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taemwar

taemwar
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  • Recent Buy: Chevron [View article]
    I sold CVX, then bought it back at 102.99. I also recently bought COP & XOM which I'd not owned previously. All now yield around 4% and are likely to raise their dividends.
    Dec 18, 2014. 12:56 PM | Likes Like |Link to Comment
  • Is Seadrill Stock Worth Considering Right Now? [View article]
    I don't understand oil pricing and I worked 15 years in the oil & gas busness.
    Dec 2, 2014. 12:32 PM | 5 Likes Like |Link to Comment
  • Unplanned Early Retirement, Part 1 - Strategy, Stability, And Moving Forward [View article]
    I took the early retirement at age 54, almost 55. I'm now 84.
    I had a 401K plan which I rolled over into an IRA. It was substatially larger than what I could had otherwise. My wife had a 403B plan, which had been around a lot longer than 401K plans, so she is also pretty well fixed and has a pension also which is a lot more than my social security.
    May 29, 2014. 01:23 PM | 2 Likes Like |Link to Comment
  • Unplanned Early Retirement, Part 1 - Strategy, Stability, And Moving Forward [View article]
    I took an "enhanced" early retirement when I was just under 55 years old.
    I put the money in a rollover IRA, then began working through a consulting company doing gas revenue audits. Later I switched to tax and accounting work operating a CPA firm as a sole practitioner.
    Although my CPA practice was never a high-income producer, I did well with investing in real estate and in the stock market. I moved several times, paid of the mortgage each time, then sold each house carrying the mortgage myself, so with the mortgage income, I did not have to spend the IRA money except in paying each mortgage off as fast as possible.

    At any rate, my IRA now has over twice the amount it started with despite my having taken the required minimum withdrawals for over 40 years. And my income is higher than it was when I had a good-paying corporate job as a senior compliance analyst.
    Apr 17, 2014. 07:41 PM | 10 Likes Like |Link to Comment
  • Dividend Champions Ranking: Part 1, The Heavyweights [View article]
    Since most of the stocks have a dividend of less than 2%, their main appeal would be the possibility of price increases. But, unless you buy low and sell high, the price increases do not put the money in your pocket that higher-yielding stocks would.

    I use David Fish's CCC list and select based on yield, P/E, payout ratio and growth in dividends and earnings. A year or so ago, I only bought stocks yielding 3% or more, but now buy with lower yields since the market rise has occurred to a greater degree than dividend increases.
    Apr 16, 2014. 07:39 PM | 1 Like Like |Link to Comment
  • 'Overdue' Dividend Increases: Quiet Time Again [View article]
    I got rid of DBD some time ago because their payout ratio was so high that it seemed unsustainable. I still have INTC and DE.
    Mar 31, 2014. 07:13 AM | Likes Like |Link to Comment
  • Requiem For Fallen Dividend Aristocrats [View article]
    If a dividend aristocrat fails to raise the dividend, I would re-evaluate holding it. If the un-increased dividend was still pretty good, I probably would keep holding it. If the dividend was only attractive based on the presumption of dividend increases, I would sell it.

    I invest mainly in dividend increasing CCC list stocks, but also some other high-yielding stocks that are already yielding what a dividend-increaser might yield several years in the future.
    Mar 30, 2014. 05:01 PM | 1 Like Like |Link to Comment
  • Rising Risks For Dividend Growth Investors [View article]
    Whether you invest in dividend-growth stocks or anything else, there will be periods of decline. However, that is not a reason to sell. If a company can continue increasing its earnings and dividends, the income is there whether the stock is up or down.
    Mar 29, 2014. 06:30 PM | 3 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    If you invest in order to generate income, dividends, to me, are preferable to having to sell stocks to generate income.
    If you simply want to see your capital grow or if you know how to buy low and sell high, then dividends are less significant.

    Unfortunately, more people buy high and sell low if they try to time the market.
    Mar 15, 2014. 04:37 PM | 1 Like Like |Link to Comment
  • Linn Energy: NGLs Are The Key To Higher Distributions [View article]
    Ethane has a BTU of about 1700 vs 1000 (at 14.73 psig) for methane, so leaving the ethane in the gas stream rather than recovering it may make sense. A gas processing plant generally gets a share of the NGLs and the producing leases get a percentage as stipulated in the contract. There are often "keep-whole" clauses in these contracts that provide that the lease will get at least as much for their ethane as they would have received if the BTU of the residue gas (mostly methane) had not been diminished by the extraction of ethane.

    Unless LINN operates all of the producing leases and the processing plant, it is not likely that the plant would or could alternate between recovering and not recovering ethane. More likely the "rejection" is on paper and is actually the effect of a keep-whole contract clause.
    Mar 11, 2014. 08:14 PM | 3 Likes Like |Link to Comment
  • Warren Buffett Is Wrong About Dividends [View article]
    If you have several billion dollars, dividends probably aren't important. But if you have only one or two million or less than a million, then dividends have an advantage. With dividend-increasing stocks, you generate income for living expenses without the necessity of picking which stocks to sell.

    If you have to sell stocks to pay for your expenses, then you may pick the wrong ones to sell and hang on to stocks on the way down and sell the ones that are going to rise.
    I prefer to sell, not for income, but to get rid of stocks that can be replaced with better stocks. Of course, I may replace the wrong ones, but it is not because I need the cash.

    Some people, like Buffet don't need dividends. He gets a salary which is sufficient for him to pay his bills so any dividends he might get would just be more money to invest. But the average Joe Six-Pack is likely to need some dividends to supplement his retirement, so, at any rate, for most retirees the dividends make more sense.
    Feb 6, 2014. 04:06 PM | 2 Likes Like |Link to Comment
  • Dividend Contenders: 34 Increases Expected In The Next 11 Weeks [View article]
    If you buy stocks to trade, then dividends don't matter. However most of us cannot time the market and can't always buy low and sell high, then sell some more going short at the top.

    So, buying no-dividend stocks is a crap shoot for most people. We tend to jump on the bandwagon at the top and panic and sell at the bottom.

    If your stock keeps raising its dividend year-after-year, you reap the benefit in both up markets and down markets and the long-range trend is always up.

    The last time the market nose-dived, I looked at a point-and-figure chart of SPY which predicted how low it would go. I put in a bid at just above that price, then held it until a few weeks ago and sold it at a big profit. But if I used that as my main strategy, I would have to stay in all cash for long periods of time and all of the lost income during that period would tend to make that approach less than ideal. So I only keep a little over 10% in uninvested cash..

    I select almost all stocks from the CCC list, looking for a certain minimum current yield, with a payout of not much over 60%, a good dividend growth rate, and hopefully an earnings growth rate higher than the dividend growth rate.
    Feb 2, 2014. 07:50 PM | Likes Like |Link to Comment
  • Dividend Champions For January 2014 [View article]
    You might try sorting the CCC list by industry and sector, both of which are listed in the CCC list.
    Some of the other considerations I use:
    Eliminate almost anything paying under 2.5%.
    Eliminate almost anything with a payout ratio of much more than 60%.
    Eliminate anything with a dividend rate increase much greater than the earnings rate increase.
    High payout ratios may be OK for limited partnerships since their earnings are reduced by DD&A (depreciation, depletion and amortization) which do not affect cash flow.
    Generally I prefer pipeline companies for limited partnership investments.
    Also, I prefer REITs that are not mortgage related since they would be less impacted if interest rates rise.
    Jan 23, 2014. 08:31 AM | Likes Like |Link to Comment
  • Harsh downgrade on General Mills [View news story]
    Once I read someone's approach to stock trading was to buy on downgrades since it always causes a quick sell-off and when the sell-off ends, there is no more shares available at the cut-rate prices, so the stock begins to rise. Additionally, just because there are some negatives, they are not permanent any more than positive developments last forever.
    Jan 15, 2014. 09:48 AM | 1 Like Like |Link to Comment
  • Harsh downgrade on General Mills [View news story]
    I "underweight" all of my stocks by avoiding a large investment in any one stock. If a stock rises to a point that it represents about twice what I would normally invest, I sell about half of the dollar value in that stock. Otherwise, I buy and hold unless the company's earnings and dividends do not hold up.
    Jan 14, 2014. 07:10 AM | 2 Likes Like |Link to Comment
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