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Yield Hunter  

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  • High Yield Vs. Dividend Growth [View article]
    Thanks for bringing this to our attention. Interesting that ENB beat ADP, not surprised that ETY came in last.

    Are M*'s numbers cumulative return or average annual?
    Feb 19, 2013. 11:16 PM | Likes Like |Link to Comment
  • Is CenturyLink About To Pull The Plug On Dividends? [View article]
    Just a technicality. The comment # next to the commenter's name is the total number of comments they've made on SA at the time you open the article. Right now, your comment is #5737. Come back in a few days, and it will likely be higher. Alternatively, check another comment you've made, and it will likely have the same 5737.
    Feb 19, 2013. 05:39 PM | Likes Like |Link to Comment
  • Retirement Plumbing: The Cistern System [View article]
    I don't see any stock symbols in this article; perforce, your reputation precedes you.

    I specifically like that you emphasized the importance, and the realization, of constant decision making which will then effect the rest of your life, including what choices you next have to decide between, and so on and so forth. Unfortunately, it's much easier to just "go with the flow," and people may fail to realize that this in itself is a decision which will impact the available decisions and their mindset thereafter.
    Feb 19, 2013. 03:04 PM | 2 Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Thank you for the feedback. It's good to hear that you've had 15 years of success with aggressive income schemes. The person who introduced me to high income had a certain CEF (approximately 20 years now) on DRiP for many years and now it provides a decent chunk of his/her monthly income.

    I told this person years ago that they should think about splitting the funds into a few different CEFs at the very least, but as of yet, (s)he has not heeded, and it hasn't mattered yet.
    Feb 19, 2013. 02:53 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    My intention with this article was to look at general asset classes, and not specific securities, but the publishers required specific stocks included; so I chose what I chose relatively randomly, to try to give me similar values to the general asset class. That would've given a better idea of future returns for the asset class. Nonetheless, past results are never indicative of future results. But it's something to ponder.

    Inflation definitely hits all assets equally, I agree with you there. But if the income is fixed, my understanding is that inflation will eat away more than if the income rose also. Kind of like getting an annual salary raise provides you with better protection than not getting the raise.

    A large cash-flow at the beginning plowed back into the investment to create growth will only work so long as the distribution is equal to or greater than the growth on the other investment. If it falls behind, eventually the lower yielding/higher growth will exceed the large initial sum. This is what I attempted to replicate (albeit, not considering price increase) with the 3rd and 4th tables.

    I agree that YOC has negative aspects, because there will most definitely be price appreciation or depreciation, which will then effect what your investment is earning. But what I meant was that, for example, if your investment (including compounding) is valued at say, $74 million, and your yield is 108%, your investment will increase by quite a large sum. I did not mean that YOC causes increases.

    Perhaps I could've been more clear with what I meant by compounded compounding. Not only do the dividends compound into the investment, but the growth factor on dividends compounds, as well. For instance, if your yield is 5%, and it grows 10%, the next year you will have 5.5%; the next year, it does not just grow another .5%, but rather .55%, and so on and so forth. I've read enough of your comments/website that I know I don't have to tell you that. I guess in a perfect world, any company's earnings, and therefore price, will likewise compound; unfortunately, I in my few years paying attention, the market is more sporadic than that. Dividends are typically more reliable.

    I admit, I don't really understand how your last point differs from the previous, so I will close by saying, thanks for the feedback!
    Feb 19, 2013. 01:24 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Thanks for the feedback. I will definitely reread it more carefully later today paying close attention to these details. Hopefully, I will see it too. That's half the battle ; )
    Feb 19, 2013. 12:42 PM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I hope they don't expect my reputation to grow as strong as yours, at least not any time soon.
    Feb 19, 2013. 12:39 PM | 2 Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    That Insanity article you link to is actually the one I was referring to. CEFs are a complicated beast. I should've kept my position in AWF, but that's for my next article- stupid mistakes.
    Feb 19, 2013. 10:30 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Small number of contracts, and on cheaper priced stocks, say less than $20, when the premiums are lower (but it's easier/cheaper to get chunks of 100 shares). So far I've been doing it on one position. Between the put premium through which I bought it, the calls I've been selling, and the dividends, I've been able to reduce my cost by more than 9%. Notice how I didn't say gain 9%, because the stock's been down for the majority of my holding period. But *when* it goes back up, I'm going to make a killing ; )
    Feb 19, 2013. 09:41 AM | 1 Like Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Thanks for your input. Not to belittle anything else you said, because each point you made is valid, I think the most important point you made is "and maintained." While everything else holds true, the key is to maintain such performance through paying attention and adjusting, via playing by the rules you set *in advance*.
    Feb 19, 2013. 09:26 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Welcome to SA!

    I agree with your strategy. At this point, my portfolio is not large enough to have meaningful distributions from ETY (or any other) such that it would work for me. That is why I am more focused on internal compounding. But hopefully I'll be there one day. It *might* even depend on the investments I choose!
    Feb 19, 2013. 08:52 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    It's all the rage right now! All else being equal by current valuations, I think high yield/slow growth would be the better option, because you get the dividends now. Along the same lines, as a rough estimate, if you had a 2% yield growing at 10%, it would take approximately 5 years to yield 3%. A 3% yield growing at 5% would be at about 3.8% at the same period end. It would take almost another 5 years for the lower yield to pass, and a lot can happen in those 10 years. I haven't been paying attention long enough, but I assume that both "companies" would have had other corporate/sector/macro events which would effect them in such a way as to cause you to reevaluate the situation within a 10 year period. Therefore, take the bird in hand (again, *all* else being equal). I think...
    Feb 19, 2013. 08:49 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    Unfortunately, I am neither a mathematician nor a computer programmer, so I will be of no help for building any model.

    But you're right, as far as I can tell. Even with a long horizon, I don't think it's safe to solely rely on DG stocks performing as they have historically. On the other hand, it would be surprising to find the higher yielding ones performing in a stable manner for very long period, too. There's got to be a mix, and then monitor.
    Feb 19, 2013. 08:42 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I'm sorry, I forgot to ask in my last comment: was the article not clear? Do you have any specific examples of what I can do to make it clearer and more easily understandable?
    Feb 19, 2013. 08:34 AM | Likes Like |Link to Comment
  • High Yield Vs. Dividend Growth [View article]
    I think you're right about the price return. Yahoo has total return? Is that automatic, or is it an option?

    Only considering price, then, I was surprised to see that it did not make up all the losses from 2001 by 2008. That's a little discouraging. But my impression is that most bonds behaved that way. I don't know enough macroeconomics (or any other field) to know exactly why, but it is my observation.

    And I agree with your options concerns. The way I see it, before I more fully analyze it and test it on a small portion of the portfolio before going all in is, if I can pick up an extra few points (as in 2-4%, as opposed to more aggressive options plays that can earn 8-12%), the risk of getting called should be minimal. No doubt, more thought will have to go into it before I act on this feeling.
    Feb 19, 2013. 08:33 AM | Likes Like |Link to Comment
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