@@neuroperformance8803 That's not a company we cover. We have noticed there's a lot of interest in it though. We may touch on this in a coming somewhat related video.
I would agree ones stocks shouldn’t vary much year over year. As much as I love the ideas of dividends I really just try to stick with the companies I think are the very best companies. AMZN, GOOGL, META, CAT, ISRG, ABBV, and SBUX Year in and year out I try not to change. I hate that Sbux has been struggling to go higher for awhile, but figure in time they’ll figure it out. Maybe need MSFT and COST on my list as well
One type of company I find appealing, but still hatd to pull the trigger on, are companies that cut their dividend strategically, in order to free up some of those cash flows for future investments. For example, REITs like WP Carey, cutting their dividend for now, which breaks their dividend increase streak and lowers yield for now, but at the same time it's likely a good decision for the company as I think it will allow for better FFO growth over the coming years. Do you believe that things that look bad "on paper", can sometimes create opportunities for those looking to buy the stock now at a cheaper price?
Good questions. Our methodology is very simple and straightforward. If a company breaks its track record, it is kicked to the curb and replaced by one that hasn't. Companies that don't have the financial discipline, or management competency, to maintain those incredible growth track records have other problems under the hood. Our experience shows that trying to find value in fallen dividend champions isn't a good idea and we would never do that. WPC is being exited from our universe for the reason you mentioned and we're not looking back.
I also have WBA in my portfolio, I initially bought them because I had a thesis in 2020 that the mass vaccine roll-out would bring a ton of foot-traffic to their stores and drive strong revenue growth. They also had an attractive dividend yield and a solid track record (at the time). Unfortunately I am down 40ish% on that position and have been seriously considering selling and moving on after the dividend cut, haven't pulled the trigger yet though. Thinking about replacing it with CP if I do though. Good video, thanks for the content.
You're most welcome, thank you for sharing your thoughts! Our rule is that when we confirm a dividend cut (with little chance for the record being saved by some miracle) we exit the position immediately. Usually it takes a few days or so to confirm the data and double-check the decision.
You're most welcome, and you may be right on the rich valuation! We don't try to time the markets much. If we move into a DGI stock, we'll dollar-cost-average over several months and then let it ride. Most these stocks aren't very volatile so there won't be many "buy-the-dip" opportunities.
@@Nanalyze based on P/E CAT looks very reasonable to me. I can understand the price looks high if one is just looking at the amount a share costs to buy, but unless their earnings slow I think it’s a great stock.
Oof, that WBA price chart doesn't look good. Hope you didn't take too big a loss of principal on that one. I haven't looked at it systematically, but it seems that stock price of dividend companies do decline before they actually cut or stop growing the dividend. That can destroy many years of dividend income.
This is a very good point. The spike in yield is usually a signal that bad times are ahead, but not always. When the price of oil went negative during The Rona, Exxon's yield spiked to 9%, and we added shares at that time based on cash the account had from spinoffs and such. Turned out to be the right thing to do because the price of oil was eventually going to rebound based on economics. We ended up trimming XOM later because it became so overweight. So, each situation needs to be assessed on its own merits. This could use some back testing or post mortems on how this might be avoided in the future (adds to massive to-do list).
Another interesting point. We hold 30 DGI stocks, so a 50% loss on one is just 1.66% of principal. Because we've held most these positions for a very long time, it's hard to see cost basis ever get eroded. Point is, having a larger portfolio insulates from WBA-type issues, but also spreading the net wider means you're more likely to catch a few fish that eventually go bad. :)
You're right, it's as complicated as you want it to be. What we're doing is actually quite simple. We use 7 factors to come up with a simple Q score that can be used to rank dividend growth stocks. Anyone can do it.
I think the black York Policeman that put David's clipboard back in his bag seemed like a nice fair guy. I saw in the video that same policeman talked to someone while David was getting handcuffs changed, maybe this cop said there was no assault.
BEV definitely > hydrogen. If we're going to use electricity to power a vehicle, we do it then at 95% efficiency. Don't take that electricity and use it to feed a hydrogen-powered vehicle at 52% efficiency. While there may be some borderline industrial use cases out there, it won't be displacing electric vehicles because it wastes green energy that can be used to power electric vehicles.
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MPW has went to the floor, what should be the next logical step for those that has been waiting to be undervalued?
@@neuroperformance8803 That's not a company we cover. We have noticed there's a lot of interest in it though. We may touch on this in a coming somewhat related video.
I would agree ones stocks shouldn’t vary much year over year. As much as I love the ideas of dividends I really just try to stick with the companies I think are the very best companies.
AMZN, GOOGL, META, CAT, ISRG, ABBV, and SBUX
Year in and year out I try not to change. I hate that Sbux has been struggling to go higher for awhile, but figure in time they’ll figure it out.
Maybe need MSFT and COST on my list as well
Thank you for sharing! Some good quality companies in your list.
Thanks, very interesting video! I do own LIN currently and am very happy so far 😅
You're most welcome. LIN looks like a great company!
From the analysis it looks like Graco is also very interesting due to their low payout ratio and high growth dividend!!
Agree
One type of company I find appealing, but still hatd to pull the trigger on, are companies that cut their dividend strategically, in order to free up some of those cash flows for future investments. For example, REITs like WP Carey, cutting their dividend for now, which breaks their dividend increase streak and lowers yield for now, but at the same time it's likely a good decision for the company as I think it will allow for better FFO growth over the coming years. Do you believe that things that look bad "on paper", can sometimes create opportunities for those looking to buy the stock now at a cheaper price?
Good questions. Our methodology is very simple and straightforward. If a company breaks its track record, it is kicked to the curb and replaced by one that hasn't. Companies that don't have the financial discipline, or management competency, to maintain those incredible growth track records have other problems under the hood. Our experience shows that trying to find value in fallen dividend champions isn't a good idea and we would never do that. WPC is being exited from our universe for the reason you mentioned and we're not looking back.
I also have WBA in my portfolio, I initially bought them because I had a thesis in 2020 that the mass vaccine roll-out would bring a ton of foot-traffic to their stores and drive strong revenue growth. They also had an attractive dividend yield and a solid track record (at the time). Unfortunately I am down 40ish% on that position and have been seriously considering selling and moving on after the dividend cut, haven't pulled the trigger yet though. Thinking about replacing it with CP if I do though. Good video, thanks for the content.
Did you sell WBA yet? Once a dividend is cut, investors will be selling and before you know it the price is down 50%.
You're most welcome, thank you for sharing your thoughts! Our rule is that when we confirm a dividend cut (with little chance for the record being saved by some miracle) we exit the position immediately. Usually it takes a few days or so to confirm the data and double-check the decision.
Thoughts on APD ??
APD is a Dividend Champion so it's part of our Quantigence universe and we'll have scored it. Paying subscribers have access to that information ;)
Cat, very pricey now. Thanks for sharing. 😊
You're most welcome, and you may be right on the rich valuation! We don't try to time the markets much. If we move into a DGI stock, we'll dollar-cost-average over several months and then let it ride. Most these stocks aren't very volatile so there won't be many "buy-the-dip" opportunities.
@@Nanalyze based on P/E CAT looks very reasonable to me. I can understand the price looks high if one is just looking at the amount a share costs to buy, but unless their earnings slow I think it’s a great stock.
Oof, that WBA price chart doesn't look good. Hope you didn't take too big a loss of principal on that one.
I haven't looked at it systematically, but it seems that stock price of dividend companies do decline before they actually cut or stop growing the dividend. That can destroy many years of dividend income.
This is a very good point. The spike in yield is usually a signal that bad times are ahead, but not always. When the price of oil went negative during The Rona, Exxon's yield spiked to 9%, and we added shares at that time based on cash the account had from spinoffs and such. Turned out to be the right thing to do because the price of oil was eventually going to rebound based on economics. We ended up trimming XOM later because it became so overweight. So, each situation needs to be assessed on its own merits. This could use some back testing or post mortems on how this might be avoided in the future (adds to massive to-do list).
Another interesting point. We hold 30 DGI stocks, so a 50% loss on one is just 1.66% of principal. Because we've held most these positions for a very long time, it's hard to see cost basis ever get eroded. Point is, having a larger portfolio insulates from WBA-type issues, but also spreading the net wider means you're more likely to catch a few fish that eventually go bad. :)
I love cat
Seems like a solid company
Investing in companies is just not as complicated as whatever it is you are doing here.
You're right, it's as complicated as you want it to be. What we're doing is actually quite simple. We use 7 factors to come up with a simple Q score that can be used to rank dividend growth stocks. Anyone can do it.
I think the black York Policeman that put David's clipboard back in his bag seemed like a nice fair guy. I saw in the video that same policeman talked to someone while David was getting handcuffs changed, maybe this cop said there was no assault.
Bobbies on the beat. Wrong video, innit. 💂🏿
Gasoline > Hyrdogen
Here's the hydrogen piece the video talked about: ua-cam.com/video/xmW4q8CJku4/v-deo.html
BEV>gas>hydrogen
BEV definitely > hydrogen. If we're going to use electricity to power a vehicle, we do it then at 95% efficiency. Don't take that electricity and use it to feed a hydrogen-powered vehicle at 52% efficiency. While there may be some borderline industrial use cases out there, it won't be displacing electric vehicles because it wastes green energy that can be used to power electric vehicles.
I agree
Just cut ADM today ...
We'll never sell a dividend growth stock unless it commits the ultimate sin - not growing its dividend!