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  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks, Eddie. I hope you're doing well!
    Apr 16 10:07 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, Hardog. All the best to you!
    Apr 16 08:12 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks, Chuck. In the fall of 1981, two older friends invited some of us (then) younger people to form a club with them. That was my introduction to investing. We formed the club in February 1982, when the DJIA was at 780. In the following years as a volunteer I taught classes on the SSG at NAIC events (in the paper, pencil, and overhead projector days). Now, it's computerized with an online database and very easy to use. I'll always be indebted to George Nicholson, Tom O'Hara, Ken Jancke, and a host of other NAIC founders and leaders for convincing me that with a little study the average citizen can make informed decisions about common stocks.

    Happy investing!
    Apr 16 03:34 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks, gapwedge. We're here to learn from each other. All the best!
    Apr 16 03:26 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, StockMike. I think WGL is certainly worth studying. It tends to fly "under the radar." Regardless of the decision you make, I hope it works out well for you.
    Apr 16 03:25 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, OnBase.

    The Stock Selection Guide, which I mentioned in the article, is a tool that was developed 60 years ago by the National Association of Investment Clubs. It looks at the past ten years of EPS, pre-tax profits, and price to come up with an estimated high price five years hence. It looks at various metrics to come up with an estimated low price. At every step of the way the individual's judgment is involved, so there is nothing "automatic" about the numbers.

    My estimates tend to be conservative. I doubt that my target "buy" price of $66.09 for PG will be seen unless we have a deep bear market or the company has some company-specific disaster. I made the decision to buy PG at $77.02, even though it was well above my target "buy" price as indicated on the Stock Selection Guide. The SSG helps me get a sense of whether a stock is relatively underpriced, overpriced, or fairly valued. I was willing to pay a "premium" for PG for a variety of reasons. When I bought it I was convinced that it was not cheap but that it offered fair value as a core holding for the long term. The SSG I completed on PG indicated that a target "sell" price would be $92.94. So, the SSG study indicates to me that the current price is in the "hold" range. I certainly did not intend to communicate that you should sell it at $81.

    One other note. NAIC (now doing business as Better Investing, the name of the organization's monthly magazine) suggests that one complete a Stock Selection Guide at least annually, so that if a company continues to grow and prosper, the "sell" and "buy" ranges will move up as the stock price moves up over the five-year period. Conversely, if a company has fallen on hard times, next year's SSG will reflect a lower buy price and a lower sell price.

    Thanks for raising the question and I hope this clarifies my intent.

    All the best!
    Apr 16 03:21 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, Bob. A mark of our friendship is that when I wrote this article I thought, "Bob will be on my case for selling Shell." My wife will be on my case, too, when she finds out about it. You're usually right and she's always right. So, as I intimated to BuffaloBell, selling RDS.B may not have been my finest hour. Sometimes I'm too quick to take a profit. However, I wouldn't hesitate to buy RDS.B again.

    As for selling PSEC, I felt more comfortable (in a sleep-well-at-night context) with TCAP and MAIN. It meant sacrificing some yield. Lawrence Zack Galler's article about PSEC prompted me to scrutinize the BDC landscape more closely and the more I studied, the more questions I had about BDCs in general, particularly the unknowns involved. More diversification (two instead of one) seemed prudent. Also, TCAP and MAIN seemed a bit safer.

    Live long and prosper!
    Apr 16 03:09 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, Maybenot. I hope your portfolio moves from the lower left to the upper right!
    Apr 16 02:58 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, BB. I bought RDS.B when LNCO was under pressure from the Barrons/HedgeEye attack. After the BRY deal was consummated, I began to look for dips to add more LNCO. RDS.B had appreciated in price fairly rapidly since I bought it at $67.90. I think Shell is a great company. I had some nervousness about the unrest in Nigeria. I remembered some comments I heard by T. Boone Pickens about his preference for US, rather than international, oil operations. That may have been in the back of my mind. But, most of all I saw an opportunity to lock in some gains. I have been known to sell too soon, and RDS.B may turn out to be another example.

    All the best to you!
    Apr 16 02:55 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Great question, Mr. Nut. I've been thinking about writing an article about yield. My internal target for the portfolio is 5.0%. I haven't updated the spreadsheet since Friday, but as of then the portfolio yield was 5.1%. With the recent market advances, the yield may be a little lower.

    I'm more focused on the dollar goal for the portfolio. The gist of my proposed article is that I have some degree of control over the dollar amount of the portfolio's dividends. One reason I am drawn to Dividend Champions and Contenders, etc., is the sleep-well-at-night aspect of relative dividend security. A company can decide to cut the dividend at any moment, but some of these stocks have very long track records of consistent dividend growth.

    The yield is mostly out of my control. The market controls the yield. If the yield goes down, then I know the portfolio's value has increased. If the dividend has gone up, then either several of my companies have raised their dividends or the portfolio's value has decreased. So, that target is not as relevant to me as whether the portfolio is moving toward, or achieving, my income goals.

    If younger, and in the accumulation phase of life, I might have a lower goal--such as the 4% you suggest. As I get older, I'm less focused on price appreciation--although I am officially in favor of it--but more focused on income growth.

    I'm long AVA and UHT. AVA strikes me as a progressive, innovative, growth-oriented utility. UHT pays a high yield and it is a Dividend Champion, though a very slow grower.

    Thanks for writing. I wish you much success. I hope you'll consider writing an article and sharing your story with us.
    Apr 16 02:46 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks, Chowder. Those are all solid utilities. I've owned SCG and PNY in the past and I would be happy to own them again. I was nervous about SCG's interest in the new nuclear plant, which seemed like a huge capital outlay. PNY is always expensive and I've never found it "on sale." I've looked at D from time to time but haven't yet taken the plunge. I appreciate all the help you have given us.
    Apr 16 02:35 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks for writing, LaChic. I owned DUK years ago in a DRIP plan and I think it is a solid company. It's not far from its 52-week high and the payout ratio seems a little high. That's what I remember from my last look at DUK. Their debt level is not too high, which is good.

    I think you're asking, "Why WGL instead of DUK?" DUK has raised its dividend each year since 2005. WGL has raised their dividend annually since 1977 and I'm impressed with their entrepreneurial spirit and their investment in renewable energy. I think that is what will separate the progressive utilities from the laggards in years to come.

    I'm always happy to hear someone's case for a particular company. I currently have nine utilities, comprising 12.7% of the portfolio. I'm not looking for more at the moment, but DUK is certainly worthy of consideration.

    Happy investing,
    LeDude
    Apr 16 02:27 PM | Likes Like |Link to Comment
  • Retirement Income Portfolio: A Stronger Focus On Dividend Champions [View article]
    Thanks, Rose. I haven't yet told my wife that I sold HAS. She's still holding her shares. It's a great company and I would like to own it again at some point. The price had appreciated significantly and I wanted to make room for Tupperware.

    It was hard to sell NRP. Since LNCO seems to have stabilized after the BRY merger, I put some of the NRP proceeds into more LNCO and more WPC.

    Thanks for writing. Have a great day!
    Apr 16 02:10 PM | Likes Like |Link to Comment
  • Oh, Ho, Ho, It's New York REIT, You Know [View article]
    Hlharvey, I don't think there will be a problem with any of these properties from the third floor up.

    My family once owned a small condo at the beach. Every year during hurricane season I would watch weather forecasts and plot storm coordinates. I also worried about the melting polar ice caps. After selling the condo, I quit consulting the maps and I no longer worried about the polar ice caps. Such is the life of an investor!
    Apr 15 03:22 PM | 1 Like Like |Link to Comment
  • I'm Buying W.P. Carey For The Long Haul [View article]
    Thanks, Brad. WPC is my largest and best performing holding. In addition to that, I have sold a fair amount of WPC over the years as it appreciated and I redeployed the proceeds in other companies. So, its "legacy" is present in shares of those investments.

    For whatever reason, WPC's beta has seemed higher than other REITs. These price swings have provided opportunities to buy low and sell high. As a SA reader pointed out recently, the swings most likely relate to buying and selling of WPC shares when they merge one of their private REIT funds into WPC.

    The metric I have watched most closely is current yield. Generally, if it is 5.5% or more, I'm a buyer. I maxed out my investment in WPC when it hit a 6.0% yield. If the yield drops to 4.5% or lower, I tend to sell a few shares. I consider it a core holding and I plan to keep a minimum percentage of the portfolio invested in WPC as long as the story is intact.
    Apr 15 11:15 AM | 6 Likes Like |Link to Comment
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