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New to DGF
#41
Good start. I'm eyeing JNJ myself and will probably make a purchase during this week.
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#42
Have a question on ROE (return on Equity). As I am educating I am finding one of the healthy criteria in selecting a company is an ROE of 15% or greater. The PM stock seems to be having ROE of -64.67% -- This seems to be way under the desired value.
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#43
(05-12-2015, 08:43 AM)Dividend Watcher Wrote: Don't be nervous when you see the red in the G/L column -- especially for these companies. I like to use that to see if I want to add more. If the loss gets greater than 10%, perhaps you'd want to add another small chunk.

Perfect answer, DW!

It is not at all unusual for recent buys to dip into the red. That only reflects the fact that short-term price fluctuations are normal and impossible to predict. If you've chosen great companies (like the ones you have), over the years the price will increase as earnings per share and dividends slowly climb. That is the hope, anyway. But as others have said, better to keep your attention on the income stream that you have purchased.

But just like DW says, when one of my favorites is in the red like that, my first thought is "time to consider buying more!". If I liked XOM enough at $92 to buy it then, I should love it at $87.
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#44
(05-18-2015, 09:03 AM)Kerim Wrote:
(05-12-2015, 08:43 AM)Dividend Watcher Wrote: Don't be nervous when you see the red in the G/L column -- especially for these companies. I like to use that to see if I want to add more. If the loss gets greater than 10%, perhaps you'd want to add another small chunk.

Perfect answer, DW!

It is not at all unusual for recent buys to dip into the red. That only reflects the fact that short-term price fluctuations are normal and impossible to predict. If you've chosen great companies (like the ones you have), over the years the price will increase as earnings per share and dividends slowly climb. That is the hope, anyway. But as others have said, better to keep your attention on the income stream that you have purchased.

But just like DW says, when one of my favorites is in the red like that, my first thought is "time to consider buying more!". If I liked XOM enough at $92 to buy it then, I should love it at $87.

Thanks Kerim.

Guys,

Also have a question!

As of now I have JNJ, KO and PM for my initial 3K.

Started to do the monthly 1k, and ready to acquire fairly priced decent stocks. I am thinking of WMT, O, OHI, UNP.

Any thoughts or feedback?

Thanks.
Paul
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#45
I would rank them in order of current attractiveness as UNP, OHI, O then WMT.

UNP is trading at fair value for the first time in about a year and a half and OHI is nice with a 6% yield.

I like O as well, but its still a bit expensive in my own opinion.

I sold WMT last fall due to the declining growth rate and relatively weak dividend yield. Just not enough growth there for my tastes.

Long UNP, O, OHI.
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
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#46
(05-18-2015, 01:19 PM)EricL Wrote: I would rank them in order of current attractiveness as UNP, OHI, O then WMT.

UNP is trading at fair value for the first time in about a year and a half and OHI is nice with a 6% yield.

I like O as well, but its still a bit expensive in my own opinion.

I sold WMT last fall due to the declining growth rate and relatively weak dividend yield. Just not enough growth there for my tastes.

Long UNP, O, OHI.

Thanks!
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#47
(05-18-2015, 01:19 PM)EricL Wrote: I would rank them in order of current attractiveness as UNP, OHI, O then WMT.

Agreed, in fact I've been fattening up my UNP position quite a bit here.
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#48
(05-12-2015, 05:10 PM)stewardinlife Wrote: Have a question on ROE (return on Equity). As I am educating I am finding one of the healthy criteria in selecting a company is an ROE of 15% or greater. The PM stock seems to be having ROE of -64.67% -- This seems to be way under the desired value.

SIL, I posted a new thread here addressing your question. I hope it helps! Any questions, ask away there.
=====
How do they get the deer to cross at that yellow road sign?

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#49
Just bought UNP (10) and OHI (14) today as part of my monthly acquisitions.

(05-18-2015, 06:07 PM)stewardinlife Wrote:
(05-18-2015, 01:19 PM)EricL Wrote: I would rank them in order of current attractiveness as UNP, OHI, O then WMT.

UNP is trading at fair value for the first time in about a year and a half and OHI is nice with a 6% yield.

I like O as well, but its still a bit expensive in my own opinion.

I sold WMT last fall due to the declining growth rate and relatively weak dividend yield. Just not enough growth there for my tastes.

Long UNP, O, OHI.

Thanks!

Eric, Could you shed some light on your WMT pullout. Just curious, when you say WMT has declining growth rate, are you meaning the stock in general? Is WMT out of your dividend growth rate criteria? What is the typical growth rate you have established personally to be in your portfolio?

From my own research for WMT:

1. It is on Dvivdend Champions list
2. Yield: 2.56
3. It has DGR: 1 yr, 3 yr, 5 yr, 10 yr -- 5.7, 11, 12.6, 14.8 respectively.

Are there any other important metrics that might cause WMT to be a weaker investment?

Your thoughts/elucidation would only help me educate. Thanks in advance.

Paul
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#50
(05-20-2015, 09:55 PM)stewardinlife Wrote: Eric, Could you shed some light on your WMT pullout. Just curious, when you say WMT has declining growth rate, are you meaning the stock in general? Is WMT out of your dividend growth rate criteria? What is the typical growth rate you have established personally to be in your portfolio?

Here is an article I wrote about WMT shortly before I sold it at the beginning of the year. In short, the payout ratio has gotten to a point where it appears management isn't willing to go much higher on, so the last two dividend increases have been around 2% with increases from $0.47 to $0.48 last year, and from $0.48 to $0.49 with the most recent one.

Since that article, analyst earnings estimates have continued to trend lower and are now projected at $4.84 for this year. As a result, I don't see much of a dividend increase happening again next year and I think we will continue to see the $0.04 per year raises until the payout ratio gets back to near the 30% level again.

So in the end, with a relatively low dividend yield of around 2.5%, and my expectations for low to mid single digits earnings growth and dividend growth in the 2% range for the next few years I just think there are much better opportunities out there.

To your last question, I'm generally looking for double digit dividend growth with stocks yielding under 2%, 8-10% dividend growth for the 3% yielders, and 4-8% for the 4%+ yielders.
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
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