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  • Annaly Capital - The Beginning Of The End [View article]
    Agreed with jonk...shorting a stock with a 14% dividend is a suicide mission. Also, the author didn't even mention book value in his "valuation" seems like he may not fully understand the mREIT space.

    Leverage drives mREIT earnings...NLY dividends are lower because leverage is lower...there's nothing wrong with prudently managing risk...

    Mar 21, 2012. 10:29 AM | 21 Likes Like |Link to Comment
  • The Silver Correction Is Over, Next Stop $62 [View article]
    BK's $62 target is conservative.

    The rules of "money"changed in 1971 when Nixon took us off the gold standard and gave the government a license to print currency (and yes, there is a big difference between money and currency). Since then, the Fed has never printed with so much fury as they currently are today. Unfortunately for us, the printing presses are just warming up. How is the Govt going to attempt to solve the Social Security and Medicare problems that are on the horizon? You guessed it...MORE PRINTING.

    In the last 40 years, the US has gone from the richest nation in the world to the biggest debtor nation in the world. The dollar died in 1971. Let's call INFLATION what it really is...DEVALUATION.

    It's almost pointless to discuss silver prices in terms of value. If the inherent "value" of silver does not change (or even decreases)....the price of silver will still increase because the amount of "currency" it takes to acquire it will continue to increase...
    May 2, 2011. 10:55 PM | 13 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 4) [View article]
    Hi CGM - Don't underestimate the financial stability it takes to be able to raise dividends every year for as long as these companies have. There is definitely something special about them...

    Your point about yield is a fair and we knew that there would be some push back about these stocks. We love yield just as much as the next guy, but we also strive to build and maintain a diversified dividend portfolio. We aren't suggesting that a stock like VFC take the place of a high-yielding MLP in your portfolio, but we do think that investors should consider these Aristocrats for the diversification and stability that they will add to your portfolio.

    There is more to a dividend stock investment than yield itself and we feel that dividend investors often get too fixated on the yield %. Our income target for our Model DIY Dividend Portfolio is 6% per year and we think that this is very achievable through a diversified portfolio of stable dividend stocks and complementary conservative option strategies.

    Its easy to fall into yield traps with stocks that are not worth holding over the long-term. The stocks mentioned above are certainly not the highest yielders, but they are probably some of the most well-rounded dividend stocks that you will find.

    Again, we aren't saying that you should have a whole portfolio of these type of stocks, but you shouldn't throw them off your list just because they don't meet a minimum yield hurdle. Just some food for thought...
    Jan 11, 2013. 12:42 PM | 10 Likes Like |Link to Comment
  • A 3% Dividend Yield Could Make Apple The Perfect Stock [View article]
    wallberg - As an income investor, expecting a certain yield is not shallow thinking!
    May 30, 2014. 09:47 AM | 9 Likes Like |Link to Comment
  • Time To Take Profits?: 16 Dividend Stocks That Are Currently Overvalued (Part 1) [View article]
    Hi JimRay - "Taking profits" doesn't necessarily mean sell your whole position. Often times, we will sell a quarter or half of our position when a stock has a significant short-term gain. The goal of most dividend investors is to maximize income while protecting their capital base. Having a well thought out exit strategy will help you accomplish this goal.

    Don't take what we are saying in this series as a hard and fast rule...use it as food for thought to establish your own exit strategy.
    May 26, 2014. 09:24 AM | 9 Likes Like |Link to Comment
  • Dow Is Waiting To 'Buy The Dip' In Apple, But Will It Get The Chance? [View article]
    Agreed!! Should have been "accelerate"...thanks! Just submitted an edit...
    Jun 11, 2014. 12:09 PM | 8 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 4) [View article]
    viperman, bill, and james - see the comment that we just posted above to CGM.

    When you move too far up the risk curve in search of yield (and we aren't saying that you are doing that, just speaking generally), you are putting your entire portfolio at risk. Yield is like any other drug, once you get a taste, your appetite for it only gets stronger.

    We talk to investors everyday that have these artificial dividend yield hurdles for individual stocks and it tends to cloud their vision a bit. Again, we LOVE yield just as much as the next guy...but there are many other factors to consider with a dividend stock investment. This is the exact reason why we created our rating system with five different sub-ratings. It helps us target where a particular stock's strengths and weaknesses are. All else being equal, we like well-rounded stocks the best.

    In addition, we think that investors should focus more on the stability of the $ income generated from their portfolio and not necessarily the %. And just as importantly, investors should do whatever it takes to protect their capital base. All else being equal, higher yielding portfolios tend to be more risky.

    We definitely aren't standing on a soap box here, because we fall into the same yield traps as everyone else from time to time. We just wanted give you some additional things to think about as you build your own portfolios...
    Jan 11, 2013. 01:02 PM | 8 Likes Like |Link to Comment
  • 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, 2014. 12:45 PM | 7 Likes Like |Link to Comment
  • Building A DIY Dividend Portfolio (Part 1): Picking The Best Dividend Stocks [View article]
    David - We respect your opinions and analysis. The point of this series is to highlight the importance of an investment plan, which we are sure you agree with wholeheartedly. In part 1 above, we are stressing the importance of establishing a consistent process for picking dividend stocks a portfolio. We have a link in our article that details our entire ratings methodology, including all the fundamental and technical data points that we look at. We understand that this may not be useful information to you, but we believe that most DIY investors will find value in it.

    Yes, we are also marketing our service at the end of this article because we believe that it provides a tremendous amount of value to investors trying to build their own DIY Dividend Portfolio (and it is very inexpensive).

    Quite frankly, we were surprised to see this comment from you because you also market your products on Seeking Alpha (your books are prominently displayed in the left side bar of every article you write).

    Again, we respect your analysis and we believe that anyone interested in dividend investing should consider buying your book. However, we were very surprised to receive this "shot across the bow" from you...
    Aug 16, 2012. 10:59 AM | 7 Likes Like |Link to Comment
  • 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, 2014. 03:05 PM | 6 Likes Like |Link to Comment
  • Dow Is Waiting To 'Buy The Dip' In Apple, But Will It Get The Chance? [View article]
    optimyst - see above...should have been "accelerate"!
    Jun 11, 2014. 12:10 PM | 6 Likes Like |Link to Comment
  • Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback [View article]
    Hi pal, thanks for the comment. You are not alone...we'll put together a detailed example in our next article. Which dividend stocks do you own? We could use one of yours as an example...
    Mar 22, 2012. 11:39 AM | 6 Likes Like |Link to Comment
  • Avoiding Annaly Capital [View article]
    Agreed, madev1138...NLY should continue to perform well while interest rates remain low.

    NLY management has slowly been reducing its leverage (see chart in the article below) which has been the main driver of the dividend reduction. While lower leverage leads to lower profits (and dividends), it also reduces risk. We view this as a positive risk management technique, which is why we are still bullish on NLY.
    Dec 22, 2011. 09:23 AM | 6 Likes Like |Link to Comment
  • Dow Is Waiting To 'Buy The Dip' In Apple, But Will It Get The Chance? [View article]
    APPL represents over 3% of S&P 500 already...
    Jun 11, 2014. 12:47 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]
    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, 2014. 12:31 PM | 5 Likes Like |Link to Comment