hendi_alex

Three Global Utilities ETFs with High Dividend Yields

I own shares of DBU, but the stated yield is misleading. The wisdomtree website, current as of 11/2, indicates a 3.87% distribution yield and a 5% net yield from its portfolio. Wisdom tree's yield is evidently a forward yield. Yahoo's large yield is trailing twelve month which includes a large distribution from last December. That distribution appears to be an annual distribution, and will not likely be repeated this year, unless some large capital gains were to be distributed. It will definitely not be available in the form of dividend income.

Commercial Real Estate Cataclysm Underway?

So commercial real estate prices are down 35% since the downturn started. Take a look at an issue like VNQ for example which peaked at well over $80 per share in early 2007. At today's price, even after a decent rebound, the shares are still down about 60% from the lofty highs of 2007. It would seem to me that much upside potential exists in buying issues of these armageddon priced funds.

The Problem with GLD and SLV ETFs

"Gold is not subject to any risks and serves with complete fidelity only its master."

What about risk of theft, risk of confiscation, risk of being counterfeit or less that stated purity. Risk of "failure to deliver" after bullion has been paid for. What about lost opportunity risk. What about risk of lossing value versus currency value. [Gold not subject ot any risks.] Hmmmph!!!!

BB&T Corp: The Best House in a Bad Neighborhood

Housing is pretty slow in NC, especially in some of the metropolitan areas like around Charlotte. On the other hand, home prices didn't escalate in most areas of NC like they did in the hot spots. So IMO homes are not likely to deflate in value the way they are in CA, FL, and some other states. I recently helped my daughter search for a home in the triad area, so many houses are valued in the $120K-$240K range and those will likely stay fairly steady in price. Also in the process of renovating the repo that she bought in the Greensboro area, Home Depot and Lowes have had a brisk business most every trip no matter what day of the week we shopped. Anyway, just info from casual observation, but it would appear to me that BBT would not have the degree of exposure like other banks that conduct business in the hot spots have. That said, BBTs exposure to commercial projects and to speculative home builders will likely keep a damper on earnings for some time to come. I'm building a long term position in BBT and am placing my bet that in late 2010 or earlier, I'll be smiling at those accumulated shares. I'm also long USB and IAT. Initially bought USB several months ago near its low, and began building a position in BBT and IAT just a few weeks ago. USB is in the green, BBT and IAT are in the red, all but the most recent incremental buys.

Dividend Stocks: Good News / Bad News

The comment regarding the BBT dividend is a little dated as they announced a one penny increase yesterday. The dividend was raised from 46 cents to 47 cents per quarter.

U.S. Bank Dividend Yields Revisited

Previous pseudonym was 'eyes wide opened' chosen for one post many months ago. Have updated pseudonym to match that used at investorvillage.com boards.

U.S. Bank Dividend Yields Revisited

I like BAC and have been considering taking a position in this beaten down financial giant. Regardless of a dividend cut or not, would consider the stock to be a great long term investement. But shorter term, related to the timing of an entry, does anyone have a concern over the POR of the bank. Yahoo shows the payout ratio as 104%. The dividend is 64 cents per quarter, and earnings.com shows earning of Q2 2007 through Q1 2008 as $1.28, .82, .05, .23. I'm wondering how much of those earnings are related to write downs that may have nothing to do with short term cash flow. Am also thinking that much of those 100% writedowns will not really be 100% losses and in the next year or two will be added back to the books. Finally, I would think that as soon as write downs are history, the earnings number will immediate rebound to a decent level. Anyone have a guess as to the likelihood of a dividend cut for BAC. It would seem that shortly after such a cut may be the best time to initiate a postition in the bank.

U.S. Bank Dividend Yields Revisited

It may be worth noting that during this past year that both USB and BBT have increased yields not only via share price drop but also because of increasing their distribution level. USB raised its quarterly dividend from 40 cents to 42.5 cents per share for its January payment. BBT just announced a dividend increase from 46 cents to 47 cents per quarter, with its August first payment. For USB, the dividend represents a POR of 68.6% vs. Q1 earnings of 62 cents. For BBT the dividend represents a POR of 64% vs. Q1 earnings. IMO it is premature to say whether the earnings have stablilized yet for either of these banks, but there is a nice margin of safety supporting the current dividend levels. Further these companies, IMO, would not be raising distribution levels if they anticipated any likelihood of a dividend cut in the next year.

Note: I own shares of USB, BBT, and IAT, consider each to represent value at current prices and am accumulating in small incremental purchases.

22 Stocks Going Ex-Dividend in Early July

Here is a site that has a fairly complete and accurate listing of stocks going ex. dividend on a specific date.

www.companyboardroom.c...

Hyperinflation, Here We Come

I don't think that looking at one component of prices/expenses could allow one to proclaim or reasonalbly predict inflation of any kind. Especially when the "inflation" is mostly tied to very volatile commodities.

Another argument that rising energy is deflationary goes like this. Energy rises while the cost of labor stays relatively constant. The consumer gets squeezed, slows spending on everything except essential food, and the economy contracts, bringing on a round of deflation.

Finally, currencies often move through fairly long duration cycles. The excess military spending will end, adjustments will be made in the consumption of crude, excesses will be squeezed from throughout the system, exports will continue to increase, the imbalance of the dollar vs other currencies will shift, and the pendullum will swing in the other direction.

Thornburg's a Huge Bargain After Monday's Crash

TMA was always touted as being the most conservatively run of the MREITs. I think the past year or two has shown us that there is no such thing as a conservatively run MREIT. They are highly leveraged and being reits have almost not cash reserves. In an adverse market, these nearly illiquid securities allow almost no way for the business to wind down and deleverage itself. I'm beginning to wonder if the business model itself is not fundamentally flawed. IMO LUM, AHM, TMA were all well managed, mostly held high quality assets, hedged interest rates in a variety of ways, very low default rates, little or no subprime exposure, yet all may end up out of business.

Sure this is a very unusual time, but hasn't some event of similar magnitude happened about ever ten years at least since 1980 or so. These crises occur with some degree of regularity, and MREITs fall like a house of cards every time.

Funny thing, we will go to the next cycle. Similar businesses will grow and make a ton of money. We will jump on that train as well, and how many of us will yet again ride until the inevitable jumping off of the track.

What is the saying? [He who forgets history is doomed to relive it.] Greed of the moment surely sets us up to relive the little scenarios again, again, again,..........