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cajman

cajman
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  • Retirement Strategy: Dividend Investors Have Several Ways To 'Supplement' Their Income [View article]
    Is there an issue with Vanguard? Just curious because I use them as well.
    Jul 27 10:31 PM | Likes Like |Link to Comment
  • Retirement Strategy: Dividend Investors Have Several Ways To 'Supplement' Their Income [View article]
    Thanks for the info. I think this is a good strategy to use instead of just re-balancing a position(selling part of it) that gets too big. I can earn the premium and either keep the shares or sell them at a profit. Intel is one such position for me. Since the big run in share price (my basis is under $20), it seems like a good candidate and if some shares get called, I'm ok with that. Otherwise, I can earn some additional income. Make sense?
    Jul 22 10:16 PM | Likes Like |Link to Comment
  • Retirement Strategy: Dividend Investors Have Several Ways To 'Supplement' Their Income [View article]
    Anyone have some guidance as to what to look for w/regards to selling covered calls? Timeframe? Premiums? Other? When I look at an the available options, there are lots of choices. What are best practices if you are looking at keeping the premiums and your shares which is obviously the best case. I understand my shares will be called away sometimes and that's ok.
    Jul 22 01:35 PM | Likes Like |Link to Comment
  • Setting Up The Young Person's Portfolio [View article]
    Thanks so much for the replies. Yes, I am in U.S. and I have 529 plans for my children. Looking beyond that, sounds like the UGMA accounts make sense.
    Jul 11 09:37 AM | Likes Like |Link to Comment
  • Setting Up The Young Person's Portfolio [View article]
    I have a question about investing for minors, ie, under 18. What is the best way to setup an account for them: UGMA? some sort of trust (what kind?), my name and gift it later, something else? I have young children and would like to start them off with something (not a lot of money). Any thoughts?
    Jul 9 09:44 PM | Likes Like |Link to Comment
  • Dividends Are A Return Of Capital And A Return On Capital [View article]
    Anybody have the formula for calculating your return on investment with dividends reinvested? I'm looking for something I can put in a spreadsheet? I've found so many different answers via google that I've now confused myself!

    Any good links to articles discussing this?
    Jun 11 03:25 PM | Likes Like |Link to Comment
  • Retirement Strategy: Adding A BDC For An Improving Economy And More Income For Retirees [View article]
    Also be sure to check out the special dividend that they announced.
    Apr 23 12:51 PM | Likes Like |Link to Comment
  • Kinder Morgan: Is It Time For A Merger? [View article]
    One thing to think about is KMI is appropriate for an IRA. There has been lots of talk about it not being appropriate to hold MLPs in IRAs, i.e., does KMI turn into KMP in a buyout? Does that create an issue in IRAs?

    Long KMI in an IRA.
    Apr 4 10:14 AM | 2 Likes Like |Link to Comment
  • Raytheon: New Contracts Make It A Buy [View article]
    Norman,

    Like you, I purchased RTN in 2011 and am sitting on a double. I get a little nervous when a "DGI" stock does a capital gain double in such a short time (2 years). I've been looking at RTN to see if I should trim or hold and so far, I'm holding.

    Cajman
    Dec 30 09:53 AM | 1 Like Like |Link to Comment
  • 401(k)s Don't Work, Or Do They? [View article]
    These studies that try to compare 401k balances are worthless as they miss one big item: when an employee changes jobs and rolls their 401k into an IRA. For example, take a 20 yr employee with $500,000 in the 401k. They take a new job, roll over their 401k into an IRA. What is their 401k balance now? Zero as they start all over in their new 401k.

    There is no corporate loyalty in today's world as people switch jobs all over the place. A much more valuable study is how much do people have saved for retirement, not just in their 401k but in their IRAs, Roths, etc.
    Oct 19 10:15 AM | 2 Likes Like |Link to Comment
  • Dividend Champions: 17 Increases Expected By The End Of November [View article]
    Aflac is my largest holding yet look how undervalued FAST Graphs shows it. Hmm, do I dare buy more of it?
    Sep 15 09:18 PM | 1 Like Like |Link to Comment
  • Finding Great Value In The Energy Sector [View article]
    Chuck,

    I am a big fan of your work. Having said that, w/regards to MLPs, they don't really pay dividends, they have distributions with ROC (return of capital). Also, one needs to be aware of tax implications (K1 statements), etc., when dealing with an MLP. I surprised this was not mentioned in your article. Keep up the great work and look forward to reading more of this series.
    LONG - CVX, KMI, LNCO, SDRL

    cajman
    Jun 22 05:23 PM | 1 Like Like |Link to Comment
  • How Can One Trade Be Both Good For Me And Bad For Me? [View article]
    Robert,

    Thanks for posting this article. Great info plus the comments make us all better investors.

    A couple of notes:

    1) I don't think it is a fair comparison to include dividends previously received via KMB unless you count the dividends you would have received if you had invested in IBM (or other?) instead of KMB. Presumably, that money would have been invested somewhere if not in KMB.

    2) I also struggle with reducing or selling out completely of a position due to its current value. There are lots of opinions and options, nothing concrete. DGI investors like to say "must increase my income" but I think that turns you into a yield chaser. Sell KMB with a 2.5% yield, buy company A with 3% yield, sell that, next one must have a 4% yield, sell that for a company with 5% yield. I believe I saw in DVK's public portfolio that he swapped a stock with a lower yield though that was not based strictly on the current value. Chowder dropped COP and picked up MO (higher yield).

    3) As previously stated by other comments, it depends on your goals w/regards to taking "capital gains" and re-deploying. A common DGI theme seems to be to watch the value at entry and unless fundamentals break down (div cut, earnings collapse, etc), hold forever. That is buy and monitor, not just buy and hold.

    4) Time frame to recover is very interesting in this case and I think that is function of the current yield of KMB and IBM. Had you chosen a undervalued stock with an equivalent yield to KMB, there would be no difference.

    I hope this makes sense while I'm trying to cook dinner! :-)
    May 2 06:52 PM | 1 Like Like |Link to Comment
  • Linn Energy - A Stock To Buy With REIT Dividends [View article]
    I hold LNCO in my Roth IRA at Vanguard and I DRIP it for free.
    Apr 8 07:38 PM | 1 Like Like |Link to Comment
  • What Do You Need To Do Before The Next Market Meltdown? [View article]
    I think a better example for me would be MCD. I have a full position in it and some time last year, it ran to over $100 a share. I noted a number of people sold some hoping to re-buy at a lower entry point. Me? I just held and re-invested the dividends. They were right as MCD dropped into the $80s, however, my dividend income didn't go down (it went up) and I laughed when I read in the comments above that MCD had once again touched $100 a share. I had no idea! It was a good feeling for me to finally achieve separation from the price gyrations of the market.
    Apr 3 10:31 PM | 2 Likes Like |Link to Comment
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