How to Build a 6 Figure Income Dividend Portfolio With $600 per Month [View article]
Kinda hard to save money until you get your first job. So let's say you don't get your first "real" job until you're 25. That's only 52 years of saving. Thus 1, become 172. Not bad, but still not good.
And if there was an easy way to guarantee a 10.3% total return per year, then this website would be obsolete.
REITs Quietly Racking Up Gains, With Dividends to Boot [View article]
Higher inflation won't hurt them as bad as you think. Most of these mREITS (non-agency ones) and equity REITs are still long the underlying paper and physical real estate. In an inflationary environment, the underlying asset prices should rise as well. That should offset to some degree the drop in dividends or losses due to interest rates.
Worst case scenario however is higher interest rates and a still bearish real-estate market.
REITs Quietly Racking Up Gains, With Dividends to Boot [View article]
All of these mREITS will be negatively affected by higher interest rates. Ultimately they are leveraged interest rate plays, but you have to ask yourself how soon do you think interest rates will rise? I see atleast 12 more months of the Fed staying put where they are now as far as interest rates are concerned. If they unleash QE3 that will drive real Treasury rates downward.
NLY, O, and AGNC have a better track record, NLY has been around for years and has thrived in a high-interest rate environment as well as a low one. The dividends will fluctuate, but the key is to get in early while you are reinvesting those dividends to get a higher number of shares. That way when you do see the dividend drop it won't affect you as much because you will have more shares. You also can sell LEAP calls to collect additional income if you are afraid of rising interest rates.
Mohamed El-Erian believes the U.S. "must move beyond financial band-aids" to fix the economy - not QE3, but "a coordinated set of structural measures to improve decisively the functioning of the labor market, housing, credit and medium-term fiscal sustainability." But JPMorgan's (JPM) Jamie Dimon argues that pessimism is overdone and the economy is "getting stronger." [View news story]
Give me a $25b TARP non-recourse loan at 0% and I guarantee you I will do my part to stimulate the economy. Oh, and Fed Discount Window access to for all my international subsidiaries.
An Investment in Citigroup With Almost No Downside? [View article]
C is indeed "shortable". Any financial is nowadays. However, C is TBTF. Having an amazing backstop from the Federal Government allows you to do very risky (and profitable) things.
30 Critical Housing Charts That Investors Must Consider [View article]
Many can make predictions about the housing market--and I'll go ahead and venture out to make my educated guess:
The housing market is solely predicated on employment. Even with our huge foreclosure situation now, if unemployment suddenly dropped to 5% we'd see another boom in the housing market. But with the rate currently stuck at 9% (closer to 20% in reality) we won't see any increases in prices and will only see more foreclosure.
Better Real Estate Investing: 4 High Yield REITs (For the Short- to Medium-Term) [View article]
I'm really doubtful that the Fed will be raising rates in the next 3-6 months. Try more like 12 months. In the mean time, you can re-invest those dividends to get more shares, so by the time the yield drops, it won't have as much of an impact on you. Also, a good REIT (like NLY for instance) have already hedged a rise in rates. A 50bps increase to the fed funds rate will minimally impact them.
An Investment in Citigroup With Almost No Downside? [View article]
I'm also in the same boat. Bought C before the split, and holding it in my child's college fund for the next 10 years. C's books are cleaner than BAC's and don't face the legal risk that BAC does. Don't get me wrong, it's going to be a rough 12-18 months from now, but hopefully this time in 2013, C will be trading in the $60 range and throwing off tons of dividends.
The AT&T (T)/T-Mobile (DTEGY.PK) combo makes sense on many different levels, Roger Entner writes: "At 7.1x Ebita and about $1,000 per sub, AT&T has struck a great bargain. DT, which acquired VoiceStream for $24B in 2001, is profitably exiting a growing headache." And Sprint (S)? The merger will allow (and force) it to clearly define itself as the value leader in the U.S. market. [View news story]
DT overpaid for VoiceStream several years ago. So there is a lot of "goodwill" on the books to justify that price. T-Mobile is the low-end of the cellular market for a reason, they were going to fail without further intervention.
The AT&T (T)/T-Mobile (DTEGY.PK) combo makes sense on many different levels, Roger Entner writes: "At 7.1x Ebita and about $1,000 per sub, AT&T has struck a great bargain. DT, which acquired VoiceStream for $24B in 2001, is profitably exiting a growing headache." And Sprint (S)? The merger will allow (and force) it to clearly define itself as the value leader in the U.S. market. [View news story]
Another mega merger that Wall Street will be in love with, but will end in failure. #notwinning
Buy the banks on the foreclosure ruling dip, Jim Cramer exhorts, doubting that the ruling from one of the more liberal courts in the U.S. would be repeated elsewhere. He reiterates his call on Bank of America (BAC -1%) as one of the best ways to play an economic rebound. JPMorgan Chase (JPM -1.7%) is the Dow's laggard even after CLSA's Mike Mayo raises 2011 and 2012 estimates on the bank. [View news story]
How to Build a 6 Figure Income Dividend Portfolio With $600 per Month [View article]
And if there was an easy way to guarantee a 10.3% total return per year, then this website would be obsolete.
10 Regional Banks the Government Loves [View article]
REITs Quietly Racking Up Gains, With Dividends to Boot [View article]
Worst case scenario however is higher interest rates and a still bearish real-estate market.
REITs Quietly Racking Up Gains, With Dividends to Boot [View article]
NLY, O, and AGNC have a better track record, NLY has been around for years and has thrived in a high-interest rate environment as well as a low one. The dividends will fluctuate, but the key is to get in early while you are reinvesting those dividends to get a higher number of shares. That way when you do see the dividend drop it won't affect you as much because you will have more shares. You also can sell LEAP calls to collect additional income if you are afraid of rising interest rates.
Mohamed El-Erian believes the U.S. "must move beyond financial band-aids" to fix the economy - not QE3, but "a coordinated set of structural measures to improve decisively the functioning of the labor market, housing, credit and medium-term fiscal sustainability." But JPMorgan's (JPM) Jamie Dimon argues that pessimism is overdone and the economy is "getting stronger." [View news story]
An Investment in Citigroup With Almost No Downside? [View article]
30 Critical Housing Charts That Investors Must Consider [View article]
The housing market is solely predicated on employment. Even with our huge foreclosure situation now, if unemployment suddenly dropped to 5% we'd see another boom in the housing market. But with the rate currently stuck at 9% (closer to 20% in reality) we won't see any increases in prices and will only see more foreclosure.
Better Real Estate Investing: 4 High Yield REITs (For the Short- to Medium-Term) [View article]
An Investment in Citigroup With Almost No Downside? [View article]
Why We Love Public Storage Preferred Shares [View article]
Which International Bond Market Delivers Real Yield ? [View article]
The AT&T (T)/T-Mobile (DTEGY.PK) combo makes sense on many different levels, Roger Entner writes: "At 7.1x Ebita and about $1,000 per sub, AT&T has struck a great bargain. DT, which acquired VoiceStream for $24B in 2001, is profitably exiting a growing headache." And Sprint (S)? The merger will allow (and force) it to clearly define itself as the value leader in the U.S. market. [View news story]
The AT&T (T)/T-Mobile (DTEGY.PK) combo makes sense on many different levels, Roger Entner writes: "At 7.1x Ebita and about $1,000 per sub, AT&T has struck a great bargain. DT, which acquired VoiceStream for $24B in 2001, is profitably exiting a growing headache." And Sprint (S)? The merger will allow (and force) it to clearly define itself as the value leader in the U.S. market. [View news story]
Buy the banks on the foreclosure ruling dip, Jim Cramer exhorts, doubting that the ruling from one of the more liberal courts in the U.S. would be repeated elsewhere. He reiterates his call on Bank of America (BAC -1%) as one of the best ways to play an economic rebound. JPMorgan Chase (JPM -1.7%) is the Dow's laggard even after CLSA's Mike Mayo raises 2011 and 2012 estimates on the bank. [View news story]
Rare earth stocks enjoy another big day after Dahlman Rose raises its price target for Molycorp (MCP +11.2%) to $84 from $49. Also: AVL +18.3%, OSN +6.3%, GMO +4.6%, REE +4%. (ETF: REMX) [View news story]