When To Take Profits Over Dividends [View article]
Timely article. I just acted on a similar situation 2 days ago (Friday). I had bought Sinclair Broadcasting (SBGI) Dec. 2012 and a YOC 5.38% at 11.14. I anticipated it would be nice to collect the 5.38%, however in Friday trading I am up 150% (26.68) in just 4 months. I sold 40% of the position, and have all my original capital out, and bought a preferred stock with 8% yield (7.3% due to premium). I hadn't expected this situation but Sinclair chart looks parabolic right now. I may sell the remainder, but for now plan to let it ride comfortable knowing my original capital is out and generating new additional income, while the remaining Sinclair continues to yield 5.38%.
When Seeking Banks For Income, Look Abroad [View article]
PVD has been purchased by Metlife. I had a great run with this company and collected some nice income along the way, however, the company has been sold to Metlife is my understanding and your shares will be redeemed by your broker for around 102 and change soon.
What Makes International Dividend Investing Attractive Right Now [View article]
I have had a position in RDS.B for 4 years. Not much price appreciation, but have added to the position recently anyway, as I agree it's undervalued. Sold Total to increase RDS.B. Total has gone nowhere for some years now. Also long CVX and STO among the oil majors. Probably going to sell STO after the May dividend annual dividend. Recently sold BNS and bought WFC before it had a nice pop on the dividend increase. I think there will be more dividend growth coming from WFM and JPM than the Canadian banks. Bought JPM during the depths of the London Whale scandal last summer, and will have a 4.6% yield on cost once the quarterly dividends at 0.38/share start this summer.
Building A 6% Income Portfolio For 2013 (Part 8b): Industrial Sector 'Buy Zones' [View article]
Yes, this was a great series that I have been hoping to see finished. Based on some of the rude comments made on earlier parts of the series though, I am not surprised the author has decided not to continue with it. Sad.
Protected Principal Retirement Strategy: 'Float' Like A Butterfly [View article]
Thank-you for pointing me to cefconnect.com!! This a great centralized resource for closed end fund investors!! I have been going to the individual sites for the funds, but it's tedious digging out the sought information. What do you think about leverage in the current climate? Thanks again!
Protected Principal Retirement Strategy: 'Float' Like A Butterfly [View article]
Thanks for this article. Do you know if these funds use leverage? I am in the process of weeding out closed end income funds using leverage (recently sold BLW which I had held since 2009, and a few more to go as well). I am looking to replace with funds not using leverage, as leverage has served me well in the falling rate environment but will be a liability when rates continue their inevitable rise.
The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
Great article! Thanks for pointing out some good values even with market at new highs. I am a new subscriber to F.A.S.T. Graphs, and find this service very valuable! Bought MDT on Monday.
Team Alpha Retirement Portfolio: Chevron Is A Dividend Dynamo [View article]
CVX is deep in value territory on F.A.S.T. Graphs. Looks like dividend is due for a hike in upcoming payment in June. I bought shares on Monday as well.
Longevity Risk, Through The Eyes Of An Actuary [View article]
WmHilger1
I definitely need no convincing that a DG Strategy is highly effective. A large percentage of my investments follow this strategy. It goes without saying, however, that diversification is a useful way to reduce risk in a portfolio. If you have 100+ stocks in your portfolio, you are hopefully diversified in terms of that asset class, but you have no diversification amongst asset classes, as you have said you are 100% invested in stocks. Common sense alone should make it apparent that 100% cash, 100% bonds or 100% stocks in a portfolio is taking on excessive and easily mitigated risk! Unless you many years ahead till retirement, 100% common stocks is an accident waiting to happen, just as is 100% cash or 100% bonds. Do you have any preferred stocks at least?
The last dozen years or so have shown black swans to be becoming more common than white swans, and there many potential ways Mr. Market will play havoc with an un-diversified portfolio such as one 100% in high yield stocks some of which are un-forseeable at this time (that is the nature of the black swan)... Diversification amongst asset classes can reduce your risk.
Longevity Risk, Through The Eyes Of An Actuary [View article]
Good article. I have recently bought deferred index annuities with about 10% of my retirement funds. This will allow an approximate doubling of my anticipated SSN benefits, and this is all guaranteed income. While fully aware that these annuities are likely to underperform my dividend growth strategy, they are a nice compliment. I do not consider a pure dividend growth strategy as some on this site are recommending to be a balanced approach.
"The "problem" with "fixed income investments" is that they produce "fixed" income, which means my purchasing power is eroded by inflation. The advantage of dividend growth investing is that my income rises every year by enough to more than counteract inflation."
It should also be remembered that “Investors have embraced an overly simple belief: the belief that central banks can prod investors into stocks against their will. Investing is not that simple. The comparison between bond yields and stock yields -- two completely different investments -- has become absurd.
“Bonds are contracts involving a fixed stream of cash flows and a predetermined maturity date. Stocks are claims on highly uncertain streams of future free cash flows that often stretch out for decades. Many risks can enter the picture and alter the trajectory of free cash flow -- and investors’ expectations of them.”
While fully aware of the downside risks in fixed income especially in this era of super-low rates, a 100% dividend growth strategy is inherently non-diversified and overly risky for those in or approaching retirement.
At least a small fixed income component is essential in my mind to those in or approaching retirement. The deferred annuities constitute a large portion of the fixed income component in my plan. These annuities give a significantly larger fixed payment than those on conventional bonds due to the risk longevity pooling the author has discussed.
My main point is this:
A 100% dividend growth strategy is inherently non-diversified and an accident waiting to happen... Annuities can add the diversification of some guaranteed income and generally on better terms than individual bonds or bond funds.
What The Yield? Beware The Temptations Of Emerging Markets Debt [View article]
FAX pays a monthly dividend of 0.035/share, 0.42/share annually. At yesterday's closing price of 7.89 the yield is 5.3% and not 3.5%. You have turned your numbers backwards. 5.3 is the yield, not 3.5%. Please check your figures.
Wal-Mart Or Target: Which Dividend For The Long Run? [View article]
When To Take Profits Over Dividends [View article]
I had bought Sinclair Broadcasting (SBGI) Dec. 2012 and a YOC 5.38% at 11.14. I anticipated it would be nice to collect the 5.38%, however in Friday trading I am up 150% (26.68) in just 4 months.
I sold 40% of the position, and have all my original capital out, and bought a preferred stock with 8% yield (7.3% due to premium).
I hadn't expected this situation but Sinclair chart looks parabolic right now. I may sell the remainder, but for now plan to let it ride comfortable knowing my original capital is out and generating new additional income, while the remaining Sinclair continues to yield 5.38%.
When Seeking Banks For Income, Look Abroad [View article]
I had a great run with this company and collected some nice income along the way, however, the company has been sold to Metlife is my understanding and your shares will be redeemed by your broker for around 102 and change soon.
What Makes International Dividend Investing Attractive Right Now [View article]
Recently sold BNS and bought WFC before it had a nice pop on the dividend increase. I think there will be more dividend growth coming from WFM and JPM than the Canadian banks. Bought JPM during the depths of the London Whale scandal last summer, and will have a 4.6% yield on cost once the quarterly dividends at 0.38/share start this summer.
Building A 6% Income Portfolio For 2013 (Part 8b): Industrial Sector 'Buy Zones' [View article]
Protected Principal Retirement Strategy: 'Float' Like A Butterfly [View article]
What do you think about leverage in the current climate? Thanks again!
Protected Principal Retirement Strategy: 'Float' Like A Butterfly [View article]
The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
Bought MDT on Monday.
Team Alpha Retirement Portfolio: Chevron Is A Dividend Dynamo [View article]
Building A 6% Income Portfolio For 2013 (Part 8b): Industrial Sector 'Buy Zones' [View article]
How To Remain Solvent Longer Than The Market Is Irrational [View article]
I believe TEVA is an Israeli company.
Longevity Risk, Through The Eyes Of An Actuary [View article]
I definitely need no convincing that a DG Strategy is highly effective. A large percentage of my investments follow this strategy.
It goes without saying, however, that diversification is a useful way to reduce risk in a portfolio. If you have 100+ stocks in your portfolio, you are hopefully diversified in terms of that asset class, but you have no diversification amongst asset classes, as you have said you are 100% invested in stocks.
Common sense alone should make it apparent that 100% cash, 100% bonds or 100% stocks in a portfolio is taking on excessive and easily mitigated risk! Unless you many years ahead till retirement, 100% common stocks is an accident waiting to happen, just as is 100% cash or 100% bonds. Do you have any preferred stocks at least?
The last dozen years or so have shown black swans to be becoming more common than white swans, and there many potential ways Mr. Market will play havoc with an un-diversified portfolio such as one 100% in high yield stocks some of which are un-forseeable at this time (that is the nature of the black swan)... Diversification amongst asset classes can reduce your risk.
Longevity Risk, Through The Eyes Of An Actuary [View article]
I have recently bought deferred index annuities with about 10% of my retirement funds. This will allow an approximate doubling of my anticipated SSN benefits, and this is all guaranteed income. While fully aware that these annuities are likely to underperform my dividend growth strategy, they are a nice compliment.
I do not consider a pure dividend growth strategy as some on this site are recommending to be a balanced approach.
"The "problem" with "fixed income investments" is that they produce "fixed" income, which means my purchasing power is eroded by inflation. The advantage of dividend growth investing is that my income rises every year by enough to more than counteract inflation."
It should also be remembered that “Investors have embraced an overly simple belief: the belief that central banks can prod investors into stocks against their will. Investing is not that simple. The comparison between bond yields and stock yields -- two completely different investments -- has become absurd.
“Bonds are contracts involving a fixed stream of cash flows and a predetermined maturity date. Stocks are claims on highly uncertain streams of future free cash flows that often stretch out for decades. Many risks can enter the picture and alter the trajectory of free cash flow -- and investors’ expectations of them.”
While fully aware of the downside risks in fixed income especially in this era of super-low rates, a 100% dividend growth strategy is inherently non-diversified and overly risky for those in or approaching retirement.
At least a small fixed income component is essential in my mind to those in or approaching retirement. The deferred annuities constitute a large portion of the fixed income component in my plan. These annuities give a significantly larger fixed payment than those on conventional bonds due to the risk longevity pooling the author has discussed.
My main point is this:
A 100% dividend growth strategy is inherently non-diversified and an accident waiting to happen... Annuities can add the diversification of some guaranteed income and generally on better terms than individual bonds or bond funds.
Put Your Dividends Elsewhere To Hedge Against Failure [View article]
What The Yield? Beware The Temptations Of Emerging Markets Debt [View article]
You have turned your numbers backwards. 5.3 is the yield, not 3.5%.
Please check your figures.