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  • Targeting A Retirement Income Level From A Dividend Growth Portfolio - Part 3 [View article]
    Many investors (but not all) will mix both the initial higher yield/slower growth rate with the lower yield higher growth rate when picking dividend paying stocks. They do this to provide some risk and volatility diversification so they can sleep through these nervous markets. This method is probably not the most "efficient" to try and reach one's goals, but, then again, there is no magic formula. Thanks for the article.
    Dec 22, 2011. 05:29 PM | 4 Likes Like |Link to Comment
  • Cash Is King In These Troubling Times, Part II [View article]
    Interesting read. Thanks.
    Dec 20, 2011. 02:32 PM | 1 Like Like |Link to Comment
  • REIT Focus: AvalonBay Communities, Inc. [View article]
    The best measurement for REIT's is "Adjusted Cash Flow From Operations". In AVB's case, this is somewhere in the range of $5.10 to $5.20 for 2012 estimates. A reasonable multiple would be in the range of 15 to 20 times AFFO or $80 to $100 per share. The problem is the cap rate that is currently being used to value REIT's. Current cap rates under 6% don't make a lot of sense from a risk premium point of view and the resulting dividend yields are too low today. (REIT management would obviously disagree!).

    Most apartment REIT's are valued around a 5.5 cap rate (AVB around 4.5) and a high 20's multiple of Funds From Operations. This suggests they are more than fully valued, if not overvalued. AvalonBay has a great portfolio and strong management, but is 25% too rich for investors today. The question is: "Is management buying or selling the stock and/or options"?
    Dec 20, 2011. 01:57 PM | Likes Like |Link to Comment
  • MLPs Offer Steady Income And Exposure to Shale Gas Development [View article]
    I am long a number of MLP's, but very few, if any, are a bargain today. Most are fully priced. Long: KMP, EPD, GEL, BBEP, NGLS, NS and ETP. The only "bargain" i see is NRGY. It has some hair on it , but potentially a significant upside.
    Dec 18, 2011. 04:54 PM | Likes Like |Link to Comment
  • 16 Stocks With New Double-Digit Dividend Increases [View article]
    Your information on Equity Residential is misleading. They pay a current dividend of $0.3375 per quarter or $1.35 annualized. They adjust the fourth quarter dividend to pay out close to 65% of cash flow. As such, they increased the fourth quarter dividend to produce an annual 2011 dividend of approximately $1.58 or a yield of 2.9% at a price of $54.44. They have no permanently increased their quarterly dividend at this point. Long: EQR
    Dec 13, 2011. 01:29 PM | Likes Like |Link to Comment
  • Barclays Is An Interesting Play On The Big 5 In The U.K. [View article]
    The UK government owns approximately 40% of Lloyds after a bailout.
    Dec 13, 2011. 11:43 AM | Likes Like |Link to Comment
  • Upcoming Dividend Increase For AT&T: Is This High Yielder Still A Buy? [View article]
    I own T and will hold for the dividend. My concern is that cable has a longer term advantage. Phone companies still have to reach your house for service and the last leg is less efficient copper wire. I don't see significant capital gains over the next few years. I switched my land line to my cable operator because T couldn't get rid of a hiss on my land line over three years. I use T for my cellular service on a good family plan. Long: T, VZ, CHT, CHL
    Dec 13, 2011. 11:38 AM | Likes Like |Link to Comment
  • Barclays Is An Interesting Play On The Big 5 In The U.K. [View article]
    I view Lloyds as a better play on the retail aspects of UK banking. Investment banking, although occasionally profitable, takes excessive, highly leveraged risks. There is significant upside to LYG but the wait period is three years or so.
    Dec 5, 2011. 12:23 PM | 2 Likes Like |Link to Comment
  • S&P Downgrades U.S. Banks: Playing Catch-Up To The Market [View article]
    P.S. Buy Wells Fargo, Citi and JPM. You will substantial gains in three years. NO, the U.S. banking system is not going away and "too big to fail" is alive and well. B of A is simply a mess with some of the worst acquisitions of all the banks, i.e. Countywide. Long: WFC, C, JPM, FNFG, AROW, LYG
    Dec 5, 2011. 10:50 AM | Likes Like |Link to Comment
  • 5 MLP Sizzlers Yielding As Much As 15.6%, Part I [View article]
    As Elliot points out, Earnings as well as P/E ratios and Payout Ratios are irrelevant for both MLP's and REIT's. Given the3 heavy depreciation component for these investment vehicles, only distributable cash flow is applicable. For REIT's, also look at the Adjusted Funds From Operations.
    Dec 2, 2011. 12:10 PM | Likes Like |Link to Comment
  • When Big Banks Sink, The Market Cannot Fly [View article]
    Pretend it will all go away. Let the banks leverage up to their necks and then let the taxpayers bail them out. This was the basic reason for the creation of the Federal Reserve Bank. When banks get in trouble, print money and inflate the value into oblivion. The average taxpayer doesn't understand this and so it goes on and on.

    Then blame the federal government. What a joke, but it works! All elected officials are bought and paid for by lobbyists who work for monied interests but let's pretend otherwise. I worked for money center banks and know how it works. Take crazy risks for outlandish profits. If it works, big bonuses all around. If not, pay a small fine to the SEC, admit no wrong and recent bonuses all around. Force them into TARP? Many of the major banks were on the verge of a liquidity crisis and a total credit failure. Print, wash, rinse, repeat. Round Two: Western European banks! Yes, it's all Barney Frank's fault!!! Bring back Glass Steigel and set minimum Tier 1 capital requirements at 10% and we have a chance of recovery. Can't deal with this? Blame the federal government which is a de facto front for the banks. Want the real facts? Follow the money (contributions to fund raisers, PAC's, Fed Reserve loans, etc.)
    Dec 1, 2011. 11:00 AM | 1 Like Like |Link to Comment
  • REITs: Learn To Love The Distress [View article]
    Regarding KMP, using "Net Income" for a MLP is erroneous. Use distributable cash flow. Same is true for equity REIT's given the heavy depreciation (non cash) expense. They pay out most of their cash flow as required, they do not pay out "earnings".
    Nov 30, 2011. 11:17 AM | 1 Like Like |Link to Comment
  • Chart Of The Day, Apple Valuation Edition [View article]
    The Apple stores are packed, demand is high and supply problems are an issue. Low market penetration, high quality and service, constant innovation are all hallmarks of a great company. Add on a large cash balance and pristine balance sheet and you have a strong investment. Apple's stock will rebound when supply problems are fixed and money comes back into the equity market. Long: AAPL
    Nov 29, 2011. 11:44 AM | Likes Like |Link to Comment
  • Is Yield On Cost Really Important To Dividend Investors? [View article]
    Harvesting capital gains from stock appreciation to increase the cash flow of one's portfolio is clearly the best strategy. "Monetizing" the idle gains puts the idle money to work. AS a dividend growth investor, I am looking at selling a handful a appreciated stocks that I bought at the bottom in 2008 and redeploying the idle gains into new dividends. I live on the cash flow and obviously don't sell unless the company has materially diminished.
    Nov 28, 2011. 01:34 PM | 2 Likes Like |Link to Comment
  • For Patient Investors, The Best 16 Stocks For Retirement Investing [View article]
    Good list. Thanks, Avi
    Nov 23, 2011. 02:08 PM | Likes Like |Link to Comment