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Pinkrabbit

Pinkrabbit
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  • MORL December Dividend Higher - Annualized Yield 23.1% [View article]
    Thanks but I have the same information.
    Nov 20, 2014. 10:04 AM | Likes Like |Link to Comment
  • MORL December Dividend Higher - Annualized Yield 23.1% [View article]
    Please explain how you came up with a 23% yield. I think it is closer to 7.4%. (12X.1343/$21.75). I know it has wild swings in its monthly payouts but 23%?

    Thanks
    Pinkrabbit
    Nov 19, 2014. 09:34 AM | Likes Like |Link to Comment
  • Companhia Energtica de Minas Gerais EPS of R$26.6M [View news story]
    I waded through the report but I could not find where they posted the Core or Net Income per share nor the current BV per share. Can you assist me? Lacking that info I am unclear why you believe the 2015 dividend is gone.
    Nov 14, 2014. 09:47 AM | Likes Like |Link to Comment
  • The Fed Has Ended QE, Should We Dump Annaly? [View article]
    I concur with you regarding higher interest rate may mean higher dividends. In 2008 rates were much higher as were percentages paid out. Also not being an expert, it seems logical to me that higher interest rates make room for greater spreads. Further, higher interest rates should put an end to refinancing. I would like to see mortgage rates in the 6-7% range. I still think that is still low enough as to not greatly discourage residential and commercial construction or purchases. Better to make more money on fewer loans than to make less money on more loans. On the flip side higher rates could increase defaults. Whatever stay long and ride it out.
    Oct 30, 2014. 09:45 AM | 4 Likes Like |Link to Comment
  • How To Know When A REIT Is Worth Buying [View article]
    As a long time investor in REITs I find that "Protect My Principal At All Costs" does not work for me if the "cost" means that I do not receive an adequate dividend stream to supplement my Social Security income to provide a decent retirement. Since I have no intention of selling securities to provide a source of income, a reasonable dividend plays a much more important role in my investment strategy. Yes I am a dividend chaser but it has worked very well for me. With the exception of 2013, my portfolio has out performed the three major indexes every year (I do have some MLP's and asset management holdings in the mix).

    I would love to have my cake and eat it too but it is not a perfect world. I have target for annual dividend income so I buy or sell holdings to maintain that stream. I do look at a number of factors before I buy or sell but the focus is on dividends and not maintaining principle. I love a down market even if I have to take a principle hit for a short period. Great time to buy. If the dividends are within my acceptable range and earnings tend to support that range, cash from dividends in excess of my current needs are quickly invested.
    Much goes on in this world that drives stock value which has very little to do with a REIT's ability to pay dividends such as what is going on in China or Europe. Even the spread of ebola affects the market. Even in a down market like 2008 and 2013, my dividend stream exceeded my target.

    Everyone's needs are different. If you are not retired then principal preservation may rank high on your list. If you are retired and plan on selling stock to live on, you may also believe in capital preservation. Then there is the third group like myself that do not view REIT's as risky investment where the focus is on share accumulation and associated dividends.

    One shoe does not fit all sir.
    Oct 13, 2014. 09:42 AM | 4 Likes Like |Link to Comment
  • Cornerstone Progressive Return - A CEF With A 20% Dividend [View article]
    The referenced "cost basis" I am referring to is the purchase price of the stock not discounted by any subsequent dividends received.
    Aug 14, 2014. 10:13 AM | 1 Like Like |Link to Comment
  • Cornerstone Progressive Return - A CEF With A 20% Dividend [View article]
    Your analysis of CFP caused me to look at the chart for CFP over the past 5 years. It does not look very good. The dividend started out at .205 and is now at .0773. The price has dropped from the $10 range down to $4.60 and showing no signs of recovery. The decline in price has eaten up most if not all and more of the dividend payout. Based on average cost I am getting a 16% dividend. The obvious question is "is it worth it?". For sure it is not a buy and hold stock. When do I dump it?. My cost basis is $5.72. Without a little more analysis to confirm my suspicions, it appears that I continue to lose money the longer I hold it. Any suggestions out there?
    Aug 14, 2014. 08:28 AM | 1 Like Like |Link to Comment
  • Whiting USA Trust II Quarterly Distribution Up On Decreased Expenses, Good Oil Prices [View article]
    This morning (Monday) Stifel cuts WHZ to Sell from Hold.
    Aug 11, 2014. 10:27 AM | Likes Like |Link to Comment
  • 14%+ Dividend Payer ARMOUR Residential REIT May Be A Bargain [View article]
    I bought a lot of O&G MLP's for diversity. Been nothing but a loser. Not only did the price of the stocks drop (About 30%) so did the dividends. I will take a look at Awilco -Thanks. If it is way down like CVRR, NTI, and ALDW maybe.
    Aug 10, 2014. 08:21 AM | Likes Like |Link to Comment
  • 14%+ Dividend Payer ARMOUR Residential REIT May Be A Bargain [View article]
    I ignore the current market price and focus on the dividend stream especially if I do not need to sell the stock to pay bills. Seems like a good time to do some dollar cost averaging.
    Aug 10, 2014. 08:17 AM | 1 Like Like |Link to Comment
  • 14%+ Dividend Payer ARMOUR Residential REIT May Be A Bargain [View article]
    You are correct but I think they are going to have to pay out about 100% of their net/Core earnings in the 4th qtr to maintain the 5 cents. Last time I checked, and if you put any faith in it, their forecasted earnings for 2015 should cover the 5 cent dividend. I think the earnings forecast is a number to watch. Not necessarily the forecasted $.64 but the projected up or down movement. I think a monthly $.04 dividend is a safe bet for 2015 but $.05 not so much. I have been long on ARR since 2011 but my cost basis is $6.93. I would have to buy a lot of ARR to get that number down but I'm still earning 9%. Right now ARR is 3.87% of my holdings. I may move that up to 5%.
    Aug 4, 2014. 08:01 AM | Likes Like |Link to Comment
  • Silly Rabbit, Dividends Do Matter In Retirement [View article]
    My user name not withstanding, I like Catmanrog and Brad get it. The value of a stock is not nearly so important as the dividend stream it provides for retirement. WHY sell stock to supplement Social Security when you can keep the stock and live off of the dividend? I have been investing in high dividend paying stocks since 2008. I can say with absolute certainty that proceeds from dividends are far less volatile the value of my portfolio. I have consistently earned 14% + in dividends based on the initial purchase price of my holdings. We all took a hit in 2008 and 2013 but dividend stream remained solid. My REIT holdings have fully recovered from the dips. Further, with the exception of 2013, my portfolio always out performs the S&P, NASDAQ and the DJI. "Silly Rabbit" is no relation to me.

    Pinkrabbit
    Jul 21, 2014. 10:30 AM | 4 Likes Like |Link to Comment
  • Retirement Strategy: Chasing Yield Is Actually Looking For Disaster [View article]
    Hey Tom: I buy everything I can on a credit card to get the FF miles to fly on your airplane and not because I cannot afford what I buy. There is an old school of thought (still valid) that buying on credit is "forced savings". Buy what you want or need today (including airline tickets) and pay for it over time so you can enjoy it now rather than wait for an extended period to save up enough money to buy what you need. Is there room for abuse with this system? You betcha. Could there be a tendency to spend a little more than what is required to meet you need like flying first class instead of coach? Yep! On the flip side, for the responsible person, it is the smart way to go.

    Our economy depends on folks buying on credit if done smartly. No one would fly on a plane if they had to pay cash. Problem is some buyers are not too smart and run up huge debt but I suspect you already know all this.
    Jun 22, 2014. 10:12 AM | 1 Like Like |Link to Comment
  • Retirement Strategy: Chasing Yield Is Actually Looking For Disaster [View article]
    I do not know where the idea of mismanagement came from. I for one transfer dividends from Charles Schwab accounts each month to my Charles Schwab bank account to pay 100% of my MC bill. I always make sure that I keep enough in my accounts to pay for three months of MC bills. Anything beyond that gets reinvested. Everything I buy goes through MC get to get the FF miles. Big boat- I wish. I did buy a new Avalanche with about 20% down (Trade in). Seemed stupid to pay cash when I could borrow at 4% but earn 13% if I let the money stay in the market.

    Most experts are starting to agree that, at retirement, it is not a smart idea to get too conservative with investments and focus on capital preservation. T Bills and bonds don't provide enough return to even cover inflation. Capital preservation is not selling 4-6% of your holdings each year to live on but spending your dividends instead. If you invest your money wisely in high dividend paying stocks you do not need a million dollars saved up for retirement allowing you to draw down 4-6% every year. You only need 400-500K saved. (The first year 4% of one million is $40,000 while $400,000 yields $52,000 at 13%), The beauty is that in year two I still have $400,000 but the conservative investor only has $960,000 assuming the market remains flat. The second point is that if the market does drop, the conservative investor may have even less than $960,000. He will have to draw down even a higher percentage while the "moron" investor still gets a healthy dividend stream which is unaffected by the market ups and down.
    Jun 22, 2014. 09:43 AM | 4 Likes Like |Link to Comment
  • Retirement Strategy: Chasing Yield Is Actually Looking For Disaster [View article]
    I'm with you. All stocks are risky to some degree because of the ebb and flow of world and domestic events totally outside of the control of the stock issuing companies. You might as well get paid for the risk by collecting dividends to reinvest or hold to pay bills as needed. Even in the dips, the dividends keep flowing which can, in turn, be used to buy more shares at a lower cost afforded by the dip. They are effectively a market provided slush fund that allows you to increase your holdings without dipping into your pocket. The new shares increase your flush fund for the next dip and the cycle continues.

    You don't get that by owning P&G, Coke, or any stock in the DJ family that pay little or no dividends.
    Jun 21, 2014. 10:51 AM | Likes Like |Link to Comment
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