Dividend Growth Investor

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    • Tue Dec 2nd 17:32 PM
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      Rating: 0 0
      Commented on:
      A Dividend Primer, You Don't Get Something for Nothing
      22Thoroughbread,

      You are looking at the issue from the standpoint of a daytrader. It is true that the stock price at the open is reduced by the amount of the dividend, but more often than not this is only a cosmetic change as the market adjusts it value up or down based off other factors.
      Stocks that pay dividends tend to outperform those that do not, as their dividend checks tend to soften any declines in bear markets and further compound your profits in bull markets.
      View article »
    • Tue Dec 2nd 11:36 AM
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      Rating: +1 0
      Commented on:
      Highest Yielding Stocks Going Ex-Dividend in December
      I wrote an article on the dividend capture strategy:

      www.dividendgrowthinve...

      Basically this strategy assumes that markets are inefficient and that there is free lunch. Even the author of the article doesn't do what he preaches - then why should you risk a large capital loss for a small dividend?

      View article »
    • Tue Dec 2nd 11:32 AM
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      Rating: 0 0
      Commented on:
      Top High Dividend Stocks in a Down Market
      It's important to make sure that the dividend is adequately covered. If the payout is significantly more than 50%, i would be hesitant in purchasing the shares..
      View article »
    • Sun Nov 30th 17:12 PM
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      Rating: +1 0
      Commented on:
      Merger Arbitrage: Sound Strategy for a Bear Market
      Looks like GDL has outperformed the market in 2008 by falling only 15%. ( total returns). The weird part is that GDL seems to be returning capital in order to maintain its 40 cents/quarter distribution.
      It also looks to me as if the fund participates in all deals, which is someting I am not looking to achieve. By all deals I mean deals that are just announced, and still have obvious hurdles in front of them. For example on 6/30/2008 GDL owned shares of YHOO even though the merger was never approved by YHOO's board.

      Please review this post on merger arbitrage:

      www.dividendgrowthinve...
      View article »
    • Sun Nov 30th 16:55 PM
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      Rating: 0 0
      Commented on:
      40 Net Current Asset Stocks for Value Investors
      MRXG4,

      I don't own any of the above stocks. I have been researching TAIT in order to determine how much can you get out of it if the inventory were sold off. I also like that TAIT seems to be returning capital to shareholders through dividends over the past 2 years.

      Of course the builders also look interesting as a potential value play. Graham made a lot of money in the 1930's by buying whole companies selling below the net current assets minus total liabilities and then liquidating them..
      View article »
    • Wed Nov 26th 09:58 AM
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      Rating: 0 0
      Commented on:
      Markets Punish Dividend Cutters
      Aalan,

      My reviews of companies cutting or eliminating dividends suggest that more bad news are ahead for stockholders in those that provide negative dividend news. I do write how much the stock has increased or decreased in a given week, but that's because I provide the dividend cuts on a weekly basis. I wish I had started tracking dividend cuts a long time ago..
      In a previous post I posted a chart from Ned Davis research, showing that dividend cutters or eliminators underperform the dividend growers and initiators over the long-term. So I wouldn't expect these stocks on average to perform well over time.

      On Nov 25 02:48 PM Aalan wrote:

      > If a business is losing cash flow due to market conditions beyond
      > its control, I'd rather it maintain its long-term viability by putting
      > its remaining cash to working more efficiently, rather than cannibalize
      > itself to make stockholders happy for another quarter. If you're
      > only interested in short-term trades, then your response makes sense--but
      > don't blame the business model; that's strictly market-timing.
      View article »
    • Mon Nov 24th 10:57 AM
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      Rating: 0 0
      Commented on:
      It Doesn't Always Pay to Follow Buffett's Lead
      Another article that shows you how little people understand about Buffett and his investments. GE and GS were preferred stock investments, earning 10%. Even if GE or GS goes to $1/share BRK.a would still get preferential treatment to the common shareholder.

      Furthermore, comparing the one month performance of your clients is irrelevant, since BRK.A holds stocks primarily as long term investments, unless they are special situation type investments.

      View article »
    • Mon Nov 24th 09:47 AM
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      Rating: +1 0
      Commented on:
      Why Should Companies Pay Dividends?
      Naveed,

      The chart from Ned Davis Research compares the performance of dividend paying S&P 500 stocks versus non-dividend paying S&P 500 stocks. All S&P 500 stocks are believed to be established enterprises.
      View article »
    • Sun Nov 23rd 18:29 PM
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      Rating: +2 0
      Commented on:
      The Dow's Lost Decade
      The etf that covers Dow Industrials (DIA) closed 1998 at 91.53. The closing price for 1999 was 115.19.

      Since the end of 1998 DIA has distributed $20.03 in dividends/share
      Since the end of 1999 DIA has distributed $18.36 in divs/share

      In 1999 DIA distributed $1.67 in dividends. In 2007 it distributed $2.75. I would say that investors didn't do as bad, although not as good as in prior decades.
      View article »
    • Sun Nov 23rd 18:13 PM
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      Rating: 0 0
      Commented on:
      Electric Utilities: Thus Far a Relative Safe Haven
      As a proud owner of ED i could definitely say that utilities have been an outperforming factor for my dividend portfolio in 2008.
      View article »
    • Sun Nov 23rd 18:03 PM
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      Rating: +1 0
      Commented on:
      Betting on Ford: Ugly Stock, Intriguing Options Opportunity
      I also think that GM bonds are a much "safer" investment than GM stock at this moment. The covered call on Ford could be a nice idea as long as the stock doesn't fall a lot.
      View article »
    • Sun Nov 23rd 17:51 PM
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      Rating: +1 0
      Commented on:
      My Dividend Portfolio: I Like Beer
      If you are a fan of alcohol stocks, have you considered Diageo (DEO) as a global dividend play?

      www.dividendgrowthinve...
      View article »
    • Wed Nov 19th 14:33 PM
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      Rating: +1 0
      Commented on:
      Going for High Yield Stocks
      I strongly doubt that the stocks with the highest dividends have sustainable dividend rates. Typically they fluctuate up and down. I believe that the best strategy is to include the high yielders only if they have a history of consistent dividend increases for at least a decade. Other than that you are speculating and giving in to greed..
      View article »
    • Tue Nov 18th 13:54 PM
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      Rating: +1 0
      Commented on:
      Real Price of Gas Approaches a Historic Record-Low
      Mark,

      I just wanted to say that I really enjoy the historical perspective in your articles.

      I never considered the fact that gas prices are in a long term decline..

      View article »
    • Tue Nov 18th 11:30 AM
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      Rating: 0 0
      Commented on:
      100% Yields on Ecuador Bonds: A Sign of the Times
      Interesting article. I see a great profit opportunity for emerging market countries, if they learn how to play smart with their debts. First emerging market countries like Ecuador manage to sell as much debt as possible when times are good, by locking in low long-term interest rates. Then they just wait for the next global crisis and then they default on investors, sending the bonds to super low levels..

      If they have 2 billion on hand, why can't they ( at least theoretically) simply purchase these bonds.. And reduce their debts forever?
      View article »