3 High Yielding MLPs Offering Growth For 2013 And Beyond [View article]
Nice article.
One note on LINE vs LNCO: While the dividend per share is slightly lower for LNCO, the price has been running around $1.00 lower making the yield higher. I hold LNCO in 2 traditional IRAs and one Roth.
The Unbridled Truth About Dividend Contribution To Shareholder Profitability [View article]
Absolutely not. I never buy a company to glean a dividend, then dump it. That is a good way to lose money.
I invest in a company to hold it for a long-time. I do have about 25% of our portfolio in non-dividend/low-dividend stock that were bought for growth. 46% is our dividend core and pays 100+% of our expenses. The rest is bonds/cash.
The notion that a dividend is a return of my own money is more like MLP's that are paying capital back to unitholders. Dividends are normally considered a payment of profit from a company. They are not a return of capital and do not affect the basis of your investment.
With a div payer, I get an immediate return. I can put it in ,y pocket, spend it or reinvest it. If the company goes bankrupt, they do not come back and ask me to return my dividends.
If a non-div payer goes bankrupt, you have nothing.
I might also note that good companies that are well managed have been great investments over time. Although I do not remember where I saw it, the best performance of any company for total return for the last 10 year(IIRC) is MO and its spin-offs. I bought it for the dividend. It has grown well beyond the dividends it paid out.
Over the last ~21 years, my position in KO has been no slouch either.
Bottom line: If the business is not healthy enough to continue to grow and pay a dividend, it shouldn't pay one. If it is, it is a candidate for me to own.
The Unbridled Truth About Dividend Contribution To Shareholder Profitability [View article]
Chuck, as always, a fine article.
I am not sure how I missed the pathetic article by Greg Loehr. It is possibly the most uninformed and misleading article I have ever read on dividends.
3D Systems: Has The Printer Jammed? [View article]
Mr. House,
You ask, "Full disclosure would be informative, don't you think?"
I do not believe you understood what I said.
The more integrated an acquisition becomes, the lines between the two become so blurred the company can not tell what business is attributable to the acquired company. People and assets mesh together, people are let go or reassigned, other hired, responsibilities for operations are changed/moved, etc.
If the company can't tell the breakdown, how on earth do you suppose you as an outsider can tell?
Any attempt to do so is a silly and fruitless exercise.
3D Systems: Has The Printer Jammed? [View article]
Mr. House,
You clearly do not understand GAAP for acquisition accounting/reporting. Companies like KO, PEP, etc do this almost continuously. They account for the acquired business normally for about one year as the business is integrated into their operation. As the integration continues, it is nearly impossible to clearly determine what "company" contributes what portion of revenue.
Considering The Opportunity Costs Of 'Trading Dividends' [View article]
Eli,
I agree and believe no one should weigh too heavily on any one point when making an investment decision.
A high dividend growth rate is history and the future is ephemeral. The high growth rate currently enjoyed by ABC may be sustainable for a while but unless the company becomes an absolute monster like KO, the future growth will reduce or it will not be sustainable. Fifty years, even ten, is an awful long time to sustain a high growth rate. Most companies do not have or can not take advantage of the market available to do that.
Every investment has a lifetime of sorts. You have a plan when you purchase it, your expectations and the results you would like to see. As time goes on, you need to keep looking at the performance vs expectation to keep grounded in reality.
If the investment is not performing and there is another that you believe will do better in the future, your steps in the article are a good way to help you decide if it is time to change horses.
The Yield-On-Cost Trap, And When To Sell [View article]
The Investing Engineer,
Yes and No. I bought VZ last summer and am up 29.34% on it currently.
Current Yield and YOC are only 2 points to look at of many. Anchoring on either can be a huge mistake.
I look at YOC only to gauge my total return. I look at pure capital return on the original shares, dividends paid and the capital return on reinvested dividends to get a good handle on how my investment has performed. I use relatively standard analysis methods to determine whether the business is a good investment going forward. I use Current Yield, the 3 year dividend vs earnings growth and the payout ratio trend over the same period to get a better handle on the dividend future.
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
If your "stance" is to not put your family home at risk of loss to be silly enough to invest in an equity market that is currently on wobbly legs, WHY DID YOU WRITE THIS ARTICLE? (Sorry for shouting. I get excited sometimes)
Why encourage your readers to do something stupid?
If the market was to do another 2007/8, people could start losing jobs and homes again. This really is not a far-fetched possibility.
The Best Retirement Investing 'Mistake' [View article]
Eli,
One of the big Bucket pushers, Ray Lucia, was charged by the SEC on Sep 5th:
"for spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients."
Dividend Growth And Capital Growth Can Co-Exist In The Same Portfolio [View article]
David,
Great article but you have me scratching my head with this:
"I like to run three PE ratios. First is the PE for the most recent full year; second is for the trailing 12 months; and third is for the full year forward."
I am not a calendar expert and have not portrayed one on TV, but aren't the trailing 12 months the most recent year?
Are you looking at different periods like FY2011 and 3Q11 to 2Q12 when you state this?
Buy Westport Innovations To Benefit From Boom In Natural Gas Cars [View article]
I have never read a more worthless article on Seeking Alpha. It starts with the headline about cars, Westport does not have any current product in automobiles, and goes downhill to the sorry political c#@p.
Are the numbers you used for your valuation and dividend payout pre-split or post-split? I believe all the data available is pre-split and would not be accurate now.
3 High Yielding MLPs Offering Growth For 2013 And Beyond [View article]
One note on LINE vs LNCO: While the dividend per share is slightly lower for LNCO, the price has been running around $1.00 lower making the yield higher. I hold LNCO in 2 traditional IRAs and one Roth.
The Unbridled Truth About Dividend Contribution To Shareholder Profitability [View article]
I invest in a company to hold it for a long-time. I do have about 25% of our portfolio in non-dividend/low-dividend stock that were bought for growth. 46% is our dividend core and pays 100+% of our expenses. The rest is bonds/cash.
The notion that a dividend is a return of my own money is more like MLP's that are paying capital back to unitholders. Dividends are normally considered a payment of profit from a company. They are not a return of capital and do not affect the basis of your investment.
With a div payer, I get an immediate return. I can put it in ,y pocket, spend it or reinvest it. If the company goes bankrupt, they do not come back and ask me to return my dividends.
If a non-div payer goes bankrupt, you have nothing.
I might also note that good companies that are well managed have been great investments over time. Although I do not remember where I saw it, the best performance of any company for total return for the last 10 year(IIRC) is MO and its spin-offs. I bought it for the dividend. It has grown well beyond the dividends it paid out.
Over the last ~21 years, my position in KO has been no slouch either.
Bottom line: If the business is not healthy enough to continue to grow and pay a dividend, it shouldn't pay one. If it is, it is a candidate for me to own.
Oxwell
The Unbridled Truth About Dividend Contribution To Shareholder Profitability [View article]
I am not sure how I missed the pathetic article by Greg Loehr. It is possibly the most uninformed and misleading article I have ever read on dividends.
3D Systems: Has The Printer Jammed? [View article]
You ask, "Full disclosure would be informative, don't you think?"
I do not believe you understood what I said.
The more integrated an acquisition becomes, the lines between the two become so blurred the company can not tell what business is attributable to the acquired company. People and assets mesh together, people are let go or reassigned, other hired, responsibilities for operations are changed/moved, etc.
If the company can't tell the breakdown, how on earth do you suppose you as an outsider can tell?
Any attempt to do so is a silly and fruitless exercise.
3D Systems: Has The Printer Jammed? [View article]
You clearly do not understand GAAP for acquisition accounting/reporting. Companies like KO, PEP, etc do this almost continuously. They account for the acquired business normally for about one year as the business is integrated into their operation. As the integration continues, it is nearly impossible to clearly determine what "company" contributes what portion of revenue.
Considering The Opportunity Costs Of 'Trading Dividends' [View article]
I agree and believe no one should weigh too heavily on any one point when making an investment decision.
A high dividend growth rate is history and the future is ephemeral. The high growth rate currently enjoyed by ABC may be sustainable for a while but unless the company becomes an absolute monster like KO, the future growth will reduce or it will not be sustainable. Fifty years, even ten, is an awful long time to sustain a high growth rate. Most companies do not have or can not take advantage of the market available to do that.
Every investment has a lifetime of sorts. You have a plan when you purchase it, your expectations and the results you would like to see. As time goes on, you need to keep looking at the performance vs expectation to keep grounded in reality.
If the investment is not performing and there is another that you believe will do better in the future, your steps in the article are a good way to help you decide if it is time to change horses.
The Yield-On-Cost Trap, And When To Sell [View article]
Yes and No. I bought VZ last summer and am up 29.34% on it currently.
Current Yield and YOC are only 2 points to look at of many. Anchoring on either can be a huge mistake.
I look at YOC only to gauge my total return. I look at pure capital return on the original shares, dividends paid and the capital return on reinvested dividends to get a good handle on how my investment has performed. I use relatively standard analysis methods to determine whether the business is a good investment going forward. I use Current Yield, the 3 year dividend vs earnings growth and the payout ratio trend over the same period to get a better handle on the dividend future.
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Why encourage your readers to do something stupid?
If the market was to do another 2007/8, people could start losing jobs and homes again. This really is not a far-fetched possibility.
The Best Retirement Investing 'Mistake' [View article]
One of the big Bucket pushers, Ray Lucia, was charged by the SEC on Sep 5th:
"for spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients."
http://1.usa.gov/O3W6xI
You have to watch out for those buckets.
Dividend Growth And Capital Growth Can Co-Exist In The Same Portfolio [View article]
That explains it.
Thanks
Dividend Growth And Capital Growth Can Co-Exist In The Same Portfolio [View article]
Great article but you have me scratching my head with this:
"I like to run three PE ratios. First is the PE for the most recent full year; second is for the trailing 12 months; and third is for the full year forward."
I am not a calendar expert and have not portrayed one on TV, but aren't the trailing 12 months the most recent year?
Are you looking at different periods like FY2011 and 3Q11 to 2Q12 when you state this?
Gene
Buy Westport Innovations To Benefit From Boom In Natural Gas Cars [View article]
Mattel: Earnings Preview [View article]
Aren't you a bit late with this prediction?
"Toy company, Mattel Inc. (MAT) is slated to release its second-quarter 2012 results on Tuesday, April 17, before the opening bell."
Dividend Payments And Buybacks Decline In Q1 2012 [View article]
<i>This could increase the tax rate on dividends to over 43% versus the current 15% rate.</i>
The 43% is only for the highest marginal rates. Most will not pay taxes at that level.
ConocoPhillips: Dividend Stock Analysis [View article]
Are the numbers you used for your valuation and dividend payout pre-split or post-split? I believe all the data available is pre-split and would not be accurate now.