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Jarrod W. Jacinth

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  • Retirement In A World Without Social Security [View article]
    To me #5 seems to be a Generational Quirk. After WW 2 we saw Corporate America take off then we had the 60's, 70's and so on. It seems that the baby boomer generation laid the foundation for a huge financial epoch. Later generations find comfort in going to college and getting that "safe" job, climbing the corporate ladder and keeping up with Kardashians, literally.

    The idea of building a life for you and your family has completely changed in the last 50 years.
    Apr 23 12:43 AM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    AFAHM,

    I like NLY and Brad is awesome. As you stated, the price action of a REIT is volatile and that is where I would hesitate to reinvest the dividend for the long term. Personally, I would simply take the dividend from a REIT as income and either use it to pay bills or invest in something else with the dividend.

    I looked up OHI it looks like a good play, personally I would have gone with HCP as it has increased dividends for 27 years now.

    On Oct 27th, 1999 OHI payed a .70 dividend, Jan 26th, 2000 it went down to .50. They payed no dividend Q2 of 2000 and Q3 saw a .25 dividend. I would also be cautious of this. In a year the dividend was slashed by almost a third and they skipped one payout. Just something to be aware of and keep an eye on.
    Apr 19 04:50 PM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    Many companies give away shares to Directors as compensation. When looking at buybacks keep in mind whether the buyback is to return shareholder value such as IBM and AXP. Or is to it equalize the stock options that it gives away to it's executives.
    Apr 19 04:12 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    Again if I may ask, in your late 50's roughly how much of your annual expenses does this pay for?

    Also, if dividends not reinvested how much do you expect this payout to increase annually?

    Thanks,

    Jarrod
    Mar 23 02:06 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The calculator does not include any price appreciation for the portfolio.

    http://bit.ly/14cBTSe
    Mar 22 04:49 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    Excellent! this is exactly the point.

    If I may ask, what would be the dividend income from this portfolio?
    Mar 22 04:47 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The math is correct. The calculations do not take into account an increase in stock price. However, an increase in stock price is not the point of the article. The point is how a solid dividend along with dividend growth can turn even a small amount of capital into a large pile of cash as well as an amazing dividend income.

    Also take into consideration that the amount added each year is static. Under usual circustances the man will very likely increase the amount of money to the portfolio every year.

    As stated above the YOC is simply based on the original $1040 invested.
    Mar 22 04:45 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The YOC is simply based on the intital investment of $1040. You may look at the online calculator that I used at http://bit.ly/14cBTSe
    Mar 22 04:39 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    I'm not sure you are reading the article or graph properly. The 8% growth is for the dividend not the price of the stock.

    The premise of the article is not to simply invest in a stock with a dividend but a stock that increases it's dividend year after year.

    So simply put
    $1040 + $1040 x 1.02.

    The first column gives us how much dividend we get but does not add it to the portfolio total.

    The second column adds it to the portfolio total.

    The second year calculation dividend is no longer 2% it is now 2.16%, because of the 8% growth of the dividend. The third year is a dividend of 2.33%, 2.52%, 2.72%, 2.94% and so on.

    This is the power of compounding the dividend because the amount the dividend pays increases every year.

    This calculation does not increase the stock price and does not take into account an increase in stock price. This is done in order to show how an increase in a dividend can add up over time.
    Mar 21 11:34 PM | Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    Braeburn Capital
    Mar 6 05:49 PM | Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    Just as irresponsible for Apple to sell these assets to raise cash then distribute to the shareholders.

    Apple needs their asset pile to ensure the longevity of a compnay whose business is to destroy what they previously created only to recreate it better.
    Mar 5 12:34 AM | Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    Yes Apple could liquidate it's investments. But why would it? The article is not about whether Apple can liquidate it's assets. It's about clarity to the retail investor.

    Many articles about Apple state how Apple has a $137 Billion Dollar cash hoard. This is part of the reason so many people are essentially stuck owning this stock and watched it plummet from 700 to 420. Waiting for the day it goes back up, and it will, so they can break even.
    Mar 5 12:01 AM | Likes Like |Link to Comment
  • Why This Financial Stock Is On My Watch List [View article]
    I admit I am one of those people that want to see what Mr. Buffett or his two managers have purchased; perhaps they found something that I missed. However, WFC is a staple in many hedge funds. This may in part explain the stagnation in the recent months, no one else to buy in.

    Once we have found a stock the last thing we want to do is overpay for the stock. Apple at 700 anyone? So as a simple screening process I run the Graham Number and the PEG ratio and come up with some price points.

    In May we always see the market correct and prices drop down to around the 200 SMA. At this point it would be a great time to back the truck up and load up on WFC simply knowing that we just bought into a great company at a fantastic price with Mr. Buffet's, among many others, seal of approval.
    Mar 2 10:40 AM | Likes Like |Link to Comment
  • Why This Financial Stock Is On My Watch List [View article]
    Henry,

    Thank You for the kind words.

    The PEG is the Price - Earnings - Growth ratio or,

    Price / Earnings / Growth = PEG Ratio.

    $35.08 / $3.36 / 10.10% = 1.03; This means that the price of $35.08 is 103% of it's "Fair market Price" based on growth.

    Take 35.08 divide by 103 we get .3405. Multiply that by 100 and we get $34.05.

    However, it is still up for dicussion that a fair price based on the PEG may extend up to 1.20. As a baseline I use 1.00 and let the individual decide how much above or below they will allow themselves.
    Mar 2 10:08 AM | Likes Like |Link to Comment
  • A Question Asked About Labeling Stocks Undervalued [View article]
    This is where I would disagree. GOOG is not a value stock it is a growth stock. We see this last year when earnings came out on Oct 18th and were grossly under expectations. The stock plummeted and had to be frozen.

    This is why I draw the line. Do not be supprised if and when GOOG or any other growth stock sells off because they do not meet of beat expectaions. This was the issue with AAPL. The 60% yoy growth is gone.
    Feb 23 07:04 PM | Likes Like |Link to Comment
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