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Bikerguy

Bikerguy
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  • Bank Of America: Finding 6.5% Yields, Convertibility, And Floating Rates [View article]
    smithcor the same bankruptcy issue can be said for many companies and bonds. GM, the shareholders received virtually nothing in bankruptcy. Detroit, the bond holders have taken haircuts. Stockton CA another muni bankruptcy. There are many examples that one can cherry pick. Bankruptcies and loss of principal happen, it is part of investing. BTW, Citibank never suspended nor missed a preferred payment. Actually, I had a Citicorp 7.875% yielding over 11% and it was swapped for C common which I sold at the equivalent of $35 per preferred share. The whole transaction was just one year. Granted, that same pfd could have been purchased fro about $6 six months after my purchase in 2008.
    Aug 1, 2015. 05:54 PM | Likes Like |Link to Comment
  • The Millionaires' REITs That Pay Monthly Portfolio [View article]
    Marvin I must disagree with you. Interest charged monthly on mortgages and credit cards or interest paid on interest bearing accounts is very different from dividend reinvesting. There is a known interest rate and balance each month on a mortgage, credit card or interest bearing account. However, while the dividend to be received is known there is no way to predict the denominator, namely the price of the stock. It may be higher or lower at the monthly or quarterly payment date. Since there is randomness in the daily stock price movement how can you determine that the prices will be better on 1/31 and 2/28 than on 3/31? If the proce is lower on 3/31 then monthly pays have hurt your return and you have no way of discerning the price movement in the short term.

    Bikerguy.
    Aug 1, 2015. 05:41 PM | 2 Likes Like |Link to Comment
  • I Can Endure More Bond Duration Than Chuck [View article]
    Emerald assuming that you are correct about a large stock and bond decline, you are incorrect regarding CDs in IRAs. First many brokerage houses handle FDIC insured CDs. Second any bank will be happy to open an IRA and issue you CDs.
    Aug 1, 2015. 05:36 PM | Likes Like |Link to Comment
  • I Can Endure More Bond Duration Than Chuck [View article]
    Christine

    No I do not. The important part is that the fixed income component helped us not make the mistake of bailing out of thee market either partially or totally as many people did. We had just retired and were still working out our "real world" spending and income generation. If we had an all equities portfolio and watched all of our portfolio decline by 40+% it would have been very hard to stay in the market. However, it is not unusual for bear markets in equities to be accompanied by slightly declining interest rates on bonds as people flee equities for fixed income securities. As I believe I stated earlier the fixed income portfolio is an anchor, holding back performance in bull markets and holding back losses in bear markets. Also, it provides liquidity at maturity that can be used either for living expenses (if necessary) or reinvesting into either equities or fixed income depending upon the market conditions.

    Finally, and frankly. ot works for us and that is all I care about in investing, it funds our very happy lifestyle.

    Bikerguy
    Aug 1, 2015. 08:13 AM | 2 Likes Like |Link to Comment
  • Santander's Stock Price Has Disappointed, But Profits Haven't [View article]
    bec I am not necessarily unhappy over the dividend cut. I just think that it is something that deserves mentioning in an article discussing increasing dividends into the future, especially considering that it just happened.
    Jul 30, 2015. 05:13 PM | Likes Like |Link to Comment
  • Santander's Stock Price Has Disappointed, But Profits Haven't [View article]
    I have held SAN since 2/14 and plan on holding longer term. The article is interesting but ignored one very important fact. The author states that "Additionally, the management team has hinted at the prospect of increasing dividends in line with profit improvement." But doesn't mention that this is the management team that reduced the dividend by 2/3 effecting 7/29/15. This is not a minor point, why wasn't it at a minimum mentioned?
    Jul 30, 2015. 10:05 AM | 3 Likes Like |Link to Comment
  • Bank Of America: Finding 6.5% Yields, Convertibility, And Floating Rates [View article]
    BruceM using statistics is always interesting, "And keep in mind....according to Quantumonline, about 97% of the preferreds that suspended their dividends during the 2007/2010 period were financials." The missing pieces of this information is what percentage of financial companies missed dividends and what percentage of all preferreds are financial institutions. Financials are by far and away the largest issuers of prefer stock. Also, I held two preferreds going into the recession, the issuers were Citicorp and JP Morgan. Neither missed a payments. Just like any other investment one needs to evaluate the risks and rewards.
    Jul 30, 2015. 08:14 AM | Likes Like |Link to Comment
  • Hasbro And Mattel: 2 Different U.S. Toy Maker Stories [View article]
    Rosenose like you I bought HAS in 2012 (at $34.68) and I looked at MAT. I preferred HAS and bought a small position. It is about 0.75% of my equity portfolio and I am letting it run. Like you I manage about 70 equity investments. Unless there is a fundamental change in the business I plan on holding long term.
    Jul 29, 2015. 08:45 AM | 1 Like Like |Link to Comment
  • It's Not Rocket Science: STAG Is Now Grossly Mispriced [View article]
    Brad thanks for the update. I have a full position but if it get below $17, I might slightly overweight it. It seems to me that people may have fixated on the 29% retention rate for 2Q and the lack of FFO/share. I would rather have asset growth in the early years and better FFO/share later when the size is stabilized than simply remaining a small slow growing REIT. Not to mention, management hasn't hidden the approach that they are taking. If it doesn't fit with an investor's needs/expectations then STAG shouldn't be part of the portfolio.

    Long and planning on staying so for the long term.
    Jul 29, 2015. 08:30 AM | 1 Like Like |Link to Comment
  • BHP Billiton's 'Dividend Bonanza' And Other Scenarios [View article]
    I have a half position in BBL and after the dividend announcement, assuming no cut, I may buy more. Ling term BHP is a survivor. It is the lowest cost producer in most of its commodities and management has seen commodity cycles before. I expect flat to small increase.
    Jul 28, 2015. 04:49 PM | 1 Like Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? [View article]
    Update, I have been overweight KMI since the rollup. I held RPB from before the EP KMI merger and KMP. After the rollup my position was over 5% of my portfolio and that is higher than I wanted in retirement. But, I didn't have any ideas about where to reinvest. Thanks to Bob Wells I looked at PAA and realized that it is down slightly more than KMI year to date. After updating my dd I sold 1/3 of KMI and bought PAA. It cured two issues: 1) the yield is better and tax deferred for a while and 2) I still have exposure that I want to pipelines. I can use the ST capital loss and economically I didn't lose anything. PAA has been growing its distribution at a CAGR of 9.7% and 8.3% for 1 year and 10 years respectively. At these rates in 5 years the distribution will still exceed KMI with a CAGR of 10%. A tip of my hat to Bob Wells.
    Jul 28, 2015. 04:45 PM | Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? [View article]
    djsulli last year I sold KMP in the roll up. The sale gets somewhat confusing but mostly in the cap gain reporting, TT did not show it properly as to the IRS cap gain typing. The K-1 information is straight forward and you just go line number per K-1 to the line number in TT. I would not ignore MLPs solely due to the K-1 issues. I am in 5 or 6 MLPs and it adds perhaps 20 minutes to the preparation time. I think it is more than offset by the higher yields and tax deferrals. Even after the tax consequences of the KMP forced sale my yield on an after tax basis (ignoring cap gain) was much better than it would have been in just about any c corp including REITs which generate ordinary income, some deferral and the same recapture at sale.
    Jul 28, 2015. 02:38 PM | 1 Like Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? [View article]
    Bob I think your comment about swapping some of KMI into PAA or another MLP is the best I have read and, quite honestly, one I had not thought about. Since most pipeline companies are down a similar amount it is a way to take a capital loss on KMI yet basically maintain a position in the sector. I am somewhat overweight KMI and will most likely follow your suggestion. K-1's don't bother me at all and all of my MPLs and KMI are in taxable accounts.

    Bikerguy.
    Jul 28, 2015. 12:23 PM | Likes Like |Link to Comment
  • The Millionaires' REITs That Pay Monthly Portfolio [View article]
    Brad I agree with the idea of having dividends and interest coming in monthly to fund our lifestyle and we do. However, that can be accomplished with quarterly paying enterprises as well as monthly. I track our monthly cash flows and, for the most part, each month is similar even though most of our investments are not monthly payers. We do have some, STAG being an example. But, if we fixated on monthly payers we wouldn't own DLR, HTA, NHI or HCP in the REIT universe. I am not opposed to monthly payers I just don't see a meaningful advantage.

    With regard to Ida May, the problem is exactly what you stated "fictional" so the "facts" can be tailored to the conclusion.

    I guess this is one of those situations where we will agree to have different points of view.

    Thanks for all of your insights over the years.
    Jul 28, 2015. 08:18 AM | Likes Like |Link to Comment
  • I Can Endure More Bond Duration Than Chuck [View article]
    Christinebitg regarding your comment "Doesn't mean it can't or won't happen, that's a separate issue of course." It is the same issue, investors care about their portfolio whether solely income based or total return based. A decline in our equity portfolio is still a decline. In 2008-09 we saw our equity portfolio decline by 40% but our fixed income portfolio increased by about 10%. Additionally, on short duration bonds there is much less volatility (up or down) based upon rates because of the short time to maturity. Yes, there can and will be a change in yield based on market conditions but the investor will earn the yield that he or she anticipated and get reinvestable funds in a short time. Our portfolio has very frequent maturities so that we are always getting the most current yield. Approximately 25% of our fixed income portfolio matures and is reinvested each year. This mitigated much of the perceived interest rate risk. More importantly, it provides stability to the overall account. Yes, it holds back upside versus a 100% equity portfolio but it also, most importantly for a retiree, reduces the downside in a declining market.
    Jul 28, 2015. 08:04 AM | 1 Like Like |Link to Comment
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