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Emerald

Emerald
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  • The Challenge Of Managing An Income Portfolio In A Traditional IRA [View article]
    Bruce, thanks for all the hard work and very interesting article. Regards
    Mar 7, 2015. 01:14 PM | 1 Like Like |Link to Comment
  • A Peek Inside The Fidelity Contrafund [View article]
    Tim, thanks for the article. Although I have owned Contraband for many years and Danhoff is a very good manager, there are other funds that consistently outperform it. For example, Fidelity's Growth Company (FDGRX), has been 2% higher than Contrafund over the last ten years, even though it is 18 basis points more expensive. Vanguard's Primecap and Dodge & Cox Stock Fund have similar performance. Regards
    Mar 7, 2015. 12:47 PM | Likes Like |Link to Comment
  • Why Unilever Can Still Be Put In Every Retirement Portfolio, Close To Double-Digit Returns Ahead [View article]
    Thanks for the excellent analysis. I have been long UL for a few years and would add shares under $40.00. Some headwinds for US investors due to strong dollar and sales in emerging markets. Regards
    Mar 2, 2015. 04:08 PM | 1 Like Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Tom, be prepared to write-off the "swing for the fences" stocks. The odds are against you with these stocks. This is speculating, not investing. Only insiders benefit. Been there, done that. I'm older and wiser. Good luck!
    Feb 27, 2015. 02:03 PM | 3 Likes Like |Link to Comment
  • Johnson & Johnson: Down 10% Since Earnings, This Slow-And-Steady Dividend Gem Is A Steal [View article]
    622, as you don't have any profile, we don't know your investing experience, your investing objectives or age as regards being in the accumulation phase or distribution phase (i.e.. retired). To say compounding occurs within the company, I get it. This is a capital appreciation strategy which is fine if that's your investment plan. My plan dictates cash flow via dividends, as I live off the payments. I have no interest in spending my seed corn in a down market ( a capital depreciation). Many readers note that Buffet doesn't pay dividends, however, he buys companies that pay great dividends to the parent to give him substantial cash flow. I buy dividend growth stocks to pay the distributed cash flow (dividends) to me. Each investor has his or her own investing objectives. Blanket statements about compounding don't always help readers here. Regards
    Feb 24, 2015. 05:21 PM | 4 Likes Like |Link to Comment
  • Johnson & Johnson: Down 10% Since Earnings, This Slow-And-Steady Dividend Gem Is A Steal [View article]
    Serandou, most health care REIT's are overvalued today as investors chase income. I prefer a 15-16 multiple on Funds from Operations for fair value. Many are at 20X today. Long: VTR, HCN
    Feb 24, 2015. 05:11 PM | Likes Like |Link to Comment
  • Retirees Look To The Industrials Sector For Above-Market Yield And Dividend Growth: S&P 500 Industrials Sector [View article]
    Chowder, I had the privilege of harvesting capital losses in 2009 from a few money center banks, that previously paid great dividends and then paid none. I chose to sell because I believed these banks wouldn't come back for a very long time. I received a new "gift" of a tax loss carry forward (a gift I wasn't really looking forward to). I shifted into dividend growth stocks and have never looked back. I don't want to relive that moment again with a low/no dividend growth portfolio. Regards
    Feb 22, 2015. 02:52 PM | 1 Like Like |Link to Comment
  • Retirees Look To The Industrials Sector For Above-Market Yield And Dividend Growth: S&P 500 Industrials Sector [View article]
    Blackmolly, I don't know your investment goals, risk tolerance, etc. other than your statement of concentrated positions. I will, however, share one experience with you. I had a very large concentration in financials in 2005-08 that became a small concentration by 2010 and generally remains so. I personally don't have any one stock at greater than 5% of my portfolio and suggest that 33% in one stock puts you at risk of a black swan event. I'm guessing you work for HON to have so much in a 401K. (As an aside, if you are at least 55 years old and permanently separated from service, you can take your company stock out of the 401k and pay federal tax at your cost basis.)

    Can you afford to lose say 50% of HON? From what I know, HON is a well run company and worthy of consideration at the right price. I don't own it because the dividend yield is below my 3% minimum. Please be careful! Regards
    Feb 22, 2015. 02:43 PM | 3 Likes Like |Link to Comment
  • Retirees Look To The Industrials Sector For Above-Market Yield And Dividend Growth: S&P 500 Industrials Sector [View article]
    David, thanks for the comment. I had a wealth of unrealized gains until 2008-09. In 2010, I sold some of former "unrealized gains" that became realized losses. I reinvested in dividend growth stocks and now have both a steady dividend income with annual raises and new unrealized gains in my total return portfolio (dividends + dividend growth + capital appreciation). I sleep well at night. Regards
    Feb 22, 2015. 02:31 PM | 1 Like Like |Link to Comment
  • Retirees Look To The Industrials Sector For Above-Market Yield And Dividend Growth: S&P 500 Industrials Sector [View article]
    scoots, I believed in the "total return" philosophy for many years and didn't care about dividends because I had a regular pay check. Part of your assumption is that your investments will grow and you don't need cash during, say, a prolonged down cycle of 3-5 years. I if you do, you must sell some of your seed corn at reduced prices (your realized gain). Now you have less seed corn with which to grow the next phase of your growth portfolio. Farmers know this is not a good long term strategy. I like a pay check in the form of steady dividends to pay my bills while basically leaving principal intact. That's my investment plan. Do you have a different one where you have other sources of income to live on? Are you in the accumulation phase or in the retirement phase? How do you know when to hit the "sell button" before the market heads lower? Most people can't successfully predict significant downturns. I've had some dividend cutters in my portfolio like GE and BAC, but most offer annual raises. Others have also pointed out that most dividend growth stocks also offer a decent total return. My portfolio works well for me, I hope yours works for you. Regards
    Feb 22, 2015. 02:25 PM | 1 Like Like |Link to Comment
  • Retirees Look To The Industrials Sector For Above-Market Yield And Dividend Growth: S&P 500 Industrials Sector [View article]
    Dentham, thanks for joining the discussion (only your third post!). Before I read your comment, I started thinking about the comments that immediately preceded you. I commend you for laying out a very thorough analysis of risk in many of its possible forms and permutations. Risk is clearly relative to one's own financial situation and goals. I believe, as do many, that you can "diversify" a fair amount of risk through a careful selection of blue chip, dividend paying stocks (and possibly bonds) and achieve your income goals without simply purchasing an index fund. Unfortunately, many readers assume a larger pool of stocks is a better means of diversification. I appreciate that many investors have neither the time or knowledge to do the research to build such a portfolio and are better off using index funds. Thanks again.
    Feb 22, 2015. 02:01 PM | 1 Like Like |Link to Comment
  • Dividend-Stingy Wal-Mart Was Already On Probation, So What Now? [View article]
    Mike, I had a small position in WMT but sold it two years ago. This raise is merely a publicity stunt as the reported average wage was in the range of $8.50, so $9.00 affects a number of employees at the bottom. I couldn't understand how a company could be highly efficient when they encouraged employees to apply for food stamps to supplement their wages. They do have great logistics and purchasing power, but that's not everything. Costco pays its employees much more and the employees love working there. I would put the money to work i tech or biotech such as MSFT, or GILD on a pullback. Long many of the Nifty Fifty. Regards
    Feb 20, 2015. 02:11 PM | 2 Likes Like |Link to Comment
  • One More Stock To Build A Retirement Portfolio Upon At Any Age [View article]
    RS, thanks for the analysis. I am long "O", but consider this stock, as well as other REIT's, as clearly overvalued today. Fair value is around $45 per share and I expect all REIT's to decline whenever the Fed raises rates. As a long time REIT investor, I know that too many people have been chasing yield over the last few years and this will correct itself. Look for opportunities to buy "O" and other REIT's when there is a decent dip, as in December 2013 and October 2014. Long: VTR, EQR, HCN, O.
    Feb 20, 2015. 01:34 PM | 1 Like Like |Link to Comment
  • Bond Fund Choices For Retiree Portfolios [View article]
    Gary, you are correct. We have been in a twenty year bull bond market where interest rates have been declining every year. Gong forward, there is no guarantee what will happen other than I am betting rates will rise say 300 basis points on the ten year over the next five years or so. The 60/40 or 40/60 allocation models, as noted in the article, are simply presentations of the previously unknown, after the fact. The models are an approximate means to diversify risk. It also depends on individual circumstances, age, financial resources, etc. Some people have inherited money, some people have a pension, some don't have either and may need to take greater risk.
    Feb 19, 2015. 12:06 PM | 1 Like Like |Link to Comment
  • Bond Fund Choices For Retiree Portfolios [View article]
    jkurtz, think of Social Security as an annuity, which it is. I look at it as a fixed income percentage of my income/cash flow and, secondly, as a percentage of fixed income as you suggest. As others have noted, you can't access the principal as you could with a true fixed income investment. Regards
    Feb 19, 2015. 12:00 PM | 2 Likes Like |Link to Comment
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