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  • My Top 10 Dividend Growth Stock Portfolio Continues To Generate Income Growth: UPDATED [View article]
    Hi learning to be patient with... ,

    Good and fair comment.

    I might get cut off as I am on a hotel computer. The PAA and KMP were taken off my original picks because they are MLP's and I do not want new investors dealing with K-1's. I explained all of this in my first article regarding this portfolio.

    The GSK sell for AZN for due to me being convinced by a few readers to get rid of GSK. I was again convinced by a few readers to get rid of AZN. Bottom line: I was swayed by a few readers to make some changes. I have a core of MO,PM,KMI,O,SO,ED,KMB and LMT.

    These 8 are fantastic stocks in my opinion and I did not budge when some suggested I make changes to them.

    KMR was better than KMP and I also owned it personally. I did sell it in my personal account for higher income. That is for another article.

    I am not crazy about AZN or MCD, however they will stay put for now paying dividends and increasing income.

    Talk later. Vacationing in Hawaii. Life is good.
    Jan 24, 2015. 11:56 AM | 1 Like Like |Link to Comment
  • My Top 10 Dividend Growth Stock Portfolio Continues To Generate Income Growth: UPDATED [View article]
    Hi VTFI,


    Thanks for your comment and kind words. I am in Hawaii with my wife on vacation. Life is good.

    My personal dividend income keeps increasing. This is the best game in town. I hope more investors catch on.
    Jan 24, 2015. 11:41 AM | 2 Likes Like |Link to Comment
  • My Best Stock Idea For 2015 [View article]
    Hi Dividend Mantra,

    Nice article.

    I personally bought PM in my SEP IRA at $82.27 and when it dropped down to $80.41 I converted it over to my ROTH IRA recently. I do not expect a huge move up in price in 2015, although I would not be shocked if it happened. I agree that it is also my BEST stock idea for 2015, not because I see it's price gaining 30%+, but because I see it as being on a huge sale and I consider PM the best stock of all time because it is MO's twin brother from the international world. MO is my biggest holding and I am real happy about that. Now I will try to accumulate PM when it is cheap.

    As you know the longer it stays cheap, the more shares we get on the reinvestment and the more income we get years from now!!!
    Jan 21, 2015. 08:39 PM | Likes Like |Link to Comment
  • Oil And Energy Exposure For BDCs [View article]
    BDC Buzz,

    I am happy to see FSC has decreased their energy exposure since last quarters numbers. See below ( they sold 2 of the four businesses with exposure to the energy sector). Now they have a 2.5% energy exposure. Unless I am missing something, FSC seems to have one of the most protected portfolio's in regards to energy/oil issues.

    " As of September 30, 2014, FSC's exposure to the energy sector was 3.8% of investments at fair value, comprised of senior secured loans to four portfolio companies in the oil and gas equipment services sector. Since then, two of the four businesses with exposure to the energy sector have been sold at fair value. Pro forma for these sales, FSC's energy exposure is now 2.5%."

    They also state:

    "Additionally, we have a number of investments in the portfolio which should directly benefit from the recent decrease in oil prices, including our aircraft leasing holdings at FSC."

    I am impressed with their foresight on this issue. I am hoping the dividend is maintained.
    Jan 21, 2015. 02:20 PM | 1 Like Like |Link to Comment
  • Oil And Energy Exposure For BDCs [View article]
    I think FSC might get a nice bounce in price after their earnings are announced on 2/9/15. Of course I am anticipating they do not reduce their dividend, a reduction would probably cause more selling as an initail reaction.

    I am anticipating no reduction in the dividend and a bounce higher in the price of FSC.

    The shares appear to be way oversold. We shall see what happens.
    Jan 21, 2015. 12:38 PM | Likes Like |Link to Comment
  • Oil And Energy Exposure For BDCs [View article]
    Addtionally see FSC's newsletter. http://bit.ly/1AO56yL


    " De Minimis Energy Exposure Across the Platform
    As mentioned above, the BDC sector has come under pressure due to concerns about exposure to energy-related industries. In December, KBW estimated that approximately 7.0% of overall BDC portfolios were invested in energy-related businesses. At both FSC and FSFR, investments are diversified across a wide variety of industries and both portfolios have modest exposure to the energy sector. As of September 30, 2014, FSC's exposure to the energy sector was 3.8% of investments at fair value, comprised of senior secured loans to four portfolio companies in the oil and gas equipment services sector. Since then, two of the four businesses with exposure to the energy sector have been sold at fair value. Pro forma for these sales, FSC's energy exposure is now 2.5%. During the same time period, FSFR's exposure was only 1.1% of investments at fair value, comprised of one senior secured loan in the oil and gas equipment services sector.
    We believe Fifth Street is appropriately positioned for the recent decline in energy prices. Our credit committee has consistently limited FSC's and FSFR's exposure to the energy sector as well as other cyclical sectors. Our remaining investments in oil and gas equipment services have been stress tested based on current oil prices and we believe the reduced valuation of oil should have a minimal impact on the fair value of FSC's and FSFR's respective investments in the energy sector. Additionally, we have a number of investments in the portfolio which should directly benefit from the recent decrease in oil prices, including our aircraft leasing holdings at FSC."
    Jan 21, 2015. 12:31 PM | Likes Like |Link to Comment
  • Oil And Energy Exposure For BDCs [View article]
    Buzz and all readers,

    I own FSC, I am currently down about 4% in my taxable account regarding my FSC investment. I have a small position in FSC in my retirement accounts and a large FSC position in my taxable account.

    January 21, 2015:
    Capital Markets Outlook

    From FSC's web site http://bit.ly/1GvPNmy

    Here is a paragraph from p.2

    " With less than 2.0% invested in the oil and gas and related equipment services, our credit committee has consistently limited exposure to energy and other overbought or cyclical sectors. These investments have been stress-tested based on today’s market realities and we believe the reduced valuation of oil will have a minimal impact on the fair value of Fifth Street’s funds.
    We see the decline in oil prices driving some investors away from certain assets, leading to interesting investment opportunities. For instance, the aircraft leasing industry stands to benefit from the decrease in oil prices (See Figure 4)."

    Another paragraph from p.4

    " Active December Quarter Leads to
    Strong Originations
    Driven by our leading middle market origination platform, which sources loans with strong risk-adjusted returns across the capital structure, we closed $1.3 billion in gross originations across Fifth Street funds during the December quarter. A significant portion of the gross originations generated in the quarter came from being awarded full financing mandates from newer sponsor relationships, while remaining active with our existing sponsor base. Over the past year, Fifth Street has been making inroads with several new top tier sponsors and after participating in several transactions alongside them, we have been able to win mandates outright thanks to our thoughtful and flexible financing solutions."
    Jan 21, 2015. 12:29 PM | Likes Like |Link to Comment
  • I Have An Order In To Buy OHI At $37.02 To Replace AZN Which I Sold On 11/17/14 [View instapost]
    I missed OHI. I am buying back AZN now at $71.78.
    Jan 20, 2015. 09:43 AM | Likes Like |Link to Comment
  • I Am Buying $6,500 Of PM In My 10 Stock Portfolio. This Is My Annual Contribution For 2015 [View instapost]
    Pretty good timing on my part.

    I am also buying back AZN because I missed OHI which was poor timing on my part and a bad decision on my part. I am not perfect, but I think I am good.
    Jan 20, 2015. 09:42 AM | Likes Like |Link to Comment
  • I Am Buying $6,500 Of PM In My 10 Stock Portfolio. This Is My Annual Contribution For 2015 [View instapost]
    Pretty good timing on my part.

    I am also buying back AZN today at $71.78.
    Jan 20, 2015. 09:42 AM | Likes Like |Link to Comment
  • American Capital Agency's Upcoming Q4 2014 Earnings Projection - Part 2 [View article]
    Hi Scott,

    I read through the entire article quickly, so I need to reread later tonight.

    Please confirm if my take away regarding your analysis is correct. I am trying to summarize the most important points as I see them and ask a question in #3.

    1) AGNC's material loss in their derivative accounts ( mostly sub accounts b and d, interest rate swaps and US treasuries respectively) was mainly due to their hedges being for increased rates as rates dropped substantially. They were short.

    2) Just quoting you, however in my mind a key nugget.

    "Even though I am projecting AGNC will report a material net loss for the fourth quarter of 2014, readers should also understand the company will report a strong OCI amount which will be projected in PART 3 of this article. As stated in PART 1 of this article, AGNC's OCI/(OCL) amount is part of the company's consolidated statement of comprehensive income but EXCLUDED from the company's net income (loss) and EPS amounts. As such, I would suggest holding off on a "final verdict" regarding AGNC's results for the fourth quarter of 2014 until PART 3 of this article is released. I personally believe AGNC's "comprehensive income (loss)" amount is more important than the company's net income (loss) and EPS amounts."

    3) Lastly, do you feel that AGNC's management team made any errors in judgement in Q4 2014 ( as we believe they did in 2013) or that your projected "Quarterly Net Loss of ($377) Million and Earnings Available to Common Shareholders of ($1.09) Per Share" are do to factors out of managements direct control this time? I was wondering if they were hedging rising rates too aggressively? Hopefully they lightened up a little on their short position.
    Jan 19, 2015. 01:11 PM | 4 Likes Like |Link to Comment
  • Building Income: My Retirement Accounts Update - January 2015 [View article]
    Hi Roaddriver,

    Thanks for your kind words.

    I will make a quick comment because I have an appointment to get to. I will get into more detail tomorrow.

    I am not a financial advisor and do not know enough about you to even make suggestions.

    I am not aware of any dividend growth companies that over 10%. The stocks I own that pay over 10%, AGNC, MTGE and FSC are not dividend growth companies. They are high yield cyclical dividend paying stocks.

    In my personal opinion they are currently the cream of the crop at their current prices, otherwise I would not own them. As they approach their BV and I will sell a portion of my shares.

    In my opinion MO and PM are the cream of the crop of dividend growth stocks. There are many other great ones, see my articles where I have chosen my top 10. Their yield are well below 10%.

    Chowder has an excellent list of DG stocks he owns and makes public. We will continue this later.
    Jan 19, 2015. 09:30 AM | Likes Like |Link to Comment
  • I Have Concerns Regarding American Capital Agency After The Dividend Announcement [View article]
    bbo 27,


    You hit the nail on the head!!!
    Jan 18, 2015. 08:00 AM | 2 Likes Like |Link to Comment
  • I Sold All My KMI After My Last Article Was Published (On 1/13/2015) And Bought MTGE On 1/14/2015 [View instapost]
    Good to hear your point of view Rob.

    At some point in time my gut tells me the MSR business will flourish. I do not know when, but I think it will be a nice boost to their earnings. I want to be an owner of MTGE at these prices.

    I hope you are right about this possibly being a good time for their MSR business. I do not know all the factors driving the MSR business, however from the little I read it seemed it would take a few more quarters to become profitable. I do believe management knows what they are doing and at some point it will be a positive for earnings.

    Be well and prosperous.
    Jan 18, 2015. 07:51 AM | Likes Like |Link to Comment
  • I Sold All My KMI After My Last Article Was Published (On 1/13/2015) And Bought MTGE On 1/14/2015 [View instapost]
    Hi Rob,

    You know my strategy is to buy when the discount to BV is sizable. I finally decided to buy MTGE when I learned that they have 83% of their portfolio in AGENCY MBS.

    I also think their MSR business will become profitable sometime in 2015.

    I could not resist the 14% yield, which of course is higher than AGNC.

    1) What would you estimate that the current discount to BV is for MTGE? I was estimating around 18% or so.

    2) Do you still have your MTGE and are you going to reinvest the dividends?
    Jan 16, 2015. 10:34 PM | Likes Like |Link to Comment
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