A Look ‘Down Under’

It’s been about two years since I first invested in Australian issues, choosing to take a slow approach while I obtained some practical experience first hand.  Certainly many of the yields are good, but the economy – much like Canada – is resource based.  Then there’s the whole franking deal.  Plus the foreign exchange conversion – but this has been relatively stable at 75 – 80 cents per USD.  Add to that, until recently the selection was limited to ADRs or using a cost prohibitive foreign desk.

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Crisis Management

Not to belabor a beaten down topic, but as we all know the story – and in many instances rehashed – versions of the Kinder Morgan fiasco and the subsequent fallout.  A perspective I haven’t seen addressed is human nature.  In a previous life, a role I held was to design and create contingency plans for telecom networks  – and subsequently data centers – in the event of a major outage.  The obvious corollary being a massive dividend cut (i.e., catastrophic failure).

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2015: What Went Wrong

This is the final segment to the best and worst of 2015. This series was inspired Bespoke Investment Group’s article tailored to actual holdings in DGI portfolios. The first post, 2015: What Went Right can be found here.

Again I need to address the caveats:

  • Only publicly disclosed data culled from portfolios in my Blog Directory were used. If your blog is not listed, your data was not included.
  • My data only reflects a snapshot in time. Once entered in my database I generally make no updates.
  • I make no guaranty as to the accuracy of the data either through input errors, processing errors, or the legitimacy of the source data. Meaning, use at your own risk – or you get what you pay for.

Bespoke’s article raised a number of questions in my mind. Although not specifically targeted to the DGI community, I found it to be timely none-the-less. So the question today is why were so many ‘losers’ contained in DGI portfolios?

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Happy Anniversary!

One year ago marked my first post to this blog.  Along the way I’ve made new friends, shared ideas,  and debated strategy (mostly on Seeking Alpha).  And for this I thank you.

On occasion I run across posts that either beg for a rebuttal or leave me thinking.  This week had three blogs; Dividend Diplomats, Div4Son and Roadmap2Retire filling the bill. Continue reading

Ode to the Mantra

It would appear that another fixture in the DGI community has bitten the dust.  I don’t know the full story – and I doubt many do – but whether it was greed, misrepresentation, miscalculation, lack of understanding, or a combination of these Dividend Mantra is no more.  Long Live The Dividend Mantra Team?

Reviled by some, but revered by many, through his knowledge and hard work successfully monetized his passion.  From media  interviews to authoring a book, he built the Dividend Mantra brand from nothing to something.  But his most lasting accomplishment is the number of people that became investors through his inspiration.

This is not to say I agreed with all of his decisions, I didn’t.  Orchids Paper is not a DGI stock.  It’s yield chasing.  I was surprised when he added it.  Yes I own it – but I’ve been to their Oklahoma plant.  And I reduced my holdings prior to their secondary.  He and I also disagreed on his decision to sell Sysco.  So it’s dividend wasn’t growing fast enough?  Well when you buy into a company just after the ex-div date and sell it prior to an ex-div date you’ve artificially reduced your return. He had a extreme dislike for the YoC metric, I tend to favor it.  His doubling into BBL is questionable, particularly with their exposure to Materials and China.  It could wind up being very profitable but their loss of a dam at their Brazilian mine last week doesn’t help.

His overall success has been well documented, which makes this latest chapter all the more perplexing.  Previously he stated a desire to offload the work required with his blog’s popularity.  He obviously was a willing seller and he located an obviously willing buyer.  My guess is after the contracts were signed, DM realized he gave up editorial control, evidenced by his post that some blog sections would no longer be published.  Likewise, the buyers have come to realize (belatedly) that a blog’s popularity is a reflection of its creator – not the owner.

Is it now too late to recover?  Well the jury’s still out.  I fear that DM the man will be late to realize he has lost – perhaps destroyed – the orchestra.  It is unfortunate the benefits he enjoyed will be diminished as well.  And DM the team is obviously late to recognize they bought the music but not the conductor.  Meanwhile the patrons are fleeing to the exits.  Any hope for recovery is reduced by the day.