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Old 01-07-2012, 12:50 AM
 
3,545 posts, read 4,753,529 times
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Quote:
Originally Posted by treasurekidd View Post
I agree - STD is a great
I never thought I would live to see the day that someone promoted STDs!



Let's take a look at Banco Santander and see how they measure on the Teak Investing Scale.
Current Price: $6.91
Preceding annual dividend (paid out quarterly): $0.8686 (Dividend yield 12.6%)
EPS Trend: $0.34 > $0.34 > $0.29 [-0.1% 5-Year growth rate annualised]
Revenue Trend: +9.6% 5-Year growth rate annualised
Cash flow: looks like a sine wave, up-and-down, but general uptrend

P/E: 6.16
P/Sales: 3.84
P/Book: 0.99
P/Earnings Growth: 0.50
ROAssets: 0.74
ROEquity: 16.1
Debt/Equity: 4.65
Dividend Payout: 59%

Well, if I was into buying banks at this time (I am not), I would certainly follow this one closely for another quarter or two. The sliding earnings is a concern; with ~$0.21 per share dividend payout, that shrinking earnings number means that the dividend payout may get too high and, thus, unsustainable.

Also, as an ADR (American Depository Receipt), I think that the stated dividend yield does not include the foreign taxes that will get withheld for us American investors. Thus, that 12.6% DY would actually be lower in reality.

PEG looks good as do the other price ratios; but I don't like to see debt over 4.5 times the equity.

Last edited by Teak; 01-07-2012 at 01:45 AM..
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Old 01-07-2012, 01:12 AM
 
3,545 posts, read 4,753,529 times
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Quote:
Originally Posted by Nudetypist View Post
Did a quick search and found similar threads but not quite the same. I just cleaned my portfolio and looking to get more dividend stocks for 2012. What are your favorites?

Currently I own MO, VOD, HAS, and YUM as my dividend stocks. I'm thinking about getting WM, ABT, T, and/or KFT. They all have a pretty good dividend history and solid business models.

Any other suggestions? Other than the usual JNJ, KO, PEP, MCD.
Actually, Nudetypist, your list of stocks is a good one. One thing to note are the various sectors out there. Don't over-invest in one or two sectors and ignore some of the others. Also, there are a few sectors to avoid altogether.

To get decent stock diversification really only requires that you have 7-10 companies at least spread over 7-8 sectors (according to finance theory). I can help you organise the above into the following list:

Healthcare
----------
JNJ
ABT

Consumer staples
------------
KO
PEP
WM
KFT

Consumer discretionary
--------
HAS

Food
-----
YUM
MCD

Telecomm
--------
T
VOD

Cigarettes
--------
MO

Here are some sectors that I think you should consider investing in, and suggested names to look at:

Energy
-------
CVX
XOM
COP

Minerals/Mining
----------
BHP
RIO
FCX

Technology
-----
MSFT
HRS
INTC

Timber REITs (trees keep growing no matter what happens; high dividends)
-------
WY
PCL
RYN

Cigarettes (some put into consumer staples)
--------
PM (for international exposure)
RAI

Bond Funds (international)
-------
GIM
ELD

Foreign stock funds or ETFs
-----------
TDF (China)
EWZ (Brazil)
DEM (Emerging markets)

Pipelines (like toll roads, but better)
-------
ENB
KMP

Industrials
----------
GE
KMT
PH
ETN

Agriculture
-----------
BG
ADM
DE

Utilities (toss off great dividends)
-------
NEE
SO

Transportation
-----------
NSC
BNI

Regional banks
--------
USB
WFC

What to avoid: car companies (if you have to: F), airline companies, and most consumer discretionary which includes cars, airline flights and trendy clothing.

Avoid companies that depend upon the "surf-a-fad" business model. Fads come and go; e.g., Crocs stink, physically and financially.

Last edited by Teak; 01-07-2012 at 01:23 AM..
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Old 01-07-2012, 08:18 AM
 
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Teak,

I really like your "picks" and I am curious what is your annual percentage rate of return?
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Old 01-07-2012, 08:52 AM
 
14,255 posts, read 17,069,584 times
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Quote:
Originally Posted by smilinpretty View Post
Teak,

I really like your "picks" and I am curious what is your annual percentage rate of return?
42% of my retirement portfolio (which is managed) is invested in dividend bearing equities. Average annual yield (at end November) was around 3%.
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Old 01-07-2012, 02:09 PM
 
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NYSE: TGP

Dividends up 19% over last quarter.
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Old 01-07-2012, 04:24 PM
 
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Quote:
Originally Posted by smilinpretty View Post
Teak,

I really like your "picks" and I am curious what is your annual percentage rate of return?
I don't keep track of my annual rate of return because I invest new money every year which makes the calculations tedious. (One would need to track the return on the new money separately.) But I can say that my net worth has increased at an annualised rate of 24-25% over a 16-year period. It includes new savings plus investment growth.

After I ditched most of my mutual funds in 2005, my annual dividend income went from $1,850 in 2006 to $7,320 last year. That is an annualised growth rate of 25.8%.

Good enough for me.
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Old 01-07-2012, 04:28 PM
 
3,545 posts, read 4,753,529 times
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Quote:
Originally Posted by Jaggy001 View Post
42% of my retirement portfolio (which is managed) is invested in dividend bearing equities. Average annual yield (at end November) was around 3%.
I keep track of the annual dividend yield of my entire portfolio and it is currently right around 4.8%. But then I have been investing in some high-yield stuff since 1996, which I have kept, and dumped some low-yielders along the way. When you dump a low-yielder, and remove those numbers from the calculation, you introduce a bias called the "survivorship bias".

But it looks good on paper!
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Old 01-09-2012, 03:39 PM
 
Location: South Carolina - The Palmetto State
1,151 posts, read 1,755,450 times
Reputation: 1484
D and DUK
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Old 01-10-2012, 07:13 AM
 
13,422 posts, read 18,486,570 times
Reputation: 7110
43 dividend payers for you dividend seekers:
43 Dividend Champions On Sale: A Rare Opportunity - Seeking Alpha
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Old 01-10-2012, 05:11 PM
 
3,545 posts, read 4,753,529 times
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Quote:
Originally Posted by howard555 View Post
43 dividend payers for you dividend seekers:
43 Dividend Champions On Sale: A Rare Opportunity - Seeking Alpha
Nice list, howard555, but unfortunately the one name that I have been tracking is not on that list, but on the short list of "fully-valued" companies. I am waiting for it to drop so that I can jump in.

AFL looks good for someone who wants to get into the financial space, but not into a bank just yet.

I own ADM and recommended it for the ag/food space.

A lot of those in my portfolio are also on that list.

There is a funny comment in the comment section below that goes:
"A portfolio is like a bar of soap, the more you handle it, the smaller it gets."
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