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  • This High Dividend Stock Has 24 Straight Dividend Hikes, With More On The Way In 2014 [View article]
    I throw the K-1s in the trash. Never had a problem with any taxing agency. I don't own big amounts of units but enough to make me happy. I would imagine that the ETFs and hedge funds have accounting programs to take care of the distribution taxes. The only MLP problem I have had was when one went bankrupt and the courts tried to claw back the distributions. That was 8 or 10 years ago. No, I didn't pay that either.
    Dec 22 11:15 AM | 1 Like Like |Link to Comment
  • When Should You Sell A Dividend Stock? [View article]
    To WmHilger1, Sir: On your spreadsheet do you reduce the cost of a unit of an MLP by the distributions paid and make your decision about % of yield on that reduced cost? Or do you stick to the original unit cost and take the distribution(s) as a general item profit?
    Sep 14 05:47 PM | Likes Like |Link to Comment
  • 6 MLPs I'm Considering For My Dividend Portfolio [View article]
    I wish all of the above commentors would stop calling distributions dividends. One MUST pay tax on dividends but rarely on distributions. As one commentor pointed out, unless you are a really big holder of an MLP, such as an ETF, no taxes are created or are so miniscule that accoutants just ignore them. I own 31 MLPs and use the DISTRIBUTIONS to buy more shares. My biggest holding is 500 shares and my portfolio has grown 12% without any further input from me. Why own an MLP fund or ETF if you can just mirror what they hold?
    Sep 11 12:33 AM | 2 Likes Like |Link to Comment
  • IPO Preview: Phillips 66 Partners LP [View article]
    It doesn't hurt to put in a 'stink' bid on your broker's site. I have one at $5.00 below the closing price. If it bounces down I'll have bought it at my price. If not, then I won't own it. Order is good for 59 more market days.
    Jul 23 08:03 PM | Likes Like |Link to Comment
  • Phillips 66 Partners LP: Low Risk, Constant Return And Potentially High Growth Investment Option [View article]
    Dividend Garden: I think you make too much about the K-1s unless you are buying and owning many 1000s if units. The pass through profits are so miniscule, and often are losses, that most owners in my position, 100 to 1000 units, don't bother with them at all. The K-1 results are not reportable to the IRS as a taxable event and the distributions only lower the basis so are of no consequence until the units are sold. If you sell enough losers to offset the gain, it's a wash. My accounting firm, one of the big three in the world, just files away the K-1s. The amount which might theoretically be due to each State is too tiny to bother with. If, however, you are a hedge fund or state retirement fund, then it's a different story. Then and only then the K-1s might be a pain in the butt. But even then, the accounting firm just enters the info in the tax program and it's all done automatically. That's why accountants get paid.
    Jul 20 01:38 PM | Likes Like |Link to Comment
  • Worried About The Safety Of Dividends? Consider Magellan Midstream Partners For Safety And Dividend Growth [View article]
    Didn't MMP split 2 for 1 a year or so ago? How does that effect your conclusions? Or, I may be confused and have the wrong company.
    Jun 11 08:52 PM | Likes Like |Link to Comment
  • Dividend Growth Investing - The End Game [View article]
    I liked the article but can't pretend to understand it. Much too much charting and record keeping for me. Schwab tells me that my portfolio returns 10 to 12 % a year and I use the distributions to buy more units of companies I already own, or new companies. I hold only MPS with very few exceptions. I would say my investing is just the antithesis of HEEM's rifle analogy. I'm a life member of the NRA and hunt with cap and ball black powder double barrel shot guns from England, circa 1867. I have to carry them at full cock so I hunt alone. I can hit a barn at 100 yards but little else. However, at 40 yards I can put a pretty big hole in a deer. Same with my investing. I have 5 easy to remember criteria and if a company meets those, it is within my 40 yard field. I buy only with distributions from the companies I already own. Works for me.
    Jun 10 09:46 PM | Likes Like |Link to Comment
  • MLPs are staging a bit of a recovery today after several days of losses amid rising interest rates, with key drivers Enterprise Products Partners (EPD +1.9%) and Kinder Morgan Partners (KMP +1.8%) showing the way. But as the move in longer yields was only about 60 basis points, 24/7's Jon Ogg shudders to think what could happen to MLP pricing if rates rose 150 or 250 bps. [View news story]
    I agree with Unclemike. Bonds will never return the 12+% for the year that my MLP portfolio produced. And incredible tax advantages. I must disagree with Jhollieb about an MLP becoming overpriced. You can always sell at a profit if you need the money. The only reason I hold any MLP is the yield, beta, % held by institutions, held in atleast 3 large ETFs (those guys are paid by the share holds to make decisions and they make them for me for free), and share price so that I can buy in multiples of 100. I gave up looking at and keeping charts when Cramer started talking about a chart with shoulders. A unit is overpriced when it only yields less than twice the 10 year bond. As Ebercink rightly points out the market for MLPs is so thin it's almost impossible for my broker to buy 500 shares from one source so there can't be many people selling. It must be institutions selling after the distribution date. Happens every 3 months.
    Jun 6 08:08 PM | 1 Like Like |Link to Comment
  • What I've Learned From 10 Years Of Dividend Investing [View article]
    Mr. Integrator: Why, if I may ask, have you ignored MLPs and Oil Trusts? I understand that Trusts become worthless at expiration but during the time they are producing the income stream is impressive. I won't even go into the advantages of MLPs. You seem to like to pay taxes and ignore them in your calculations. If that floats your boat, great, but my boat gets bigger every year with minimal tax.
    Jun 4 09:34 PM | Likes Like |Link to Comment
  • Reinvest Growing Dividends: Don't Fall For Big Yields [View article]
    Interesting comments above. It seems to me and I have tracked this with pencil and paper, that the price per unit of just about any MLP has a tendency to rise in the weeks before the ex-date and the distribution date inclusive. So using the Drip method, one tends to pay a slightly and sometimes not so slight, premium for the company. I personally let all the distributions pile up as cash in my brokers account and then the following month or two buy 100+ shares of another company. I own about 25 or so MLPs and a couple of trusts and am quite happy with the mix. For a younger investor the Drip method has a lot of pluses. I have talked to others my age who started investing in the early 90s in MLPs using Drip and are very, very happy. I don't have that much time left.
    Jun 3 03:56 PM | Likes Like |Link to Comment
  • Look for any piece of news that smacks of an improving economy to send stocks falling next week, warns CNBC's Jim Cramer. Why? Big money investors will interpret any positive economic signs as a signal that the Fed is about to pull back economic stimulus rather than risk runaway inflation. Still, he says, there may be opportunities in the pullback, particularly in the bank, tech and industrial spaces. Just says away from anything with a higher yield, like utilities and MLP's. [View news story]
    If, as stated above, an MLP can be held in place of a bond, why would I divest myself of a bond paying 4% and on which there is no tax paid, for a bond paying 2% and on which I have to pay tax? As I stated in a previous comment, unless the distributions decrease in dollar amount to where the % of return is near the 10 year note, or the company appears to be coming undone, I would never sell an MLP. The concept is very simple and too many commenters make it complicated. Or, am I missing something!
    Jun 1 12:35 PM | Likes Like |Link to Comment
  • Credit Suisse stresses a more defensive posture in MLPs, focusing attention on large, relatively liquid, investment-grade MLPs or affiliates with exposure to the coming crude oil production boom in North America. Its eight favorite MLPs to buy now: WMB, QRE, LNG, TRGP, CQP, XTEX, ACMP, GEL[View news story]
    I do not understand the worry about K-1s. MLPs rarely if ever report a taxable gain on the K-1s and my accountant throws them away. (My accounting firm is the third largest in the world so I'm sure she knows what she is doing.) I keep track of the distributions to see how much of my original cost has been returned. The share price going up or down is of no interest either unless the distribution falls below the yield on the 10 year treasury note. If you buy an ETF you are paying taxes needlessly. Apple doesn't pay taxes, why should you?
    May 22 06:19 PM | Likes Like |Link to Comment