiscal policy has been abhorrent.
What Romney said was that 47% won’t be interested in his tax policy because they don’t pay taxes. Seems true enough to me. A saying that I am hearing frequently these days is: “What would John Galt do?” Those that believe that attacking the wealthy will aid the poor should consider that a possible outcome of class warfare is that the poor become much poorer. Take a look to Europe to see this trend beginning to play out... read Atlas Shrugged.
Watching the VP debate I keep thinking how much Biden looks like Ronald McDonald. Perhaps he thought he was debating to get a job at his local McDonalds. Afterwards, I keep thinking how scary it is that he is just a heartbeat away from being president. The man is truly a buffoon.
Dividend Stocks Remain Relatively Attractive Despite Concerns Over Valuation And Taxes [View article]
DF - The “Fiscal Cliff” encompasses much more than the dividend tax rate. There is also the end of the temporary payroll tax cuts, the end of certain tax breaks for businesses, shifts in the alternative minimum tax, and the beginning of taxes related to Obamacare. There are also the deep automatic spending cuts affecting government programs.
I’m also curious why Columbia is using 2007 tax data. I suspect that there are many more individuals making $200K and couples making $250K in 2012. Of course the basic issue is that attacking so called rich people isn’t going to make the poor any better off or fix the ills associated with our entitlement society.
If You Own Dividend Stocks And Are Worried About Taxes, Then Read This... [View article]
The poor and down trodden need a safety net. The questions are at what level the safety net should be set and for how long can it support someone? Redistribution of wealth isn’t the answer as it only reinforces the dependency. Teaching the poor to read, instilling family values and a commitment to a work ethic are core solutions. The devil is in the details of how to accomplish this. It will require leadership and real empathy for the poor. Continuing to move from one fix quick scheme to another will not work.
What The Yield? Beware The Temptations Of Emerging Markets Debt [View article]
U.S. Taxes: Who Makes And Who Pays - More Than The Rich Will Have To Pay More [View article]
It appears that democracy is destroying capitalism. The majority of people have come to understand that they can vote themselves largesse from the public treasury but are incapable of understanding the consequences of that policy. Thomas Jefferson rightly warned that to preserve the independence of the people, we must not let our rulers load us with perpetual debt and that it is disastrous to take from one because he has acquired too much in order to spare others who have not exercised equal industry and skill.
The Rich Will Not Abandon Dividend Stocks [View article]
2013 Dividend Tax Impacts [View article]
2013 Dividend Tax Impacts [View article]
It is interesting that consumer confidence dropped significantly as reported this morning. The loss of confidence was largely from those in higher income brackets. The economic policies of the democrats will have negative consequences that the majority of Americans don’t comprehend.
McDonald's Offers A 3.7% Yield And 10% Dividend Growth Rate [View article]
Why Kimberly-Clark Will Fall To The Low $70s [View article]
KMB closed at $85.03 yesterday (16 Nov). Is the $53 price a typo? At $53 the yield would be 5.6%. KMB has a 40 year history of raising their dividend with the next increase due the end of Feb 2013. KMB isn't going to $53 unless it trades up to $106 and splits 2:1.
Fair value for KMB is about $78 so it isn't cheap or overly expensive currently. Below $80 I would be adding to my position.
Dividend Payers In The S&P 500 May Become More Scarce In 2013 [View article]
A Sober Wake-Up Call The Morning After [View article]
McDonald's: The Advantage Of Maintaining Dividend Growth When Earnings Lag [View article]
Is A Stock Market Drop Imminent? [View article]
A Reason To Smile [View article]
A Reason To Smile [View article]
Dividend Stocks Remain Relatively Attractive Despite Concerns Over Valuation And Taxes [View article]
I’m also curious why Columbia is using 2007 tax data. I suspect that there are many more individuals making $200K and couples making $250K in 2012. Of course the basic issue is that attacking so called rich people isn’t going to make the poor any better off or fix the ills associated with our entitlement society.
If You Own Dividend Stocks And Are Worried About Taxes, Then Read This... [View article]