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Factoids

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  • A 9% Yield Keeps Apollo Looking Good [View article]
    I am not the guy to write about tax issues.
    Success has many fathers - and I am one of those fathers of the MLP UBTI data-base. I am one of the "out of consensus" believers in investing in negative UBTI MLPs is IRAs - because doing so frees an investor from the shackles of tax problems caused in selling long held MLPs.
    I believe that the intangible "freedom to sell" is worth more than the tangible tax benefits one gives up when buying negative UBTI MLPs in IRAs. But such will only be true as long as CAGR awareness of the MLP investing public stays low - and the profit potential in switching MLPs stays high. Such is only true for investors with superior CAGR awareness. And the higher your income bracket, the more negative is the benefit of following that course of action,
    So . . . . the best course of action varies by investor. It varies by income bracket, life expectancy, and the ability to beat the AMZ. On top of that, add the fact that the tax consequences varies by investors in the same tax bracket depending on their purchase price and purchase date. All that complexity results in something perverse and weird. My best "MLP advice" could easily be the wrong advice for the majority of investors.
    May 25 11:09 AM | 2 Likes Like |Link to Comment
  • A 9% Yield Keeps Apollo Looking Good [View article]
    There are BDCs where there are realistic expectations of dividend growth. Those BDCs have EPS growth, better dividend/EPS ratios, and dividend growth and NAV growth inertia.
    I believe every investment is a "portfolio decision". For retired investors like me, one has to balance the need for income in the here and now with income growth in the years yet to come. For every one dollar I invest in a high yielding BDC allows me to afford to invest two dollars in lower yielding but high dividend growth stocks like Colgate, Hormel and Smuckers.. I also like owning some lower due diligence stocks.
    Are BDCs "analytically opaque"? Yes they are. And my response to that is "ain't that great!". I like investing in sectors where other investors are struggling with their metric awareness.
    I have never sold puts, and I can to speak to that method of investing.
    May 24 11:00 PM | 4 Likes Like |Link to Comment
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