List of Good Companies Regardless of Price

[boilermaker75]

I would think many companies on the Dividend Aristocrats list would be such companies. I have invested in many of them.

 

http://www.dividendgrowthinvestor.com/2011/12/dividend-aristocrats-list-for-2012.html

[racemize]

I would think many companies on the Dividend Aristocrats list would be such companies. I have invested in many of them.

 

http://www.dividendgrowthinvestor.com/2011/12/dividend-aristocrats-list-for-2012.html

 

 

Yes, I agree.  Incidentally, I've always liked the dividend growth strategy, but I wonder if outperforms the index over long periods--anyone know?  Probably too many variables/companies to have a conclusive result...

[mikazo]

I would think many companies on the Dividend Aristocrats list would be such companies. I have invested in many of them.

 

http://www.dividendgrowthinvestor.com/2011/12/dividend-aristocrats-list-for-2012.html

 

 

Yes, I agree.  Incidentally, I've always liked the dividend growth strategy, but I wonder if outperforms the index over long periods--anyone know?  Probably too many variables/companies to have a conclusive result...

 

I started out with the dividend growth strategy but then switched to value investing. I'm sure that some dividend growth investors do more due diligence than others, but I got the impression that if the stock had a good dividend yield and growth history and their payout ratio was under 60%, then that's all that was required to buy. I'd at least like to try to value the company and pay a fair or undervalued price, rather than based solely on yield. I'm sure those that frequent this board would do a lot more research though, dividend growth strategy or not.

[oddballstocks]

George Risk Industries - RSKIA makes home alarm systems...

 

George Risk actually makes not so much home alarm systems, but switches for the security industry. They're mostly highly specialized (read: moat) switches for all kinds of security applications from preventing fuel theft from 18 wheelers, pool alarms, museum lift detectors and the like. And they are super cheap right now.

 

I've owned them a few years, bought them as a net-net, blogged about them a few times in the past as well.  I have held on as they've traded above NCAV because it's still clearly undervalued, but I'm not as enamored with them as some other value investors.  I sold half my position once I had made 50% on it.

 

Here's the problem with them, Ken Risk is nearing retirement, I don't get the sense he's aggressive about growing the business.  His daughter is the CFO, she seems nice enough, they are all generally nice Midwest types, but not sure if she has the fire to grow the business either.  Even if they do have a moat which I'm unsure of they aren't in much of a position to scale their business.  They're located in Kimball Nebraska, go do a Google Streetview around town for 15m.  It's like every other Midwest town of 2,000 people, not that big, compact, tidy etc.  So what's the problem?  Where do you attract talent if you want to double capacity?  The town couldn't support much more than double, so if the business keeps growing they'd need to move somewhere else.  The problem is the company's identity is tied to the town's identity, so that's unlikely.  What I'm trying to say is even with the high ROE/ROIC they have this small capital base they're growing off of, so moat or not they're constrained.

 

I'm happy to hold them, book value is growing, it takes maybe an hour a year to read their quarterly and annual report, so not much time commitment, but I don't expect to wake up in 10 years and see them trading at $45 either.

[Palantir]

I am not expecting much growth out of GRI, but a lot of dividend payouts, on the order of 4 pct. or greater. Plus according to their statements, market share is growing so there is moderate upside as well. As for valuation these guys are generating 2m of FCFE on an EV of like 8m.

[wknecht]

How ´bout Colgate-Palmolive? Seriously efficient with unbelievable returns on equity.

 

For sure, branded CPG goods are basically thew same as Coke

 

Might add CHD and CLX to the strong branded products list (though CLX is a little more heavily levered).