Parsimony Investment Research's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/914254/comments http://seekingalpha.com/article/1338361/comments?source=feed#comment-17556921 17556921
http://bit.ly/Kb3f0w]]> Fri, 12 Apr 2013 15:45:02 -0400
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1314771/comments?source=feed#comment-17374691 17374691 Mon, 08 Apr 2013 17:40:39 -0400 http://seekingalpha.com/article/1325441/comments?source=feed#comment-17321021 17321021
http://bit.ly/RBKeZ1

Here is the breakdown of FCX (by sub-rating):

Risk/Reward Profile - 6
Financial Stability - 62
Dividend Track Record - 61
Dividend Sustainability - 6
Relative Strength -1

Stable stocks with strong fundamentals tend to rate the best in our system. In our opinion, there are much better investment opportunities out there than FCX...]]> Sun, 07 Apr 2013 11:27:01 -0400
http://bit.ly/RBKeZ1

Here is the breakdown of FCX (by sub-rating):

Risk/Reward Profile - 6
Financial Stability - 62
Dividend Track Record - 61
Dividend Sustainability - 6
Relative Strength -1

Stable stocks with strong fundamentals tend to rate the best in our system. In our opinion, there are much better investment opportunities out there than FCX...]]> http://seekingalpha.com/article/1314771/comments?source=feed#comment-17170401 17170401 Wed, 03 Apr 2013 12:34:24 -0400 http://seekingalpha.com/article/1314771/comments?source=feed#comment-17116791 17116791
http://bit.ly/Kb3f0w]]> Tue, 02 Apr 2013 12:26:58 -0400
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1235401/comments?source=feed#comment-15700491 15700491
Managing a long-term dividend portfolio is a constant balancing act between maximizing your income and protecting your capital base. Many dividend investors focus solely on the income number and that often puts their capital in harm’s way. Taking profits when you can will give your capital base some long-term stability (and put additional cash in your pocket)...]]> Fri, 01 Mar 2013 14:24:16 -0500
Managing a long-term dividend portfolio is a constant balancing act between maximizing your income and protecting your capital base. Many dividend investors focus solely on the income number and that often puts their capital in harm’s way. Taking profits when you can will give your capital base some long-term stability (and put additional cash in your pocket)...]]> http://seekingalpha.com/article/1235401/comments?source=feed#comment-15700161 15700161
As we pointed out in part 1, our investment strategy is to buy good stocks on a dip. We believe that the stocks above are great stocks for a long-term portfolio, but not at the current prices. We establish low-risk entry points (i.e., "Buy Zones") for the high-rated stocks that we cover. We have a "Buy Zone" watchlist that we keep track of and when a stock enters its respective "Buy Zone", we consider it for purchase. This is the methodology that we use to build and manage our Model DIY Dividend Portfolio and that is what we are sharing in this article...]]> Fri, 01 Mar 2013 14:17:13 -0500
As we pointed out in part 1, our investment strategy is to buy good stocks on a dip. We believe that the stocks above are great stocks for a long-term portfolio, but not at the current prices. We establish low-risk entry points (i.e., "Buy Zones") for the high-rated stocks that we cover. We have a "Buy Zone" watchlist that we keep track of and when a stock enters its respective "Buy Zone", we consider it for purchase. This is the methodology that we use to build and manage our Model DIY Dividend Portfolio and that is what we are sharing in this article...]]> http://seekingalpha.com/article/1235401/comments?source=feed#comment-15654451 15654451
http://bit.ly/Kb3f0w]]> Thu, 28 Feb 2013 16:39:54 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1215031/comments?source=feed#comment-15412311 15412311
There are many factors that could determine the future success of a dividend stock. Our dividend stock ratings are based on 28 key fundamental and technical data points for each stock, but we certainly don't purport this to be the "holy grail". The best we can do as investors is to try to put the odds of success in our favor and we feel that our ranking system helps us do this. That said, you are certainly entitled to your own opinion and our beliefs may differ from yours...and that's ok.

We stand by our rating system and we do not need a "do-over" with the editors...but thank you for pompously suggesting that....]]> Sat, 23 Feb 2013 10:31:03 -0500
There are many factors that could determine the future success of a dividend stock. Our dividend stock ratings are based on 28 key fundamental and technical data points for each stock, but we certainly don't purport this to be the "holy grail". The best we can do as investors is to try to put the odds of success in our favor and we feel that our ranking system helps us do this. That said, you are certainly entitled to your own opinion and our beliefs may differ from yours...and that's ok.

We stand by our rating system and we do not need a "do-over" with the editors...but thank you for pompously suggesting that....]]> http://seekingalpha.com/article/1215031/comments?source=feed#comment-15409471 15409471 Sat, 23 Feb 2013 09:14:04 -0500 http://seekingalpha.com/article/1215031/comments?source=feed#comment-15351081 15351081
http://bit.ly/Kb3f0w]]> Fri, 22 Feb 2013 02:23:35 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1203721/comments?source=feed#comment-15312251 15312251
The only thing you are giving up by hedging is possibly a little upside. If stocks continue to rally, the capital gains in your portfolio should more than offset the cost of the hedge. Your dividend income will remain intact regardless of what happens, which is what dividend growth investors care about most.

It seems that the common argument against hedging in the comments below is that "short-term unrealized capital losses in a long-term dividend portfolio are irrelevant". However, in the same breath you say that you are unwilling to hedge because it affects your potential unrealized capital gain (if stocks continue to rally).

It's a little hypocritical to say that you care about the potential loss of capital gains, but you don't care about the potential for capital losses. In our opinion, you should care about both...and error on the side mitigating downside risk over and above trying to maximize capital gains...]]> Thu, 21 Feb 2013 10:55:33 -0500
The only thing you are giving up by hedging is possibly a little upside. If stocks continue to rally, the capital gains in your portfolio should more than offset the cost of the hedge. Your dividend income will remain intact regardless of what happens, which is what dividend growth investors care about most.

It seems that the common argument against hedging in the comments below is that "short-term unrealized capital losses in a long-term dividend portfolio are irrelevant". However, in the same breath you say that you are unwilling to hedge because it affects your potential unrealized capital gain (if stocks continue to rally).

It's a little hypocritical to say that you care about the potential loss of capital gains, but you don't care about the potential for capital losses. In our opinion, you should care about both...and error on the side mitigating downside risk over and above trying to maximize capital gains...]]> http://seekingalpha.com/article/1203721/comments?source=feed#comment-15310831 15310831 Thu, 21 Feb 2013 10:32:49 -0500 http://seekingalpha.com/article/1206161/comments?source=feed#comment-15250831 15250831
http://bit.ly/Kb3f0w]]> Wed, 20 Feb 2013 09:33:09 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1203721/comments?source=feed#comment-15224701 15224701
We agree that buying the dips in great dividend stocks is a phenomenal long term plan. The core of our investment strategy is to identify good dividend stocks and patiently wait for low risk entry points. It sounds like you have done a great job of that historically.

A hedge may not make sense for everyone, but it is one strategy that we use to mitigate downside risk...and the cost of protection is very cheap right now...]]> Tue, 19 Feb 2013 17:13:55 -0500
We agree that buying the dips in great dividend stocks is a phenomenal long term plan. The core of our investment strategy is to identify good dividend stocks and patiently wait for low risk entry points. It sounds like you have done a great job of that historically.

A hedge may not make sense for everyone, but it is one strategy that we use to mitigate downside risk...and the cost of protection is very cheap right now...]]> http://seekingalpha.com/article/1186881/comments?source=feed#comment-15061371 15061371
There is certainly risk...you may just be overlooking it. "Junk bonds" are yielding less than that right now...]]> Fri, 15 Feb 2013 16:28:04 -0500
There is certainly risk...you may just be overlooking it. "Junk bonds" are yielding less than that right now...]]> http://seekingalpha.com/article/1186881/comments?source=feed#comment-15041081 15041081
That said, we do own some high-yield stocks (with yields over 6%) in our portfolio, but we limit our high yield concentration to 20% of our overall portfolio.

Our weighted average target annual dividend yield for the portfolio is 4.0% and our target option income yield is 2.0%...which gets us to our total annual income target of 6.0%.

We discussed this investment plan in more detail in Part 1 of the series:

http://seekingalpha.co...]]> Fri, 15 Feb 2013 11:23:47 -0500
That said, we do own some high-yield stocks (with yields over 6%) in our portfolio, but we limit our high yield concentration to 20% of our overall portfolio.

Our weighted average target annual dividend yield for the portfolio is 4.0% and our target option income yield is 2.0%...which gets us to our total annual income target of 6.0%.

We discussed this investment plan in more detail in Part 1 of the series:

http://seekingalpha.co...]]> http://seekingalpha.com/article/1187031/comments?source=feed#comment-15029371 15029371 Fri, 15 Feb 2013 08:17:17 -0500 http://seekingalpha.com/article/1187031/comments?source=feed#comment-15027351 15027351
http://bit.ly/Kb3f0w]]> Fri, 15 Feb 2013 07:00:13 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1186881/comments?source=feed#comment-15024961 15024961
http://bit.ly/Kb3f0w]]> Fri, 15 Feb 2013 04:14:49 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1170251/comments?source=feed#comment-14987621 14987621 Thu, 14 Feb 2013 11:41:03 -0500 http://seekingalpha.com/article/1178421/comments?source=feed#comment-14940131 14940131
http://bit.ly/Kb3f0w]]> Wed, 13 Feb 2013 12:51:07 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1174611/comments?source=feed#comment-14886111 14886111
http://bit.ly/Kb3f0w]]> Tue, 12 Feb 2013 11:11:58 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1173781/comments?source=feed#comment-14885051 14885051 Tue, 12 Feb 2013 10:52:18 -0500 http://seekingalpha.com/article/1173781/comments?source=feed#comment-14878061 14878061
http://bit.ly/Kb3f0w]]> Tue, 12 Feb 2013 08:25:48 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1167711/comments?source=feed#comment-14812021 14812021
Our 6% income target for our Model DIY Dividend Portfolio includes both dividend income and option income (from conservative option strategies like cash-secured puts and covered calls). We believe that it is much safer to supplement a stable, high-quality dividend portfolio with additional option income than it is to go out the risk curve in search of higher yielding stocks.

That said, we do own some high-yield stocks (with yields over 6%) in our portfolio, but we limit our high yield concentration to 20% of our overall portfolio.

Our weighted average target annual dividend yield for the portfolio is 4.0% and our target option income yield is 2.0%...which gets us to our total annual income target of 6.0%.]]> Sun, 10 Feb 2013 11:56:23 -0500
Our 6% income target for our Model DIY Dividend Portfolio includes both dividend income and option income (from conservative option strategies like cash-secured puts and covered calls). We believe that it is much safer to supplement a stable, high-quality dividend portfolio with additional option income than it is to go out the risk curve in search of higher yielding stocks.

That said, we do own some high-yield stocks (with yields over 6%) in our portfolio, but we limit our high yield concentration to 20% of our overall portfolio.

Our weighted average target annual dividend yield for the portfolio is 4.0% and our target option income yield is 2.0%...which gets us to our total annual income target of 6.0%.]]> http://seekingalpha.com/article/1170251/comments?source=feed#comment-14804701 14804701
http://bit.ly/Kb3f0w]]> Sun, 10 Feb 2013 08:53:59 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1164411/comments?source=feed#comment-14762211 14762211 Fri, 08 Feb 2013 17:25:43 -0500 http://seekingalpha.com/article/1169141/comments?source=feed#comment-14760811 14760811
http://bit.ly/Kb3f0w]]> Fri, 08 Feb 2013 16:47:59 -0500
http://bit.ly/Kb3f0w]]> http://seekingalpha.com/article/1167711/comments?source=feed#comment-14742401 14742401
http://bit.ly/Kb3f0w]]> Fri, 08 Feb 2013 10:32:16 -0500
http://bit.ly/Kb3f0w]]>