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optionmike

optionmike
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  • A Cautionary Tale For Dividend Growth Investors [View article]
    Adam, I don't believe comparing dividend growth with total return is a fruitful exercise. If one has a strategy to grow income because they are an income investor and they are meeting their goals growing that income with solid dividend growth, price really doesn't matter. In fact I believe if the company is consistently growing its dividend with an acceptable payout ratio, long term positive total return will be reflected simply because the business is growing and earnings are growing which reflect confidence in positive overall growth. This will ultimately be reflected in the share price. With that being said, in my view a younger investor with a strategy focused on dividend growth and reinvestment should be happy for lower stock prices as they can easily afford to be apathetic to it as long as they have a strategy, patience and rules set on when to purchase and sell their income investments
    Feb 14, 2015. 12:30 PM | 1 Like Like |Link to Comment
  • Going Off CCC List To Find Total Return For Dividend Growth Investors. [View article]
    Whoops, I was referring to the image link in this article:

    http://abt.cm/Ogy35I

    While everyone is right that past results are no guarantee of the future, I think the past is a huge aspect of how we make informed decisions to invest in a company or not, or for that matter equities in general, or really anything. Finding the next great blue-chip is great in theory but it is also a speculation risk vs the alternative in taking ownership in companies that have proved they are great investments. Of course theres nothing wrong with growth companies that have not been around too long that will most likely be around for the foreseeable future. Apple is a great example of this.

    What i am saying is, as a dividend growth investor i am concerned primarily about is a rising dividend and compounding that dividend growth by reinvesting those dividends. If a company has done that for 50 simultaneous years, id put a good reasonable bet they will keep doing that on the 51st + year. That "company" has shown a dedication to the shareholder to keep rewarding them. Which brings me to my example in Coke and the point about "What Coca-Cola did 20 years ago is of little relevance to me now". It is exactly that proven dedication of rewarding the shareholder that is of relevance to me, mainly because it is inclusive of my strategy and goals as a dividend growth investor.
    Dec 5, 2014. 09:39 AM | 1 Like Like |Link to Comment
  • Going Off CCC List To Find Total Return For Dividend Growth Investors. [View article]
    "What Coca-Cola did 20 years ago is of little relevance to me now".

    Well something can be said for investing in companies that have proven to be phenomenal investments. Perhaps theres a reason to invest in those companies. My rebuttal:

    http://bit.ly/1FQ30RD
    Dec 4, 2014. 10:02 AM | Likes Like |Link to Comment
  • The One Sector You Must Own Today (Part 3 Of 3) [View article]
    All the majors kept raising their dividends in the four month crash you allude to. The demand for petroleum is going nowhere but up. The OPEC decision will hurt the companies (small and mid-majors) that will need to curtail supply as it will not be profitable at these prices, but it is good long term for oil price stabilization. Production and oversupply was getting to absurd levels and this decision will help reset the supply/demand dynamic. Point is, you cant predict a bottom, just like you cant predict a top. If you want to patiently collect dividends and are invested over the long term, not much beats the long term div growth and stability of the large oil majors (XOM, CVX, COP, etc..)
    Nov 28, 2014. 01:22 PM | 2 Likes Like |Link to Comment
  • Coca-Cola Is Still Overpriced [View article]
    annually is what i meant
    Feb 27, 2014. 12:30 PM | Likes Like |Link to Comment
  • Coca-Cola Is Still Overpriced [View article]
    Since, 1970 Coca-Cola has returned 12.59%
    Feb 18, 2014. 01:06 PM | 2 Likes Like |Link to Comment
  • Intel: Time To Give It Up [View article]
    To those income investors I for one wouldn't mind the price falling. The payout ratio is still low (under 50%) so in-line or close to estimates on earnings should not affect the dividend near term. Hopefully they can raise the dividend without to much affect on that ratio. I want the price to fall as it will help me buy more shares, thus raise my YOC %. Lets not forgot how much cash Intel has. Cash is king and the PE is still very low on a historical basis. Intel is not spending billions in R&D for just the near term. It is very long term minded and that is why i am willing to own the company. I believe there is a growth story to be had in the next 10 years and if the price is stagnant or down for the next few because of what the market believes that's fine as long as the company is raising its distributions.
    Jul 18, 2013. 11:25 AM | 1 Like Like |Link to Comment
  • Should Investors Be Scared Witless? [View article]
    right, so the sooner you panicked in march 2009, the...? id say worse, way worse
    Jun 21, 2013. 09:22 AM | 1 Like Like |Link to Comment
  • 3 Moves To Make On The Verge Of Market Panic [View article]
    "Folks, no bull market lasts forever"

    If im not mistaken we have been in a secular bear market for 13+ years, unless 2009 was the start of a secular bull market. Secular bull markets can last just as long if not longer
    Apr 17, 2013. 11:13 AM | Likes Like |Link to Comment
  • 4-Year Stock Optimist Turns Negative - 4 Signs Market Is On Thin Ice [View article]
    resistance to all time highs becomes support at some point, what if were at that point? how high can the market go than?
    Mar 2, 2013. 06:16 PM | Likes Like |Link to Comment
  • Sorry Bears, We're In A Secular Bull Market [View article]
    Fact, s&p500 is collectively sitting on $1.7 trillion. I'm betting on equities for the next few years as they exchange/spend that money producing greater earnings. I too agree with the author, sentiment is certainly not bullish, equity flows are showing positives, but i believe we have along way to go before there are some contrarion viewpoints to signal a top. One persons opinion...
    Feb 23, 2013. 01:00 PM | Likes Like |Link to Comment
  • Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
    Intel has a trailing 5 year dividend growth rate of 14.4%. Its estimated to grow earnings by a little over 10% annually on a 5 year clip. Its mean average div growth rate over the past 12 years is 23% annually. To top it off its PE ratio is around 9 (historically low) with a very low payout ratio. This tells me Intel can sustain and raise its dividend easily. I choose to invest in Intel because i believe it will succeed in mobile and invent computer technologies in the future that have not even been conceived (as it has done historically). Intel has 1900 Phd's hard at work on future computing and processor technologies we do not even know about. Its annual research and development budget is higher than most chip makers market caps. Intel may have been late to mobile, but i believe its real value is in its intellectual property, knowledge in microchip science and technology, its manufacturing scaling, and its size. Finally as other readers have stated, its valuation is hard to ignore for a value investor like myself
    Dec 19, 2012. 10:45 AM | Likes Like |Link to Comment
  • Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
    martinfrosa,

    no one is talking about mistakes either. A mistake would be to assume i only care about total return. I own Intel because without any growth it can keep paying me dividends and raising those dividend payments for a long long time. That's what a very low payout ratio, a history of consistent dividend growth, strong earnings and buybacks shows me. I drip my shares, and if it goes lower, i reinvest those dividends to buy more shares thus earning more income. This is where my yield on cost rises over time. See, i am an income investor and i am not concerned about a paper loss. In fact "if" hopefully Intel can keep paying me and raising its dividend for many future years (which i believe is a very good possibility) and i reinvest those shares, i can eventually hit a 100% yield on cost, meaning that the shares i have purchased are free, yes free! That is why i am not concerned about share price or paper losses, and if i goes lower i have a better chance of acquiring more shares to reach my goal of 100% YOC. If you know anything about Buffet its that he does not sell because of this reason, hence the best holding period for a stock is "forever"
    Dec 18, 2012. 05:34 PM | Likes Like |Link to Comment
  • Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
    the reality is you can buy more shares as the price falls with those reinvested dividends at an increasing YOC. "if you cannot hold a stock for 10 years, you should not even consider holding it for 10 seconds" Buffet. Paper losses are part of the game to building real wealth. Lack of patience is not.
    Dec 18, 2012. 02:36 PM | 1 Like Like |Link to Comment
  • Build A Secure Dividend-Growth Portfolio [View article]
    yeah i am having a hard time not over committing funds at this price, Its my largest position by far. My discipline in diversification is the only thing holding me back
    Nov 30, 2012. 01:43 PM | 1 Like Like |Link to Comment
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