Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Brad prior to reading your REIT articles I hadn't owned any for more than a decade, and then, it was the Cohen & Steers fund. I have a large position in DLR (over 1.5% of my portfolio) and large positions in STAG, HCP and NHI (0.75%) and smaller positions in RYN and HTA (0.5%) mostly thanks to your writing. I plan to sign up for your newsletter shortly. Thanks for the fine articles. As a retiree I like DG investments and these REITS seem to fit right in.
My Good-Yielding Stocks Portfolio That Can Outperform The Market By A Big Margin [View article]
Arie, are you looking for total return or dividend income? It seems to me by rebalancing every four weeks you may very well collect few dividends. Also, if this is done in a taxable account the tax consequences will be significant Based on your back testing, how often did the portfolio turn over?
Are The Dow's Top-Yielding Dividend Stocks At Risk? [View article]
As many other authors do, Black Coral ignores that substantially all of VZ's cash flow is derived from VZ Wireless. In effect the VZW cash flow is not free cash flow for two related reasons. VZ owns only 55% of VZW so only 55% of the VZW cash flow is potentially available to VZ shareholders although 100% is shown on the statement of cash flows. Even the 55% is only available when and if the remaining 45% is paid as a distribution to VOD. The VZ cash flow available for dividends is much less than shown on the financial statements.
TrufflePig it is not optional when you realize taxable income from an MLP. The K-1 reflects all taxable activity and you must report it in accordance with that document.
Phillyguy I don't use TT however, most tax software programs track the suspended loss carryforwards by entity. There may be a schedule that it prepares for you but is not sent to the IRS. In a simplistic manner the vast majority of the suspended losses is the total of the losses, less any gains shown on line 1 of the K-1 each year. People make too much out of the K-1s, the software handles it easily. I am in 7 partnerships directly and through EPD three or four others. The software does it all. The form looks scary but by following the directions it all works.
D4L I generally agree with your conclusions in your dividend analyses. However, with regard to VZ I must respectfully disagree. VZ should not earn a star for the dividend payout being less than 60% of FCF being. 99% of VZ's operating income is derived from VZ Wireless while VZW utilizes less than 65% of the assets. Substantially all of the companies FCF comes from VZW. However, only 55% of the FCF from VZW is available to pay VZ shareholders. I believe that VZ wants (needs) to buy out VOD because it needs the VZW cash flow to pay its dividend.
There is one other tax item that was not mentioned in this article. As investors we have passive loss carryforwards. These carryforwards can only be recognized when the full position is sold. I have held KMP in a taxable account since 2004 and had added to my position in 2005 and 2008. Using the K-1 gain estimator (thanks Uncle Pie) about 54% of my gain is ordinary income and 46% capital gains. However, I also have the passive loss carryforward which will partially offset my ordinary gain. My passive loss carryforward is about 50% of my ordinary gain. A long way to say that even after paying a combination of ordinary and capital gains taxes it is still a very good investment vehicle.
Don't Look At Kinder Morgan's Payout Ratio [View article]
Brucejfern-I don't understand your comment that KMP struggled during more normal interest rate periods. From the 1st quarter 1997 to 1st quarter 2007 the distributions increased an average of 18% on a compounded basis. That was a normal interest rate period and if that is struggling I will take it. Long KMP and very happy. Also, long EPD which may have a similar distribution growth but is at a lower current yield.
Waiting Patiently For A Blue Chip REIT Pullback [View article]
Brad, thanks for this timely article. I was looking to buy more DLR. Based on this article and the current pullback I doubled up on my position at a good price and nice yield. Your article and the FAST graph convinced me today is the day. I am also looking for an entry point to initiate a position in STAG. Your articles have helped me be more comfortable with REITs
Dividends: High Yield Vs. Steady Growth Examined [View article]
I suggest that the reason that the mREITs have such high yields is the use of very high levels of debt much higher than most corporations. If individual investors used maximum margin leverage on the typical DGI investments such as KO the returns would have been much higher for the typical DGI investments. Most of us don't use high levels of margin yet that is what mREIT investors are doing inadvertently. The mREIT risk is that rising interest rates will increase the cost of borrowing and reduce the value of the underlying MBS holdings
Nice list of companies. I hold two of them as well. However, you are incorrect with regard to MLPs. MLPs are not required to payout anything in the way of distributions. REITs and BDCs are required to payout at least 90% of their taxable income in order to avoid paying income taxes at the corporate level. Additionally, MLPs issue K-1s rather than 1099s for tax purposes and in tax deferred accounts may, in certain situations, cause the tax deferred account to owe unrelated business tax.
Verizon: Sounding The Alarm On Dividend Safety [View article]
Josh I agree with you that VZ has a dividend issue. However I think that the cause is VZ wireless. Almost all of the reported cash flows come from VZW but VZ can only get to that cash by distributing it out which requires 45% goes to VZ's partner VOD. Cash flow available to VZ shareholders is much lower than the total cash flows.
Why I Prefer Australian Banks To American Banks [View article]
In a similar vein dividends are quoted on an annual basis so that the amounts make sense. if you are concerned that the next semi annual dividend, as you state, will be different (which most likely will be for these stocks) then how can you quote an annual yield? You know the denominator but not the numerator.
Why I Prefer Australian Banks To American Banks [View article]
While you say that the dividends are paid twice a year nowhere do you note that the dividend quoted is only one semiannual dividend. Also, you are mixing apples and oranges by quoting an annual yield. Perhaps you should reread your articles before having them published in order to make certain that you are showing consistent data.
Why I Prefer Australian Banks To American Banks [View article]
Mark as a holder of both WBK and ANZ I agree that both are good banks to own. However, it is hard to take your analysis seriously when you significantly understated the dividends. Both of these banks pay semiannual dividends. In the last 12 months the dividends per share for WBK and ANZ were $8.56 and $1.43, respectively, and yields are currently 5.2% and 4.7%.
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
My Good-Yielding Stocks Portfolio That Can Outperform The Market By A Big Margin [View article]
Are The Dow's Top-Yielding Dividend Stocks At Risk? [View article]
What Happens When You Sell An MLP? [View article]
What Happens When You Sell An MLP? [View article]
Verizon Communications Inc: Dividend Stock Analysis [View article]
Long VOD
What Happens When You Sell An MLP? [View article]
Don't Look At Kinder Morgan's Payout Ratio [View article]
Waiting Patiently For A Blue Chip REIT Pullback [View article]
Dividends: High Yield Vs. Steady Growth Examined [View article]
My Perfect Dividend Portfolio [View article]
Verizon: Sounding The Alarm On Dividend Safety [View article]
Why I Prefer Australian Banks To American Banks [View article]
Why I Prefer Australian Banks To American Banks [View article]
Why I Prefer Australian Banks To American Banks [View article]