Investors continue to focus on dividends as the best and in some minds the only way to return capital to shareholders. That remains a big mistake as the population of stocks with a high dividend payout ratio, not to mention ones that even pay dividends has been shrinking just about every decade.

Several key factors have influenced these decisions. First, the historical tax disadvantage of dividends versus long term capital gains has worked to weaken the focus on dividends. Second, the SEC instituting rule 10b-18 back in 1982 made it easier for firms to implement buybacks without stock manipulation charges. Third, market participants place such a great emphasis on maintaining steadily increasing dividends that corporate boards prefer the flexibility of buyback programs over the negativity of reducing a dividend.

Mebane Faber at the World Beta blog posted a great summary of the decline in the dividend payout ratio and the

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It is only natural that certain stocks elicit more emotion from investors than others. Companies that are a presence in the day to day lives of people are particularly subject to this. Apple (AAPL), Netflix (NFLX), Amazon (AMZN), and Microsoft (MSFT) are just some of the companies that people get emotional about. On Seeking Alpha, we have seen statements along the lines of “I don’t like iPhones, therefore Apple is a bad investment”, or “I love Netflix’s service, the stock is a fantastic buy.” Emotion has little place in investing. Personally attacking critics of a stock you invest in because they bring up diverging viewpoints is the wrong way to approach investing.

One of the stocks that is most subject to such heated debate is Sirius XM (SIRI). Bulls and bears of the stock battle it out on an almost daily basis. We have casually followed the stock for some

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Frontier Communications (FTR) recently released fourth quarter and full year earnings. At the same time, the company slashed its annual dividend from $0.75 to $0.40. The dividend cut had been priced into the share price by the market for several months, as evidenced by a dividend yield in the high teens. However, during the entire time, management and the board steadfastly reiterated that the dividend was secure.

Furthermore, management also stated that the dividend coverage ratio was where management expected it to be when the company first acquired a significant amount of Verizon’s (VZ) local business in 14 states more than a year and a half ago.

A somewhat lengthy chronological history of the board and management’s statements follows. These statements addressed the payout ratio, sustainability and attractiveness of the dividend. Those less interested in the specifics can scroll down to the section “Why was the Dividend Cut?“

A press

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Activision Blizzard (ATVI) is a great company. It has fantastic growth potential, a popular lineup of games, and a history of capitalizing on strong franchises. This year will continue the trend for the gamemaker, which, at its current price, offers a cheap buying opportunity.

In the short term, profit growth will be driven by the large lineup of major titles that are to be released this year. In the long term, this growth will be protected by the creation of new franchises.

Short Term Growth

Growth this year will be driven by one of the largest release lineups in the history of ATVI. Activision will release two major games – Skylanders: Giants and Call of Duty 9 – while continuing to build and support Call of Duty: Elite (as well as a lineup of smaller games that will not be discussed). Blizzard will release two games - Diablo III and

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These days, there appears to be a continued flight to quality in commercial real estate – especially the triple net sector. Due to the risk-aligned fundamentals of the single-tenant assets, the triple net sector provides investors with a sound vehicle in which to intelligently bear risk for profit. Unlike the other asset sectors, the triple net model is distinguished by a well-balanced platform of sustainability that is also the essence of the brand differentiation.

Conversely, it is the uninterrupted income characteristics that draw investors towards the triple net REIT sector. One of the most persuasive tests of high-quality is an uninterrupted dividend supported by consistent profits and earnings. Realty Income (O) and National Retail Properties (NNN) have provided decades of sustained income performance with a combined forty years of consistent and increased dividends paid. That remarkable record of repetition is best explained by Chris Zook and James Allen in co-authors

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