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cpa28761

cpa28761
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  • McDonald's: Slightly Over-Priced, But a Must Have for the Ultimate Retirement Portfolio [View article]
    On July 29, my closest Trader Joe's will open in Mt. Pleasant, SC. That will be only 381 miles away from me.
    Jul 25 02:40 PM | 1 Like Like |Link to Comment
  • McDonald's: Slightly Over-Priced, But a Must Have for the Ultimate Retirement Portfolio [View article]
    Arthur, at least you have access to a Trader Joe's. There isn't a single one in the state of Florida!
    Jul 25 01:24 PM | 3 Likes Like |Link to Comment
  • McDonald's: Slightly Over-Priced, But a Must Have for the Ultimate Retirement Portfolio [View article]
    Jeff, did you ever consider that the average person consumes four to six ounces of dressing at each trip to a salad bar? That's more total fat and saturated fat than in a Big Mac and fries before considering the cheese and baccon bits also consumed.
    Jul 25 07:36 AM | 3 Likes Like |Link to Comment
  • Bondholder Haircut May Be Necessary to Give Greece Fighting Chance [View article]
    I can't believe a Libertarian would say that. It sounds more like an Obama Democrat.
    Jul 24 08:59 PM | Likes Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    La Marque, you're right too. I have no intention of abandoning diversification. As the bonds I have maturing between August 1 and September 1 turn into cash, I will have to hold my nose, swallow hard, and accept 4% to 5% (taxable) on ten-year issues.

    A JPM 30-year issue seems intriguing, but I'm staying away from financials. If the coupon is 4.5% to YTM 6.0%, the bond must be trading at quite a discount. About 80, I'll venture.

    I'm holding a COP 5.9% coupon with a market value of almost 111, giving it a YTM (October 15, 2032) of 5.05%.

    I think hospital bonds are risky. I had one go bad, but it was insured. Today, some insurers have less strength than some issuers.

    GO's are the right idea, but I would steer clear of Illinois, Michigan, and Nevada. If we are careful, we can go with revenue issues. I hold one secured by bridge tolls across the Delaware River connecting Philadelphia with its NJ suburbs. I saw its value plunge to about 80, but it has recovered. What sustained me was the picture of George Washington crossing the Delaware River and thinking that we're not going back to that.

    There's no free lunch or risk-free investment strategy. Diversification comes the closest to a free lunch.
    Jul 24 03:44 PM | 1 Like Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    The problem, today, is that respectable yields on corporate or muni bonds require a combination of locking in at long maturities and buying into companies or political entities that a prudent investor might avoid. The stocks of companies with high grade credit ratings yield more than their bonds, especially after factoring in dividend increases. There are several states in which I would not invest either.
    Jul 24 09:53 AM | 1 Like Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    There is a difference between bonds and bond funds. When interest rates rise, the values of both decrease. A rational investor in bonds can elect to ride it out knowing that he will get his coupon and face value at maturity. When the value of a bond fund declines, and emotional people redeem their shares, those who stay in the fund will share the losses as well as those who stampede for the door.
    Jul 24 09:45 AM | 2 Likes Like |Link to Comment
  • McDonald's: Slightly Over-Priced, But a Must Have for the Ultimate Retirement Portfolio [View article]
    FWIW, BofAML has a $98 price target on MCD. The first two paragraphs of this article make an eloquent case as to why MCD trades where it does. There is always a premium attached to best-of-breed companies.

    In this milieu, there is an even wider gap between MCD and whomever is second best than that enjoyed by KO or PG. I do not believe there is a real "second best" to MCD. How does one express that proprietary position mathematically?

    Long: KO (and PEP), MCD, PG (and CL and KMB).
    Jul 24 09:33 AM | 6 Likes Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    Fan, what happens inside you IRA will never create a taxable event. It is only when you take money out of your IRA that a taxable event takes place. The information on quantum on line applies only when the securities are held in a retail brokerage account. Then Fidelity would report "dividends" and "interest" using the same criteria as quantum on line on your y/e 1099.
    Jul 23 05:33 PM | 2 Likes Like |Link to Comment
  • 9 Safe Dividend Stocks for Income Seekers [View article]
    tweedn, AZN, like many Europeans, pays an interim dividend and a Y/E dividend. Their pattern is August (interim) and February (Y/E). History is (in US$'s) from the Fidelity web site:

    Interim:
    8/2004 .295
    8/2005 .380
    8/2006 .490
    8/2007 .520
    8/2008 .550
    8/2009 .590
    8/2010 .700

    Y/E:
    2/2005 .645
    2/2006 .920
    2/2007 1.230
    2/2008 1.350
    2/2009 1.500
    2/2010 1.710
    2/2011 1.850

    My biggest concern for AZN and other pure play pharma's is patent expiration. In their case, the patent expiration for PFE's Lipitor will have a major impact on their Crestor franchise.
    Jul 23 12:04 PM | 1 Like Like |Link to Comment
  • Energy Transfer Partners: A Stable 7.4% Distribution Yield [View article]
    The first decision is whether they belong in one's portfolio. They are vehicles for current income. With bond yields on companies I'd like to buy less attractive than the dividend yields on the same companies' stocks (considering tax treatment and dividend increases), I can't see my way clear to buying bonds. Therefore, since I want diversification and need to supplement the current income of the dividend growth stocks I own, I have looked to MLP's.

    The next decision, once an investor has decided to include MLP's in his portfolio, is to compare MLP's to alternative MLP investments.

    I like both ETP and PAA. ETP is involved, principally, with natural gas. PAA is involved, principally, with oil. Diversification is the only free lunch.
    Jul 23 09:39 AM | Likes Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    There seems to be a great deal of confusion caused by combing two tangentially related topics.

    Each preferred security must be evaluated on its own specifics. Quantum On Line is a reasonable source. In general, a "preferred stock" may be a stock or a bond in this context. In general, if the distribution may be skipped (not deferred), the security is a stock and the dividend is eligible for the 15% rate. If payment of the distribution is mandatory, even if deferred for a period, the security is a bond and the distribution is interest and NOT eligible for 15% taxation. Also, in general, a preferred STOCK, will be perpetual while a security with a fixed maturity (even 50 years hence) is a BOND.

    ATT, to pick one example, is a BOND, and NOT eligible for 15% taxation.

    Any thing related to any taxpayer's specific situation is outside the scope of this response. Additionally, please not that despite my moniker, the only tax work I have done for the past twenty years is my own return on TurboTax.
    Jul 23 09:25 AM | 2 Likes Like |Link to Comment
  • Dividend Stocks vs. Treasuries: Which Is Better for Income Investors? [View article]
    Ducky, you're in the wrong century. When the history of this century is written, China and India will be the dominant powers in the world.
    Jul 22 02:36 PM | 2 Likes Like |Link to Comment
  • 10 Stocks With Rising Dividends From Franklin Templeton's Rising Dividends Fund [View article]
    The expenses of the fund are no help for the yield. Neither is the composition. The first and third largest holdings, which comprise nearly 10% of assets, yield well under 2%.

    These stocks pay dividends, but some of them are not income stocks. If an investor wants to construct an "income" portfolio, he needs a balanced approach between "dividend growth" stocks (for inflation protection) and other investments for current yield. I hold ABT, PG, UTX, and PEP, among others, for dividend growth, but they pay a reasonable yield to start with. I also hold telco's, utilities, preferred stocks, and MLP's for yield.

    No Free Cake and Dividend Disciple are quite correct in that there is no need to pay fund expenses to buy and hold stock such as those in this fund, especially since the fund has a $50,000 minimum.
    Jul 21 01:50 PM | Likes Like |Link to Comment
  • 30 'Overdue' Dividend Increases: Streaks in Doubt? [View article]
    >>>I like managements that are committed to rewarding shareholders, and it doesn't sound like RDS is one of them, on either side of the English Channel.<<<

    Golden, isn't that kind of arbitrary and narrow. RDS's dividend may not be going anywhere because its already there. According to the Fidelity web site, RDS yields 4.71%. BP, another European, is its next closest yield competitor at 3.79% The "Americans" COP, CVX, and XOM have yields ranging from 2.28% to 3.50%. How long would it take for cumulative dividends on XOM, starting at an initial yield of 2.28% and rising at 8.3% per year, to equal those of RDS if RDS did not raise its dividend at all? I'll bet it's about a decade. I would not bet that RDS would not raise its dividend for ten years. Would you?

    Long: CVX and RDSB
    Jul 20 09:27 AM | 2 Likes Like |Link to Comment
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