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  • One Design For A Retirement Income Portfolio [View article]
    Sasha, thanks for your response. I will continue to try to connect people with SA contributors and participants where it seems relevant. We're here to help each other.

    PFLT has raised the dividend each year since 2011. I owned PNNT in times past and PFLT is a sister company. PFLT is more conservative and has more senior loans. They focus on floating rate loans, which theoretically will not be adversely affected by potential interest rate increases. It is an externally managed BDC. My preference is for internally managed BDCs, like MAIN, TCAP and HTGC. TCAP ran into what I think will be temporary difficulty. (Factoids has written about it.) I'm holding HTGC even though it has had a significant drop. PFLT is widely regarded as one of the safer BDCs. BDC Buzz has written about it. I'm comfortable with the management. So, the answer to your PFLT question is "Yes." I think its payout is as secure as any of the BDCs other than MAIN, which I believe is the most secure and the "best of breed." However, I have learned a valuable lesson with BDCs, and that is to spread the risk. Sometimes I have to learn something more than once! I think HTGC will be okay, but I'm too heavily weighted. (Tonight HTGC is the only holding in the portfolio that is overweight, but I'm not trimming at these levels.)

    Currently, four of my positions are not yet up to the target allocation: EPD, OHI, PEGI, and VTR. I added some OHI today, bringing it to 2.3%, still short of my 3.0% target.

    My goal is to add to these four positions. At that point, I hope to simply keep the portfolio close to the target ranges. That will mean adding to shares on weakness. (PFLT is almost to the point of being able to add some more to get it back up to 2%.) I may need to trim if a position gets overweight. Given the tenor of the market, I think it's more likely I'll be adding on weakness rather than trimming on strength--but I'm not good at predicting such moves.

    I think you're making strong progress. All the best to you!
    Jul 28, 2015. 09:06 PM | Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Thanks, K. I didn't hear your comment as being critical, although that would have been okay. :-)

    As of Saturday (when the article was written), I was overweight two stocks: STWD and HTGC. I was underweight EPD, OHI, PEGI and VTR.

    Today, I brought STWD down close to the 4.0% target. I think it is 4.2% now. That means HTGC is the only one that is now overweight. It has dropped because of the general dip in high yielding stocks and because of doubts that it will cover the payout with NII. They are also ramping up their underwriting team and that will hurt their short-term margins. I think the story is intact and I'm not going to sell at these levels. I used the proceeds from the STWD sale to buy more OHI. I don't have it up to the target yet, but it's closer.

    I'll be adding to the OHI, EPD, PEGI and VTR positions until they are at the target. At that point, I'll just try to keep all the positions in balance with small purchases as opportunities present themselves.

    That's a long answer to say that I hope the portfolio will remain intact as is. (This isn't the first time I've made that statement!) I'll be very happy if I can just maintain it with occasional adds.
    Jul 28, 2015. 07:21 PM | 1 Like Like |Link to Comment
  • What Makes A Full Position Or Half Position In A Dividend Growth Portfolio? [View article]
    Thanks for clarifying, Bill. It's working for you and that's what counts! All the best!
    Jul 28, 2015. 02:33 PM | Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Let us know how that works out, Traveler. All the best!
    Jul 28, 2015. 02:31 PM | Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Thanks for including the link, GLSmyth. It is indeed awesome!
    Jul 28, 2015. 02:30 PM | 1 Like Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Elliot, thanks for your response and you've raised an excellent question. As of now, my retirement income portfolio is entirely in an IRA. I have just opened a regular taxable account and I will begin to grow that account, so I will need to be more cognizant of tax issues. Until now, I have given taxes minimal attention, but now I will begin to be more conscious of those issues. Are you available for a consultation? :-)
    Jul 28, 2015. 02:30 PM | 1 Like Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Jeff, you've raised an important consideration. I'm not familiar with GFC. (Sounds like that may be a good thing.) Bob Wells is my back-testing guru. He has done significant work in this area and you might want to check out his articles, if you haven't already.

    When I was a kid, all the adults around me remembered the Great Depression. It seemed long ago and far away at the time, but I was very aware that it made a Great Impression on them. Several market events have made a Great Impression on me: the 20% decline that began on a Friday and cascaded on Monday in October 1987, the bursting of the tech bubble in the Spring of 2000, and the Great Recession of 2008-2009.

    One fairly simple back test that any investor can do is to study how a company handled itself during 2008-2009. I haven't done a systematic back test (a la Bob Wells), but I have a long memory. One reason I value David Fish's work is that he provides us with a back test of sorts. If a company has continued to grow its earnings and dividends through 1987, 2000, and 2009, that company has passed some critical tests.

    I'm convinced that investments in the likes of GPC, PG, EMR, MMM, JNJ, PEP and T, etc., will continue to put food on the table (as they have since 1956, 1956, 1957, 1958, 1962, 1972 and 1984, respectively).

    Live long and prosper!
    Jul 28, 2015. 09:49 AM | 1 Like Like |Link to Comment
  • HCP: Why I Just Added To My Position In This 6% Dividend Yield REIT [View article]
    Thanks, Bob, for your article. I agree with your thesis and I commend you for maintaining a long term perspective. I'm long HCP in my retirement income portfolio, along with OHI and VTR.
    Jul 28, 2015. 07:12 AM | 3 Likes Like |Link to Comment
  • What Makes A Full Position Or Half Position In A Dividend Growth Portfolio? [View article]
    Thanks, CDGI, for a thoughtful article. Bill, I'm intrigued by your 2x positions and several times full positions.

    As our portfolios (hopefully) grow in value, I've found it more helpful to focus on each holding's percentage of the total portfolio. I've settled (for now) on this formula for my 25-stock retirement income portfolio:

    5 stocks at 6% of the portfolio (30% total): JNJ, MMM, PEP, EMR, WPC
    5 stocks at 5% of the portfolio (25% total): GPC, WEC, O, T, HPC
    5 stocks at 4% of the portfolio (20% total): PG, IBM, NNN, VTR, STWD
    5 stocks at 3% of the portfolio (15% total): NWN, OHI, MAIN, EPD,STAG
    5 stocks at 2% of the portfolio (10% total): HTGC, HASI, PFLT, EVA, PEGI.
    Jul 28, 2015. 07:09 AM | 2 Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Thanks for your response, SDS. I think you are spot on regarding having a clear goal for one's retirement portfolio.

    I have had a specific dollar amount in mind (based on your first sentence). As the portfolio has grown over time, that figure has increased. The financial news media puts great emphasis on market price, momentum, etc. (As the breadth of this aging bull market narrows, we're seeing signs that market price may indeed be in the headlines more in the coming weeks and months.) I think it is essential to tune out that noise and to focus on steadily increasing, relatively safe dividends. I am laser focused on one cell in my Excel spreadsheet: average monthly income.

    I don't seek to maximize that number at all costs because that would take on more risk than I believe to be prudent. But it is the number that lets me know how much progress I'm making toward meeting the need you described in your first sentence.

    Enjoy!
    Jul 28, 2015. 06:28 AM | Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Thanks for your helpful comment, Geo. What a good name for a mapper!

    Green is good and I love companies that embrace a "blue sky" entrepreneurism. I like the "starters, rotation players, and projects" design.

    I hope you'll map-out an article for us about your portfolio design!

    Enjoy your summer.
    Jul 28, 2015. 06:22 AM | 1 Like Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    You are indeed a traveler! Years ago my investment club had a position in OKE but I haven't studied it recently. This month, Dividend Dreams (http://bit.ly/1D53RCT) had an article about general partner OKE and Casey Hoerth (http://bit.ly/1D53RCV) had one about the OKS partnership.

    One advantage of OKE is the absence of K-1 forms and concerns about IRS issues regarding unrelated business income.

    My recent study has been limited to EPD. In the MLP space, I lean on Ron Hiram (http://bit.ly/1D53PLi) and Factoids (http://bit.ly/1D53RCX).

    Ron said:

    "EPD is a core MLP holding given its breadth of operations, strong & disciplined management team, portfolio of growth projects, low cost of capital, alignment of interests with management (no general partner incentive distributions), relatively low leverage, very strong coverage, excess cash from operations, history of minimizing limited partner dilution and performance track record."

    Factoids said:

    "EPD has superior distribution coverage. Compared to other large cap MLPs, it has a lightly superior percentage of fixed fee income. EPD is diversified in oil and gas. EPD is diversified in multiple production basins.

    "It is my perception that most MLP investors own multiple MLPs. Having EPD in your portfolio lowers the risk of you total MLP portfolio. And given the poor projection accuracy in this sector, most investors have portfolios that could really use some de-risking. EPD should be a core holding and heavily weighted holding."
    Jul 28, 2015. 06:14 AM | Likes Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Excel doesn't have this feature, but some of life's more delightful moments come when we dare to color outside the lines!
    Jul 28, 2015. 05:47 AM | 2 Likes Like |Link to Comment
  • Emerson Electric: Not A Utility, Not A Radio Company [View article]
    Thanks for your update, scapaflow. Based on EMR's history, you've taken advantage of an unusual opportunity. The breadth of the long bull market is waning, which may mean we're looking at lower prices across the board, but my focus is on purchasing steadily-rising dividend flows, and EMR certainly fits that description. And, if the market does head south, you'll have an opportunity to fill your position at even more attractive prices. All the best!
    Jul 28, 2015. 05:43 AM | 1 Like Like |Link to Comment
  • One Design For A Retirement Income Portfolio [View article]
    Thanks for reading and responding, ConArtist. I agree with your push for STAG to focus on growing the FFO. All the best to you!
    Jul 27, 2015. 10:47 PM | Likes Like |Link to Comment
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