5 High-Dividend Stocks For A Strong Market [View article]
RNF is more volatile than the other picks. Its share price moves with expectations for nitrogen fertilizer demand, which in turn, depends on the size of next year's corn crop, next year's weather, and who knows what else. Those expectations seem to change almost daily. I view RNF as a good mid- to long-term play and don't watch it every day.
4 Stocks And 1 Fund To Buy And Forget [View article]
Hi Munger Maniac,
Thanks much for the complement.
I picked my "Buy & Forget" list from stocks that I follow in my day job (Dividend Detective). Currently, we're not following any big pharma stocks because we view that sector as too risky. Consequently, you are probably more up on the topic than me.
4 Stocks And 1 Fund To Buy And Forget [View article]
Hi FloridaScene,
In my view, the traditional yield formula for bond funds (last 12-mo ave dividend divided by share price) is more meaningful for investors like us than the SEC yield, which, in essence, is a form of yield to maturity.
The traditional formula reflects what you actually earn, in terms of dividends.
4 Stocks And 1 Fund To Buy And Forget [View article]
Hi Scott,
Thanks for the complement. There are many other stocks that would qualify, so my picks are somewhat arbitrary. MO is paying around 6% vs. 4.7% for PM. While PM may have better growth prospects, in this instance, I'm in the "bird in hand" camp.
Oil stocks, including XOM, are generally too volatile for such a list. Finally, KO's 2.9% yield is nothing to shout about.
The assumption is that bonds will continue to produce produce positive returns in an economic downturn and weak stock market. That doesn't necessarily imply a "depression."
You are right that bonds would underperform stocks in a strong market. In such a scenario, whether bonds produce positive or negative returns depends on prevailing interest rates and inflation. Bonds would lose money if interest rise significantly, or if inflation takes off.
Variable Uncorrelated Portfolio: A Market Neutral Strategy [View article]
That is correct. If half of the ETFs are trading below their 200 day MAs, you would start the month with 50% of your assets in SHY or cash.
The results that I related are for the strategy as described. But that is not necessarily the optimum strategy. If you have a better idea, I'm all ears.
Daunted by This Market? Check Out These 4 Preferred Stocks [View article]
Yes, you are right. Preferreds are listed in the Shareholders Equity section of the balance sheet.
What I should have said is that, despite that, for all intents and purposes, preferreds act like debt, not equity. For instance, if a company prospers, triples in size and its common stock goes to the moon, preferred shareholders wouldn't participate. That is, the preferreds would still be trading near their call price. Thus, in a practical sense, preferreds act like bonds, not stocks.
CVR Refining Should Be Bought Right Now [View article]
A 23-year old finance major! Wow! Wonderful analysis. You have a bright future ahead.
Like High Dividends? BDCs Are Worth A Look [View article]
Thanks for the plug for Dividend Detective.
Harry
5 High-Dividend Stocks For A Strong Market [View article]
5 High-Dividend Stocks For A Strong Market [View article]
Thanks for the complement. It is much appreciated.
Harry
7 Dividend Stocks For 2012 [View article]
4 Stocks And 1 Fund To Buy And Forget [View article]
Thanks much for the complement.
I picked my "Buy & Forget" list from stocks that I follow in my day job (Dividend Detective). Currently, we're not following any big pharma stocks because we view that sector as too risky. Consequently, you are probably more up on the topic than me.
4 Stocks And 1 Fund To Buy And Forget [View article]
4 Stocks And 1 Fund To Buy And Forget [View article]
4 Stocks And 1 Fund To Buy And Forget [View article]
In my view, the traditional yield formula for bond funds (last 12-mo ave dividend divided by share price) is more meaningful for investors like us than the SEC yield, which, in essence, is a form of yield to maturity.
The traditional formula reflects what you actually earn, in terms of dividends.
4 Stocks And 1 Fund To Buy And Forget [View article]
Thanks for the complement. There are many other stocks that would qualify, so my picks are somewhat arbitrary. MO is paying around 6% vs. 4.7% for PM. While PM may have better growth prospects, in this instance, I'm in the "bird in hand" camp.
Oil stocks, including XOM, are generally too volatile for such a list. Finally, KO's 2.9% yield is nothing to shout about.
Harry
Hedge Your Bets With Bond Funds [View article]
Hedge Your Bets With Bond Funds [View article]
The assumption is that bonds will continue to produce produce positive returns in an economic downturn and weak stock market. That doesn't necessarily imply a "depression."
You are right that bonds would underperform stocks in a strong market. In such a scenario, whether bonds produce positive or negative returns depends on prevailing interest rates and inflation. Bonds would lose money if interest rise significantly, or if inflation takes off.
Variable Uncorrelated Portfolio: A Market Neutral Strategy [View article]
The results that I related are for the strategy as described. But that is not necessarily the optimum strategy. If you have a better idea, I'm all ears.
Daunted by This Market? Check Out These 4 Preferred Stocks [View article]
Daunted by This Market? Check Out These 4 Preferred Stocks [View article]
What I should have said is that, despite that, for all intents and purposes, preferreds act like debt, not equity. For instance, if a company prospers, triples in size and its common stock goes to the moon, preferred shareholders wouldn't participate. That is, the preferreds would still be trading near their call price. Thus, in a practical sense, preferreds act like bonds, not stocks.