Comments on Dividend Growth Investor: Buffett the dividend investor

Very informative post.My neighborhood guy is runni...

2010-05-19T01:58:34.473-07:00

Very informative post.My neighborhood guy is running this business.

Buffett likes receiving dividends or cash flows so...

2010-02-01T15:46:28.068-08:00

Buffett likes receiving dividends or cash flows so that he could re-invest into new businesses. Buffett is minority in the investment world and the extra cash has helped him to acquire companies at decent ROEs. Given the size of BRK.A however, the company should have started distributing dividends much earlier. It has followed S&P 500 returns for the past few years.

Isn't it ironic, then, that Berkshire never pa...

2010-02-01T14:47:09.790-08:00

Isn't it ironic, then, that Berkshire never pays a dividend!

Subu, Unfortunately it is difficult to find good ...

2010-01-31T10:39:24.562-08:00

Subu,

Unfortunately it is difficult to find good free stock screeners that would fit a dividend growth investor's charcteristics.

I typically start by including all dividend achievers, champions and aristocrats in a list in yahoo finance and then process the data myself in excel.

Hi That was a great post... By the way I'm l...

2010-01-31T06:41:57.381-08:00

Hi

That was a great post...

By the way I'm looking for some good, free stock screeners..

any suggestions ?

best regards
Subu

Helen, That's the return on the Berkshire'...

2010-01-28T13:57:35.026-08:00

Helen,

That's the return on the Berkshire's stock portfolio, which is valued at approximately 50 - 60 billion.

If you read about Buffett's investments in See's Candies you would understand that he likes to receive "distributions" from his businesses that he could later reinvest.

$1.3B sounds like a lotta lettuce, but it's on...

2010-01-27T18:17:23.196-08:00

$1.3B sounds like a lotta lettuce, but it's only a 0.8% return on the ginormous $166B BRK.A. Dividends may be one factor that Sir Buffet considers, but I don't think it's the primary metric.

Jason, The whole point of dividend growth investi...

2010-01-16T07:49:42.422-08:00

Jason,

The whole point of dividend growth investing is to purchase stocks with low to average current yields which grow dividends year in and year out. This produces good total returns in the future. For example let's look at a stock that is yielding 2% today but grows the dividend at 12% per year. Let's say that the stock trades at $100/share and pays a $2/dividend. Chances are that 6 years from now the stock would still be yielding 2%. The dividend is now $4, but the stock is trading at $200. So while new investors get a 2% yield, the original investor is generating a yield on cost of 4%. Over time dividend growth stocks generate better yields on cost than the highest yielding stocks of today. In addition to that Dividend growth stocks essentially provide inflation proof source of income to investors.

Matt,

MTB has maintained distributions flat since 2007. Thus it has dropped off the Dividend Aristocrats list.

Is there a mistake there with M&T Bank? A 3$/s...

2010-01-15T06:26:07.986-08:00

Is there a mistake there with M&T Bank? A 3$/share dividend and it's not champion?

Great post. The obvious question is this...if it&#...

2010-01-14T09:05:37.105-08:00

Great post. The obvious question is this...if it's dividends you're after, why invest in low dividend paying stocks like Walmart? There are so many companies out there that pay much better.

Great Article. Buffett is drawn to companies that ...

2010-01-13T19:59:37.874-08:00

Great Article. Buffett is drawn to companies that can generate steady cash flow. You're right that most people miss the dividend aspect behind his investments.

Think Dividends

This is great hearing how an extremely successful ...

2010-01-13T17:43:59.804-08:00

This is great hearing how an extremely successful man is using his money and that you can use a similar strategy to create wealth for yourself.