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  • Updating My Price Target On Gilead Sciences For 2016  [View article]
    ebhook- "Expect some government curtailment on out of line prices."

    Exactly how will they do that, short of price controls, which have a lousy track record?
    Feb 6, 2016. 10:39 PM | Likes Like |Link to Comment
  • Use Covered Calls To Mitigate Downside Risk  [View article]
    decoy- the trade was a winner, but that wasn't my point. You want to minimize the chances of losing the dividend, and one way to do that is to avoid selling calls with expiration dates within 2 weeks or so of the ex-dividend date.
    Feb 6, 2016. 04:03 PM | 1 Like Like |Link to Comment
  • Use Covered Calls To Mitigate Downside Risk  [View article]
    Correction- that should have said before the expiration date instead of "before the ex-div date".
    Feb 6, 2016. 02:53 PM | Likes Like |Link to Comment
  • Use Covered Calls To Mitigate Downside Risk  [View article]
    Good article. However, I don't agree that exercising an option early is rare. For that reason, I avoid expiration dates within 2 weeks or so of the ex-dividend date. I learned that lesson once on an exercise about 1½ weeks before the ex-div date, and the stock price exceeded the strike price by slightly more than the amount of the dividend.
    Feb 6, 2016. 02:50 PM | 2 Likes Like |Link to Comment
  • Updating My Price Target On Gilead Sciences For 2016  [View article]
    newoncdoc- That is true, however, medical practices that are not owned by hospitals are now providing for certain (day) surgeries, outpatient tests, MRI's, physical therapy, etc. under one roof in smaller office type buildings and are run by those medical practices, not the hospitals. Those surgeries and tests were previously done in a hospital, but now are done at a lower cost without all the overhead.
    Feb 6, 2016. 01:22 AM | Likes Like |Link to Comment
  • Consider This Strategy To Reduce Stock Market Anxiety  [View article]
    "In fact, Mr. Carnevale did not detail how he chose the 20 companies, other than that they are "prominent". He made no statements regarding their future prospects."

    You're right, he didn't detail how he chose them. That comment and opinion was mine based on his choices.

    You are the one who stated that his listed companies are "facing decline". Since you say that people have different opinions, I was merely offering mine.

    As for a methodology for "addressing how to avoid the Dividend Aristocrats that do fall into permanent decline", how about a simple one such as maintaining proper due diligence in following the stocks in one's portfolio.

    I am well diversified, thank you, and don't need any ETF's to accomplish that.

    My thoughts about inflation may be opinion, but they are no different than your thoughts hinting at a repeat of the 1970's stagflation.

    Finally, as Dividend Watcher said, if you want to learn what Chuck Carnevale's investment philosophy is, you might start reading some of his many articles here on SA.
    Feb 6, 2016. 12:02 AM | 5 Likes Like |Link to Comment
  • The Pigs Get Fat And The Hogs Get Slaughtered  [View article]
    Agreed. Also, the healthcare REITs are being thrown out with the biotechs and other healthcare stocks. Anything healthcare related has been hit, whether there is any connection or not, which IMO there isn't. In any case, on Wednesday we will hear from OHI on its 4th quarter results, so if there is any problem there we will soon know about it.
    Feb 5, 2016. 10:40 PM | 1 Like Like |Link to Comment
  • The Pigs Get Fat And The Hogs Get Slaughtered  [View article]
    I wonder how much of that 0.5% increase in average hourly wages in January was due to states and locales increasing the minimum wage on January 1st? Most of those increases are multiples more than that January jump, and could easily be distorting the so-called "tightening labor market". Especially since it was reported that 102,000 of today's increase in January jobs of 157,000 was of the minimum wage variety.

    http://bit.ly/1T45yqq
    Feb 5, 2016. 09:24 PM | 3 Likes Like |Link to Comment
  • Updating My Price Target On Gilead Sciences For 2016  [View article]
    The reason the pharma companies are the whipping boys is because far more people use their products every day, as opposed to a relative minority that need hospital care on a sporadic basis.
    Feb 5, 2016. 08:53 PM | 1 Like Like |Link to Comment
  • Consider This Strategy To Reduce Stock Market Anxiety  [View article]
    "I have been chasing KMB for years..."

    That makes two of us. :(
    Feb 5, 2016. 08:27 PM | 5 Likes Like |Link to Comment
  • Consider This Strategy To Reduce Stock Market Anxiety  [View article]
    We are not examining earlier versions, we are looking at the current Dividend Aristocrats list. Chuck has selected quality companies from that list that are not facing permanent decline at this time. Most of those selected companies have 40-50 straight years or more of increased dividends. That to me represents a good place to start for constructing a portfolio.

    Sure there are companies that were once on the DA list that have cut their dividends or have even gone out of business. But those company eliminations from the list are infrequent and at widely separated intervals in most cases. That is why you make sure your portfolio is diversified, so that one or two companies cutting their dividends won't make much of a dent in your total dividend income from year to year. Remember, companies on this list are increasing their dividends, so those increases should help to make up for one or two cuts, which again happen infrequently.

    As for the dividend stream not keeping up with inflation, that could be a problem in the future but not now. This isn't the high growth 70's, 80's and 90's any more, and most signs continue to show a slow growth scenario for many years, one which will keep inflation at bay. Energy demand and prices are but one example of this. Should inflation rear its ugly head again, alternative investments will provide better yields than they presently do, and one could easily transition his portfolio toward those choices. That is, the stock market is fairly liquid, as opposed to something like the real estate market, which is illiquid.
    Feb 5, 2016. 07:32 PM | 6 Likes Like |Link to Comment
  • How To Beat The Realty Income 'Problem"  [View article]
    I sold the Jun 17 2016 $60 calls this week for $1.35. As of yesterday's close of $57.47, the stock was already up 11% since 12/31/2015, so that would signify a further 4-5% increase from that price to $60. And that doesn't account for any correction, which is bound to occur once rates start moving up again. Since my entry prices were $42+ and $44+, I would have no problem selling at $60.

    The annual yield on the calls is over 6%, and the $1.35 more than doubles the yield from the next 4 monthly dividend payments totaling $0.80/share. I normally don't sell calls on O or go out more than 2-3 months, but since I am concerned with the stock getting overvalued, it was an easy decision.

    Today's move down may be the start of that correction.
    Feb 5, 2016. 07:07 PM | 3 Likes Like |Link to Comment
  • Realty Income: Time To Consider Selling  [View article]
    chopchop0- NNN is another REIT that is up over 15% for the same period, and I own that one, too. Not complaining. :)
    Feb 5, 2016. 01:44 AM | Likes Like |Link to Comment
  • Realty Income: Time To Consider Selling  [View article]
    The rate increase has already happened, and the people who said when that happened REITs would move down. Since the day before the Fed increased the rate on Dec 16, all O has done is increase by 15%. So much for the conventional wisdom.

    It is in overvaluation territory now, though. Too much, too soon. I do expect a pullback and consolidation over the next couple of months.
    Feb 5, 2016. 01:22 AM | Likes Like |Link to Comment
  • A Recession-Ready REIT Portfolio  [View article]
    "Go back and look how well the strongest REITS did after 08."

    Exactly. I own REITs O, NNN, and OHI, which all increased their dividends through the great recession.
    Feb 4, 2016. 11:36 PM | 2 Likes Like |Link to Comment
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