Dollar Pimp

Five Dividend Stocks for Long-Term Dividend Growth

They only offer average yields but I like both of Matthews Asia dividend-oriented funds MACSX and MAPIX. Great risk-adjusted returns + dividends + currency appreciation.


On Oct 29 08:29 AM User 458794 wrote:

> Looking for suggestions on a Core Mutual Fund for my Roth IRA which
> is based on high dividend yield to re-invest, (Dividend Aristocrats?),
> no-load, low cost, (like Vanguard). Or is it better to build a portfolio
> of individual high dividend companies? Would need the income in 10+
> years. thanks.

Betting on Natural Gas, Part II: Investing Ideas

Great article. One point: Encana would be better categorized with the explorers than the movers. They have vast land holdings (ie. shale plays) and specialize in unconventional NG which requires more advanced extraction technologies. Also of note, Encana is in the process of spinning off their oil business (new company Cenovus) making it more of a pure play on NG moving forward.

6 Dividend Stocks for Current Income

As the dollar declines, your dividend becomes worth more and more over time. Yes, the dividend is converted at the time of distribution, but a .50 per share dividend now will become a 1.00 later if the buck loses half its value. Also, the dollar denominated stock price will appreciate faster. If you believe in a lower US dollar, foreign dividend payers are a no brainer.


On Oct 22 10:03 AM David Van Knapp wrote:

> I have the same doubts about what currency dividends are paid in.
> I own foreign companies among my dividend stocks, and when the stocks
> pay dividends in their native currency, the dividends are immediately
> credited to my brokerage account in $US at the current exchange rate.
> Any benefit or detriment of stronger or weaker dollar takes place
> then. I'm not aware of being able to hold the dividend in its native
> currency, and then a year later having it be worth more because the
> dollar has since declined.

4 Ways to Protect Your Capital (Think Debt and Bond ETFs)

I think Pimco offers an EM bond mutual fund denominated in EM currencies - Emerging Market Local Bond?


On Oct 01 10:36 PM Bob Mayo wrote:

> Ugg. PCY and EMB are in dollars. GIM and TIE are more than two thirds
> in dollars or euros. CEW is the only thing I can find denominated
> in a variety of emerging market currencies, but it is a currency
> fund not a bond fund.
>
> Templeton and Merk also have hard currency funds, but with >1% expenses.
>
>
> Anybody have suggestions for emerging market bond funds in local
> currency?

4 Ways to Protect Your Capital (Think Debt and Bond ETFs)

It's true you need to be careful with emerging market bond funds since most EM bonds are denominated in dollars. Sometimes it takes a bit of digging to find out exactly what your currency exposure is. For instance GIM, which is also mentioned here, is about 40% exposed to the dollar, which makes it more dollar neutral than a bearish dollar play. I like the FEO closed end fund; it's 50% exposed to the dollar (again dollar neutral) and invests in both EM bonds and stocks.


On Oct 01 03:56 PM market mojo wrote:

> Regarding PCY. Here is part of its profile from Yahoo.
>
> "The fund normally invests at least 80% of total assets in emerging
> markets U.S. dollar-denominated government bonds."
>
> Doesn't this mean that the fund is 80% dollar correlated? If so it
> doesn't seem to be a good fund for dollar diversification.

Not All Dividend Stocks Are Overvalued

You should heed the advice of ERC, "(annuities are) sold as an investment, but are really nothing but an insurance policy dressed up to look like an investment."

If the insurance company goes under, so does your investment. Think AIG. In today's environment, there's no such thing as guaranteed. Don't fool yourself.

On Sep 10 11:40 AM axelrod608 wrote:

> jarco - as I said, >>"Yes, there are many kinds of annuities, most
> of which are risky and written by non-reserve companies. Yes, you
> have to know what you're buying." >>
>
> Your url to the lawyer that's suing Allianz about DEFERRED annuities
> has nothing to do with what I said.
>
> Anybody that puts 100% of their life savings into ANY investment
> based solely on the word of a sales rep is an idiot. We all know
> that.
>
> As for Allianz' ability to make enough money to pay decent returns,
> check it out. Allianz makes Warren Buffet look like a small business
> in comparison. Buffet gets sweet deals because of the size of his
> assets. Allianz gets sweeter deals.
>
> I just don't understand why there is so much attention devoted solely
> to the stock market when there are MANY other legitimate ways to
> invest. TRUE diversification involves investing in many sectors,
> many different vehicles and products. If you have 100% of your money
> in stocks, and the bonds of the same companies, no matter how many
> different ones you have, you are NOT diversified.
>
> Finally, there are MANY kinds of annuities. Most are tailored to
> one type of investor or another. They grow, pay and save in many
> different ways. NONE of them are perfect for all situations. And
> an ignorant annuity buyer is no less at risk than an ignorant stock
> buyer.
>
> Let's be careful out there.

The Market Bubble Is About to Pop

It's not just the monetary inflation (money printing) that will cause commodities to rise, but production destruction. All that capacity doesn't sit around idle wallowing in depressed prices. Cap ex budgets get slashed, weak hands get flushed and before you know it, demand comes roaring back (V-shaped recovery, right?) to find supply has left the building.


On Aug 12 09:13 AM WD216 wrote:

> I notice many of the people commenting refuse to believe that commodities
> can rise sharply despite a slowing or flat economy. Are they all
> too young to remember the 1970's? The term "stagflation" was created
> then.
>
> With the amount of money the government is spending, both through
> borrowing and printing there is an absolute certainty that inflation
> will emerge. Any ECO101 course will teach you this. Thus the conclusion
> as per the article that commodities will soar and the economy will
> stagnate (due to the government being forced to "fight inflation").
> I disagree with the timing stated in the article and feel that this
> will begin in late 2010 and/or 2011. But the points in the article
> are certainly valid.

Is 5% of Emerging Markets Too Little?

5% is too little in my opinion. I like M. El-Arian's suggested stock allocation - 1/3 to emerging markets (15% of total portfolio), 1/3 to international developed markets and 1/3 to US.

Bill Gross: Dividend Stocks and Bonds Make Most Sense Now

Pimco haters aggravate me to no end. If Bill Gross is trying to "stick-save the treasury market," why is he short treasuries in his Total Return fund? Me think you have no idea what the heck you're talking about.


On Jul 02 02:41 PM SW Richmond wrote:

> Bill Gross checks in to reinvigorate deflation-thesis, help stick-save
> the Treasury market one last time, and generally talk his book. Spare
> me.
>
> Treasuries are the final bubble. Ever since the recent Treasury market
> dustoff, with yields on the ten-year rapidly rising and foreign buyers
> getting nervous, we've seen a rising drumbeat of articles, pundits
> and discussions about deflation. Deflation-thesis is the only antidote
> the Fed and its lackeys have for the obvious inflationary implications
> of the Treasury's borrowing needs going forward.
>
> Nearly all "news", pronouncements by co-opted insider pundits, MSM
> blather, currency discussions, tax hike talk etc must be understood
> within the context of its effect on saving the Treasury market.<br/>
>
> When the Treasury market blows up, you'll know.

Gold as an Inflation Hedge

I wonder if I'm missing something re: TIPs and REITs as inflation hedges.

TIPs: If interest rates soar like I expect them to, isn't it possible all my CPI linked capital gains could get wiped out? What if the value of the dollar declines by 50%?? Relying on the govt to accurately report inflation numbers and protect my investment seems like an awful big leap faith to me. If the bond market tanks, TIPs are going to get crushed right along with plain vanilla treasuries.

REITs: The logic goes that rents increase in inflationary times, but does this hold true in a collapse led by a real estate meltdown?! Rents are going down, not up, and will likely continue to head lower until supply and demand come back into balance. Unfortunately for the REIT investor, this could be long after inflation becomes a real problem.

Personally, I see all the inflationary capital flows eventually heading into emerging markets and commodities. I view dividend-paying foreign equities, especially in the natural resources space, as the most desirable place to be. Maybe I've been listening to Peter Schiff too long, but I still think he's got it right. Just a little early.

When Will the Market Turn Negative Again?

My entirely speculative technical vision for the market going forward - 50% decline of the current rally coming soon to a theater near you. From the low 800's (S&P), the market retests recent highs as we move into the Fall at which time the market falls apart in a bone crushing C wave lower. Catalyst will be higher interest rates and / or soaring tax rates as the govt wakes up to its dire financial position.

Why You Should Hold Aussie / New Zealand Dollars and Gold

Don't forget the Norwegina Krona as a play on crude prices.

Bond Expert Friday Outlook: Some Ominous Action

They're not going to buy American goods, they're going to buy companies and property!


On Mar 14 11:04 AM phil from Edmond wrote:

> If China doesn't want to hold bonds wouldn't an option be to buy
> American goods. How would that be bad?

Market Death Spiral Continues

"2% of people paying 50% of all taxes is not fair."

I hate, hate, hate this argument. You do understand that this 2% (the so-called overclass) controls an inordinate amount of the wealth in this country, yes? 50% sounds like a lot until you consider the number as a percentage of their income. After all, there's multi-billionaires in this group. It's all relative. When you consider their crafty use of tax loops and havens and the ridiculously low cap gains rates, their average contribution (as a % of their income) is no higher than the little guy! In fact, some of the super-rich pay little tax at all. Just ask Therasa Heinz Kerry who's effective tax rate is something like 9%

On Mar 01 11:01 AM JerseyMike wrote:

> 2% of people paying 50% of all taxes is not fair.
> 50% of all people paying no income tax at all is not fair.
> If we "are all in it together", then we should all contribute. That
> would be fair.

Is Commercial Real Estate the Next to Decline?

The way money flows in and out of these ETFs is nuts. I initiated a position in SRS (an inverse ETF) today and it rose right along with the market! Turns out the market price gained 4.5% on the day while the NAV price was negative 9%!! That tells me a lot of folks are thinking the same thing re: further losses in real estate and the trade's likely to get crowded real quick. It's also going to be extremely volatile. All about the stop loss on this one.