Buy Bristol-Myers Squibb On The Pullback [View article]
I am a holder of BMY, and agree it's a great stock, but I have a hard time calling this a pullback. It's spent most of the last year between 30 and 35, had a quick run to 41, and now that it's at 40.7 (at this moment) this is a pullback? It's like 1% from it's peak! I like the stock, but no way I'm adding more here.
Picked some up last week @ $40.50 Obviously wish I'd picked up a whole lot more! I'd take the dividend too, but if the stock price goes up the same $2.50 AND you still get the current dividend, that doesn't sound so bad either. I think this is still a decent spot to get in if you can get it near $40.
Is LinnCo LLC The Perfect Income Stock? [View article]
It seems to have a pretty clear pattern, trading down to ~36, then up to ~40, and back again. Going on that, I just lightened up a bit, and will either ride up what I've got, or add to it if we get another dip.
Cheniere Energy Partners (CQP) -4.8% premarket after announcing a direct offering of 17.6M common units to investors affiliated with Asia-focused PE fund RRJ Capital and Blackstone (BX) unit GSO Capital. CQP intends to use ~$372M in net proceeds toward the liquefaction project being developed adjacent to the existing Sabine Pass LNG terminal and for general business purposes. [View news story]
It happens every time one of these MLPs offers more shares. The price goes down, I buy some more, and then it goes back up. It's all good!
Mortgage REIT ETF Yielding 12% Starts Year Strong [View article]
Since each of the MREITs have a slightly different model, the ETF provides some diversification by holding several REITs. Look at the charts of NLY & AGNC and see how different they look. Holding REM blends that a bit.
We don't have the history on LNCO yet, but I would expect that the dividends would NOT be treated as qualified dividends, so would not get that favorable tax treatment. That being said, I've been building a position, because I'll pay the taxes needed to get the great yield. I held LINE for quite a while, but the MLP structure did indeed make it a pain at tax time.
Tobacco stocks trade weak as a group with speculation on anti-tobacco measures sweeping across Europe. The word from across the pond is that the EU will step up health warnings. Decliners: Reynolds American (RAI -2.2%), Altria (MO -1.6%), Lorillard (LO -2.6%). [View news story]
MO is US only too, but I'm sure they'll all suffer some until they sort it all out. Never really sorted out with this group, but they are worth owning. Long MO
Cheniere Energy's (CQP +5%; LNG +3.8%) deal to supply Total (TOT) with liquefied natural gas from its Sabine Pass export facility means nearly all LNG export capacity currently permitted in the U.S. has been spoken for. TOT would take its LNG from Cheniere's proposed fifth LNG train, and the contract could ease financing for such an expansion; the first four planned LNG trains are sold out. [View news story]
I tried to get some more CQP this morning, but it ran away from my price pretty quickly.
I sold most of my LINE in the $41 range, and plan on replacing it with LNCO, because I'm tired of K1s. Looks like the time to start building my LNCO position is close at hand!
Energy sector CFOs lobby for low dividend tax rates, but they're resigned to at least a small increase. Southern (SO) CFO Art Beattie's top concern is that the tax on dividends not be delinked from the tax on capital gains: “If you delink them, you are penalizing dividend-paying companies as opposed to companies like Apple, which is a growth company and doesn’t pay out much in dividends.” [View news story]
Let 'em both max out at 20%. Still a good deal compared to earned income, but gets a little revenue boost for our dear friends in DC as well. Thankfully, I've been able to retire early, yet stay mainly in the 15% bracket, so this year, I still get 0% long term cap gains rate!
More on Southern Co.'s (SO) Q3 results: Says earnings were hurt by milder than normal weather, offset by reductions in non-fuel operations and maintenance expenses. Total energy sales -4.9%, kilowatt-hour sales to retail customers -4%. Says near-term outlook for the U.S. economy is "unclear," but the southeast U.S. remains relatively strong. Shares -1% premarket. [View news story]
Like they aren't going to bounce back, and continue to grow/make money long term? I'm happy to add to my current positions with this little pull back.
Buy Bristol-Myers Squibb On The Pullback [View article]
Analysts at Simmons say the scale of BP's (BP +2.4%) $8B buyback, at more than 6% of BP’s market value, is larger than it had expected by ~$1B. But not everyone thinks it's money well spent: $8B spread over BP’s outstanding shares could pay a one-time dividend of ~$2.50/share, and there's little doubt what most shareholders would choose if they could. [View news story]
Obviously wish I'd picked up a whole lot more!
I'd take the dividend too, but if the stock price goes up the same $2.50 AND you still get the current dividend, that doesn't sound so bad either. I think this is still a decent spot to get in if you can get it near $40.
Is LinnCo LLC The Perfect Income Stock? [View article]
Cheniere Energy Partners (CQP) -4.8% premarket after announcing a direct offering of 17.6M common units to investors affiliated with Asia-focused PE fund RRJ Capital and Blackstone (BX) unit GSO Capital. CQP intends to use ~$372M in net proceeds toward the liquefaction project being developed adjacent to the existing Sabine Pass LNG terminal and for general business purposes. [View news story]
Linn Energy's Acquisition Will Mean Dividend Growth For Investors [View article]
Mortgage REIT ETF Yielding 12% Starts Year Strong [View article]
Look at the charts of NLY & AGNC and see how different they look.
Holding REM blends that a bit.
Buy Altria On Earnings: Offers Solid Yield Of 5.2% And Robust Growth [View article]
Long MO
Dodge Taxes And Earn An 8% Yield [View article]
Tobacco stocks trade weak as a group with speculation on anti-tobacco measures sweeping across Europe. The word from across the pond is that the EU will step up health warnings. Decliners: Reynolds American (RAI -2.2%), Altria (MO -1.6%), Lorillard (LO -2.6%). [View news story]
Long MO
Cheniere Energy's (CQP +5%; LNG +3.8%) deal to supply Total (TOT) with liquefied natural gas from its Sabine Pass export facility means nearly all LNG export capacity currently permitted in the U.S. has been spoken for. TOT would take its LNG from Cheniere's proposed fifth LNG train, and the contract could ease financing for such an expansion; the first four planned LNG trains are sold out. [View news story]
Linn Energy: Inside The Numbers [View article]
Energy sector CFOs lobby for low dividend tax rates, but they're resigned to at least a small increase. Southern (SO) CFO Art Beattie's top concern is that the tax on dividends not be delinked from the tax on capital gains: “If you delink them, you are penalizing dividend-paying companies as opposed to companies like Apple, which is a growth company and doesn’t pay out much in dividends.” [View news story]
Buy Caterpillar For Its Compelling Valuation And Dividend [View article]
More on Southern Co.'s (SO) Q3 results: Says earnings were hurt by milder than normal weather, offset by reductions in non-fuel operations and maintenance expenses. Total energy sales -4.9%, kilowatt-hour sales to retail customers -4%. Says near-term outlook for the U.S. economy is "unclear," but the southeast U.S. remains relatively strong. Shares -1% premarket. [View news story]
Southern Co. (SO): Q3 EPS of $1.11 misses by $0.02. Revenue of $5.05B (-7% Y/Y) misses by $920M. (PR) [View news story]