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Dividends#1

 
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  • An Overview Of The U.S. Tobacco Market [View article]
    Hi Sunshine123,

    The author has already written an article on PM and has mentioned it in this article.
    I do not think he linked the PM article properly, so here is the link http://seekingalpha.co...
    I think this is an excellent article and will read the PM one soon.
    Oct 2 12:30 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi Hardog,

    Yes I am planning on holding my KMR shares and when the exchange occurs, I am planning on holding onto all my KMI shares and letting them compound with reinvested dividends.

    Hardog, Are you going to hold KMI?

    I have confidence in Richard Kinder and he owns a boatload of KMI, so yes I am bullish KMI.
    Oct 2 12:09 AM | Likes Like |Link to Comment
  • American Capital Agency Is Becoming More Transparent And Adding Shareholder Value [View article]
    Hi Bruce Bohannon,

    Thanks for your comment. You make several good points. You are correct, I failed to take taxes into account regarding the rule of 72. As you stated if AGNC is held in a tax free account the tax issue would have no impact on the rule of 72. I guess if it was held in a tax deferred account the taxes would be due when distributions were taken, but that is always the case.

    It is the taxable account where the doubling in 6 years would not be accurate at all. I did mention "To double my money in six years without any price appreciation is appealing to me." I was inferring that if the price stayed the same, the 12.2% yield would enable AGNC to double ones investment. Of course if the price drops the return would be less than double.

    I am going to edit it a little. Not as in depth as this comment, but hopefully enough to make it more accurate.

    Good to hear you like the article.

    I listened to some of the presentation today and it was very informative and increased my confidence. I will listen to more of it the rest of this week. Good to hear you bought more shares as I think we are making a solid investment.
    Oct 2 12:03 AM | Likes Like |Link to Comment
  • American Capital Agency to begin monthly dividends, book value updates [View news story]
    Hi Rob,

    Always good to see your comments. I hope all your investments do well. I do not follow ACAS, however I am pretty sure they do not pay a dividend. Sounds like a huge discount to BV, 30%? What is going on with that?
    Oct 1 11:45 PM | Likes Like |Link to Comment
  • American Capital Agency to begin monthly dividends, book value updates [View news story]
    Hi Scott, Rob, and VTFI,

    I am always glad to see your comments. I benefit from reading all your points of view. Hopefully we all help each other. I know you help me.
    Oct 1 11:42 PM | Likes Like |Link to Comment
  • American Capital Agency to begin monthly dividends, book value updates [View news story]
    Hi Rob,

    As I see the indexes drop precipitously today, AGNC continues to rise. I know the news is being viewed as positive today, however this pattern has persisted for the last 2 years.

    I really like to have AGNC as a hedge to the overall market. The more the market drops the better AGNC seems to react. Your thoughts?

    My entire portfolio is in the green today. AGNC,MO and KMR. I sold ED and bought more AGNC.

    I have backed up the truck and bought AGNC aggressively over the last several weeks.

    I agree with your thoughts and see AGNC as a more stable stock due to the monthly payments and monthly NAV estimates.
    Oct 1 11:29 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi DHL-2,

    The problem with your example is the following, why would anyone buy AGNC at $33 in Q1- Q2 2013 when it was trading at a 10-15% PREMIUM to book value and NOT buy it when it was trading at a 15-20% DISCOUNT to book value in Q4 2013?

    As of TODAY, 9/30/2014, AGNC is trading at a 10-15% DISCOUNT to book value, closer to a 15% discount. Now is the time to buy AGNC.

    Lastly, when buying AGNC, never buy all at once. When one buys a stock they must have conviction. If they liked it at $33 and nothing about the company has intrinsically changed, they should like the stock more at $26,$24,$22,$20,$19. That is the way I was successful accumulating AGNC in 2013.

    The mREIT sector is selling off because it is anticipating the worst interest rate outcome. The worst is being priced in. I have to buy when others are selling. Nothing about AGNC, the company has changed.

    I hope this helps to understand when to buy AGNC and when not to buy AGNC. Book value is a key component. My article on AGNC explains my strategy and how it worked in 2013. In my opinion it will work again in 2014 and 2015. http://bit.ly/WUIIqP

    I have accumulated shares recently well below its current book value, my cost basis on my recent purchases is about $22.32. My cost basis on my recently purchased shares is probably around a 12% discount to book value (ballpark estimate).
    
    Sep 30 07:38 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.6%: Portfolio #2 UPDATED [View article]
    Hi cpa28761,

    AGNC's yield is actually 12.1%. Yes, there is a high risk regarding AGNC, however I think the risk is not as high as the market has assigned AGNC.

    I think AGNC is mispriced and on sale. It is trading at a large discount to its book value. Are you familiar with AGNC? If you are what are your thoughts regarding the discount to book value and the markets perceived interest rate hikes and the subsequent damage to AGNC's book value and earnings?
    
    Sep 29 06:48 PM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.6%: Portfolio #2 UPDATED [View article]
    Thanks faitschb,

    Thanks for your comment. As I have stated above, I strongly disagree with billinsd comment regarding safer choices than AGNC that currently yield 12.1%.

    I am estimating that AGNC is trading close to a 13- 15% discount to its book value (this is my rough estimate).
    Sep 29 06:42 PM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.6%: Portfolio #2 UPDATED [View article]
    Hi billinsd,

    Thanks for reading. I have to strongly disagree with you regarding your assertion that there are lots of safer choices to invest in that will do the same job as AGNC.

    In my opinion there are no safer choices that I am aware of that even come close to AGNC for safety and performance. Have you read my articles regarding AGNC?

    Please let me know what dividend stock yields 12.1% and has a management team comparable to AGNC?
    Sep 29 06:34 PM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi jfp4649 and Pend and all readers,

    My updated article was published this morning. I have all the charts in a new color. Please let me know if the background is better, and your thoughts on the article.


    http://seekingalpha.co...
    Sep 29 10:43 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi EuropeanDividendGrowth...

    Thanks for your reply. I will take your advise.
    Sep 29 10:26 AM | 1 Like Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi EuropeanDividendGrowth,

    Thanks for making a comment and I am glad you have enjoyed my articles.

    To add to my response above regarding AGNC. I have been increasing my AGNC position over the last few weeks. I have not calculated my overall cost basis since I sold 1/2 my AGNC position in 6/2014 that I had accumulated in 2013. I have bought back more shares than I sold in June, so I currently hold my largest AGNC position to date. I have bought so many lots that it will take a long time to calculate my overall cost basis, since I include all the dividends as lowering my cost basis.

    I can say my cost basis on my purchases since 6/2014 on my newly accumulated shares is approximately $22.32. The cost basis on older shares is much lower when including all the dividends.

    Closing prices of AGNC last week:

    9/22/2014 - $22.25
    9/23/2014 - $22.17
    9/24/2014 - $22.09
    9/25/2014 - $22.10
    9/26/2014 - $21.45 EX-DIVDEND of $0.65 so no change in closing price from the previous day's close on 9/25/2014

    AGNC recently peaked at $23.72 on 9/5/2014, so over the course of 3 weeks AGNC has dropped 6.8%. In my opinion this is an overreaction to interest rate speculation which has created a buying opportunity. This is why I have bought AGNC aggresively during this recent sell off.

    AGNC's book value was $26.26 as of 6/30/2014. Q3 will end tomorrow. Many are anticipating a drop in the book value. I do not think the book value of AGNC will have a big drop. My best estimate is flat, any increase in book value would be a nice positive, any decrease a negative.

    I doubt the book value will drop more than the $0.65 dividend so the economic return should be positive.
    Sep 29 10:07 AM | 1 Like Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi VTFI,

    Thanks again for your continued support on most of my articles. I appreciate you taking the time to add to the discussion. I know you have a sizeable position in AGNC and spend a lot of time researching AGNC. We have skin in the game. Keep up the good work.
    Sep 29 09:24 AM | Likes Like |Link to Comment
  • A Dividend Growth Portfolio For New Investors And Retirees Yielding 5.2%: Portfolio #2 [View article]
    Hi EuropeanDividendGrowth...

    AGNC went EX- DIVIDEND on 9/26/2014. As you know it currently pays a $0.65 dividend. Therefore it was actually flat on 9/26/14.
    Sep 29 09:05 AM | Likes Like |Link to Comment
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