Tag Archives: dividends

WSJ Misinterprets Its Own Data to Demonstrate Companies Are Spending Too Little on Capex, too much on Dividends & Buy-backs

To its credit, the WSJ did some serious quantitative work in an effort to determine whether Blackrock’s Larry Fink is correct that companies are paying out too much money to shareholders while starving capital investment. Fink is right, the Journal … Continue reading

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The PETRR Principal: How to Compare Growth Stocks and Yield Stocks

Today’s Wall Street Journal points out that despite weak EPS growth Procter & Gamble commands a higher PE ratio than Google because it has a juicy dividend.  Investors reaching for yield are piling into high dividend stocks without paying much … Continue reading

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Valuation Levitation?

For the past four years I have been asking: “Why do so many investors want to own a bond that pays 2% when they could own a basket of blue-chip stocks with a dividend yield of over 3% AND the … Continue reading

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Off the Dividend Cliff?

Focus on the recession risk posed by the “Fiscal Cliff” has diverted attention from a the Dividend Cliff written into current law.  Prior to 2003 dividends were taxed as ordinary income at a taxpayer’s marginal income tax rate—far above the … Continue reading

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“Not Doing Too Much” – Smart Cash Deployment Enhances Total Return

Twelve years ago stock market investing was all about earnings growth while dividends were BORING.  Now the reverse is true, with investors “reaching for yield” while growth is, arguably, under-priced.  Investors need a framework for evaluating the trade-off between growth … Continue reading

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Are Dividend Growth Stocks Overvalued?

Dividend growth stocks are so 2011.  Yesterday, a portfolio manager was interviewed on CNBC. “What are you recommending?” ” We like high quality dividend growth stocks.” “Everyone says that.” Sometimes, “everyone” is not wrong.  Perhaps because equities are generally out of … Continue reading

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