James Jenckes

Dividend growth investing, dividend investing, portfolio strategy, value
James Jenckes
Dividend growth investing, dividend investing, portfolio strategy, value
Contributor since: 2014
flowthrough,
Thanks for your comments.
Jim
chemp,
I checked out the Aug 31, 2015 report. See page 15. Get it here: http://bit.ly/1MMfSBi
It looks like management fees are 2.5%, but total expenses are 4.7%. So, I assume the 4.7% is the total expense ratio. Not sure where the 12.6% comes from. I saw the same thing on Schwab. The best source of information is the companies documents.
Take care,
Jim
Stallionre,
Thanks for your comments. I appreciate it very much. ETN seems to be HOT right now, but it may cool a bit. Relative Strength Indicator (RSI) is showing that it's now over bought. We might get a bit of pullback. It's had about a 14% run up since bottoming at the beginning of Oct. So, don't be surprised or dismayed if it gives up some of those gains. It will give others, like me, a chance to jump on board. As for the dividend, I'm guessing they'll lean on the conservative side. Due to the present weakness they probably will only raise it about a nickel. However, if they over deliver on the guidance for the 4th quarter, we may see a dividend increase between 7 and 10 cents. If they raise, it will probably be announced around Feb 25, 2016.
Take care,
Jim
Rebel,
Thanks for your comments. Yes, strange things happening out there. Yes, CVX is down, but you'll notice by looking at the charts, it is on the come back trail! XOM, BP, TOT and other are also showing signs of recovery.
Take care,
Jim
Derek,
Thanks for the comment. It appears ETN is breaking out into a new up trend. I would think we could see this stock back at $70 in the next 6 months or so. However, if you wait a bit we might see a pull back to the $55 range.
Take care,
Jim
ricksteph,
Thanks for answering lakeaffect's question. I appreciate that. I assumed that was the answer, but was going to have to research it to make sure.
Jim
Lakeaffect,
Thanks for your comment.
Jim
Hungry,
Read this, it's from STON's website. It should answer your question, pay special attention to paragraph 3.
Take care,
Jim
An MLP (master limited partnership) is a limited partnership that trades on the major stock exchanges just as any other C corporation. An MLP has one or more general partners that manage the partnership and many limited partners that provide capital to the partnership, but have no role in its management. Whereas investors in C corporations own shares denoting their ownership, investors in MLPs own units, and are considered limited partners. MLPs are generally required by their partnership agreements to distribute most, if not all, of their available cash to their unitholders, resulting in higher yields for investors.
A significant difference between MLPs and C corporations is that MLPs do not pay taxes at the corporate level; rather, taxes are paid at the limited partner level. This, too, results in higher yields to investors since it avoids the double-taxation of dividends. The MLP structure also allows for depreciation and depletion of assets to be passed through to the individual investor, further enhancing the tax-advantaged nature of the MLP investment.
In order to qualify as an MLP, a partnership must receive at least 90% of its income from qualifying sources. Such sources include the sale of real estate, rental income from real estate, income and capital gains from natural resources activities, etc.
MLPs have been around for more than 30 years. While most MLPs are in the energy sector, a few, such as StoneMor, operate in other qualifying sectors. There are well over 100 MLPs operating today and their structure not only benefits investors with high yield, but also provides for strong incentives for management to grow the businesses, creating more value for unitholders.
2 dollar Bill,
Thanks for stopping by.
Take care,
Jim
robert53ny,
Thanks for stopping by and making a comment.
Sorry I took so long to reply.
Take care,
Jim
Gent's,
I believe it is unlikely that crude oil prices will be depressed for a long period of time (10 years or more). The laws of supply and demand will eventually take care of that. Oil is a non-renewable resource, it will become increasingly difficult for production to keep up with demand. If you study what it happening Saudi Arabia will begin to see what may take place. In the next few years the Saudi's are going to have a very difficult time meeting domestic demands and the demands for exports. They don't have much overhead left to pump and their domestic demand is now 25% of their production. They are piling up debt to pay for the subsidies that they are providing there own people. At some point they will need to earn some serious money or they risk losing the "Kingdom" to the radicals. It's only through keeping their people satisfied that "Princes" can remain in power.
Also, there is nothing like $2.00 gasoline in the US to drive up demand for more oil. With many rigs being sidelined, many oil wells will go unfinished or untapped. Sooner or later the pendulum will swing the other way and oil prices will moving up again. It's probably the hope of the Saudi's that this happens much soon er than later. If they can crush our shale oil plays they will have won, once again. Which of course oil prices will climb once again.
With a rising oil demand and price I see the above discussions as moot.
bellsareringing,
Thanks for stopping by. I hope you can work around your tax issue? it may be best to sell? If possible invest like amount in a taxable fund once the stock pulls back some?
Take care,
Jim
Universal,
I appreciate the comments. STON has been on a run since beginning of OCT. It may cool off soon. So, keep an I on it.
Take care,
Jim
Big Blue,
Sounds good to me. I still working up to the $30K mark.
Thanks for stopping by with your comments.
Jim
Dividend Don,
I appreciate the comments.
Jim
maxnsl,
Thanks for you comments.
Take care,
Jim
giofls,
Thank for taking the time to make a comments.
But, I do take exception with your view on the future of these companies that are part of the KYN portfolio. Do you really think any of these companies will go out of business and shutdown their operations. These companies have assets that are vital to the general welfare of our entire country. Only when we stop our reliance on fossil fuels will these companies become endangered. And, I believe that's a long way done the road. If one of these companies is in financial trouble it is more likely that company will either be bought or merged with another one.
But each to his own.
Take care,
Jim
Jdeboer,
Thanks for taking the time to comment.
Jim
Jimmy,
Thanks for the comment. The chart I used was a weekly chart. Each candle represents a week of price change. I should have stated that beforehand.
I agree with idea about timing a buy. I would not add to my position at this time. I am waiting for a dip some where below $30. There was a great opportunity in August, but, alas, I missed it.
Extreme,
Thanks for picking that one up. Usually, I have the editor in chief (my wife) read my stuff before publishing. But, she wasn't available at the time. I should have waited.
Jim
Rick,
You can check the discount/premium spread on cefconnect.com. Right now the premium as about 8.8 % which is slightly less than the 52 week average. When the down trend is broken I would image you will see the premium head back up toward 20%. In order for that to happen the price will have to break above $25 and remain above it. I think it has bottomed out around $21.50. I don't think we'll be back there. But, it will take time to build a new base before it can climb out.
Hope that helps?
thomasjmartin,
Thanks for your comments. I believe you are right, folks misunderstand what's going on at STON. So, we get the negative coverage, the stock tanks, but, maybe that's a good time to start nibbling at it?
Take care,
Jim
LWCDGI,
Well, somebody's got to do it. More that 2.6 million people a year need the service. And, at this point in time there is no indication the trend will be reversed or reduced. More population means more clients.
Take care,
Jim
Tiderip,
Yes, more than 2.6 million checking in every year.
Take care,
Jim
nikobnxt,
I would read Investment Pancake's replies above. I think they will your answer your question better than I can. However, what stands out to me is KYN's turnover rate is only 18%. FEI and FPL have higher turnover rates and they are also very new to the game. The higher turnover rate will possibly lead to added expenses which of course will reduce the yield.
Take care,
Jim
gmitchell2,
Thanks for stopping by with your comments. Yes, I think it is good time to get into the MLP space. I think it's the most hated and misunderstood investment vehicle.
Take care,
Jim
SantaBarbaraDream,
Thanks for stopping by. I appreciate the comments.
Jim
Hungry,
I appreciate you stopping by and adding to the conversation.
You bring up some good points.
Thanks,
Jim
Investment Pancake,
Thanks for the reply. I'm liked minded in regard to the IRA. I have a taxable account and an IRA. The qualified dividend payers go into the taxable account and the REITS, most of CEF's, and any bond type funds go into the IRA.
Starting in Oct 2014 I wrote a series of 4 articles concerning tax issues that dividend investors would face. Here's a link to the first one: http://seekingalpha.co...
Thanks again for your willingness to share time and thoughts with the rest of us.
See Investment Pancake's comments below.
Investment Pancake,
Great comments. I appreciate it and I believe the readers of SA will too.
Your explanation of the tax issues surrounding MLP's is easily understood and should help all of us with our tax planning. As an owner of 4 MLP's I need to be reminded how I should handle them to maximize income and minimize taxes. I don't plan on buying any more than the 4 and I don't plan on selling them. They are in my portfolio to generate cash flow.
Thanks,
Jim
Fred. L.
Thanks for your comments. You make some good points there.