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  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    morganj is right. It's unlikely that the owner of the option would exercise an option that still has 2-3 months left until expiration (unless it is significantly in-the-money). While its possible, it doesn't really make sense for them to exercise unless they are sitting on a massive gain and want to hold the stock for some reason. The more likely scenario is for them to exit their option position for a profit (which wouldn't affect the option seller).
    May 25, 2015. 07:40 AM | Likes Like |Link to Comment
  • The All-Aristocrat Team: 35 Income Generating Dividend Machines (Part 1) [View article]
    zgb952 - See our comment above for an explanation. MCY isn't nessessarily a "pick" or recommendation just because it is highlighted in this article. It made the cut based on the initial screen, but it ranked second to last on the list based on our Rating System.
    May 25, 2015. 01:41 AM | Likes Like |Link to Comment
  • The All-Aristocrat Team: 35 Income Generating Dividend Machines (Part 1) [View article]
    Great discussion here and it highlights a couple of important points that we should elaborate on.

    First, our series articles (like this one) usually start with a theme (e.g., Dividend Aristocrats) and a simple stock screen from our dividend stock universe. Then we will rank those stocks based on criteria from our rating system.

    The initial screen we used for this series was simply two data points (consecutive years w/ dividend increases and dividend yield). There were 70 stocks in our universe that have increased their dividend for at least 25 consecutive years and 35 of those stocks currently have a yield of 2.5% or higher...which is the 35 members of the All-Aristocrat Team.

    We then ranked these stocks using a Dividend/Safety/Value (DSV) blend. The DSV blend is a blend of our individual Dividend, Safety, and Value ratings for each stock using the following weightings: Dividend (25% weight), Safety (25%), Value (50%). We used this blend so that stocks that have better overall relative valuations would be ranked higher on the list.

    Click here to learn more about our rankings: http://bit.ly/Stpod9

    Regarding MCY, it ranked 34th out of the 35 stocks that made the initial cut. In other words...it ranked second to last! If you scan the individual sub rankings for MCY in our analysis above, its clear why this stock didn't rank very well (as many of you have correctly pointed out). A stock with a safety rating of only 28 should definitely be a red flag for investors (especially coupled with a low Value rating of 33).

    That said, MCY currently has a yield of 4.5% (which is one of the highest of any Aristocrat) and it has increased its dividend for 28 consecutive years. However, despite these two impressive dividend stats...it only has a Dividend Rating of 69. There are clearly some red flags here too (low dividend CAGRs and high payout ratio) otherwise it would have ranked higher.

    We built our ranking system to flush this kind of stuff out and we are glad to see that some SA readers also noticed the red flags that our MCY Ratings accounted for.

    All in all, MCY deserved to be on the team (as it made the initial cut based on the stock screen)...but it clearly won't be playing in an games until some of its statistics improve.

    We hope you enjoy comparing and contrasting the rest of the stocks in the series and please don't hesitate to comment if you have any questions about the specific ratings for each stock.

    Again...great questions and discussion!
    May 25, 2015. 01:34 AM | Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    Agreed, Robert. QCOM's margins have gotten squeezed a bit, but earnings are still rising. GWBellevue is correct that Q215 earnings are down, but we think the long term annual earnings trend is still positive.
    May 24, 2015. 11:33 AM | Likes Like |Link to Comment
  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    Richman - Also, here is a quick primer that we wrote on cash-secured put and covered call strategies for Dividend investors.

    http://bit.ly/1zeVAEx

    Send us a message with your email address and we will send you a couple of sample trades (that goes for anyone on this thread that is interested).
    May 24, 2015. 08:36 AM | Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    Thanks for the comments, Rose. We would love all these stocks to come down a bit too... :)
    May 24, 2015. 08:24 AM | Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    Thanks for reading, pappyJack!
    May 24, 2015. 08:19 AM | Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    Hi Be Here Now - GIS made the list (#17). PM and MO didn't make this particular list due to some of the criteria, but still great stocks. PM didn't meet the minimum consecutive years of increases (due to the spin-off) and MO's 5 year dividend CAGR didn't meet the 10% minimum.
    May 24, 2015. 08:19 AM | Likes Like |Link to Comment
  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    Thanks Timmies!
    May 24, 2015. 08:09 AM | Likes Like |Link to Comment
  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    Thanks for the comments, Doug. We agree that a cash-secured put strategy is a great way to use idle cash to generate income when valuations are high. Its basically a way to get paid to set limit orders on stocks you want to own at a lower price. Best of luck to you!
    May 24, 2015. 08:09 AM | Likes Like |Link to Comment
  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    Thanks, gabi!
    May 24, 2015. 08:04 AM | Likes Like |Link to Comment
  • The Best Way To 'Buy The Dip' For Income Investors [View article]
    Hi Richman - 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!

    http://bit.ly/MqFli0
    May 24, 2015. 08:03 AM | Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    IBM is a consulting firm now. They own big data and will soon own the cloud for Fortune 1000 clients. They have been able to adapt to change in the past and they are transitioning to do it again. The stock is relatively cheap right now...
    May 23, 2015. 11:59 AM | 4 Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 5) [View article]
    hahaha48 - You are clearly bearish on the whole market if you are bearish on these great stocks!
    May 23, 2015. 09:53 AM | 2 Likes Like |Link to Comment
  • Dividend Growth All Stars: 20 Dividend Stocks That Will Keep Your Income Growing (Part 4) [View article]
    inmocean - RS stands for Relative Strength.
    May 22, 2015. 08:44 AM | Likes Like |Link to Comment
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