Equity CEFs: How To Buy The Dow Jones Industrial Average At A -6% Discount [View article]
It seems to me that it to measure the comparable return between DIA and either of the CEFs one would have to account for the true ROC which occurred during the earlier years when the CEF distributions were exceedingly high. In effect, you were getting some of your orginal investment back which, presumeably, was reinvested elsewhere. If you don't capture that then it is difficult to compare "apples to apples". Perhaps going back and calculating the PV of the cash flows from each investment over that time period (using some assumed reinvestment rate) would more accurately answer the question.
I didn't get, from Doug's article, that he was suggesting that the CEF's outperformed DIA through all the ups and downs of the last half-dozen years. My take-away was at the present moment and prices, coupled with the more sustainable distribution, the CEF format might offer a discounted means of tracking the DOW and generating some good cash yield along the way, at least for awhile. Over time, Doug's articles have consistently pointed out that not all CEF's are the same. Some are very bad and some are very good at some times but not all the time. They aren't something you buy and put away like you might with an index ETF. Frankly, without the help of Doug's insight I don't think I would want anything to do with CEFs.
Investing Outside Gold To Hedge Inflation And To Secure Income [View article]
To make it simple...just stay away from it. Invest in something that is productive, preferably providing an income stream. If you must buy a commodity, buy something you can eat. There is a reason this author wrote this article, and he has a pretty good track record.
When To Take Profits Over Dividends [View article]
Timely article. I think many of us are facing this issue. I have decided on a strategy similar to Original George's suggestion. I've keyed in the several stocks that have enjoyed at least a 15% increase this year and appear to be fully if not over-valued. Yields on these stocks have fallen to a point where there may be better values elsewhere. But these are some very good companies that came through for me when times were tougher and I hate to abandom them completely. So I have taken 25%-50% off the table, in those stocks, and will repurchase if the market pulls back or reinvest when I find a good DGI stock which appears to offer a better value at this time.
General Electric To Return 50% More Cash To Shareholders In 2013 [View article]
I took the company comment to mean that share buybacks would offset the loss of earnings from NBC, so the overall impact would be neutral. But I agree with rip 2451 that is doesn't result in cash returned to shareholders. I would rather see a generous bump in the dividend which would improve share price and then offset the loss of NBC earnings from internal (or acquired) growth and earnings improvement. Selling assets and buying back stock doesn't take a great deal of imagination, management expertise, and entrepreneurial spirit.
Gorilla Glass Continues To Power Corning [View article]
I agree with Bret. I have never seen a stock so unloved for all the wrong reasons. I will continue to accumulate and will take GLW to my grave if I have to.
Good point. It all starts with the price of oil. Petrobakken's hedging program should provide some protection for shorter-term fluctuations, but if prices drop below $80 on a sustained basis, all bets are off.
I agree with your thesis. In my estimation the distribution is pretty safe and the risk more than offset by yield. If a cut is made in distribution it is likely to be to support value-added activities instead of deficit operating numbers. I will continue to accumulate within prudent concentration limits.
Frontier Communications: Latest Solutions Will Boost Price Multiples [View article]
I think at some point we need to begin recognizing what managment has accomplished. Though I am not suggesting they be totally exonerated, the dividend gaff is now in the past and the future is looking much brighter.
Why General Electric's Dividend Is Fantastic [View article]
I agree with your "slam-dunk" conclusion. There must be many others with clear memory of GE's dividend cut. It was painful and disappointing. But they survived and are even stronger now.
Another refreshing, practical, common-sense approach. For what it is worth, and not to take away from Mr. Buffett, but the "invest in what you know" philosophy is more generally attributed to Peter Lynch of Fidelity Magellan Fund fame. Either way, it is a good sense approach.
Is Cisco Valuing BroadHop A Broad Hop? [View article]
Wow! Very well written article taking a high level strategic view of what CSCO is up to. You write as though you understand it all, so I will accept that you do. Not a lot of numbers, which is good as they are available elsewhere and have been crunched to death. You covered the bottom line; tons of cash and selling cheap. Seashore makes good point that management has some reconciliation to do with shareholders for past blunders and poor control. But, as you point out, they work from a position of strength and have acknowledged past shortcomings. I'm pretty bullish and, after reading your article, am even more so.
Equity CEFs: How To Buy The Dow Jones Industrial Average At A -6% Discount [View article]
I didn't get, from Doug's article, that he was suggesting that the CEF's outperformed DIA through all the ups and downs of the last half-dozen years. My take-away was at the present moment and prices, coupled with the more sustainable distribution, the CEF format might offer a discounted means of tracking the DOW and generating some good cash yield along the way, at least for awhile. Over time, Doug's articles have consistently pointed out that not all CEF's are the same. Some are very bad and some are very good at some times but not all the time. They aren't something you buy and put away like you might with an index ETF. Frankly, without the help of Doug's insight I don't think I would want anything to do with CEFs.
Investing Outside Gold To Hedge Inflation And To Secure Income [View article]
When To Take Profits Over Dividends [View article]
Intel Has Likely Bottomed [View article]
General Electric To Return 50% More Cash To Shareholders In 2013 [View article]
Gorilla Glass Continues To Power Corning [View article]
PetroBakken Energy 2013 Outlook [View article]
PetroBakken Energy 2013 Outlook [View article]
Frontier Communications: Latest Solutions Will Boost Price Multiples [View article]
Why General Electric's Dividend Is Fantastic [View article]
5 Best U.S. ETFs For 2013 [View article]
Investing Like A 2-Year-Old Girl [View article]
Facts Are Changing, So Should Your Investments [View article]
Is Cisco Valuing BroadHop A Broad Hop? [View article]
I look forward to future contributions from you.
5 Best U.S. ETFs For 2013 [View article]