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scubastevo80

scubastevo80
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AAPL, AMRN, ATRS, AVA, CL, CP, CSX, CVX, DE, F, IBM, INT, INTC, JNJ, KMB, KMI, MCD, MMM, NSC, O, OHI, PFE, PM, PSTI, SBUX, SO, T, TGT, TUP, UTX, VOD, WEC, WU, XOM
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  • A Day In The Life [View article]
    RS - thanks for the story. I too transitioned from the short-term investor to the long-term DGI investor. When I was 25-30, I would be in and out of stocks in 6-12 months. I did my cnbc and news based research, and would in and out of stocks in the biotech sector, or would try to call bottoms on things like Countrywide post GFC. Several years later of getting lucky and coming close to breakeven, I have switched strategies, which I'm still in the process of completing. I have some "legacy" holdings which I still need to phase out in the next several months.

    My day present day begins with scouring articles on CNBC, SA, and M* and seeing if anything deserves further research to be placed on my watchlist. Once it's there, I typically add all the requisite data and revisit every week or so. I have a valuation calculator based on a blend of M* FV, S&P FV and FastGraphs FV which helps me decide what to purchase when cash is available. I'm still 25 years out from retirement, so I have a long way to go to fine tune my personal investing strategy.
    Mar 30, 2015. 08:46 AM | 3 Likes Like |Link to Comment
  • Should McDonald's Spin Out A McREIT? [View article]
    Tiki - I don't think I or many others choose to pay $5 for a cup of coffee because the employees are great, I do it for the sheer convenience since they have locations in most every mid to upscale neighborhood.

    I was in one of the most upscale malls in NJ a few weekends ago at Starbucks and it was so bad, my wife made a complaint to the store manager. The employees had the music up so loud you couldn't hear each other talk and the employees themselves were slacking off and talking about their weekend plans instead of serving the immense line that was forming.
    Mar 28, 2015. 01:30 PM | Likes Like |Link to Comment
  • Should McDonald's Spin Out A McREIT? [View article]
    Rich, I agree - find a core menu that works and stick to it. This isn't about real estate, it's about loss of identity with their food offerings. I want the qualified dividend, not the taxable income.
    Mar 27, 2015. 09:12 AM | 1 Like Like |Link to Comment
  • Better 4% Dividend Stock: ConocoPhillips Or Occidental Petroleum? [View article]
    I owned OXY for 2yrs and recently sold late February at a 2% gain (factoring in dividends). At that time and presently, I only want to own oil majors (CVX or XOM) and midstream MLPs. I don't think we've fully hit bottom in the oil company shakeup, but I don't see sustained oil at levels below $30. Offshore drilling has basically halted (Transocean is sending rigs to the scrapyard) and shale drilling will probably be scaled back. Long-term, oil will be profitable again, but at this point in the cycle, I personally wanted to avoid further pain from smaller oil companies.
    Mar 20, 2015. 08:32 AM | 2 Likes Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    Thanks guys - obviously on paper MMP looks better, but I'm sure dividend growth will slow over time. My old brokerage had a decent MLP metrics matrix. They projected out to 2018 distributions, and here are the numbers. EPD looks to chug along at a 5% distribution growth, while MMP and SXL will grow distributions north of 10% for the next 4yrs. I am leaning towards MMP since SXL has to pay a 40% GP share to ETP and has a higher debt to EBITDA ratio.

    Ticker ... '18 Dist ... '18 Yield/Cost ... '18 Dist Grwth ...'18 Px/DCF
    EPD ..... 1.77 ...... 5.6% .......... 4.7% ............... 12.9
    SXL ...... 2.72 ...... 6.6% .......... 13.3% ............. 14.1
    MMP ..... 4.30 ..... 5.4% .......... 11.4% ............. 15.4
    Mar 19, 2015. 04:06 PM | Likes Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    M* finished their re-evaluation and I read their analyst's piece this morning. They're taking oil down from $100 to $75 and nat gas down about a $1 as well. They believe energy names are about 10% undervalued at present and like the midstream players the best.

    If I weren't at a full position in CVX, I would consider adding here. I'm still researching midstream MLPs and am having a tough time deciding between EPD (higher yield, lower growth) and SXL/MMP (lower yield, higher growth).
    Mar 19, 2015. 12:18 PM | 1 Like Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    Thanks for your comments guys. I've always been trained to always place limit order, but I may get away from that for my core positions and begin executing at market, provided its a company I want to own long-term.
    Mar 19, 2015. 12:12 PM | 1 Like Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    Here's a mistake hopefully someone can learn from... I put a limit order in this morning for EMR at $55 (low of the day was $55.01) because I decided to purchase the stock. Would have been happy to purchase the stock at $55.05, $55.10, etc. I ultimately didn't buy it today because I was too stubborn to consider how little $1.80 (36shs x .05cents) would amount to 10-20 years out. The stock obviously closed up shy of $57.

    I'll buy again if it approaches $55 but I'm just frustrated at my desire to pinch pennies over a 7-1/2hr time frame vs that of considering my 20+year investment horizon.
    Mar 18, 2015. 07:51 PM | 3 Likes Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    Thanks for sharing your situation RAS. I am in the camp that corporate earnings will slow the next few years and so will dividend growth. While I would certainly call WMT's raise anemic, I believe others will start lowering their increases as well and I don't want to chase yield in the form of dividend growth.

    A side note is that my tax situation also changes this year. I had plenty of write offs last year, this year I will not (sold house, less charitable donations) so I'm considering tax consequences before succumbing to an itchy trigger finger on my winners.
    Mar 18, 2015. 12:13 PM | Likes Like |Link to Comment
  • Buh-Bye Wal-Mart, Hello Emerson Electric, Qualcomm And AbbVie [View article]
    Mike - thanks for the article. I also like QCOM, picked it up mid-2013. I was part of the rise to $80 and the spike downward in $63, so volatility in the absence of a fundamental change must be ignored for this one. Dividend growth has been great and I think QCOM will remain a player in the chip space. Along with AAPL, this is on my only other Tech holding.

    After recently bringing my SO holding from a half position to a full position and maxing out my utility exposure, I am looking at other sectors, namely staples and industrials for a new position. I recently bought a half position in PG and continue to include both it and GIS on my "watch closely" list. I am back and forth between GE and EMR, but after doing a bit more research via Morningstar and fast graphs, I am leaning towards EMR due to slightly better dividend growth, 5yr expected growth and 5yr estimated total return prospects.

    Lastly, I am still holding WMT. I, like you, am not happy with the dividend growth and yield, but am sitting on a 75% capital gain. As the economy slows, I am going to give them another year to start increasing their dividend growth and getting back on track. If they do not, I may be selling next February assuming I find a better replacement as you did with EMR and QCOM.
    Mar 18, 2015. 08:45 AM | 1 Like Like |Link to Comment
  • S&P 500 Telecom Services Sector: AT&T Vs. Verizon - Who Wins The Battle Between Growth, Yield And Value? [View article]
    Long T and VZ as well. I view these both as utilities, so it was nice to know that part of the sector was on sale while your traditional elec/gas utilities were significantly overvalued. Holders of these two names should expect consistency in high yield and low dividend growth, to the tune of ~8% year (not counting share price appreciation). Not bad for two cash printing machines!
    Mar 12, 2015. 08:24 AM | 1 Like Like |Link to Comment
  • Southern Company - Expect A Dividend Increase, But Not Much More [View article]
    Buffalo - SO is fair valued in my opinion at this time, whereas many of the other utes on my watchlist are still overvalued. If you have a long-term time frame as you indicate and need/want utility exposure at this time, SO is probably a top choice for many.

    I personally have full positions in XEL and SCG, am a half position in SO. I'm looking to add to it between now and the next ex-dividend date.
    Mar 5, 2015. 07:39 AM | Likes Like |Link to Comment
  • Johnson & Johnson: Down 10% Since Earnings, This Slow-And-Steady Dividend Gem Is A Steal [View article]
    Jerry - the fundamental difference in the "The dividends you take are the same as taking a capital gain" argument is that dividends will continue and grow each year while a sale to realize a capital gain will reduce your "assets".

    For me personally (and many other DGIers), I am aiming to utilize the income my assets throw off and then hand over that large asset pool to my children so they can utilize the income and pass the same asset pool to their kids. If I sold everything I'd only have hugs to give my kids before I die, and hugs don't put food on the table.
    Feb 27, 2015. 08:05 AM | 2 Likes Like |Link to Comment
  • Bought 50 Shares Of Australia & New Zealand Bank Group ADR [View article]
    Thanks for the article on ANZ, South. As someone who is married to an Australian and has assets tied up in Australian term deposits, I follow the exchange rate and state of the property market and Australian family in close detail.

    The exchange rate, while potentially subject to a further decline, would most likely be a temporary event as the RBA doesn't plan to cut rates to zero like we did here in the US. Once China resumes growth, the demand for Australian natural resources will continue and I think we'll see a strengthening of the AUD.

    The property market is the wild card. Asian families are flocking to Australia for the education, safety and the healthcare system. I can't see properties going up 10% forever, but it may be some time before we get a meaningful correction. The middle and upper-middle class Australian families I spoke to were being forced farther and farther west of Sydney and most expressed a desire to live in the city (no wants wants to live in the suburbs or the "bush").
    Feb 26, 2015. 10:56 AM | Likes Like |Link to Comment
  • Johnson & Johnson: Down 10% Since Earnings, This Slow-And-Steady Dividend Gem Is A Steal [View article]
    Thanks for the article. I bit and added a full JNJ position last week at $99.5. While I do not think the company is selling at a discount, I'm happy to add a core, top notch company at fair value. JNJ is a name I plan to hold through retirement.
    Feb 24, 2015. 08:32 AM | 1 Like Like |Link to Comment
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