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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (44713)	9/30/2011 11:30:42 PM
From: Difco	Read Replies (2) \| Respond to of 78666

E_K_S, I read a Credit Suisse Global Investment Returns research paper, which showed that a $1 invested in US Equities in 1900 grew to $600 by the year 2000 when dividends were reinvested. When the investor relied solely on the capital gains, the $1 grew to approximately $10. I was shocked by the difference! For comparison, if you had invested in bonds you would have had approximately $6. Personally, I have been underestimating the compounding power of dividends.

To: E_K_S who wrote (44713)	10/1/2011 4:23:06 AM
From: Paul Senior	Respond to of 78666

EKS, it looks to me like most of my sales are of stocks with little (under 2%) or no dividend yields. Ex.: today cut back more on Quest Diagnostics (DGX, yield =.8%). Most of my buys are of stocks that have higher dividend yields (>2%). A few category exceptions: e&p companies which I continue to add to a little, and which either have no dividends or very little; also bank stocks (Ex.:adds to BAC and C as they fall) Like you, I have peeled off shares of some utilities making new highs. With utilities closer to lows, I am adding to them.

To: E_K_S who wrote (44713)	10/1/2011 9:54:10 AM
From: Sergio H	Respond to of 78666

Good Morning EKS. Thanks for pointing out the conclusion on the dividend article. Just wanted to add that beyond that, the author also concluded that free cash flow was the underlying theme in analyzing the dividend because that is the primary driver for both capital gain and dividend. You mentioned moving funds to preferred shares seeking "potential" potential capital appreciation and selling stocks hitting new highs to buy beaten down value plays. I am curious as to both of these strategies. We may want to discuss BAC preferred ?

To: E_K_S who wrote (44713)	10/1/2011 10:09:01 AM
From: Grommit	Read Replies (3) \| Respond to of 78666

I have been doing the same as you here: EKS: "Grudgingly, I have been peeling off shares from some of my good dividend payers to buy some of the truly beaten down value plays. I have parked a chunk of money in some preferred shares that pay a nice dividend AND offer some "potential" capital appreciation. The group I am peeling shares from are those utilities making new highs and some KMB also near all time highs." me: I sold all of my NI, and most ATO recently. AGL will be next -- a little at at time. In the last crash, utilities also were nailed, so we are fortunate that they have held up this time. I was holding them this time as a cash substitute, and it worked. KMB: I sold a small amount, and will consider more. Which pref shares do you consider to have cap appreciation potential? Prob the energy pref shares, I guess. My exposure is very limited there, whew. MPW?, you ask. I own a small amount. I see better potential in AHT, LXP, DRE, BDN, OFC, GOV, because I do not accept the future earning projections of MPW. I got out of medicaid dependent OHI, LTC. Just sold all KWR for a tax toss, and bought GLW as a substitute. Not related businesses, but maybe I will swap back in 30+ days. I am attracted to trains, and will prob buy some UNP with utility funds. I am still even YTD (well, really -0.9%), counting dividends received, with a portfolio div yield at 6.9%. :o) Utilities at 8% of portfolio, vs 16% on Jan 1. cash 1% pref stocks 47% utilities 8% reits 36% other stocks 8%