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growingmoney

growingmoney
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  • Spring Cleaning: My YTD Portfolio Review [View article]
    Next Era Energy is at or near all time highs. Do you still think it's a good buy now or wait for a pull-back?
    Apr 16, 2015. 10:10 AM | Likes Like |Link to Comment
  • Spring Cleaning: My YTD Portfolio Review [View article]
    Think you have a typo there. The ticker for Realty Income is O. But both O and OHI are great dividend stocks. Would you consider ARCP when they reinstate their dividends?
    Apr 15, 2015. 10:16 AM | Likes Like |Link to Comment
  • Noble Corporation Update: This High-Yield Offshore Driller Is A Buy [View article]
    When the stock price moves back up, there would be no need to cut dividend.
    Apr 13, 2015. 02:23 PM | Likes Like |Link to Comment
  • Tesla: Applauding The New Approach [View article]
    @WhosSideRUon,

    You were wrong about TSLA being up 5% on Monday. It's Monday afternoon, and the stock is up 7% :)

    I hope you can laugh out loud now.
    Apr 6, 2015. 02:40 PM | Likes Like |Link to Comment
  • American Realty Capital higher after upgrade [View news story]
    I hope all the bad news is gone and only good news to come now. It would be so nice to see this stock break $11 once dividends are reinstated, and then move higher to break the previous highs. Other than the scandal the business is still a real estate trust that generates tons of profits, so I hope the market can realize that. I think right now the trust is broken so the stock is being punished for it, but once the new mgmt regains the trust again, the stock will move back higher.
    Mar 25, 2015. 10:48 AM | 6 Likes Like |Link to Comment
  • American Realty Capital declares $0.08333 dividend [View news story]
    Brian,

    Yes, every time we see a dividend, it brings an extra ounce confidence for investors in this stock. And that's what's needed now. As long as they don't cut the dividend, the stock should go back up. We just need to see a few more dividends paid out and the trend for this stock will reverse.
    Nov 21, 2014. 02:45 PM | 1 Like Like |Link to Comment
  • American Realty Capital declares $0.08333 dividend [View news story]
    Yes, accounting-wise. If there are no trades at all, it would be apparent. However, if there is a large demand for the stock, then the price could be driven up above the previous closing price.
    Nov 21, 2014. 11:25 AM | 1 Like Like |Link to Comment
  • American Realty Capital modestly higher after earnings beat [View news story]
    Looks like a long term hold to me. What was all the earlier concerns about?
    Jul 29, 2014. 05:37 PM | 1 Like Like |Link to Comment
  • AMD +1.3% AH on strong Intel results/guidance [View news story]
    I hope we can finally break $5.
    Jul 15, 2014. 11:50 PM | 2 Likes Like |Link to Comment
  • Realty Income called a Sell at Morgan Stanley [View news story]
    @m19c46, I learned the hard way too, but it makes business sense that they don't have your best interest at heart if you're their competitor. lol
    Apr 8, 2014. 01:18 PM | Likes Like |Link to Comment
  • Bank Of America: A 7.2% Yield For Your Retirement Portfolio [View article]
    seanthome,

    I see what you're saying. Those risks are always there. However if you are comfortable with the yield rate then you should be ok. Yes, there are cumulative and non cumulative preferreds. Of course if you want to be safe, you would go with the cumulative ones.

    To reduce or eliminate risk, I mentioned earlier, the preferred needs to meet certain criteria, such as below par, cumulative, great rating, high yield, etc.
    Feb 25, 2014. 01:24 AM | Likes Like |Link to Comment
  • Bank Of America: A 7.2% Yield For Your Retirement Portfolio [View article]
    spparowlake,

    What is the risk?
    Feb 24, 2014. 10:11 AM | Likes Like |Link to Comment
  • Bank Of America: A 7.2% Yield For Your Retirement Portfolio [View article]
    Dr. Jackpot,

    Yes, I've new to preferreds, but I have many years of experience in investing. While I have not been in your mentioned situation, b/c 83 years old is many generations away for me, but I understand perfectly what you mean.

    I did mention that you have to be willing to hold preferred until maturity, but I should also add that you should not be solely dependent on this one preferred. I was assuming that you would have a diversified portfolio or a diversified income stream so you can account for unexpected situations.
    Feb 22, 2014. 06:55 PM | Likes Like |Link to Comment
  • Bank Of America: A 7.2% Yield For Your Retirement Portfolio [View article]
    niuecon,

    Yes, you have listed the risks with preferreds. And preferreds can be traded on the open market like stocks, albeit less volatility. So yes, you can lose money if you sell below your purchased price, as with any security.

    I was going by several assumptions, mainly that if you purchase below par and you are willing to hold your preferreds until maturity or eternity, all those risks are negligible. Also, the preferreds need to have cumulative distribution, which means that they will have to pay the dividends eventually, assuming that they don't go out of business.

    So in summary, these are the criteria to eliminate or greatly reduce the risks.
    1. Buy a highly rated preferred.
    2. Buy below par.
    3. Hold the preferred until maturity or eternity.
    4. Make sure it is a cumulative preferred.
    5. Make sure you are ok with the yield.

    If you meet all those criteria, even if the interest rate goes to the moon, you wouldn't care.
    Feb 22, 2014. 01:15 AM | Likes Like |Link to Comment
  • Bank Of America: A 7.2% Yield For Your Retirement Portfolio [View article]
    What do you mean by "When rates rise bye bye to your principal?"

    If you hold a preferred, you should receive the same distribution regardless if the rates go up or down. Assuming you bought the preferred below par and you will hold it until it's called, you won't need to worry because when they call the preferred, you will receive the par price (usually $25). So even if the interest rates go up to the moon, you get your initial investment back (and more), so there is no loss in principal here, right?
    Feb 21, 2014. 03:09 PM | Likes Like |Link to Comment
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29 Comments
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