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  • Why I Don't Like To Buy S&P 500 Puts As 'Insurance' - A Rebuttal [View article]
    Jason - we appreciate the rebuttal. To be fair though, we don't suggest hedging your portfolio on a continuous basis. In your example above, you annualize the cost of the hedge, which assumes that you will always have a hedge in place. We ONLY use protective puts on a selective basis when we feel that near-term risk of a correction is high.

    We agree that buying insurance on a continuous basis is a losing proposition, but that is not what we suggested in our article.
    Jul 8 03:05 PM | 5 Likes Like |Link to Comment
  • The 3% Yield Club: 25 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 2) [View article]
    Correct, John. All of these companies have a Relative Strength rating below 20, which is driving down their overall rating quite a bit. Sometimes we view a low RS rating as a contrarian indicator (i.e., low RS stocks are potential value plays)...
    Jul 6 10:26 PM | Likes Like |Link to Comment
  • The 3% Yield Club: 25 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 2) [View article]
    Agreed, EyeBelieve. Now is not the time to load up...
    Jul 6 10:23 PM | Likes Like |Link to Comment
  • The 3% Yield Club: 25 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 2) [View article]
    CharReg - We think that PAYX is worth a look for several reasons other than the 3%+ yield. As you mentioned, the company is financially strong...but the growth prospects for the business are also promising. Based on consensus estimates, PAYX is expected to grow earnings at a compound annual rate of 10% over the next 5 years. That said, we expect the company to continue to increase their dividend and we expect that their payout ratio will actually come down over the next few years.

    In addition, despite the frozen dividend for three years, PAYX has a 20+ year dividend track record with no decreases.

    Clearly, PAYX isnt the highest rated stock in our universe (overall rating of 73), but it has some positive qualities that investors should consider.

    Hope this helps.

    PIR
    Jul 5 05:18 PM | 2 Likes Like |Link to Comment
  • DIY Dividend Investors Club (Part 5): Stocks To Watch And To Buy Now (Utilities) [View article]
    WEC is definitely closer to the Buy Zone than most Utilities. If fact, WEC is probably one of our favorite stocks in the sector right now.

    Note: If anyone wants a free Buy Zone report on WEC or any other Utility stock in our universe feel free to send us a message with your email address...
    Jul 2 09:21 PM | Likes Like |Link to Comment
  • Merck: Buy The Dip... But Not Yet [View article]
    Agree, PFE is probably more reasonably priced right now..and it has a higher divy yield.

    If anyone is interested, we'll send you a free Buy Zone report for both PFE and MRK. Just send us a message with your email address...
    Jul 2 09:00 PM | Likes Like |Link to Comment
  • Are You Prepared For Correction 2014? [View article]
    Also a good strategy Green and we have written articles on both strategies recently.

    Covered Calls:

    http://seekingalpha.co...

    Cash-Secured Puts:

    http://seekingalpha.co...
    Jun 27 11:55 AM | Likes Like |Link to Comment
  • Are You Prepared For Correction 2014? [View article]
    0% chance of a 5% correction??? Are you kidding??
    Jun 27 11:52 AM | 3 Likes Like |Link to Comment
  • Ford Motor: Buy The Dip... But Not Yet [View article]
    Agreed. We believe that there is a correction coming, which is why we wouldn't buy Ford at current levels. Ford is a high beta stock and it will be more volatile to the downside than most dividend stocks.
    Jun 27 11:16 AM | Likes Like |Link to Comment
  • Ford Motor: Buy The Dip... But Not Yet [View article]
    Our long-term strategy is to buy great dividend stocks at reasonable prices. Ford is a good stock (not a great stock) and at current levels there is hardly no margin of safety. We still view Ford as more of a speculative dividend investment (given the massive restructuring), which is why we don't suggest chasing the price.

    If Ford doesn't drop into our "Buy Zone", we'll gladly put our money into a different stock with a better risk/reward profile.
    Jun 27 11:12 AM | 1 Like Like |Link to Comment
  • Are You Prepared For Correction 2014? [View article]
    This is a follow up article to the original published on June 6th with revised info on the protective put.

    The 187% return referenced above is based on the 680-level trough. The S&P is only up 1% from June 6th...
    Jun 26 04:12 PM | 1 Like Like |Link to Comment
  • Are You Prepared For Correction 2014? [View article]
    Harm - we don't short stocks (nor do we ever recommend shorting stocks)...
    Jun 26 01:18 PM | Likes Like |Link to Comment
  • Are You Prepared For Correction 2014? [View article]
    In other words...you are saying that there is nothing to fear, but fear itself?
    Jun 26 01:14 PM | 1 Like Like |Link to Comment
  • Johnson & Johnson: Buy The Dip...But Not Yet [View article]
    Although it may work in the short term, buying at high valuations is a risky long term strategy...
    Jun 24 01:57 PM | 2 Likes Like |Link to Comment
  • Johnson & Johnson: Buy The Dip...But Not Yet [View article]
    Zok - LOL...excellent Slapshot reference. $98 is a decent entry price...no shame in that...
    Jun 24 10:29 AM | Likes Like |Link to Comment
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