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  • My Bet On Seeking Alpha's Future [View article]
    Congratulations to both David and Eli! I'm sure the best is yet to come for both of you.
    Jul 2, 2015. 12:00 PM | Likes Like |Link to Comment
  • Is Realty Income Cheap Enough Yet? [View article]
    To my mind, "cheap" means nothing more than "the yield is safe, and I can live off it."
    Jul 2, 2015. 10:59 AM | Likes Like |Link to Comment
  • Seeking Alpha Contributors And Commenters Pick The Best Dividend Growers For The Next 5 Years [View article]
    Great article, Bob. To answer your question, the way I try to ensure dividend growth is plan on reinvesting a portion of my dividends. I'm retired, and to cover my living expenses, I'd need a yield of about 2% on my portfolio. I need that yield to grow at least 3% a year, which is what I see as a natural rate of inflation going forward. Here is an example of how I pick investments that suit those needs. One of my investments for my ROTH IRA is National Retail Properties (ticker NNN), which has a current yield of about 4.7%, and a solid history of dividend increases. I picked this investment primarily for the business model - it is a triple net lease REIT, with contractual income and expenses. Because the rents and real estate expenses are fixed by contract, NNN has somewhat more predictable income than, say, a company like Go Pro or Tesla. That business model makes for a more stable dividend. My second line of reasoning is track record. NNN has a long history of increasing dividends, which demonstrates managerial competence. My third line of reasoning is that if I spend the first 2% worth of NNN's yield, I can reinvest the remaining 2.7% back into NNN. By doing so, I can be fairly sure that my income from NNN will grow by at least 2.7% next year, even if management fails to raise the dividend organically.
    My approach is to split the responsibility for growing my income - it's my job to save and reinvest, and it's NNN management's job to keep raising the dividend.
    I adapt my spending habits to ensure that I keep doing my job.
    Jul 2, 2015. 10:56 AM | Likes Like |Link to Comment
  • Navios: Not For Novices, But The Dividends Are Safe [View article]
    Assuming that yield gets paid. I have no reason to think it won't, but 17% is high enough that you have to question the sustainability. Unless the stock market is truly and utterly irrational - which may be the case.

    As with all investments, you pays you money, you takes you chances.
    Jul 2, 2015. 09:52 AM | 1 Like Like |Link to Comment
  • The Most Secure DGI Stock [View article]
    I thought through your argument - you're right. Nominal yield makes more sense if you're trying to price stocks against competing assets with fixed payments, like most bonds). It's a good point, and so I withdraw my earlier argument. Thanks, TF17.
    Jul 1, 2015. 07:32 PM | 1 Like Like |Link to Comment
  • ACE buying Chubb in cash and stock deal for $28.3B [View news story]
    I own both ACE and CB, but the premium ACE is paying seems to value CB slightly above intrinsic value. I'll hold onto ACE, but I plan to exit CB and move the proceeds into cheaper assets like IBM, WPC, NSC and perhaps KED.
    Jul 1, 2015. 09:28 AM | Likes Like |Link to Comment
  • The Most Secure DGI Stock [View article]
    Thanks for the link. I agree that you want to compare to apples to apples - but a 10% dividend increase during a period of 10% hyperinflation is no increase at all.
    Jul 1, 2015. 09:22 AM | 1 Like Like |Link to Comment
  • Redfine Your Investment Goals [View instapost]
    Glad you found this helpful. I agree that 11 stocks isn't exactly tons of diversification, but there are some pretty famous investors who advocated holding fewer shares and watching them very closely (Fisher, Dodd, etc.) Personally, I have 88 different income sources and aspire to keep my portfolio balanced in terms of income source - 1% to 2% of my total portfolio income comes from any single source.

    I also agree that many of the dividend stalwarts have very slow dividend growth. Con Ed is a great example. While I'm certainly a big fan of dividend growth, I'm happy to exchange that for dividend predictability and stability. The way I see it, a 50% likelihood of a 10% dividend increase isn't as good as a 100% chance of a 5% dividend increase. That's risk aversion on my part.

    I like the idea of treating investing as a form of self-employment. You get to pick your hours, you don't have to argue with a committee over how the job gets done, and you keep 100% of your productivity. Best of all, you get the income raises that you deserve (which isn't terribly common in the workplace).

    Thanks for taking the time to comment!
    Jun 30, 2015. 09:37 PM | Likes Like |Link to Comment
  • Why I Bought Greek Stocks Today [View article]
    Don't think you'll make your millions throwing darts at long shots. The best shot at the brass ring I can think of would be to save money each month, invest it in the best businesses you can find, and keep that up for 30 years. Maybe toss in a rental property or two, collect the rents, pay off the mortage ASAP, and then use the cash flow to buy more properties or more businesses. And keep that up for about 30 years. Just sayin' - slow and steady wins the race.
    Jun 30, 2015. 08:18 PM | 6 Likes Like |Link to Comment
  • Navios: Not For Novices, But The Dividends Are Safe [View article]
    Just pull the prospectus, and call their main office in Monaco. Ask for investor relations, and you'll find that they're pretty open to answering basic investor questions. E-mails with investor questions don't seem to get answered, FYI.
    Jun 30, 2015. 07:43 PM | 1 Like Like |Link to Comment
  • Why I Bought Greek Stocks Today [View article]
    Greece reminds me of this burlesque club I used to frequent in New York City, called the Blue Angel. The Emcee would say "welcome to the Blue Angel, where anything can happen, and probably will." A fine establishment, was the Blue Angel, but would I invest in a situation where anything can happen and probably will? No, and the reason why is because it is not possible to invest in such a situation. The best you can do is speculate in such situations, and if I want to speculate, I'd at least like a few complimentary drinks.
    Get out. If you don't get burned on this one, it will embolden you to speculate even bigger on the next, and then the damage will be that much worse.
    Jun 30, 2015. 07:31 PM | 4 Likes Like |Link to Comment
  • Why I Bought Greek Stocks Today [View article]
    Brave. Not necessarily smart, but absolutely brave.

    My advice? Why not buy something that pays you a reliable stream of income? A rental property. Some dividend stocks. Why gamble on an entirely uncertain outcome when you can just buy a few great businesses and collect 3% a year?
    Jun 30, 2015. 07:24 PM | 2 Likes Like |Link to Comment
  • Navios: Not For Novices, But The Dividends Are Safe [View article]
    Relo - NMM isn't a Greek company. Their ships sail from multiple ports, including but not limited to Greece. And last I saw, they use JP Morgan as their bankers, right here in the good ole USA.
    Jun 30, 2015. 06:56 PM | 1 Like Like |Link to Comment
  • Navios: Not For Novices, But The Dividends Are Safe [View article]
    I don't think Greece has any direct impact on Navios - they're incorporated in the Marshall Islands, headquartered in Monaco and have offices in Greece. I guess if the ports all go on strike it could maybe have an impact? I'd have to assume they carry insurance on that sort of risk, though. ANd I hear what you say about the parent company. Guilt by association? But at the same time, look at NAP - their stock price is doing quite well in spite of oil prices, Greece, parent company, you name it.
    This all just reminds me to keep my head down, reinvest my dividends like a good little investor, and not try to read the tea leaves.
    Jun 30, 2015. 05:53 PM | 2 Likes Like |Link to Comment
  • Navios: Not For Novices, But The Dividends Are Safe [View article]
    The distributable income is still a reasonable bit higher than the dividend, so I'm too terribly worried yet. When it comes to NMM's stock price, I can't decide whether Mr. Market is smoking crack, or has seen dark clouds over NMM's future. I tend to subscribe to the former theory.
    Jun 30, 2015. 04:30 PM | 1 Like Like |Link to Comment