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  • 2016 Up-Date  [View instapost]
    Bob, glad to hear from you. Wishing you the best on the health front.
    Apr 16, 2016. 02:39 PM | 1 Like Like |Link to Comment
  • The Perfect Portfolio: The 'Dividend Yield Point' Metric And How It Works (Part 1)  [View article]
    Dave, thanks for another great article. After reading all the comments, I can't help but think of all the written material and ads I have seen over the last thirty years where most of us have been conditioned to think that every investment must be measured against the S&P 500 index. It appears in every news format (print, online, etc.). It's hard to psychologically divorce from it. I switched to DGI around 2010 and never looked back. I research stocks using various metrics, including something similar to the one mentioned in your article.

    I believe many investors believe they are doing "OK" if they are meeting or beating the S&P 500 index or else they think they are doing something wrong. To those who view investing this way, I say simply buy the index. After discovering SA and the number of great contributors here on the subject of DGI, I crated a plan and goals to generate sufficient cash flow from dividends to pay my bills in retirement, beat inflation in the process and hopefully have some margin of safety above these costs. In January, I looked at my brokerage statement and clicked on a "performance tab". The chart broke out both dividends and the total earnings each year. Even though the principal value of the portfolio varied, the dividend stream was growing each year and now represents a large portion of my annual cash flow. My plan is working and I only look at indices in passing. The switch from measuring against an index is a difficult one for most people, but if a growing annual cash flow is your plan, DGI does work. Total return usually follows. Cheers
    Apr 16, 2016. 11:46 AM | 5 Likes Like |Link to Comment
  • Bank Of America: 7 Reasons To Be Bullish  [View article]
    As the author states, "B of A's numbers will continue to be rough for some time". However, "it's still trading below book value" is not the great opportunity that many commenters believe it to be. Focus, direction and leadership continue to be weak. Imagine if the CEO and CFO actually lived in Charlotte, NC? Absentee management is what you get. Otherwise, move the headquarters to NYC or Boston or back to San Francisco.
    Apr 15, 2016. 05:07 PM | 3 Likes Like |Link to Comment
  • Waste Management Is Turning Trash Into Cash  [View article]
    WM has a five year average dividend growth of 3.83%, which coupled with its 2.87% current dividend yield, would be considered a mediocre income growth stock. Additionally, WM is selling at a 34 P/E in a slow growth industry. Granted, they are an industry leader with a BBB+ credit rating, but I would be careful at this price level. Long: WM
    Apr 15, 2016. 05:00 PM | 9 Likes Like |Link to Comment
  • Valuation And Earnings Growth Potential Make BofA A Buy  [View article]
    Mike, Citi went from $50 to $1.50 and now is really $4.50 on a historical basis. Stock price is currently trading at $45.00, because they did a 10 for 1 reverse split to get retail investors eyes off the previously very low number. The money center banks are having a very hard time making money with these artificially low interest rates. BAC may slowly make its way top to $18 over the next two years with a sluggish U.S. economy that is barely growing. Long: C, BAC, EWFC, JPM, LYG in banks
    Apr 15, 2016. 04:49 PM | 5 Likes Like |Link to Comment
  • Bank Of America: The Earnings Tell It All  [View article]
    Ric, how about six years since 2010? I admit I made bad investment in BAC. Moynihan is an absentee CEO (lives and mostly works in Boston.).
    Apr 14, 2016. 05:22 PM | 1 Like Like |Link to Comment
  • Procter & Gamble's Problems  [View article]
    Buying back stock at a 28 multiple is what poor stewards of a business do. A more appropriate buyback price is in the range of $65-70. Some things never change. Senior management is feathering their own nest to create value for their stock options while in the midst of a so-called turnaround plan. I am long the stock, but will not add.
    Apr 11, 2016. 05:33 PM | 3 Likes Like |Link to Comment
  • Realty Income: What Should I Do?  [View article]
    Robert, can you share the logic of converting, especially the time frame involved going forward to make up for the taxes you are paying? I generally understand Roth conversions and have done one six years ago, but am not sure it makes sense as you get close to required IRA distributions.
    Apr 6, 2016. 02:42 PM | 1 Like Like |Link to Comment
  • Realty Income: What Should I Do?  [View article]
    Kyle, history may not repeat itself, but eREITs have generally done fine in prior periods of slowly rising rates. I own "O" and will keep it as it is a small portion of my portfolio. I agree the stock is overvalued and a person can sell to capture the unrealized appreciation. I own it at a cost of $37 and hold in an IRA for the cash flow. Cheers
    Apr 6, 2016. 02:09 PM | Likes Like |Link to Comment
  • Equity Residential: The Equity REIT For 2016  [View article]
    Decent overview, but a little uneven on the details. I understand the writer is a college student, so I will cut him some slack. As an overview, EQR and a handful of competitors are focus on the infill coastal markets that will serve the firm well over a long period. However, EQR is operating at peak efficiency in terms of management's skills and occupancy today. In layman's terms, we are at a fully priced market top for apartment REITs. The company just sold off a big chunk of its inventory in secondary markets to maximize the unrealized appreciation and issued a special $8.00 dividend (approximately 3.6 years worth of its previous $2.20 annual dividend). That tells you a lot. They don't see the opportunity to reinvest these funds in a slow economy and thankfully returned them to shareholders.

    My general, long term underwriting rule of eREITs states that you should not pay more than 17 times FFO and have a minimum yield of 4.75%. This would place EQR's fair value in the range of $58-65 today. I have owned EQR for over a decade and view it as a great long term hold. Long: EQR, O, HCN, VTR in eREITs
    Apr 5, 2016. 05:36 PM | 2 Likes Like |Link to Comment
  • Dividends And Tax: It Can Get Complicated In Taxable Accounts!  [View article]
    Bruce, thanks for there article. I basically track interest, qualified dividends and non-qualified dividends on an Excel spreadsheet and do annual projections. I divide by 4 for quarterly estimated taxes. I review the tax payments for the third and fourth quarter to reflect any significant gains or losses YTD and adjust the estimated tax, if necessary. So far, I have been getting small refunds from the IRS and owing the state. This year I need to pay the Feds less in estimated taxes. I like your system, but monthly tracking is too much work for me and the family budget, which I do annually, has some room in it. Cheers
    Apr 5, 2016. 05:09 PM | Likes Like |Link to Comment
  • Realty Income: Forget All That You Know About REITs  [View article]
    Adam, excellent article and discussion. I am long "O" from a much lower price point and am not trimming or selling, given the company continues to perform and lack of suitable replacements. I adhere to a strict metric on eREITs, namely a P/FFO at or below 17 and a minimum yield on cost of 4.75%. Long: EQR, O, HCN and VTR. Cheers
    Apr 1, 2016. 06:23 PM | Likes Like |Link to Comment
  • Portfolio Update: Equity REITs - Chatham Lodging In, Care Capital Out  [View article]
    Rose, thanks for your article. I want to make an observation on hotels. I had the opportunity to run a very large portfolio that included hotels managed by major players such as Hilton and Marriott. The one key take-away from that time was to always be the operator and never the owner of hotels. The management contracts favor the operator through various fee arrangements and the owner gets what is left over.

    It appears Chatham has very strong metrics per the Fast Graphs and other sources, has assets in good locations and may prove to be a good investment. My experience is that hotels get hammered when the economy turns down, given their general breakeven around 65% occupancy (I realized REVPAR is the appropriate measurement). I own some healthcare REITs and also face similar risks associated with the economy. I have kept my HYH and CCP spin-offs so far and will see what happens. I view CCP as a speculative holding. Good luck and thanks for sharing. Long: EQR, O, VTR, CCP, HCN in REITs
    Mar 28, 2016. 03:05 PM | 1 Like Like |Link to Comment
  • A Dividend Contender I Would Like To Own  [View article]
    Brad, ESS is a great company, but I agree they are overvalued. I have owned REIT's for over fifteen years and have developed a minimum investing standard. After evaluating management, the portfolio and the balance sheet, I require a P/FFO no greater than 17 and a minimum yield of 4.5%. As investors have chased yields, they have bid up REITs to excessive levels. I would wait for a meaningful pullback. Long: EQR, HCN, O, VTR within my guidelines
    Mar 28, 2016. 02:09 PM | 1 Like Like |Link to Comment
  • My Situation And Your Support  [View instapost]
    Alan, hang in there and wishing you a speedy recovery.
    Mar 27, 2016. 05:46 PM | Likes Like |Link to Comment