Agree with "A smart investor will always consider the source when doing his research on an investment."
Could not disagree more with SSI is welfare- The I is INSURANCE. He PAID for his INSURANCE out of Payroll taxes- are you saying this senior citizen never worked for a paycheck? Then, yes that is welfare, but some how I doubt it.
A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
Dane, thanks again. I have sold the 10$ Puts for Sept and Dec.
People may notice the time between when I read the article and initially said thanks and this repeat with a position. In that time on SA, I read the negative article (agree with Dane's conclusion and noticed Tack's remark on Option's), read the earnings report, read the earnings call and analyst questions, looked at their website.
To lay out how I do things with options. I like the company, but want it cheaper (haha). So I sold the Sept 10$ for 1$. Could have waited and probably gotten more when NRF is having a red day, but whatever, time decay is important also. What that means is only two things can happen- 1-in Sept the stock is below 10$ ( and yes it can be way below ) and I get it for 10-1 (my premium) for a net cost of 9$. If we can assume another .01c raise in div that's a .80C/9$= 8.89 Yield on cost. 2- the stock keeps rising and closes above 10$ in Sept . That means an annualized yield of 28.17%, after cost yield on the money held for the option till Sept ( actually Other Peoples as I play naked). Both cases assume I do not roll out ahead of schedule ( and I do that frequently if the situation dictates).
The bad side is I am not actually long the stock yet, but a pull back could remedy that.
Just sharing the how I do things. I find the commentators frequently as well informed as the authors @ SA and a great resource. You have a new follower Dane. Very well presented article.
Would love to hear your comments on PMT, another difficult hybrid mREIT.
A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
Thank you for this suggestion. Sounds right up my alley. Your article is well researched and I will begin my due. Agree with you on cash flow metrics. I am long triple net medical NHI,OHI. Have been reducing my mREIT's AGNC,ARR and replacing with PMT. This sounds very much like a good hybrid with a very different mix than PMT.
19% Dividend Potential With Northern Tier [View article]
Selling Puts on NTI are incredibly juicy. The dividend/price volatility is making this an outstanding way to make money. Long and playing the options @ 22.5 and 25.
Is Dividend Growth Inertia Dead At Medley Capital? [View article]
What a great article! You have a follower. As someone who puts together their own spreadsheets also, my compliment's. Yours looks at the right metrics for me.
My only comments are MCC seems to be more like a bond fund, in unlike say MAIN or PSEC, they are primarily just debt without demanding a piece of the company. Those pieces, if successful in growing value with the loan, seem to help the ability to grow Div.. Along with the 4 important metrics you mentioned, that I agree with.
I personally am a cross between you and your uncle. My BDC's, in general, are the steady income and I use others for the greater price change of total income. Long MAIN, PSEC, TCAP, FSC, with sold 15$ Puts on MCC.
Rip-yep, sort of. Traditional-"If you inherit a traditional IRA, you are called a beneficiary. A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive.
Inherited from spouse. If you inherit a traditional IRA from your spouse, you generally have the following three choices. You can: Treat it as your own IRA by designating yourself as the account owner.
Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a:
Qualified employer plan,
Qualified employee annuity plan (section 403(a) plan),
Tax-sheltered annuity plan (section 403(b) plan),
Deferred compensation plan of a state or local government (section 457 plan), or
Treat yourself as the beneficiary rather than treating the IRA as your own.
Treating it as your own. You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or
You do not take the required minimum distribution for a year as a beneficiary of the IRA.
Roth-"Roth IRAs, like traditional IRAs, are subject to RMDs if the owner dies without exhausting the funds, leaving the Roth IRA to beneficiaries. (An exception is made where the account beneficiary is the owner's spouse, as he or she may treat the account as his or her own and thereby delay withdrawals.) Generally, the funds in a Roth IRA are required to be distributed by the end of the fifth year following the owner's death. However, this time period may be "stretched" over a period not to exceed the beneficiary's expected lifetime if distributions commence the year after the owner's death and the Roth IRA is payable to one or more "designated beneficiaries" (i.e., individuals and/or trusts that meet certain qualifications[3]). Therefore, especially where a Roth IRA is left to a fairly young beneficiary, its tax-free compound growth may last for many years."
American Capital Agency: Not A Terrible Q1, But The Dividend Is Still Not Sustainable [View article]
Richbar-agree, but would add they also make Income normally buying and selling. Kain is very good at picking what other people will want in the future. Not saying there will never be a cut to divvy, who knows, just not for awhile.
American Capital Agency: Not A Terrible Q1, But The Dividend Is Still Not Sustainable [View article]
Dane- yes environment's change, but that would be a sudden end to QE. What I believe, Bryce's point was that because the unrealized price dropped so much they were only able to sell a few and at a loss. This is the material problem of unrealized book value loss if the biz relies on sales for a big portion of FFO.
To both, I thought Kain explained it pretty well. The hedges did not kick in and become attributable to FFO because their was no FED action. We had a market that took a temporary +2%ten year treasury blip and hammered the book prices. If you remember, January was VERY bullish and investors did not think the FED could keep rates low. To be honest, neither did I, and locked in a mortgage higher than i could get it now. So Kain had no hedge gain to offset the temporary book value loss on the actual MBS, lousy sales volume and slight loss, BUT he BOUGHT on the dip with the cash from the last issuance of shares. THAT increases his yield spread Income and sustainability.
General Partners Offer Leveraged Exposure To MLP Distribution Growth [View article]
SM-"Other than this, corporate structures like KMI make the best play for most of the people"
um-no We have a progressive tax code. Point of fact "most" people are at the opposite end of that code than Kinder.
"Most" people do not turn down higher rate taxable money. If you are paying FICA taxes, the chance for higher, non FICA taxed money is a very good thing. Taxable events can and should be planned. It is NOT about the deductions, it is about the current Income and deferred taxation until you choose.
The case can, is made in article, and is some cases true that the higher growth is more advantageous for people with the time for compounding to catch up. Long both KMP, in taxable and KMI in Roth
A Real Dividend Growth Machine: Q1 2013 Review [View article]
dk-thanks for the answer. Ok, got it. Aiming for a sweet spot down below. I am very much Income focused, being retired. I tend to discount the unrealized Total Returns on my statements and focus on the realized Income. Why I only sell, Puts.
Puts are considered Bearish like you use them. The way I use then is very bullish. Wanting to buy, just cheaper with time decay on my side. Why I questioned. I guess it is good I own few S&P 500 companies (not enough yield), if your bet wins. Always takes two to trade.
A Real Dividend Growth Machine: Q1 2013 Review [View article]
Thanks for the interesting comment. Just wondering, but that volatility suggest NAV returns. Did you track your Income changes? or does it not matter because you have other income sources?
I still get tripped up on the language of options. Did you sell or buy the SPY Put?
po, to add to uncle- that would mean the effect is all ordinary anyway. Cap gains less than a year. Certainly beats paying ordinary taxes on savings Interest.
My take on MLP's is simply deferred ordinary. Good for people that have variable or low Income taxes, great for people subject to layoffs.
The only people that are surprised are the ones who thought not paying taxes on Distributions was forever. The longer the delay, the uglier the comeuppance is. Like Uncle, with these and my rentals they go to my children. Hopefully I can install a living on Income mindset that will prevent them from selling golden geese. That does not mean I do not trade also, i just know what that means to taxes. I will trade geese, depending on what I think the yield/egg output is/will do.
A Winning Investment Strategy [View article]
Could not disagree more with SSI is welfare- The I is INSURANCE. He PAID for his INSURANCE out of Payroll taxes- are you saying this senior citizen never worked for a paycheck? Then, yes that is welfare, but some how I doubt it.
SA does not need that crap
A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
People may notice the time between when I read the article and initially said thanks and this repeat with a position. In that time on SA, I read the negative article (agree with Dane's conclusion and noticed Tack's remark on Option's), read the earnings report, read the earnings call and analyst questions, looked at their website.
To lay out how I do things with options. I like the company, but want it cheaper (haha). So I sold the Sept 10$ for 1$. Could have waited and probably gotten more when NRF is having a red day, but whatever, time decay is important also. What that means is only two things can happen-
1-in Sept the stock is below 10$ ( and yes it can be way below ) and I get it for 10-1 (my premium) for a net cost of 9$. If we can assume another .01c raise in div that's a .80C/9$= 8.89 Yield on cost.
2- the stock keeps rising and closes above 10$ in Sept . That means an annualized yield of 28.17%, after cost yield on the money held for the option till Sept ( actually Other Peoples as I play naked).
Both cases assume I do not roll out ahead of schedule ( and I do that frequently if the situation dictates).
The bad side is I am not actually long the stock yet, but a pull back could remedy that.
Just sharing the how I do things. I find the commentators frequently as well informed as the authors @ SA and a great resource. You have a new follower Dane. Very well presented article.
Would love to hear your comments on PMT, another difficult hybrid mREIT.
A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
I am long triple net medical NHI,OHI. Have been reducing my mREIT's AGNC,ARR and replacing with PMT.
This sounds very much like a good hybrid with a very different mix than PMT.
19% Dividend Potential With Northern Tier [View article]
American Capital Agency: Not A Terrible Q1, But The Dividend Is Still Not Sustainable [View article]
Is Dividend Growth Inertia Dead At Medley Capital? [View article]
My only comments are MCC seems to be more like a bond fund, in unlike say MAIN or PSEC, they are primarily just debt without demanding a piece of the company. Those pieces, if successful in growing value with the loan, seem to help the ability to grow Div.. Along with the 4 important metrics you mentioned, that I agree with.
I personally am a cross between you and your uncle. My BDC's, in general, are the steady income and I use others for the greater price change of total income. Long MAIN, PSEC, TCAP, FSC, with sold 15$ Puts on MCC.
What Happens When You Sell An MLP? [View article]
Traditional-"If you inherit a traditional IRA, you are called a beneficiary. A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive.
Inherited from spouse. If you inherit a traditional IRA from your spouse, you generally have the following three choices. You can:
Treat it as your own IRA by designating yourself as the account owner.
Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a:
Qualified employer plan,
Qualified employee annuity plan (section 403(a) plan),
Tax-sheltered annuity plan (section 403(b) plan),
Deferred compensation plan of a state or local government (section 457 plan), or
Treat yourself as the beneficiary rather than treating the IRA as your own.
Treating it as your own. You will be considered to have chosen to treat the IRA as your own if:
Contributions (including rollover contributions) are made to the inherited IRA, or
You do not take the required minimum distribution for a year as a beneficiary of the IRA.
Roth-"Roth IRAs, like traditional IRAs, are subject to RMDs if the owner dies without exhausting the funds, leaving the Roth IRA to beneficiaries. (An exception is made where the account beneficiary is the owner's spouse, as he or she may treat the account as his or her own and thereby delay withdrawals.) Generally, the funds in a Roth IRA are required to be distributed by the end of the fifth year following the owner's death. However, this time period may be "stretched" over a period not to exceed the beneficiary's expected lifetime if distributions commence the year after the owner's death and the Roth IRA is payable to one or more "designated beneficiaries" (i.e., individuals and/or trusts that meet certain qualifications[3]). Therefore, especially where a Roth IRA is left to a fairly young beneficiary, its tax-free compound growth may last for many years."
American Capital Agency: Not A Terrible Q1, But The Dividend Is Still Not Sustainable [View article]
American Capital Agency: Not A Terrible Q1, But The Dividend Is Still Not Sustainable [View article]
To both, I thought Kain explained it pretty well. The hedges did not kick in and become attributable to FFO because their was no FED action. We had a market that took a temporary +2%ten year treasury blip and hammered the book prices. If you remember, January was VERY bullish and investors did not think the FED could keep rates low. To be honest, neither did I, and locked in a mortgage higher than i could get it now.
So Kain had no hedge gain to offset the temporary book value loss on the actual MBS, lousy sales volume and slight loss, BUT he BOUGHT on the dip with the cash from the last issuance of shares. THAT increases his yield spread Income and sustainability.
General Partners Offer Leveraged Exposure To MLP Distribution Growth [View article]
um-no
We have a progressive tax code. Point of fact "most" people are at the opposite end of that code than Kinder.
"Most" people do not turn down higher rate taxable money. If you are paying FICA taxes, the chance for higher, non FICA taxed money is a very good thing. Taxable events can and should be planned. It is NOT about the deductions, it is about the current Income and deferred taxation until you choose.
The case can, is made in article, and is some cases true that the higher growth is more advantageous for people with the time for compounding to catch up.
Long both KMP, in taxable and KMI in Roth
A Real Dividend Growth Machine: Q1 2013 Review [View article]
I am very much Income focused, being retired. I tend to discount the unrealized Total Returns on my statements and focus on the realized Income. Why I only sell, Puts.
Puts are considered Bearish like you use them. The way I use then is very bullish. Wanting to buy, just cheaper with time decay on my side.
Why I questioned. I guess it is good I own few S&P 500 companies (not enough yield), if your bet wins.
Always takes two to trade.
'Oils Well' With These Energy Stocks: 40% Upside Plus 6% Yields [View article]
What Happens When You Sell An MLP? [View article]
A Real Dividend Growth Machine: Q1 2013 Review [View article]
I still get tripped up on the language of options. Did you sell or buy the SPY Put?
What Happens When You Sell An MLP? [View article]
My take on MLP's is simply deferred ordinary. Good for people that have variable or low Income taxes, great for people subject to layoffs.
The only people that are surprised are the ones who thought not paying taxes on Distributions was forever. The longer the delay, the uglier the comeuppance is. Like Uncle, with these and my rentals they go to my children. Hopefully I can install a living on Income mindset that will prevent them from selling golden geese. That does not mean I do not trade also, i just know what that means to taxes. I will trade geese, depending on what I think the yield/egg output is/will do.