Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Mr. Schwartz: It can be tough to sell a clear winner but it may make sense if you can increase your income and still maintain or increase your total capital. Thanks for the comment.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
eyetri2: Thanks for your comments. I tried to say that I'm not suggesting that JNJ and LEG are the absolute best available alternatives to MCD. I'm sure we can find someone to make an argument that INTC is not an A+ company. However, only in 5 years will be able to say with certainty which is the superior investment over the next 5 years. I do appreciate your input. I think this issue is a difficult one for DG investors.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
jrcarl: Of course, the assumed growth rate for earnings and dividends is critical. I have listed these assumed rates in the key metrics for each of the stocks. I took the 5 year EPS growth rate from the Dividend Champions spreadsheet. And I was trying to be conservative in leaving the PE at the current ratio, assuming no PE expansion. (Nor any contraction.) As I alluded to in an early comment reply, can I rely upon MCD to meet its assumed growth rates going forward. It's not a given. Thank you for your perspective.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
LarryMelman: Indeed. I understand your forest and trees concern. Projections and spreadsheets serve to put hard numbers to our decision making. Diversification and tax issues have to be addressed within the context of each investor's strategy and circumstances. Also, for me, I have to ask if MCD can perform for me over the next 8 years close to how it has performed over the past 8. Probably not, but it still has big opportunities in China and other emerging markets. Thanks for your point of view.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
richjoy403: I understand your reasoning. I mention in the article that I was taking the extreme point of view of selling the entire position but cashing in half (or some other fraction) would also serve to increase your return on that portion and allow you to still be exposed to MCD. This is the nature of the decision faced by a dividend growth investor. Thank you for your comment.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
KSAccountant: Certainly taxes have to be considered. But the point is that for an income investor does it make sense to let winners run forever when you could reallocate some of that profit to increase your revenue for years to come. Thank you for your comment.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Mr. Wells: Thank you for your comment. As I mention in the article, JNJ and LEG may not be your cup of tea for this type of strategy. However, as with most stocks depending upon when you purchased JNJ or LEG in the past 10 years you could be sitting on a decent gain.
SandRidge Mississippian Trust I Paying Above Targets [View article]
Mr. Shulli: SD has filed the registration statement for Mississippian Trust II, to be traded as SDR. Not aware of announced IPO date as of yet. http://bit.ly/AmF6ke
SandRidge Mississippian Trust I Paying Above Targets [View article]
DT160: Any partnership structure like an MLP or a trust will certainly add some complexity to your tax preparation. As for the sale of shares in SDT, SD retained a number of common units in SDT at the time of the IPO. I can only assume that SD is taking advantage of the substantial run up in the shares of SDT. This has no impact on the payment of distributions. The distributions are purely a matter of the amount of oil and gas recovered from the drilling operations.
SandRidge Mississippian Trust I Paying Above Targets [View article]
cds1212: I agree with your assessment. For the operator it is a relatively low cost way to finance the drilling operations with some upside for them if the recovery rates exceed their projections. It is to their advantage to price the trust units attractively especially when they know they may want to form additional trusts for drilling in the same formation. For the investor, particularly when you can purchase at the IPO or early in the life of the trust, this investment offers a short term opportunity to profit through capital gains as well as a relatively high yield. Thank you for your informed comments.
SandRidge Mississippian Trust I Paying Above Targets [View article]
rdburch: You have to be aware that these types of investments can generate Unrelated Business Income. If your IRA reaches a certain threshold of UBI, then your IRA will be liable for taxes. http://bit.ly/xSSbfj
SandRidge Mississippian Trust I Paying Above Targets [View article]
oagfy: The K-1 is not yet available and 2011 was the first year of operation for SDT. Understand that I'm not a tax professional but unless you have significant partnership holdings, you may not meet minimum filing requirements for the other states.
I wouldn't pretend to discount your point that CMG is richly valued, however, I don't see the evidence of cannibalization that you refer to. For the most recent quarter, the average revenue per store was running at a rate of just over $2 million. This metric has increased every quarter and is up from $1.8 million at the end of 2010. Also, to echo one of the other comments, you have to be careful shorting momentum. I sold half of my position last year at $230 on valuation concern. Thanks for the article, good discussion.
SandRidge Mississippian Trust I Paying Above Targets [View article]
kimber561: Yes, you can sell at any time. It is publicly traded. Assuming that the output from the wells follows the pattern anticipated by the prospectus, then the output and the distributions will begin to decline following the peak in 2014/2015. That would imply that the stock price will follow suit and decline accordingly since an investor would only purchase the trust for the income. The trust will terminate on 12/31/2030. At that time, the trust will retain a 50% interest in the future royalties. If this has any value, these interests will be sold and any proceeds will be distributed to the unit holders. This may or may not result in a payout.
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
Cash In Profits From A Dividend Growth Winner To Increase Income [View article]
SandRidge Mississippian Trust I Paying Above Targets [View article]
http://bit.ly/AmF6ke
SandRidge Mississippian Trust I Paying Above Targets [View article]
SandRidge Mississippian Trust I Paying Above Targets [View article]
SandRidge Mississippian Trust I Paying Above Targets [View article]
http://bit.ly/xSSbfj
SandRidge Mississippian Trust I Paying Above Targets [View article]
SandRidge Mississippian Trust I Paying Above Targets [View article]
Chipotle: Growth At Any Price? [View article]
SandRidge Mississippian Trust I Paying Above Targets [View article]