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  • 8 Income Investing Tasks To Complete Before Your Financial Smarts Erode [View article]
    Dave, thanks for the response. Long story made short, I paid New Jersey for all income taxes to which they were entitled.

    Other than climate, the advantage to living in Florida is no state income tax. My concern is the probate process in Florida. I learned a long time ago the our legal system is, in part, a justice system and, in part, a business run by lawyers for the benefit of lawyers. For example, when we made our first home purchase in Florida, we purchased an insurance policy required to have our deposit money held in escrow. The builder went bankrupt before even touching the money held in escrow. We still had to pay a lawyer over $2,000 to petition the bankruptcy court for a refund.

    Many of our friends have transferred their homes to trusts to avoid headaches and fees to be paid by their heirs. Your suggestion to seek the counsel of an elder care attorney is well-taken and we plan to do just that. Thanks,

    Sheldon
    Nov 13, 2011. 08:59 PM | 3 Likes Like |Link to Comment
  • 8 Income Investing Tasks To Complete Before Your Financial Smarts Erode [View article]
    I also prefer female doctors. I agree whole-heartedly with Richjoy regarding communication, which is especially important to an introvert like myself. Since moving to Florida, it was impossible to find a good primary care physician of the female persuasion. However, I've found a female cardiologist and a female dermatologist, both in their early 40's.
    Nov 12, 2011. 12:01 PM | 1 Like Like |Link to Comment
  • 8 Income Investing Tasks To Complete Before Your Financial Smarts Erode [View article]
    Dave:

    There is little where you and I disagree. I did buy TD as I wanted a Canadian Bank. I bought BCE because I wanted a Canadian telco in addition to T. However, every investment had to meet my criteria on its own merit and as part of my total portfolio, so we do not disagree.

    I have to deal with your fourth point. When we lived in New Jersey, we had an attorney draw up wills and trust documents. Since moving to Florida, in 2009, we have not updated or reviewed the documents with a local attorney. I believe the laws in Florida differ from those of New Jersey. Succession is not an issue for us. We have one daughter and she has one daughter. I make 99% of the financial decisions. My wife made substantial money in her career selling real estate, but management of an investment portfolio would not be her forte. Exactly when I would need help and determining what would determine that is a challenge with which everyone must deal. When to disclose our finances to our daughter is another issue. It's complicated, isn't it? My next step should be to meet with a local estate and trust attorney.

    I thank you for your article bringing this into focus.

    Sheldon
    Nov 12, 2011. 09:46 AM | 2 Likes Like |Link to Comment
  • 8 Income Investing Tasks To Complete Before Your Financial Smarts Erode [View article]
    richjoy, thanks.

    I'm not sure of what is foreign any more. GE, of which I don't own any common, has over half their sales and employees outside this country. I don't know if the average American consumer knows that Shell Oil or Nestle candy bars are foreign. I'll bet that Novartis, to pick one name, makes more money in the USA than in Switzerland.

    I agree that Royal Dutch and Total have better dividend policies than their American counterparts. In making my selections, I use the same criteria for picking stocks HQ's in the USA or elsewhere: strong financials, solid dividends, and the business model of a franchiser rather than a franchisee. Sometimes, it just happens that the company will be on one side of the border or the other. Sometimes, I just wanted a Canadian bank or telco (to diversify with AT&T).
    Nov 11, 2011. 11:05 PM | 2 Likes Like |Link to Comment
  • 10 High Dividend Yield Stocks With Strong Inventory Trends [View article]
    The majority of the companies listed here have "inventories under control" because their businesses do NOT entail carrying inventory. Some make only to order. Others have an extremly short operating cycle. A utility is a service business. How much better can WEC control their inventory than any other utility?
    Nov 11, 2011. 06:38 PM | Likes Like |Link to Comment
  • 8 Income Investing Tasks To Complete Before Your Financial Smarts Erode [View article]
    Dave, your article contains many good points. Even more importantly, it contains a comprehensive action plan. Let me add some of my own thoughts, if I may.

    There is not necessarily anything wrong with 50 positions. Some may say it is too many to manage, especially for a lay person. Take any stock and you'll find professionals who say "buy" and those who say "underperform". Earnings surprises are a fact of life, even for the professionals. I carry over 40 individual common stocks, arrayed in industry baskets, in my portfolio. I thing PG is the "best", but I hold CL and KMB in the event that I am wrong.

    I do not pay attention to YOC as it is not actionable however interesting a metric it may be. On November 7, KO yielded 2.66%. Am I satisfied with that as, first, a good enough yield, and second, the prospects for the company going forward, and third, how it fits within my portfolio?

    Third, I recognize all the companies you mention are world class participants in the global economy. Still, I would add some direct investment in companies HQ'd outside the USA. My favorites include BCE, NVS, RDSB, VOD, TD, and TOT (recently added for its 6.44% yield). A portfolio should include diversification among currencies.

    Fourth, I would not sell a stock simply because the company did not increase its dividend at any one time. If a stock like RDSB is yielding more than CVX and XOM by considerable margins, the dividend need not be "going anywhere" because it's already "there".

    I don't disagree that an aging investor should appoint a proxy. I have one daughter. At 65, I don't think I'm ready to take that step yet.

    All in all, your article presents an excellent action plan.
    Nov 11, 2011. 08:46 AM | 7 Likes Like |Link to Comment
  • Becton, Dickinson Offers Dividend And Growth Potential [View article]
    How long would it take for cumulative dividends on BDX to equal cumulative dividends on JNJ? My guess is well over ten years. Additionally, will BDX's earnings growth sustain 13.6% increases in its dividends?
    Nov 10, 2011. 10:33 PM | 1 Like Like |Link to Comment
  • Why Income Investors Should Consider Business Development Companies [View article]
    Shall we say that the objectivity of your quoted source is questionable?
    Nov 10, 2011. 10:24 PM | 1 Like Like |Link to Comment
  • Dividend Reinvestment: What Some Winners and Losers Look Like Over Time [View article]
    Bravo Company
    Second Battalion
    Second Basic Combat Training Brigade
    Nov 10, 2011. 09:26 PM | 2 Likes Like |Link to Comment
  • Dividend Reinvestment: What Some Winners and Losers Look Like Over Time [View article]
    For me, it was January 1970 when I arrived at B-2-2 at Fort Dix.
    Nov 10, 2011. 05:19 PM | 2 Likes Like |Link to Comment
  • Why Income Investors Should Consider Business Development Companies [View article]
    >>>Better still, have you looked at the Republican candidates?<<<

    The Republican candidates are not the issue and I will not be deflected. I want to know whether Obama has done anything to create private sector jobs in the country. If so, what specific measures has he taken or advocated to create them.
    Nov 10, 2011. 04:53 PM | 1 Like Like |Link to Comment
  • 5 Stocks Meeting My Entry Criteria for Dividend Investments [View article]
    Yes, BUT regulatory bodies can be subject to political pressure when they review applications for rate increases.
    Nov 10, 2011. 01:33 PM | 2 Likes Like |Link to Comment
  • 5 Stocks Meeting My Entry Criteria for Dividend Investments [View article]
    DVK, Berkshire is a good investment for some. Were I in my 40's, it would probably appeal to me. As a retiree, however, its lack of dividends makes it a non-starter.

    PB is probably a valid metric for it as the bulk of assets are marked to market in financial services. Manufacturing companies do not employ such accounting. The difference is that financial assets have readily determinable values.

    I first learned DCF as an undergraduate. It still seems to be valid from a conceptual standpoint. When we invest, we are paying the perceived present value of an earnings stream.
    Nov 10, 2011. 01:31 PM | 2 Likes Like |Link to Comment
  • 12 Blue Chip Dividend Stocks To Count On When The Chips Are Down [View article]
    I stopped doing it as the spelling and grammar checker in Word kept nailing me for it.
    Nov 10, 2011. 07:53 AM | 1 Like Like |Link to Comment
  • 5 Stocks Meeting My Entry Criteria for Dividend Investments [View article]
    DVK, I agree that investors have to look at the whole picture. At the same time, unless we are looking at a company that was largely cobbled together by mergers (say, PFE), the value of its intellectual property will not be reflected on its balance sheet (say, CL or KO). Therefore, PB is IMHO a very limited metric.

    Beyond that, having spent 42 years in corporate and professional life as a numbers guy, I learned that we have to look beyond the numbers in our analysis.
    Nov 9, 2011. 10:34 PM | 4 Likes Like |Link to Comment
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