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cpa28761

cpa28761
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  • Comparing Dog Investing Strategies: Annual Net Returns for Various Index Components [View article]
    >>>the question, "Can Dividend Yields Predict Net Returns?" is answered with a resounding, "NO"<<<

    I agree. It seems to me that the "dogs" concept is predicated on an assumption that stocks are commodities, thereby all the same. Therefore, those with the highest yields are undervalued.

    In reality, there is a difference between a broken stock and a broken business model. High yields driven by a low stock price because the market perceives poor earnings prospects or the lack of dividend sustainability are not bargains and are not undervalued.
    May 31 07:13 AM | 6 Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Guys, you are both right on the issue of variable annuities. There is a point that needs clarification: the investment portfolio. It can be a solid investments or it can be in risky investments. That dimension is not different with regard to deferred annuities as they compare to anything else.
    May 30 10:32 AM | 3 Likes Like |Link to Comment
  • 8 Companies That Can Help Your Portfolio Yield Exceptional Returns [View article]
    seeker, I don't know if you're trying to pull someone's leg or not. A 6% yield can be achieved or even bettered. However, it will not be with high quality investments. It all depends on how much risk to principal you would bear. How about a leveraged closed end junk bond fund? How about a leveraged mortgage REIT? Both will better the yield you seek, but neither would give me a warm fuzzy feeling of security.
    May 30 10:24 AM | 3 Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Robert, I hate to use the "F" word, but I think such payments to shareholders before legitimate business obligations could be characterized as FRAUD.
    May 29 12:32 PM | 3 Likes Like |Link to Comment
  • 8 Companies That Can Help Your Portfolio Yield Exceptional Returns [View article]
    4% with growth is going to point to only certain sectors. Most stocks fitting this criterion will be utilities. If you rule out financials, KMB and RAI seems to be all that's left. On a personal note, I will not own a tobacco stock. I own KMB. I think they are a one-trick pony with 1918 technology, but no one has done a better job with a one-trick pony.

    I steer clear of LLY and other pure-play pharma's. Patent expirations loom over their blockbuster drugs and there is no assurance that any of them will generate the next blockbuster.

    Long: ABT, JNJ, NVS
    May 29 12:26 PM | 3 Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Ed, can you explain how a company can pay "very generous dividends... out of gross receipts, not out of net profits" without using borrowed money to do it? Do you think this is prudent management?
    May 29 09:26 AM | 3 Likes Like |Link to Comment
  • United Technologies: Dividend Stock Analysis [View article]
    jstratt, I understand your logic. In the fall of 2008, I added to my position in HON at less than $30.00. I have since doubled my money on that particular buy. I just can't see waiting until such an opportunity occurs again just as I don't expect to be able to buy UTX at what I paid five years ago.
    May 29 09:08 AM | 1 Like Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Whoops! My mistake. Their investing had nothing to do with their dividends. I read the brackets from a web site the wrong way.

    The correct answer is that they borrowed $189 million (net) and paid $117 million in dividends.
    May 29 08:08 AM | 2 Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    They liquidated an investment. The sale resulted in a loss (depressing earnings), but it provided an influx of cash.
    May 29 07:48 AM | 1 Like Like |Link to Comment
  • United Technologies: Dividend Stock Analysis [View article]
    Most of my UTX position was built in 2006 at an average cost of $62.00. I added some this year at $82.63. I would have loved to have seen a catalyst that would have enabled me to buy at closer my 2006 basis, but I don't think we'll see it. There is no assurance that a stock will appreciate, but there is also no assurance that the right entry point will ever be available. Also, if the most recent price ($86.33) is "rich", why hold UTX at all?
    May 28 04:15 PM | 2 Likes Like |Link to Comment
  • As GM Goes Green, So Could Its Shares [View article]
    peter, we've already met one member of the public with no concept of nexus. I think I learned about corporations in high school. If I own stock in Novartis, a Swiss corporation, the USA government cannot tax me until I receive a distribution in cash. If a corporation owns foreign subsidiaries, the USA government does not tax them until a distribution is made to the American parent.

    I have no problem with people with opinions different from mine. At the same time, I wonder why some people participate in a forum such as this.
    May 26 06:45 PM | Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Brent, what you say is true but it does not tell the whole story. No asset class is without risk including bonds. With rates as low as they are today and the specter of inflation omnipresent, it is difficult to construct a bond portfolio that will meet retirement needs.

    To obtain a respectable yield an investor must go long (ten years or more) and/or go with lower quality. Either way, inflation or default is a risk.

    Diversification is the only free lunch.
    May 26 08:28 AM | 3 Likes Like |Link to Comment
  • As GM Goes Green, So Could Its Shares [View article]
    Since when did NPR become experts in finance? The majority of GE's sales and employees are outside the USA. GE paid taxes in countries where it made money. It did not pay taxes in the USA where it lost money. From its financial statements, it appears that GE had a "negative" tax expense in the USA as it was able to legally carry the losses back to prior years when it paid taxes in the USA.

    I do not own a share of GE common and have never worked for the company. I simply one who gets angry when people demagogue with half-truths.

    NPR is fair and balanced in their reporting. Just ask Juan Williams.
    May 25 11:28 PM | Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    Rich, I have run the Monte Carlo simulation that Fidelity provides many times over the years before deciding to call corporate life quits. Generally, an asset allocation was entered along with other income and expense factors. The result was the guideline for whether one would or would not outlive his money. I do not recall any options for determining the mix between stocks and bonds. The mix is an elusive concept. Which stocks: dividend, dividend growth, or pure growth? Which bonds: taxable, taxable in tax deferred accounts, tax free, tax free AMT's? Are preferred stocks stocks or bonds? The Fidelity Monte Carlo simulator, IMHO, was pretty good in juggling variables such as the state in which one would retire and MRD's. In the end, informed judgment must be the final arbiter as to what will be secure and, perhaps just as important, what will feel secure.
    May 25 11:14 PM | 5 Likes Like |Link to Comment
  • How to Live Off Dividends in Retirement [View article]
    I tried it an it worked for me. Then again, it did not ask for information about Social Security. I guess I could deduct the benefits my wife and I receive and learn that I have funds to spare. However, having been retired for less than a year, I'm not sure if I have sufficient empirical evidence of how much is required. My 40+ years in finance shows that there are plans and variances to plans.
    May 25 10:56 PM | 4 Likes Like |Link to Comment
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