Dividends4Life

Getting Ready for Retirement

Mad Hedge Fund Trader: I found your recommendation of PCY intriguing. Having never looked at it before, I ran some quick numbers on its dividend comparing it to LQD. Surprisingly, its standard deviation from 11/07 to 9/09 was 0.01489 compared to 0.02817 for LQD over the same period (Yahoo data + iShares to fill in some LQD blanks). LQD is one of my core bond holdings, but it is quickly approaching full allocation, so I've been looking for some other alternatives. A higher yield and lower standard deviation on its dividend makes PCY worth looking deeper into.

Thanks for mentioning it!

Best Wishes,
D4L


On Sep 22 02:51 PM Mad Hedge Fund Trader wrote:

> mgx A number of readers have asked me to come up with a safe, high
> yielding investment in which to hide out in case the equity markets
> swoon again. That means they are looking for a security that offers
> a high fixed return, denominated in a strong currency that will benefit
> from future upgrades that will boost the principal over time. All
> of that is another name for the Invesco PowerShares Emerging Market
> Sovereign Debt ETF (seekingalpha.com/symbo...). The fund
> has 40% of its assets in bonds issued in Latin America and 31% in
> Asia, with the bulk of the maturities exceeding ten years. The two
> year old fund now boasts $340 million in market cap and pays a handy
> 6.42% dividend. This beats the daylights out of the nine basis points
> you currently earn for cash, the 3.40% yield on 10 year Treasuries,
> and still exceeds the 6.42% dividend on the iShares Investment Grade
> Bond ETN (seekingalpha.com/symbo...), which buys predominantly
> single “A” US corporates. The big difference here is that foreign
> bonds are issued in strong foreign currencies instead of weak dollars,
> and have a rosy future of further credit upgrades to look forward
> to. It turns out that many emerging markets have little or no debt
> because until recently, investors thought their credit quality was
> too poor. No doubt a history of defaults in Brazil and Argentina
> in the seventies and eighties is at the back of their minds. With
> US government bond issuance going through the roof, the shoe is now
> on the other foot. A price appreciation of 125% over the past year
> tells you this is not exactly an undiscovered concept. Still, it
> is something to keep on your “buy on dips” list.

Dividend Stocks for the Long Run

Very good read. A well allocated dividend based portfolio should out-perform the market over the long-term.

D4L

Strategically Managing Your Dividend Portfolio During a Downturn

User 138602: CVX is high on my buy list. I have just been waiting for the right price.

Best Wishes,
D4L

A Buy & Hold Forever Dividend Stock Portfolio

Why not just reinvest in the stock with the lowest market value?

D4L

Johnson & Johnson: Still Adding to My Position

Keith: It is hard to comment directly to Weinstein's note without seeing the supporting analysis.

As to the comment "J&J’s premium in particular to its pharma peers has gone hyperbolic.", I am not sure it is fair to compare JNJ with pure-play pharms. Most pharms have taken a hit due to pipeline concerns (I hold PFE and LLY and have felt it). In this instance, it appears that the pure-pharms are falling faster than JNJ, thus creating the premium.

He does note that "However, beyond 2009, the JP Morgan analyst sees things accelerating again thanks to the company’s relatively strong pipeline." As a long-term, buy-and-hold investor, I view this as ambient noise.

Best Wishes,
D4L

Attractive Dividend Stocks in the Buy Zone

Nice list, i picked up some them last week during the meltdown.

Best Wishes,
D4L