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Yield Hunter

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  • The Hard Truth Of Dividend-Growth Investing [View article]
    Seriously, do you know why your broker won't let? I'm not saying you haven't looked into it - I have no idea how familiar you are with options - but you have to apply for options approval.
    Feb 21 10:00 PM | Likes Like |Link to Comment
  • Managing Your Portfolio - Weightings [View instapost]
    I'm curious how chowder (and other experienced people will answer, but I'll give it a go, too.

    Are these companies you want to hold for a long time, albeit it not as "core" holdings? Or are they what you envision as a quick capgain?

    It probably depends a lot on what you consider a "position." If you're entering small "core" positions with $1,000, let's say, I don't think you can go much lower than that for an ancillary holding- I assume you're commissions will take a large bite out of any return. However, if you're investing $5k at a shot, you can reasonably take 1/3-1/2 that amount and put it into a more "value" oriented approach without it weighing you down too much or getting eaten by commissions.

    If the latter, I suggest having a small percentage of your portfolio relegated to "speculation," since that is essentially what trading in and out for relatively quick capgains is. Once you have this percentage set, divide it by a few so that you can play this game several times at once. I personally like doing this, since it seems almost too easy. But it might be, and I might get burned real bad...
    Feb 21 09:54 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Not to get in the way of the big guns, but if *forced,* I would side with Rich on this on. Primarily because I am still accumulating, if the price return is expected to be greater than the dividend return, I would just ride out the low yield until I was satisfied, at which time I can take my larger pile of cash and move it into a more income-oriented stock. Obviously, that's assuming I can accurately project price appreciation; at the very least, it means that I should continue focusing on whatever's the best deal.

    For those in the distribution phase, I hear the comfort that could be had knowing each one of your positions is providing you with $X and that you won't have to sell anything, which may not be the case with a low yield/high total return choice.
    Feb 21 02:58 PM | Likes Like |Link to Comment
  • The Hard Truth Of Dividend-Growth Investing [View article]

    Are you going to increase your dividend growth requirement to, say, 15 years? As we continue along 2013 and beyond, the tech bubble will be out of your analysis' reach.
    Feb 21 08:50 AM | Likes Like |Link to Comment
  • Retirement Plumbing: The Cistern System [View article]
    While DVK can probably explain more clearly, Mr.Market is Benjamin Graham's analogy to the stock market.

    Imagine you own a business and your partner is a bipolar dude named Mr. Market. Every day he comes pounding on your door, and whether you like it or not, he tells you what he thinks your stake in the partnership is. Graham explains that it is most important to ignore him, generally, because his spewing is meaningless nonsense- as a business owner, you don't care what the going value is nearly as much as just want the business to continue humming right along.

    However, you can take advantage of this crazy dude. If he comes one morning and tells you your stake is worth 5x what you think it's worth, it may be appropriate to take advantage and sell, because it's such an overpriced valuation. On the other hand, if he tells you that it's only worth .25x of what you think it is, you might want to take the day's price to buy out some of Mr. Market's share.

    It's a very good analogy, in a lot of people's opinion. It can be found in The Intelligent Investor, by Graham, and in all sorts of "investing/anti-trading" materials since.
    Feb 20 11:25 PM | 6 Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Straight out of SBI. I read about 1/3 of it; pretty good thus far. I find it a little disconcerting how simple Lowell makes it seem.

    Never underestimate even a small gain which can compound. One example I heard a couple of years ago: Would you rather $1,000,000.00 or $.01 on Day 1, $.02 on Day 2, $.04 on Day 3 (and double the previous day so on and so forth) for one month? The initial reaction is generally, "start with a penny?! I'll take a million bucks!" But even in a 28-day February, you'd end up with over $2.6 million.
    Feb 20 11:08 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Found them searching your comments. (No, they weren't searching through your comments.) I wish there was a way to flag stuff within SA. I guess I could bookmark it the old fashioned way.
    Feb 20 11:01 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I apologize if you've already gone through this elsewhere, but how do you go about stock selection? Do you have "rules" or "guidelines?" What are they?

    Feb 20 01:52 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    If I understood Doug Albo's points in the articles referenced above, the ROC in ETY is not "bad," because it is option premium income and is not considered regular income. I don't know how that fits in with NII or NINA.

    Also, I don't know if this effects your analysis, but ETY is an equity fund and not a bond fund. Either way you figure, one should definitely ensure that distributions are adequately covered, just as one would check that free cash flow covers dividends.
    Feb 20 11:19 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    How's that for a flash of my brilliance. Maybe that's where I took the phrase from...

    Thanks for pointing that out.
    Feb 20 11:14 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I've thought very strongly about it with this current article. My concern is that I won't get nearly the same feedback, since there would be minimal exposure. I don't have much of a following (not that I think I should, yet ; ) ), so the best way for people to see my articles and lend me their insights is have SA publicize it.
    Feb 20 11:11 AM | 1 Like Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I'm considering having a relatively low yield requirement, since it will open the pool up significantly. I guess it will depend on what I find when I start shopping. That actually sounds like a pretty bad plan; what happened to rules and guidelines. I might have to rethink that now.

    Regarding the one penny example, if our theoretical yield was originally 2%, the stock price would have been a paltry $.5. That's quite a bundle of capgains!
    Feb 20 11:07 AM | Likes Like |Link to Comment
  • Is CenturyLink About To Pull The Plug On Dividends? [View article]
    I completely agree that it's nice to have a bit of a dialogue (or greater) amongst SA members. But I was referring to Rich's comment about how it would be much easier to refer to other comments if each was individually numbered. To that end, perhaps SA editors would redesign this little aspect, if we only made our voices heard.
    Feb 20 12:01 AM | Likes Like |Link to Comment
  • Is CenturyLink About To Pull The Plug On Dividends? [View article]
    Tell it to The Man! Do they monitor comments? Maybe we should start chanting...
    Feb 19 11:26 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Thank you. I completely agree. diversification across quality companies + patience cannot be beat (that's what I hear).
    Feb 19 11:18 PM | 1 Like Like |Link to Comment