Linn Energy's Annual Report Bodes Well For 2013 [View article]
IMO changing to a monthly dividend increases the chances that the dividend could be cut down the road. When something negative happens to cash flow, it is much easier to decide on a dividend cut if you are dolling it out on a monthly vs. quarterly basis. Would rather they kept it quarterly.
Anthony- If we are talking 10 or more years away, then this is a pointless article. In that time the distributions received, let alone some probable appreciation, will mostly likely mean that an investor's original investment will have been returned to him, especially if distributions are reinvested in additional shares. I can think of many issues involving other DGI stocks that should be of more immediate concern.
Freeport McMoRan's Outlook Lifted By 3 Events [View article]
contrarian- I'll start stocking up on wheelbarrows. Based on that scenario, we'll need them just to pay at the grocery store when that inflation cycle hits.
Freeport McMoRan's Outlook Lifted By 3 Events [View article]
contrarian- If your scenario comes to pass, I wouldn't want to be holding any stocks. Copper falling to $1.50 portends economic depression, world-wide. I mean, as long as we're throwing out terms like "contraction, bust, plunging, and slashed", we might as well go all the way.
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
Craig- It may be that the overall market corrects only 5-10%, but certain individual stocks correct 10-20% or more. The trick is identifying those stocks which give you the best chance of having your defensive bet succeed. Also, some of the stocks I own just don't have enough option volume to warrant a similar defensive position, such as NNN or OHI, both of which are well overextended.
The Crazy Thing About The 2008-2009 Stock Market Crash [View article]
Frog- The author laid out specific historical examples on many stocks that I find persuasive. Unless you can provide similar examples through backtesting, or whatever, to support your theory, I'll go with Tim's analysis.
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
craig-
With some hefty gains on my DGI portfolio, rather than sell those shares and pay the tax on the gains, my approach is to use options. For example, since I own 200 shares of PG, on Monday, April 15 when the market was tanking and PG was up early on after announcing a 7% increase in the dividend, I sold 2 otm OCT 82.5 calls at 1.63, and then purchased 2 OTM JUN 77.5 puts at 1.29, when the stock was around 80.25. The proceeds from the calls paid for the puts and covered the commission costs. If PG corrects in the next 2 months, the increased value of the puts, plus the proceeds from the calls, will help offset the decline in the shares. If that happens, the calls can be bought back at a lower price, or you can maintain the covered position. Meanwhile, the dividends continue to roll in.
As it happens, PG announced earnings this week and the stock took a hit, now at 77.10. The call is at .80 and the put is at 1.80, with the gains in both almost equal to the drop in the shares. I'm looking for a further drop in PG, so I'll hold on to the puts a bit longer. Since I have almost 6 months before the calls expire, I am in no rush to make a decision on whether to buy them back at a gain, or continue the covered position.
Just another way to avoid selling the shares and realizing the tax gain, while continuing to receive future dividends..
Survey Says... These Are Dividend Growth Investors' Most Widely Held Stocks [View article]
David- I had listed 6 stocks I own that were not on your list last year, and you added 5 of them. The additions were DRI, LNCO, LO, NNN, AND OHI. Only MCY didn't make the list. It is a Dividend Champion, with 26 years of increases and a 6% yield. Of my 30 stocks, 17 are on the list. Not a bad percentage. Great job on the new list.
The Right Time To Sell Dividend Stocks [View article]
kongen:
A lot depends on the age of the investor and what their investment goals are based on that age.
As a 60 something DGI with nice gains on a wide variety of stocks, rather than sell those shares and pay the tax on the gains, my approach is to use options. Since I own 200 shares of PG, on Monday when the market was tanking and PG was up early on after announcing a 7% increase in the dividend, I sold 2 otm OCT 82.5 calls at 1.63, and then purchased 2 OTM JUN 77.5 puts at 1.29, when the stock was around 80.25. The proceeds from the calls paid for the puts and covered the commission costs. If we get that correction in the market in the next 2 months, the increased value of the puts, plus the proceeds from the calls, will help offset the decline in the shares. If that happens, the calls can be bought back at a lower price, or you can maintain the covered position. Meanwhile, the dividends continue to roll in.
Just another way to avoid selling the shares and realizing the tax gain.
Linn Energy: A Solid Choice For Income [View article]
Bryce- I agree with others who have questioned why you continue to own a stock that you continue to trash. I have read your screed countless times on any article about Linn. Don't you think it's time to give it a rest? Who are you trying to convince?
Don't Believe The Stories That The Markets Are Down Today [View article]
As a DGI with nice gains on a wide variety of stocks, rather than sell those shares and pay the tax on the gains, my approach is to use options. Since I own 200 shares of PG, yesterday when the market was tanking and PG was up early on after announcing a 7% increase in the dividend, I sold 2 otm OCT 82.5 calls at 1.63, and then purchased 2 OTM JUN 77.5 puts at 1.29, when the stock was around 80.25. The proceeds from the calls paid for the puts and covered the commission costs. If we get that correction in the market in the next 2 months, the increased value of the puts, plus the proceeds from the calls, will help offset the decline in the shares. If that happens, the calls can be bought back at a lower price, or you can maintain the covered position.
Just another way to avoid selling the shares and realizing the tax gain.
Eric- I wonder how those bond holders of Stockton, CA bonds feel now about the risks to principal from owning bonds? Not to mention those who held GM bonds once Government Motors called the shots.
I have also been looking to buy and add to my growing DGI portfolio, but the buys have slowed to a crawl over the last few months.
What this article ignores is the fact that yes, we may have a very sizable correction down the road, but at the moment the companies outlined here (PG, JNJ, VZ) exhibit no signs of an earnings slowdown. With the Fed continuing to assist with their QE, etc., the best (or worst) we can look for in the near to intermediate term is a minor correction of 5% to at most 10%. That is when I will step in again.
Also, the author fails to mention that PG and JNJ continued to increase dividends even while their stocks tumbled in the so-called "Great Recession". They also did so in the dot.com bust in 2000-01. Both stocks are now at all-time highs. Eric can keep his bond market. I'll stick with my quality dividend paying stocks.
Linn Energy's Annual Report Bodes Well For 2013 [View article]
Long LNCO
MLPs - How To Start A Bubble [View article]
Freeport McMoRan's Outlook Lifted By 3 Events [View article]
Freeport McMoRan's Outlook Lifted By 3 Events [View article]
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
The Crazy Thing About The 2008-2009 Stock Market Crash [View article]
The Crazy Thing About The 2008-2009 Stock Market Crash [View article]
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
With some hefty gains on my DGI portfolio, rather than sell those shares and pay the tax on the gains, my approach is to use options. For example, since I own 200 shares of PG, on Monday, April 15 when the market was tanking and PG was up early on after announcing a 7% increase in the dividend, I sold 2 otm OCT 82.5 calls at 1.63, and then purchased 2 OTM JUN 77.5 puts at 1.29, when the stock was around 80.25. The proceeds from the calls paid for the puts and covered the commission costs. If PG corrects in the next 2 months, the increased value of the puts, plus the proceeds from the calls, will help offset the decline in the shares. If that happens, the calls can be bought back at a lower price, or you can maintain the covered position. Meanwhile, the dividends continue to roll in.
As it happens, PG announced earnings this week and the stock took a hit, now at 77.10. The call is at .80 and the put is at 1.80, with the gains in both almost equal to the drop in the shares. I'm looking for a further drop in PG, so I'll hold on to the puts a bit longer. Since I have almost 6 months before the calls expire, I am in no rush to make a decision on whether to buy them back at a gain, or continue the covered position.
Just another way to avoid selling the shares and realizing the tax gain, while continuing to receive future dividends..
Survey Says... These Are Dividend Growth Investors' Most Widely Held Stocks [View article]
The Right Time To Sell Dividend Stocks [View article]
A lot depends on the age of the investor and what their investment goals are based on that age.
As a 60 something DGI with nice gains on a wide variety of stocks, rather than sell those shares and pay the tax on the gains, my approach is to use options. Since I own 200 shares of PG, on Monday when the market was tanking and PG was up early on after announcing a 7% increase in the dividend, I sold 2 otm OCT 82.5 calls at 1.63, and then purchased 2 OTM JUN 77.5 puts at 1.29, when the stock was around 80.25. The proceeds from the calls paid for the puts and covered the commission costs. If we get that correction in the market in the next 2 months, the increased value of the puts, plus the proceeds from the calls, will help offset the decline in the shares. If that happens, the calls can be bought back at a lower price, or you can maintain the covered position. Meanwhile, the dividends continue to roll in.
Just another way to avoid selling the shares and realizing the tax gain.
What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
DRI
NNN
OHI
LNCO
MCY
LO
All but LNCO are on David's CCC list. Good candidates for this year's list.
Linn Energy: A Solid Choice For Income [View article]
Long LINE and LNCO.
Don't Believe The Stories That The Markets Are Down Today [View article]
Just another way to avoid selling the shares and realizing the tax gain.
When Blue Chips Bleed Red [View article]
When Blue Chips Bleed Red [View article]
What this article ignores is the fact that yes, we may have a very sizable correction down the road, but at the moment the companies outlined here (PG, JNJ, VZ) exhibit no signs of an earnings slowdown. With the Fed continuing to assist with their QE, etc., the best (or worst) we can look for in the near to intermediate term is a minor correction of 5% to at most 10%. That is when I will step in again.
Also, the author fails to mention that PG and JNJ continued to increase dividends even while their stocks tumbled in the so-called "Great Recession". They also did so in the dot.com bust in 2000-01. Both stocks are now at all-time highs. Eric can keep his bond market. I'll stick with my quality dividend paying stocks.