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smlaker

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  • Discount Higher Yields At Your Own Peril [View article]
    Rich, enjoyed your comments and I do side with you. I think the issue here for me is that of the "sleep well at night" philosophy" (SWAN), so often spoken of by many authors and readers on this site. Like all Americans, I was bombarded with news, especially the horrendous fire and images of dying wildlife after the gulf oil spill. Call it sensationalism or whatever, but I would have not, and I repeat would have not held onto BP through this time frame. Now, I didn't own it, and hindsight is always 20/20, but that's just me speaking.

    Now, using that perfectly-clear, backward-looking crystal ball today, would I have still held onto BP? Sure, what fool wouldn't have?

    However, given the information available at the time, and the events that unfolded, I fault no one for selling BP and choosing something with a little less baggage to carry.

    I think the bottom line for me is that this article makes a very important point, but uses questionable examples to do so. I would have preferred seeing simply hypothetical numbers of non-existent companies over some period of time, which would still make the same point; that is to say, higher initial yield is very difficult an obstacle for the DGR to overcome, even given a fairly long time frame. In that context, all other things being equal, and, in the case of BP and JNJ they never were equal, even before the spill, one could still get the general gist, which Elliot is trying to drive home.

    And, for those of us in or nearing retirement, the decision to sell BP would have been an even easier one, as you have stated.

    One simply cannot put a price tag on SWAN.

    SM
    Nov 22, 2014. 02:05 PM | 2 Likes Like |Link to Comment
  • Dividend Stocks Are Not In A Bubble, But Many Of Them Are Pricey [View article]
    Great information. Like Mike Nadel's article of late, this article presents real, actionable information.

    I noticed that Fast Graphs I is clearly a more conservative tool. If one were to follow that alone, we're darn near bubble territory! A lot of red!!

    Thanks,

    SM
    Nov 21, 2014. 01:09 PM | 1 Like Like |Link to Comment
  • Yearly Dividend Hikes Aren't Always Necessary In A Successful Dividend Growth Portfolio [View article]
    Nice read, and it does remind us that there are multiple facets to investing in common equities. However, this argument has been hashed out on this website over and over.

    If a person is living off of the dividend, and a freeze and or cut occurs, then a tough decision needs to be made.

    Since hindsight is always 20-20, your examples show how holding through the cut can work out for the better.

    But, for every one you find that came back like a roaring lion, I can find one that died on the vine.

    Dividend Growth Investing is just that. If my employer were to "freeze" my wages, I would have to make a tough choice, look for another job or suffer the ravages of inflation. One person may stay, while another may move on. There is no right or wrong, only one's reaction to events as they are currently understood. No one can predict the future.

    Your approach sounds more like a "deep value" investing approach, and is not necessarily DGI.

    SM
    Nov 17, 2014. 07:45 PM | 4 Likes Like |Link to Comment
  • Hasbro-DreamWorks deal fizzles [View news story]
    One thing I have never fully understood about the world of equities is how the market can set a price for a stock, and, assuming that the market is "efficient", that price is "way too low" in the eyes of the current management/shareholders, when someone makes a tender offer.

    Seems to me to be the equivalent of someone trying to sell a clunker of an automobile, and it just won't sell for the asking price. Then someone comes along and sees some value in it but, instead of negotiating a better price, or at least paying the asking price, that someone offers 40% more!

    No one reading this post would be dumb enough to do that, so why are so-called intelligent company executives so willing?

    To me it's dumbfounding.

    SM
    Nov 16, 2014. 04:59 PM | Likes Like |Link to Comment
  • You Can Find Better Food Stocks Than McDonald's [View article]
    I agree Sunnypt.

    The only candidate that helps me out at all is Kraft, and it is in a different industry. I may consider initiating a position, but not at the expense of my only restaurant stock.

    The others are way too overpriced (Burger King shows a P/E of about 65) or the yield is not going to work for me (anything under 2.6% is not on my radar).

    Not that the article doesn't offer food for thought (pun intended), but it doesn't really offer an apples-to-apples alternative.

    So, I'll stay put for now.

    SM
    Nov 13, 2014. 02:06 PM | 1 Like Like |Link to Comment
  • Clorox: Not Recommended For Investment [View article]
    Investing Tricks, I see you are into "deep value". IN the DGI universe, there isn't a lot of that right now, although occasionally an article is written listing a few widows and orphans, mostly mining/oil stocks or low dividend payers.

    For the most part, your article could have replaced Clorox with a myriad of slow-growth, long-lived stalwarts such as Colgate, General Mills, Genuine Parts, etc. Tough to get a stock with a decent dividend yield (>2.6%) "bargain" right now, let alone a "deep value bargain".

    Regards,

    SM
    Nov 11, 2014. 01:13 PM | 1 Like Like |Link to Comment
  • Clorox: Not Recommended For Investment [View article]
    Rich, I am long CLX and I agree. While I wouldn't buy more now, it is a core holding, and I am not going to sell based solely on valuation or any written article, unless perhaps that article comes from the CEO. If I did that for every core holding someone on this website insists is now overvalued, I would be mostly in cash, or oil/mining stocks and I can't afford to do that.

    And, if it isn't good for investing, well, I still use their spray cleaner for cleaning toilets; at the insistence of my wife :).

    SM
    Nov 11, 2014. 12:42 PM | Likes Like |Link to Comment
  • Dividend Champions For November 2014 [View article]
    Mike, I'm just ignoring it, meaning the currency issue. At least for now. The dollar won't remain strong forever, although as long as the rest of the world is teetering on the brink of a recession, it may take a while for it (the U. S. dollar) to begin its inevitable decline.

    In the meantime, these are among the best run financial institutions in the world, and they are where I would prefer having the "financial" allotment portion of my portfolio.

    I know that's not much advice, but I am not selling, as long as the fundamentals of the companies themselves do not change. We both knew when we bought that the U. S. dollar could rise, and I accepted that risk. My positions are 1/2 positions, split among BNS, CM, RY and TD equally, for a total of 2 positions.

    Regards,

    SM
    Nov 2, 2014. 05:16 PM | 4 Likes Like |Link to Comment
  • I Am Retiring And A DG Portfolio May Not Provide Enough Income. [View article]
    Before you ask, yes, I read your full article; no, I haven't read all of the comments. I did read enough of them to find out that you're not going to get a lot of sympathy from this forum. Very, very few of the people here are sporting a million dollar portfolio, including those who are retired or, as you say, on the brink of retirement.

    And, while I can identify with your not having a defined retirement plan, I think that social security should help to fill in any gaps you might have. If you're too young to take SS, then maybe you should rethink your early retirement plan.

    Finally, spend down your principal, if needs be, and rethink what it is you will do in retirement.

    I know I won't be living "high on the hog", but then, I haven't lived that way while I was working, either. I drive a 14 year old car. I just bought it to replace my 17 year old car, which was "shot", as they say.

    I give a lot to charity, spend a lot on children and grandchildren (while I am alive to enjoy them enjoying it), and carefully spend what is left over, and I won't have quite what you are looking at when I retire in a year or so.

    Still, it will beat working until I drop dead at my desk, as some of my colleagues have done, quite literally.

    Good luck, whatever path you decide to take, and lighten up. Most of us will tell you that you're in pretty good shape, and would change places with you (financially that is) in a heartbeat.

    SM
    Oct 29, 2014. 08:52 PM | Likes Like |Link to Comment
  • Oil Companies Sensitive To The Oil Price Decline And Those That Are Not [View article]
    Underwhelming. This didn't even scratch the surface regarding many, many more dividend paying oil stocks. COP?
    Oct 22, 2014. 09:50 PM | Likes Like |Link to Comment
  • The Bloggers' Dividend Growth Portfolio: Popular Dividend Growth Stocks Trading On U.S. Exchanges [View article]
    Hmmmmm. More people own MCD and KO than any other dividend stocks (top two). Ugh!!! So much for accuracy.

    SM
    Oct 22, 2014. 08:14 PM | 2 Likes Like |Link to Comment
  • Petmed Express declares $0.17 dividend [View news story]
    The end of the road for me. Multiple earnings misses, followed by missed dividend growth for two quarters tells me there are better options out there.

    SM
    Oct 20, 2014. 01:51 PM | Likes Like |Link to Comment
  • My Vision Of What The 'Perfect Retirement Portfolios For Dummies' Might Look Like [View article]
    Amen doctor. My experience exactly. I am holding a few "corporate shells"; companies that went bankrupt, the stock went to zero, and Fidelity still carries them on my books, because the "shell" is still a corporate entity.

    My point is that they sit there, a stark reminder of the days when I tried chasing growth in small cap and microcap stocks, which were supposed to be the "next hot thing".

    Not to mention my days of sub-par mutual funds, silver bars, etc.

    Now I follow DGI and SWAN (sleep well at night).

    I may not hit that ten-bagger, but I still wish I had started this earlier.

    SM
    Oct 12, 2014. 03:10 PM | 10 Likes Like |Link to Comment
  • Surviving A Worst-Case Scenario To Become A Dividend Growth Investor [View article]
    Nicholas, I don't view this as a website for "professional investors". With very few exceptions, you being one of them, the "Seeking Alpha" Community is comprised of a group of amateurs, leery of having someone else manage our money during or nearing retirement (think annuity), yet having enough experience to be pretty good "buy and monitor" investors with a little help from our more-experienced friends.

    If you criticize Mike Nadel's approach, it is because you are far more advanced, as it clearly appears you are from your posting. So, if this adds nothing to your bag of tools, perhaps you should move on, perhaps to a website more suited to a person of your talents.

    I find Mike's article not only very informative, but thought provoking. I don't need tons of data thrown at me for an article to prompt me to change my behavior or rethink my approach, or give me courage, or change a "bad" habit, or improve my performance.

    This article did just that for me, even minus the number crunching. Great for an amateur author, IMHO.

    Thanks Mike N. and good luck as you iron out the wrinkles in your investment approach. I certainly know I have plenty of my own to yet wrinkle out.

    SM
    Oct 10, 2014. 01:03 PM | 5 Likes Like |Link to Comment
  • Sell General Mills And Buy Procter & Gamble [View article]
    I like Cap'n Crunch!

    sm
    Oct 5, 2014. 03:13 PM | 1 Like Like |Link to Comment
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