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  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 1) [View article]
    zgb952 - Agree and disagree with your comment. All else being equal, declining payout ratios are nice...but sometimes that means that the company isn't increasing its payout enough! We only worry about rising payout ratios when they are north of 65 or 70%. There are some great companies (like RTN in this article) that go through earnings cycles...but still have significant dividend growth potential. For these types of companies, a modest payout ratio (under 50%) provides a buffer to earnings declines in a recession (and still allows the company to raise its dividend).

    There is also nothing wrong with a company with more stable earnings growth to aggressively boost dividends until their payout ratio increases to a certain base level. Nothing worse than a stock sitting on a 20-30% payout ratio for no reason...
    May 18, 2015. 03:38 PM | 1 Like Like |Link to Comment
  • Dividend Investors Should Take Cover [View article]
    Thanks for the comments, divmonster!
    May 18, 2015. 01:52 PM | Likes Like |Link to Comment
  • Dividend Investors Should Take Cover [View article]
    Thanks for following, aterosin! You are not alone. The Options Industry Council is where we direct anyone wanting to learn more. Tons of FREE information and tutorials on their website! Good luck!
    May 18, 2015. 01:50 PM | Likes Like |Link to Comment
  • Dividend Investors Should Take Cover [View article]
    hahaha48 - There is actually quite a bit of margin in a covered call strategy. In fact, you can often generate in excess of 100% of the annual dividend yield in a fraction of the time...and you often times still get to keep the dividend as well!
    May 18, 2015. 01:47 PM | 1 Like Like |Link to Comment
  • Dividend Investors Should Take Cover [View article]
    Thanks for your thoughtful replies and feedback, Jeff. We are always happy to hear from satisfied customers!
    May 18, 2015. 01:45 PM | Likes Like |Link to Comment
  • Dividend Investors Should Take Cover [View article]
    Agreed, Jim. CC's are great in overbought territory...
    May 18, 2015. 01:10 PM | Likes Like |Link to Comment
  • The 3% Club: 20 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 5) [View article]
    Thanks, strelnikovp. Appreciate the feedback!
    May 15, 2015. 02:38 PM | Likes Like |Link to Comment
  • The 3% Club: 20 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 5) [View article]
    peterad - Thanks for the comment as it helps justify the value of a quantitative ranking system.

    Our Safety Rating measures a stock’s overall financial health by analyzing 10 different financial and profitability metrics. All else being equal, companies with stable revenues, earnings and cash flow and strong balance sheets tend to be safer investments.

    There is no random selection here. The beauty of a quantitative model is that it is based on facts...not perception. While you may perceive that JNJ should have a higher rating, the facts don't lie. That said, JNJ's Safety Rating of 85 is actually quite good...its in the the top 15 percentile of all the dividend stocks in our universe. In addition, its blended Dividend, Safety and Value rating ranks the stock in the Top 3 in our universe of stocks yielding over 3% (as highlighted in this article).

    We appreciate the fact that you may not agree with the various stock ratings on the surface, but it is unfair for you to criticize the system without looking into the data points from which they are derived. You might actually be surprised about what the data actually says...
    May 15, 2015. 12:19 PM | 1 Like Like |Link to Comment
  • Correction 2015: Are You Prepared? [View article]
    also a good strategy...
    May 7, 2015. 06:07 PM | Likes Like |Link to Comment
  • The All-Defensive Team: 20 Safe Dividend Stocks For An Uncertain Market (Part 2) [View article]
    gkom - Good comment which requires some clarification on our part. The All-Defensive Team is not meant to be a diversified portfolio in itself, but its a great list from which investors can choose a few defensive stocks for their own portfolio. Of the 20 stocks on this quarter's (Q2 2015) team, 15 are from the three main "defensive" sectors (7 Consumer Staples, 6 Utilities, and 2 Healthcare).
    May 3, 2015. 09:54 AM | 2 Likes Like |Link to Comment
  • How To Pick The Best Dividend Stocks (Part 1): Setting Up The Initial Screen [View article]
    Our view is that the momentum indicator can help investors spot and avoid the "value traps" - while we are not technicians we do think that investors can effectively utilize basic technical analysis in their investment decisions.
    Apr 27, 2015. 08:42 PM | Likes Like |Link to Comment
  • How To Pick The Best Dividend Stocks (Part 1): Setting Up The Initial Screen [View article]
    Thank you for the comment. The criteria we use for our program has over 30 metrics including the payout ratio and fcf metrics. You can find all our metrics here: http://bit.ly/Stpod9

    Stay tuned for more on our methodology!
    Apr 27, 2015. 08:38 PM | Likes Like |Link to Comment
  • A Dividend Investor's Dilemma: Take Profits Or Let It Ride? [View article]
    Great story, jeteske. 1% per month is a nice realistic goal that is actually achievable. In general, we try to target opportunities that generate an average yield of 0.5%-1.5% per month (through a combination of dividend income and option income) for both cash-secured puts and covered calls/buy-writes for our Option Ideas newsletter. You can read about our strategy here, if interested:

    http://bit.ly/1zeVAEx

    We wish you continued success!
    Feb 14, 2015. 03:37 PM | 1 Like Like |Link to Comment
  • A Dividend Investor's Dilemma: Take Profits Or Let It Ride? [View article]
    Great comment, Fcfrag! Your CMI put-selling experience is a great one to share with investors. You are getting paid to be patient on a great stock and generating more income than you would have holding the stock!
    Feb 14, 2015. 03:33 PM | 1 Like Like |Link to Comment
  • A Dividend Investor's Dilemma: Take Profits Or Let It Ride? [View article]
    The beauty of this discussion is that we are all trying to get to the same destination as dividend investors (maximize income and preserve capital)...but there are many different roads to get there. Whether you utilize options or are a buy and holder, the key to any investment plan is understanding the associated risks involved.

    In our experience, options are a great way to stick to a profit taking plan...but they are clearly not suited for every investor. That said, we do wholeheartedly believe in having an exit strategy in place (for both underperforming stocks as well as your winners). We believe (and again this is our opinion) that reallocating from time-to-time from over-valued stocks into under or fairly valued stocks is prudent investment management.

    This doesn't mean you have to give up the income from the stock as the goal of the reallocation is to keep your income stable at a minimum. For example, if you sell a high-valued stock yielding 3%...your goal is to replace it with a more fairly valued stock with the same or higher yield. The end result is that your income is the same (or higher), but you have theoretically reduced your downside risk to your capital base (assuming of course that the more fairly valued stock has less downside risk now).
    Feb 14, 2015. 03:28 PM | 7 Likes Like |Link to Comment
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