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  • Puerto Rico's House Of Cards Is Collapsing [View article]
    Log while I believe that Zamansky is a fear mongering lawyer I think that many "mom and pops" own PR bonds through municipal bond funds, especially single state funds. We own a small amount of very short term PR /bonds, due 12/1/15 and 7/1/16 but both are insured. we only buy short term (under 4 year) bonds and, if munis almost always insured. It helps us sleep at night when the politicians have less say in our getting paid semi-annually and at maturity.
    Aug 29, 2015. 10:13 AM | 1 Like Like |Link to Comment
  • Baby Boomers Facing Retirement Crunch [View article]
    That can be true. However, there are two points. One perhaps certain costs can be reduced i.e. keep cars longer and/or buy used rather than new. If a couple is earning $70,000 and paying for college and mortgages then they are living on much less than $70,000. in retirement and need less money. Presumably in retirement the kids will be out of college and the mortgage paid off, that substantially reduces the cost of living for this couple. While I have not tried to compute their hypothetical social security benefits (based upon my wife's) I estimate that they will receive about $30,000 per year. That will cover quite a lot of living costs for this couple. They probably need less than an additional $10-$15,000 to meet their current lifestyle. Even income taxes will be much less in retirement.
    Aug 29, 2015. 10:00 AM | Likes Like |Link to Comment
  • Baby Boomers Facing Retirement Crunch [View article]
    Aug 29, 2015. 09:34 AM | Likes Like |Link to Comment
  • Chowing On Unsafe Dividends For Monday's Breakfast [View article]
    watermark I don't believe that is what he wrote. He is willing to accept a dividend cut in the short term to get long term growth in both earnings and dividends. That is different from an expectation.

    Finally, while I am an RDS holder and believe that Dudley made a truthful statement and that RDS hasn't cut its dividend since WWII, times and events change and management should change with it so it is possible that Mr. Dudley will need to change the company's dividend policy.
    Aug 29, 2015. 09:34 AM | 4 Likes Like |Link to Comment
  • Chowing On Unsafe Dividends For Monday's Breakfast [View article]
    Tim even though I am a retiree using dividends and interest as part of our income source. I agree with you. Long term is the correct view. I do not follow GSK but I suspect that the "decline" in dividends has more to do with fx then with earnings and payout. When I look at foreign equities I always look at the dividend in local currencies, fx changes. Currently, the dollar is strong, that will change again as it has in the past. All three are good companies with long term prospects and short term challenges that may effect the dividends.

    Having said that I expect that the DGI only groupees will be out in force.

    Long RDS.A and RDS.B

    Aug 29, 2015. 09:30 AM | 2 Likes Like |Link to Comment
  • Baby Boomers Facing Retirement Crunch [View article]
    WSD I tend to agree with you that yu want a somewhat lower equities allocation nearin and soon after retirement. We retired in 2007 and while our accounts declined having cash and fixed income kept us sane. We didn't sell, but did some modest buying, and our accounts are much larger than in 2007. However, I think the increasing your allocation to equities depends upon your account balance and lifestyle. For the past 8 years we have lived on interest and dividends and have reinvested as well as social security and a very small pension the excess so we have maintained our allocation fairly constant.
    Aug 28, 2015. 09:25 AM | Likes Like |Link to Comment
  • Baby Boomers Facing Retirement Crunch [View article]
    RAP77 Please take your personal political opinions elsewhere, perhaps MSNBC. This is a financial site not political.

    Actually, solutions are the opposite of socialism. It is called personal responsibility. If people of all ages save they can retire well. While we were working we lived well but below our means and enjoyed life while many people live in credit card debt to take the expensive vacations and new cars every other year. We retired in 2007 and watched as our retirement accounts declined in value but still enough to fund our very enjoyable lifestyle. It all comes down to choices not government intervention.
    Aug 28, 2015. 09:21 AM | 13 Likes Like |Link to Comment
  • BHP Billiton: Financial Results Through June 30, 2015 [View article]
    Shelby as a medium term holder of BBL (about 3 years) I will continue to hold and if it gets into the 20's add some more to my 1/2 position. I look at BBL as the best house in a bad neighborhood that you know will be improving but not certain when it will happen. We live in a world that requires basic materials and mining is the start for most of them.
    Aug 27, 2015. 03:21 PM | 7 Likes Like |Link to Comment
  • SCHD: Lower Volatility Than SPY, Lower International Correlations And A New Place In My Account [View article]
    Colorado I hold SCHD and recently added a small amount at $35.40 and $35,90. I look at it as my primary ETF. I also hold smaller positions in SCHG, SCHV, and SCHF. I also have about 40% of my equity portfolio in legacy mutual funds that I an slowly liquidating. The EFTs represent about 6% and the rest of the equities are individual stocks, including REITS and MLPs. Additionally, I have a bond portfolio, about the same size as my equity portfolio. As a retiree the bonds give me comfort. However, I expect to be moving more into the SCHD etf as I either reallocate or sell equities. Also, I look at the yield somewhat differently than you have. Since SCHD has raised its distribution almost every quarter and each year has been higher than the prior, I use the latest quarterly distribution obviously multiplied by 4 and expect a current yield of at least 3.39%. Also, its distributions have increased by more than 10.5% on a TTM for the last two twelve month periods.
    Aug 27, 2015. 03:05 PM | 5 Likes Like |Link to Comment
  • How To Get One Of The Highest, Safest Yields In Today's Market [View article]
    While the preferred dividend has priority over the common dividend there are two issues not discussed in tis article.: 1) Except for the relatively few floating rate preferreds there is no potential for an increase in the dividends over time while many companies' common stocks have raised their dividends for 25 or more years. 2) In bankruptcy the preferred has priority over the common but, in most cases after the secured debt holders are paid and the unsecured debt holders receive some return of principal there is usually very little left for the preferred or the common stock holders.

    I think that a small allocation of preferreds can be part of a fixed income allocation but that is about it. We hold only floating rate preferreds and they represent about 5% of our fixed income allocation.
    Aug 26, 2015. 01:52 PM | Likes Like |Link to Comment
  • Royal Dutch Shell Is Now A 7.54% Dividend Yield Monster [View article]
    I just looked at RDS's dividend payments on Yahoo. The earliest dividend shown in from 1993. It appears that RDS has not cut its dividend in the last 21 years and the oil and gas prices have been all over the place in that time frame. Past history is no guarantee of future performance. Someone said that history doesn't repeat but it does rhyme. There dividend history gives me some comfort. Yes. I recall GE cutting its dividend due to a worldwide and financial company specific liquidity crisis. Long RDS-A and RBS-B.
    Aug 26, 2015. 09:55 AM | 2 Likes Like |Link to Comment
  • 6.92% To 12.27% Yields For 10 Top Global Dividend Dogs As Of August 19 [View article]
    Fredrik, one small point. Your reflect different dividends for RDS.A and RDS.B and this is incorrect. Yahoo and other sites quote RDS.B dividend net of the 15% Dutch tax withheld. Both shares pay an annual dividend of $3.44. For US investors who purchase RDS.B in a taxable account can use the Dutch tax as a credit against US income tax allocable to foreign dividend and interest income.
    Aug 24, 2015. 10:49 AM | Likes Like |Link to Comment
  • A New System For Picking Stocks To Buy For DIY DGI Portfolios [View article]
    Dennis you have obviously spent a great deal of time thinking and developing your formula, not to mention debugging it. I am considering using it, however, there is one change that I would suggest (well actually two). Instead of coding in your current maximum points for each statistical measure into the formula, set it up as a variable with a reference to a cell or a separate tab that you add to the CCC spreadsheet. The second change would be to then, for each step use a multiplier times the variable to determine the value. For example years of dividend increases is 10 and this is the beginning of the formula =IF(D9>30,"10",IF(D... Change it to =if d9>({variable location},{variable location}*1.},{variable location}*0.8. This would allow you to modify your weighting very easily simply by changing the variable once on the variable spreadsheet. The same could be done with the terms (in this case years) and or multiplier.
    Aug 23, 2015. 08:34 AM | 1 Like Like |Link to Comment
  • Retirement Strategy: Evaluating Your Risk Tolerance Can Be Gut-Wrenching But Vital [View article]
    ikswo123 you wrote "Retirees should look at if their needs (not wants) are covered with reasonably safe liquid investments. The rest is play money."

    I could not disagree more with this statement. iMO retirees should cover all of their lifestyle with safe investments, social security and, for the lucky few. pensions. The rest is not play money. Retirees worked hard and long to create a portfolio to enjoy retirement not just survive. If it is "play money" then it can be gambled and lost and the retiree's lifestyle goes with it.

    We live very nicely on social security, a very small pension and the dividends and interest from our portfolio and manage to reinvest some fo the income. Our portfolio is 50% equities, about 60% of these are DGI and DGI ETFs, and 50% short term investment grade bonds with an average duration of 2.1 years. Additionally, we have a cash management bond portfolio with monthly maturities through 13 months which represents about two years (net of social security and pension) of lifestyle expenses.
    Aug 19, 2015. 10:48 AM | 5 Likes Like |Link to Comment
  • Can ETFs Outperform Individual Stock Picks? [View article]
    ZC I agree with you that dividends can and do change, both increases and decreases and suspension. However, your statement "A traditional bond pays a fixed coupon, so you know beforehand what your income will be." Is also somewhat misleading. Yes there is a contractual obligation to pay the interest. However, enterprises do go bankrupt and stop paying interest and then the investor has a loss of both interest due and some or all of the principal. Some recent examples General Motors, Detroit, Stockton CA. and lets not forget Puerto Rico. There is risk of lost income and principal in bonds as well.
    Aug 19, 2015. 10:33 AM | 1 Like Like |Link to Comment