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Doctor Dividend

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  • Could Whole Life Insurance Be Your Fixed Income Allocation? [View article]
    Bionic and Red Turtle:

    I tend to agree with you. Buy Term and Invest the Rest (BTIR) is the more logical way to secure your future, but what percentage REALLY do this? You two may, the vast majority do not/ can not/ will not. As I said in my disclosure, I have no skin in this game. I don't sell anything related to this. It's just an interesting tool which can get abused, but if done correctly, could be very beneficial to you and your loved ones.
    Oct 31 12:45 PM | 1 Like Like |Link to Comment
  • MLP Investing: Distribution Growth Trumps Yield [View article]
    LNCO is good for all of them because it is treated as a regular corporation, just like KO or PG or WMT, etc. Hence, the dividends for the next 2 months are taxed at 15%.

    With LINE being an LLC (for tax purposes it is like an MLP), you have distributions (not technically dividends), which change your cost basis and in theory, you can end up going down to $0 per share. If you don't want tax headaches, stick with LNCO (and KMR and KMI and EEQ).
    Oct 29 04:15 PM | Likes Like |Link to Comment
  • MLP Investing: Distribution Growth Trumps Yield [View article]
    tomlos:

    The simplistic answer is LINE for taxable and LNCO for taxable, IRA or Roth. It has to do with when you sell and the change in cost basis and UBTI. Even though you probably never kept cost basis for an MLP before in an IRA, this can come back and bite you if you do not.

    Besides, as it stands right now, LNCO is the higher yielding of the two choices.
    Oct 29 04:07 PM | Likes Like |Link to Comment
  • Is Tax Deferral For Dividend Growth Stocks Really Worth It? (Part 2) [View article]
    Bruce:

    Thanks for the thoughtful comments. I know this only looks at one very small part of what could be many, many moving parts and becomes difficult in isolation. But I do want to discuss one thing you said: "The general wisdom in the trade..."

    There have been numerous articles, led by DVK, that have said maybe general wisdom is wrong. Why the 4% rule? Why can't you get the 4% from dividends so you don't have to sell assets to produce income (at whatever the market price may be) when you bought assets that already have a built in income component?

    That's what I was trying to bring up here. The "general wisdom" says to defer, defer, defer when no one stops and asks is that really the best course of action. On the surface it makes sense and if you die before that crossover point it makes sense, but I have had too many people in my family live healthily into their 90s for me to take pause and say this may not make the most sense for me. It's that saying: If you have a question about a topic you are listening to or reading about, there is at least one other person that would have asked it as well.

    DD
    Oct 25 03:06 PM | Likes Like |Link to Comment
  • This 7% Yielder Continues To Roll [View article]
    According to the presentation on their website, they have the initial losses from starting a new company, which lowers how much profit and taxes they will pay. It does mention about the AMT taking 2-5% from the dividend for the first 2-3 years. So, if you have nearly the same dividend, but a lower price, your yield will be higher.

    Once things normalize, the dividend would be taxed at the corporate level of 35% and the yield would be about 2% different. 7% for LINE, 5%ish for LNCO.

    DD
    Oct 25 01:01 PM | 1 Like Like |Link to Comment
  • Is Tax Deferral For Dividend Growth Stocks Really Worth It? (Part 2) [View article]
    Hilger:

    Being 30 years away from SS, I am not attuned to the ins and outs of it and did the best I could from the information I gathered. The way I interpreted SS and the taxes was on actual money earned, not from investments/distributi... I know the first comment mentioned take SS out of the picture. I don't see how one can because it is a source of income that many people depend on/set their budgets with.

    I know others have mentioned the work around of nondeductible IRA contributions and then converting it to a Roth IRA the following year. I may have to ask my accountant about it but I was not able to do that because my wife had a 401(K). If she made $1 of contributions in a year, I could not make any contributions from my own job.

    As an aside of how many people don't realize what they have, her new job said she had the option of a Roth 401(K). The choices stink (to put it lightly) but with a Roth option, we opted for that. She gets a call two days ago from HR saying that the Roth option was an accident and it's only a standard 401(K). Over 100 people work for this company and she is the first to even put this choice. Needless to say, we will not use her 401(K) for two reasons: there is zero match and even to go with the S&P 500 has an expense ratio of 0.72%. If this is the only bad thing about her new job, I can deal with that.
    Oct 25 12:53 PM | 2 Likes Like |Link to Comment
  • Is Tax Deferral For Dividend Growth Stocks Really Worth It? [View article]
    Obie:

    Yes, one will have a regular, taxable brokerage account. My argument is this: If you are in a low, known tax bracket now, is it smart to defer taxes when the IRA could become quite large and that would put you in a higher unknown tax bracket later? I know RAS wrote about this over a year ago but it was looking nominally at the before #. I want to see what happens after taxes. I'll try and get Part 2 published shortly.

    DD
    Oct 23 02:14 PM | Likes Like |Link to Comment
  • Is Tax Deferral For Dividend Growth Stocks Really Worth It? [View article]
    Car Buyer:

    You are extremely fortunate to have a company that lets you (assumption made) purchase any security at your discretion inside a Roth 401K and you are not force fed crappy mutual funds with outrageous fees as your only choices. You are correct that your withdrawals will be tax-free. When you do a rollover into a Roth IRA, you will also not be obligated to a mandatory distribution percentage at age 70.5 and beyond.

    eyetri2/Doctor Dividend
    Oct 22 02:45 PM | Likes Like |Link to Comment
  • A Dividend Growth Investor In Love With A Growth Stock [View article]
    sweeps:

    One of the cheapest brokerage firms is just2trade.com. Only $2.50 per trade. I would say every 4 months, buy another stock. It will add up.
    Oct 18 05:40 PM | Likes Like |Link to Comment
  • Dividend Yield's Importance As A Valuation Metric [View article]
    This concept has been around for more than 40 years and something I use for personally choosing which stocks to continue to research. The website is iqtrends.com, started by Geraldine Weiss and continued now by Kelley Wright. The premise is that each stock has their own range of undervalued and overvalued yield RELATIVE to its own history. A number of people on this board think it's fluff because it's a "best fit" range. I think it's a great tool. To each there own.

    Look at the sample issue on their website and get their books from the library.

    eyetri2
    Oct 4 03:36 PM | 4 Likes Like |Link to Comment
  • 'Investing For The Long Run' With This Durable Sale/Leaseback REIT [View article]
    Brad:

    It was alluded to but never said directly. Was the nice increase in the dividend now because of REIT rules of having to distribute 90% of FFO? For a company that's only increased the dividend 3% a year for 13 years to then jump 15% is the only reason I can think of.

    Great article as always.

    eyetri2
    Oct 4 02:23 PM | 1 Like Like |Link to Comment
  • The Fourth Scenario For When Should I Transition From Capital Gain Investing To Dividend Growth Investing? [View article]
    Jeff:

    I am on the same wavelength as you. Someone who was able to pick those 20 stocks and hold them for 20 years is an idiot-savant, an idiot, or just a savant.

    I did use longrundata to see what reinvestment of the dividends would have done in terms of the final nut. Instead of $116K, it grew to $153,000 (not figuring taxes on the dividends along the way). Also, NVS according to LRD started in late 1996 trading on the NYSE.

    I was trying to use gregjessup.com and his DRIP site to see how many shares one would now have and the associated dividend stream you would have. That would have given much greater insight, but to no avail. If there is another site like Jessup's that someone knows about, please share.

    eyetri2
    Sep 28 10:35 PM | 1 Like Like |Link to Comment
  • Merck Poised To Soar On New Insomnia Drug [View article]
    I know this is an investment piece, but I do ask one thing Incomehunter. When you are treating your patients, please look for clues of sleep apnea. I educate all my patients about it because of how serious the medical condition is. Giving them pills can be masking an issue which you all as medical doctors do not get enough education of in medical school. We can talk about this more offline, but understand the insomnia is an effect. What is the cause of the sleep issue in the first place?

    We can now get back to the topics of investing.

    Eyetri2
    Sep 21 09:43 PM | Likes Like |Link to Comment
  • The Dividend-Growth Large-Cap Fallacy [View article]
    Rudester:

    The answer is yes, more Challengers are near the top of the growth list. I think 2 simple reasons why. First, there are more of them. Bigger population, better probability they will be first.

    Second, and this is more conjecture, I think the young'ns are still trying to find the sweet spot of dividend growth balanced with growth of the company. At this point, is it difficult to really guess that KO will raise their dividend between 6 and 9% year in and year out? No. Did I ever expect Accenture to jump their payout 50% last year (am a shareholder and very LONG ACN)? Heck no; I expected more like 15% and would have been happy. But ACN is still a young company.

    Hope that made sense.

    eyetri2
    Sep 21 02:44 PM | 3 Likes Like |Link to Comment
  • Can Dividend Growth Investing Be Reconciled With Modern Portfolio Theory? [View article]
    RLJ:

    I think the US centric nature of the articles is because most people who write articles and comment on them are American. It's not good or bad, it just is. Also, when you look at the CCC list, how many foreign based companies are in the Champions list? I believe zero. When you get to the Contenders, maybe 5%. If there were long standing CCC foreign-HQed companies, they would be on Fish's list and we Americans would appreciate the greater diversity, currency exchange risk, semi-annual dividends, and foreign withholding taxes notwithstanding. Remember what is on the CCC list - companies that have INCREASED the dividend every year. There may be foreign companies on the LSE or the FTSE that have paid dividends for decades but their policy is to base it on a percentage of earnings (traditionally) and if the earnings went down last year, so do your dividends the next year.

    DVK - the other thing you didn't really touch on with MPT is not only the "science" and numerous studies, but that advisors can you use the economic science and bundle fees around it, whether on a transaction basis or as AUM. I know there are a few advisors that focus on dividend growth like we do here (Deschaine and Company and Lowell Miller come to mind), but they are obviously few and far between. The easier sell is to go with the herd.

    eyetri2
    Sep 19 09:15 PM | 3 Likes Like |Link to Comment
COMMENTS STATS
303 Comments
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