Dividend Growth Forum

This might be a shocker, but I just bought a big position in LB. Call it a woman’s intuition lol

Sold out of TGT, added more TEVA

I have a small position in BEN based on a recommendation from a newsletter that I used to subscribe to. The stock is still down since then (along with many of the others that they suggested) as it seems like those and the others were based on historical PE’s etc and not so much at what might be driving the business.

I would agree with the previous poster, so many investors are moving away from actively managed, I think the players in this segment are going to need to change their business model. Not that it can’t happen, but doesn’t give me the warm fuzzies.

(08-23-2019, 08:02 AM)Ron Ricco Wrote: [ -> ]I have a small position in BEN based on a recommendation from a newsletter that I used to subscribe to. The stock is still down since then (along with many of the others that they suggested) as it seems like those and the others were based on historical PE’s etc and not so much at what might be driving the business.

I would agree with the previous poster, so many investors are moving away from actively managed, I think the players in this segment are going to need to change their business model. Not that it can’t happen, but doesn’t give me the warm fuzzies.

There was a time when most of the better known investment brokers were decent investments.  I know very few people under the age of 60 that pay fees for any assistance.  They still make money on a variety of fees and margin interest, but it would seem they need a drastic change to the business model while the industry further consolidates.  There are a few brick and mortar where I live, but it sure doesn't look like a growth industry.

(08-23-2019, 09:39 AM)fenders53 Wrote: [ -> ]

(08-23-2019, 08:02 AM)Ron Ricco Wrote: [ -> ]I have a small position in BEN based on a recommendation from a newsletter that I used to subscribe to. The stock is still down since then (along with many of the others that they suggested) as it seems like those and the others were based on historical PE’s etc and not so much at what might be driving the business.

I would agree with the previous poster, so many investors are moving away from actively managed, I think the players in this segment are going to need to change their business model. Not that it can’t happen, but doesn’t give me the warm fuzzies.

There was a time when most of the better known investment brokers were decent investments.  I know very few people under the age of 60 that pay fees for any assistance.  They still make money on a variety of fees and margin interest, but it would seem they need a drastic change to the business model while the industry further consolidates.  There are a few brick and mortar where I live, but it sure doesn't look like a growth industry.

Yeah. It's one of those stocks that passes all of my typical objective metrics for DGI stocks, except the subjective "is there a secular decline in the industry or other external factor that jeopardizes the current business model." Maybe they nimbly navigate and come out smelling like roses in the end. I just know I have zero interest in actively managed funds, and most people I know in my age group (Oregon Trail Generation, woo) don't invest that way either. 

On the opposite side of the spectrum, I continue to dollar cost average on my SKT holding, as I don't think outlet malls will be supplanted by Amazon. Might be wrong on that call. Thankfully the majority of my holdings don't have this huge ? hanging over them, so I don't worry about it too much. With ~90 holdings, I can't really be bothered. My DGI law of big numbers says that most of them will do well, and if they don't, it means that the entire socioeconomic model of the past century or so has broken down completely.

Added a little more XOm

(08-21-2019, 11:03 AM)stockguru Wrote: [ -> ]What do you all think of BEN?

Yield at 3.8% now and PE of 10. Looks cheap

Also on another note: Do you realize this site is not secure? Its still running on http. Shouldn't it be https???

I'm still a fan of BEN, though perhaps that's just confirmation bias or something. Last I checked in, even with the declining AUM, they were generating a lot of free cash and buying shares back aggressively. I'll try to do a detailed update soon and will post my thoughts. Also note that the posted yield is usually a bit to a lot understated, since they periodically supplement the boring quarterly dividend with a special dividend of some kind.

As to the site security, yeah. I'm not very technically proficient, and am always short on time, so I never quite get around to learning more about stuff like that. Any of our regulars know much about such matters and want to give me some advice?

Thanks.

(08-23-2019, 01:55 PM)Kerim Wrote: [ -> ]

(08-21-2019, 11:03 AM)stockguru Wrote: [ -> ]What do you all think of BEN?

Yield at 3.8% now and PE of 10. Looks cheap

Also on another note: Do you realize this site is not secure? Its still running on http. Shouldn't it be https???

I'm still a fan of BEN, though perhaps that's just confirmation bias or something. Last I checked in, even with the declining AUM, they were generating a lot of free cash and buying shares back aggressively. I'll try to do a detailed update soon and will post my thoughts. Also note that the posted yield is usually a bit to a lot understated, since they periodically supplement the boring quarterly dividend with a special dividend of some kind.

As to the site security, yeah. I'm not very technically proficient, and am always short on time, so I never quite get around to learning more about stuff like that. Any of our regulars know much about such matters and want to give me some advice?

Thanks.

Just updated my spreadsheet on BEN, and I'm feeling pretty good about it. Yeah, hard to not worry about it in the long term, but for now, it is still generating good cash. Low EPS and way above-average (for BEN) yield, and payout ratio -- while well above BEN's historical average -- is still very manageable in the low 40s. They're still buying back shares aggressively, and most pleasantly, while AUM continues to drift down a bit, it isn't falling quickly like it was in the 2014-2016 time frame. I'm underwater, and may use this opportunity to average down, either through outright purchase, or maybe sell some puts.

Added to MO.

You guys may have timed those MO buys pretty well. Up almost 10% today on news of a potential PM and MO merger.

Bought BMO for the first time. My fourth Canadian bank.

So I read a comment on SeekingAlpha
MO shareholders would get 0.70 shares of PM for each share of MO and PM increases dividend to $4.80
in that scenario, MO shareholders would have the same dividend payout. The "buyout" price would be just over $51 which is where we are now.