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  • The Great Correction Of 2014: Be Prepared To 'Buy The Dip' [View article]
    No offense, David. But it is just as impossible to time the bottom in a stock as it is to time the top...
    Jun 10 12:45 PM | 7 Likes Like |Link to Comment
  • The Great Correction Of 2014: Be Prepared To 'Buy The Dip' [View article]
    DrGoldin - There are links above to articles about protective puts and covered calls. Ideally, the best recipe is a combination of all three option strategies...
    Jun 10 07:50 AM | 3 Likes Like |Link to Comment
  • Correction 2014: Take Cover [View article]
    We believe that a covered call strategy (on selected overvalued stocks) combined with a portfolio hedge (buying index puts) is a very prudent strategy right now. Ideally, the proceeds on the calls will cover the cost of the hedge...
    Jun 8 12:06 AM | 2 Likes Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    agreed, locutus. The beauty of the protective put strategy is that you don't have to sell your stocks...so the dividend checks keep rolling in...
    Jun 6 11:35 AM | 1 Like Like |Link to Comment
  • Correction 2014: Are You Prepared? [View article]
    agreed, ggig2000. love that strategy as well...
    Jun 6 11:33 AM | 1 Like Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 3) [View article]
    Hi Ron - we agree that these stocks (and most of the market) are overvalued right now and we did put the following note in the summary of the article:

    "Note that identifying good stocks is only the starting point of building a dividend portfolio and investors should pay close attention to valuation as well when deciding whether or not to buy a stock as many stocks right now are overvalued (i.e., good stocks can often trade at bad prices)."

    That said, we wouldn't necessarily bank on a rising rate environment over the next several years either. Rates will probably remain low longer than most people think. Central banks around the world are still contemplating lowering rates...
    Jun 5 10:30 AM | 3 Likes Like |Link to Comment
  • DIY Dividend Investors Club (Part 1): Is It Possible To Build A Portfolio In This Market? [View article]
    Hi Robert - Great question. Our "Buy Zones" are points at which long-term dividend investors should feel comfortable starting to build a position in the respective stocks. We focus on four key levels of support when determining a “Buy Zone”:

    (1) Technical – Support from short and long-term trend lines
    (2) Volatility – Target correction levels based on historical volatility and draw down
    (3) Valuation – Support levels based on historical valuation multiples
    (4) Yield – Support levels based on forward dividend yield

    Regarding IBM - The stock has historically been less volatile than MAT and TGT...which is why we feel comfortable with a shallower pullback. in addition, IBM was not as overvalued at its peak...
    Jun 4 12:31 PM | 5 Likes Like |Link to Comment
  • DIY Dividend Investors Club (Part 1): Is It Possible To Build A Portfolio In This Market? [View article]
    reinaam - no reason for the lower yield minimum other than to open the field up to more opportunities...slim pickings right now...
    Jun 4 12:13 PM | 1 Like Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 2) [View article]
    How many stocks do you own, Raj?? It seems like you own almost every stock mentioned in our past few series... ;)
    Jun 4 11:40 AM | Likes Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 2) [View article]
    Agreed, Bob. Thanks for the comments. AFL and SWK certainly have the highest betas of the group above...
    Jun 4 11:39 AM | Likes Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 2) [View article]
    Rose - We are sitting in the same boat on SWK. We bought it back in January around $78.00 for the Model Portfolio when it dipped into the "Buy Zone". We've accrued two quarterly dividends since then and are approaching a total return of 15% in less than 6 months. We are considering lightening up as well...
    Jun 4 11:36 AM | Likes Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 2) [View article]
    Louverture - Thanks for the comments. We do like TGT at current levels...but a pullback would be great!
    Jun 4 11:29 AM | Likes Like |Link to Comment
  • DIY Dividend Investors Club (Part 1): Is It Possible To Build A Portfolio In This Market? [View article]
    pim69 - We contemplated picking up where we left off...but a portfolio that was built at lower prices, provides little value to investors today. Hindsight is 20-20...
    Jun 4 10:52 AM | 1 Like Like |Link to Comment
  • The All-Aristocrat Team: Dividend Stocks You Can Trust In An Uncertain Market (Part 2) [View article]
    Rudester - It's certainly slim pickings out there right now. All dividend investors are facing the same problem. In fact, we currently have less than 20 stocks that are trading in their respective Buy Zones. Which is an all-time low...

    Our DIY Dividend Investors Club series will be discussing valuation and "Buy Zones":

    http://seekingalpha.co...
    Jun 4 10:11 AM | 3 Likes Like |Link to Comment
  • DIY Dividend Investors Club (Part 1): Is It Possible To Build A Portfolio In This Market? [View article]
    Agreed, Steve. Any ideas to suggest?
    Jun 3 10:51 AM | Likes Like |Link to Comment
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