Tag Archives: intc

Don’t let anchoring tie you down

Today I wanted to touch on another common behavioral issue that most investors fall prey to, anchoring. I’ve commented previously on the behavior gap, how behavioral issues lead to investor under performance and specifically how more information often leads to worse investment performance. Anchoring is another behavioral pitfall for investors. I’ll describe what it is first and then show a common way it affects income investors. Anchoring describes the effect of irrelevant numbers in people’s behavior. It turns out that irrelevant numbers impact our decision making in dramatic ways. James Montier in this piece on behavioral issues uses the following … Continue reading

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Recent happenings in income land

I’m finally back from my exile in the woods. I would recommend the Gila National Forest in Southwestern New Mexico to anyone who wants a bit of peace and quiet. Now back to the business of income investing. There has been a lot going on in income investor land recently. Here are some of the items that caught my eye and what I think of them. Intel Q1 2011 earnings. Intel blew away earnings estimates in Q1. The corporate. server, and cloud computing markets are just going gangbusters, offsetting weak developed market PC demand. Although emerging market PC is doing … Continue reading

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INTC & MSFT options look attractive

Its been a while since I’ve talked about option selling as an income strategy. Actually, my first and only post on the topic was back in mid November of 2010. With the US stock market on a nice uptrend since that time and with volatility being low it hasn’t been a great time in general to sell options. The options yields, premiums as a % of stock price, just haven’t been that great. But all that seems to have changed this week. Lets see what opportunities selling options during these times gives the income investor. While there are opportunities to … Continue reading

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The magic dividend formula – Intel & Altria

In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and a couple of ways to use it in your investing. The magic dividend formula can be re-written into a form that solves for the price of the stock. Here it is; P = Annual Dividend / (Required rate of return – Dividend growth rate) This the exact same formula as … Continue reading

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Intel (INTC), a dividend growth stock ripe for the picking?

Tech stocks, especially some of the big cap names, are transitioning to becoming great dividend stocks, in particular great dividend growth stocks. I’ve written about this rising trend previously (here). Also, I wrote about MSFT in particular, here, when it was at $24, although I didn’t think it was cheap enough (it now trades at $28). And even two tech stocks, Intel and MSFT, made my Christmas Wish List (here). Now, its time to write about Intel (INTC) some more. Intel reported Q4 2010 earnings last week and in short they were outstanding. 2010 will go down as Intel’s best … Continue reading

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Christmas wish list, part 2

Today we woke up to a cool rainy Florida winter day, a perfect time for me to reflect on the next 5 stocks on my Christmas wish list (part I here) with a nice cup of hot cocoa by my side. I’m going to keep the list to the top 10 lest I revert back to my childhood ways of writing Christmas wish lists that could have been classified as short stories. Here ya go: 6. PM, Philip Morris International: until not too long ago, part of Altria. It is the international tobacco leader and exposed to more growth than … Continue reading

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