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  • The Passive DGI Portfolio: Quarterly Portfolio Update [View article]
    Hi Dccoins - Thank you for reading and commenting. All the dividends are being reinvested in the existing securities. At least that is the plan for the next few years. Spinoff shares will be sold within 90 days. There may be some exceptions as we go (for example, when ABT spin-off ABBV, ABBV was worth keeping). 
    Nov 20, 2014. 01:47 PM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Quarterly Portfolio Update [View article]
    Thank you. By the way, I published another article on SA recently that focused on high income, and could be similar to your approach.
    http://seekingalpha.co...
    Nov 18, 2014. 11:28 PM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Quarterly Portfolio Update [View article]
    Hi Archman – Appreciate your comments. This portfolio is very new and hasn’t had enough time to compound. It still has a much higher dividend yield than S&P500 (3% versus 1.85% from SP500) with significantly less volatility. But I am sure there other ways to achieve similar (or even better) results. Thank you again.
    Nov 18, 2014. 11:25 PM | 3 Likes Like |Link to Comment
  • The Passive DGI Portfolio: Quarterly Portfolio Update [View article]
    Thank you, appreciate it.
    Nov 18, 2014. 11:22 PM | 1 Like Like |Link to Comment
  • An Income Portfolio: High Income And Capital Preservation [View article]
    Hi EyeBelieve – Thank you for your comment. I did not do any back-testing, but almost everything went down during 2008/2009 recession (except certain bonds and treasuries). I agree it will be interesting to run some back-tests and compare them with S&P500.
    Oct 25, 2014. 01:42 PM | Likes Like |Link to Comment
  • An Income Portfolio: High Income And Capital Preservation [View article]
    Hi Rk1000– Thanks and appreciate your comments. Here are my thoughts. It is a general perception that interest rates would rise in the near future, but no one really knows when they will start to rise and at what pace. So the idea is to remain diversified into different types of assets. If one asset-class was to go down, something else would go up, keeping the overall portfolio net positive, while we collect our 8% income. It is easier said than done, as no investment style is without risks. About CEFL, a lot of other readers have already commented. In my opinion, as I stated in the article it is a more risky instrument, however a limited exposure (6% in case of this model portfolio) would not add too much risk to the overall portfolio. Please always do your due diligence and invest according to your risk tolerance. Thanks again.
    Oct 25, 2014. 01:38 PM | Likes Like |Link to Comment
  • An Income Portfolio: High Income And Capital Preservation [View article]
    Hi Cooper-1 - Thank you.
    Oct 25, 2014. 01:19 PM | Likes Like |Link to Comment
  • An Income Portfolio: High Income And Capital Preservation [View article]
    Hi Rubygreta – Thank you for your comment. PCEF like any other “fund of funds” has its own management fees of 0.50% over and above the expenses and fees for the underlying funds. Investing in PCEF would be akin to picking up a Dividend ETF like DVY instead of buying individual dividend stocks. However, there is nothing wrong with that approach if that suits your investment style. I have not looked at PCEF in great details, you may like to compare PCEF with other similar funds, for example YieldShares High Income ETF (YYY) or Cohen and Steers Closed End FOF (FOF).
    Oct 25, 2014. 01:18 PM | Likes Like |Link to Comment
  • How To Put Your Cash To Work, In This Market Or Any Market [View article]
    Thank you, Jeff.
    Sep 24, 2014. 09:29 AM | Likes Like |Link to Comment
  • How To Put Your Cash To Work, In This Market Or Any Market [View article]
    The shares may be called only if the share price of the underlying stock moves significantly higher. That can definitely happen, but in my experience, it does not happen too often before the expiration date (may be 10-20% of the time). Also, the dividends are paid quarterly so chances are that you already have received some dividends before the shares are called. If the stock price moves lower, there is no gain for anyone to call the shares. With regards to commissions, one could use low commission brokers and there are many. For taxes, there is no escape if you are using taxable account. Whatever strategy you use, if you made money, there will be taxes. If you were to buy back the shares and cannot deduct the loss due to wash sale rules, it will at least make your cost-basis higher for next purchase. Lastly, you would not want to bet the farm on this strategy, it could be used for a small part of the portfolio. Hope that clarifies and thanks for the discussion.
    Sep 22, 2014. 07:24 PM | 2 Likes Like |Link to Comment
  • The Passive DGI Portfolio: Portfolio Update [View article]
    Thank you, Hardog :)
    Aug 10, 2014. 11:16 PM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Portfolio Update [View article]
    Thanks. About Utilities, if I look back, I guess they were filtered out based on certain criteria, like low Chowder number and my own FDGL (Future Dividend Growth Likelihood) Ratio. I could have picked up one from the list of Dividend contenders, but just did not feel comfortable. I guess I will keep them in my shortlist, if I have to replace any position in future. I do have WM (Waste Management), not exactly a utility though. Thanks for your suggestion.
    Aug 6, 2014. 01:05 AM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Portfolio Update [View article]
    Appreciate your comment. Thanks.
    Aug 6, 2014. 12:53 AM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Portfolio Update [View article]
    Good suggestion, SDS. I will make a distinction in later posts. Thank you.
    Aug 6, 2014. 12:53 AM | Likes Like |Link to Comment
  • The Passive DGI Portfolio: Portfolio Update [View article]
    Thanks. Appreciate your comment.
    Aug 4, 2014. 06:25 PM | Likes Like |Link to Comment
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45 Comments
26 Likes