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  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    If that someone had purchased an equal amount of Lehman stock 15 years ago too...oh wait...Lehman paid a dividend so there is a pretty good chance I would have purchased that and not BRK. Lehman's dividend was growing by leaps and bounds in the early 2000's.
    Apr 23, 2015. 10:06 AM | 1 Like Like |Link to Comment
  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    Yes...if you invest in something that doesn't pay a dividend... ;)
    Apr 23, 2015. 09:28 AM | 2 Likes Like |Link to Comment
  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    Wait Larry... It's clear to me...if you draw down 4% a year you are guaranteed to run out of money in 25 years, right? ;)
    Apr 23, 2015. 08:48 AM | 1 Like Like |Link to Comment
  • Dividend Growth Strategy: Benchmark Your Way To Success [View article]
    He identified SCHD in a comment to your last article about funds.
    Mar 26, 2015. 09:52 AM | Likes Like |Link to Comment
  • Dividend Growth Strategy: Benchmark Your Way To Success [View article]
    Adam, nice article and good advice. As a total return guy, I benchmark different sections of my portfolio to different indices that match that portion...usually an index like the S&P for large stocks or the MS EAFE for international stocks. Unfortunately there is not an index for dividend growth either in terms of income or price growth. In a comment to one of your recent articles though, David Van Knapp identified a Schwab fund that he thought came close to replicating his investment style. Perhaps this might be a good benchmark for dividend growth investors to compare their individual performances to for both metrics.
    Mar 26, 2015. 09:10 AM | Likes Like |Link to Comment
  • Income Strategy: Can You Afford To Play It Safe? [View article]
    Adam, great article and very happy that you continue to address this topic. I think, for those people with insufficient assets to generate a needed level of income at a reasonable level of risk, it is prudent to consider a measured withdrawal of principal as opposed to moving even farther out on the risk spectrum. I know that is an anathema to a certain subset of readers here though.

    Fact is this will be something that nearly all retired investors will need to address at some point. I have just helped my mother move into assisted living at age 87....she is one of the few that have made it that far without having to do this. Her annual expenses have gone up fivefold as a result. It would now take a 12% return on her investments to cover her costs. Instead of trying to generate that level of income, we will work through her savings now which I project will last eight to ten years if needed. Of course if your back up plan to spend your last days in a shared sub par nursing home room on Medicaid, I guess you can do whatever you want.
    Mar 13, 2015. 08:42 AM | 6 Likes Like |Link to Comment
  • How Much High-Yield Is Too Much High-Yield? [View article]
    Great article Adam...
    Nov 16, 2014. 11:59 AM | 7 Likes Like |Link to Comment
  • Mr. Market Provides Some Early Fall Color For REIT Investors [View article]
    HCN (long HCN) announced a secondary offering yesterday at $63.75 per share which was more than $2.50 below it's closing price on Thursday ($0.50 above the closing price yesterday). This may have spilled over to VTR (long VTR). I think a couple other REIT's are in the process of secondaries as well. This may be a contributing factor to the current price swoon. You could feel the heat though. I think interest rates are part of the issue but I think prices have just gotten ahead of themselves too. I trimmed positions in AVB and BXP a couple weeks ago.
    Sep 13, 2014. 05:06 PM | 4 Likes Like |Link to Comment
  • REIT Valuations Part 2: Industrial [View article]
    And User, it appears you chronically ignore the basic rule that the first letter of the first word of a new sentence be capitalized. It would help your credibility if you followed this basic rule.

    Dane, nice article with a lot of great information. I have been long PLD for a long time (pre AMB merger and through the financial crisis). I pared my position in half in May 2013 (fortuitous timing!). I will probably hang on to my current position but I agree that PLD is probably somewhat overvalued right now.

    I also enjoyed your article on the healthcare REIT's and am looking forward to your future articles on other REIT sectors. It's nice to see some honest analysis and not just cheerleading spiced with Graham and Buffett quotes.
    Aug 24, 2014. 09:14 PM | 4 Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    Adam, referring back to my point in your previous article, the interest rate set-up entering into what ever the next "event" will be will likely be much different that it was when we entered into 2008. The collapse in interest rates in 2008 actually provided some temporary support for the distributions for leveraged funds through the crisis, although...look at HYT, the distributions have slowly ground downward since as the pre crisis bonds have rolled off (and HYT also did lose about 60% of its value from top to bottom...much more than the S&P 500....and has never come close to fully recovering).

    Imagine though what would have happened if we were rolling into an early 1980's like recession caused by the Fed trying to stamp out inflation. You don't need anything as extreme as the absolute rates then to cause the same havoc. Imagine some inflation rumblings where the Fed raises short term rates rather quickly to, say 4 or or not much above historical averages How is the leverage for HYT it based on short term rates or long term rates? What will happen to the NAV of its portfolio and the cash flow available for distribution? Well just go to this link and read page 12.
    Aug 22, 2014. 12:07 PM | Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    Dave, extremely wise advice. Have to admit I thought about you when I heard about the guy in the $1 million buy-in tournament who lost with two pocket aces to a drawn Flush. If that doesn't support your line about being harmed sometimes even when you make the right decision, I don't know what does.

    I think progress is being made towards having civil discussions about our differences...and our similarities. Adam no doubt deserves a lot of credit for this with his non-judgmental approach to writing about challenges that all of us who are either partially or fully focused on income investing see. This benefits those newer participants here who can compare and contrast all the information without having to filter through the repetitive dogma and sarcasm to figure out what might work best for them.
    Aug 21, 2014. 08:21 PM | 3 Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    Adam, not concerned about you at all so yes, my comment referred to certain posters to your two recent articles. I don't think risk apathy quite captures it. I think there is the same attitude you see on the growth stock pages where investors who have a high tolerance for risk head out to the fringes. The dividend speculators cloak themselves with a seemingly conservative income wrap then perhaps convince themselves they are different from speculators in other genres because of it. Maybe they just have the fortitude to go through boom and bust cycles, or to some investing may be more about the thrill of the hunt as opposed to the sustenance of the catch. Not sure what psychology is at work in each instance but I think most know exactly what they are doing and how risky it is.
    Aug 21, 2014. 02:14 PM | 4 Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    sierra, how about this as an explanation....even the tortoise has the intelligence to freshly evaluate which path to take when it comes to the inevitable forks in the road? I agree it is fair for you to criticize my combined choice of words as on their face they do not seem to match up. Guess I'll need to come up with a new slogan ;).
    Aug 21, 2014. 12:46 PM | Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    I am noticing a trend here and in Adam's other article that concerns me. Many of the past arguments about the viability of a dividend-based strategy have focused on the likelihood of dividend cuts. The Mainstreamers as I called them above point out that through the financial crisis, relatively few blue chip firms cut their dividend. The ones that did for the most part were either in or had significant exposure to the financial sector. I think the Mainstreamers have a good argument that, through the last financial crisis at least, dividends from non-financial firms were indeed a ballast.

    Now, I see posts about people not only reaching for yield, but doing so through investing in BDC's (which are leveraged financial firms, right?), CEF's, many of which leverage already leveraged holdings, and some even buying these on personal margin to further hype yields...leverage on leverage on leverage. I assume you all know why Lehman failed. I assume you also know why the MBS market collapsed leading to the crisis. It was because of leveraging already leveraged and risky investments. Just because a BDC or CEF has diversified investments within it doesn't address the primary risk of owing these investments. You can monitor all you want, but structuring a portfolio based that is highly concentrated in these types of investments is living on the very edge of the cliff...there will be no time to react when the gust of wind comes. Stop losses? They are volumes are generally too low and buyers totally disappear for these fringe investments in a crisis.

    There is no ballast from income in this approach. If (really when) it collapses you will see extreme damage to both your principal and your income stream. If you want to put 5 - 10% of your portfolio in these, without margin, as your speculative play money, I think that's OK. To be all in on these or anything remotely close to that as some here appear to me...head to Vegas instead...your odds are probably better and you will get free drinks.
    Aug 21, 2014. 12:05 PM | 7 Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    Steve, that is a very reasonable comment. I do not believe that having a smattering of higher yielding holdings takes you out of the mainstream and I agree they should not be all be lumped together as being super high risk. It is those investors that go virtually all in to the BDC, mREIT, MLP realm that concern me. Again, there are examples of such people here on the boards if you read through comments on various articles.
    Aug 20, 2014. 06:07 PM | 1 Like Like |Link to Comment