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Emerald

Emerald
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  • Find Healthy Income With Multifamily REITs [View article]
    You will see significant new construction over the next five years to absorb the demand for apartments. A number of apartment REIT's are selling at very high multiples to cash flow as in high 20X. AVB at 28 times cash flow is not a good investment, even though AVB is a very well run company. Long: EQR (At a significantly lower basis)
    Feb 1, 2012. 12:29 PM | Likes Like |Link to Comment
  • How I Morphed Into A Dividend Zealot [View article]
    Nuff SEd, I prefer steady dividend growers and am always suspect of companies that focus on buying back shares, especially tech companies. I own a few shares of Cisco, but not for the dividend. Cisco has spent millions buying back shares with little positive effect on the stock price. They do this mainly to keep the stock float constant due to issuing large amounts of options to employees. Show me the money and keep buybacks to a minimum!
    I agree "free cash flow" is an excellent metric and own PEP and KO. As to following so called market wizards, the internet will report stock holdings that are usually three months old and they may have sold since then. Be careful out there.
    Jan 31, 2012. 10:24 AM | 1 Like Like |Link to Comment
  • High Yielding Stocks Boosting Distributions [View article]
    I would not buy any stock today that has a dividend yield less than the inflation rate, especially 2% or less. I don't want to lose my purchasing power. Also, a few of these stocks are at or above what I consider fair value, such as MMP.
    Jan 31, 2012. 09:47 AM | 1 Like Like |Link to Comment
  • 9 Reasons Why Dividends Always Matter, 11 Stocks That Prove It [View article]
    Thanks for the article. I'm waiting for the usual correction to buy more and, as Five Plus notes, the herd will move on to "growth" stocks soon.
    Jan 31, 2012. 09:42 AM | 1 Like Like |Link to Comment
  • 5 Stocks Sporting Lofty Yields As High As 16% [View article]
    I don't know when this was written, but last week Inergy (NRGY) management said they were looking to realign their dividend to current cash flow. This means a dividend cut of approximately 40% is coming soon. The stock was down significantly last week and was dropped by MLP newsletters. I sold mine this morning.
    Jan 30, 2012. 11:17 AM | 1 Like Like |Link to Comment
  • How I Morphed Into A Dividend Zealot [View article]
    Not sure I totally agree about the 99%. There has been a decent amount of money flowing into dividend paying mutual funds and the price of many blue chips has run up quite nicely in the last two years, i.e. KMB, INTC, etc. Granted, overall fund flows have been out of equities.
    Regards
    Jan 29, 2012. 03:38 PM | Likes Like |Link to Comment
  • Strategy For Reducing Impact Of Taxes On Dividend Stocks [View article]
    Why not fund a Roth IRA directly if you are making a non deductible contribution to a Traditional IRA?
    Jan 27, 2012. 12:01 PM | 1 Like Like |Link to Comment
  • 7 Monthly Dividend Stocks For 2012 [View article]
    I recently bought AT and believe they are on track to increase free cash flow.
    Jan 27, 2012. 11:56 AM | 1 Like Like |Link to Comment
  • It's Official: Mr. Market Believes Apple's Growth Story Is Over [View article]
    How many companies can survive the creative destruction process that is inherent in the technology field? Microsoft defends its Office suite while trying to be innovative on the margins. HP is a disaster with a dysfunctional board. Cisco is always trying to reinvent itself and then tripping over its endless stock buybacks and stagnant stock price. RIM can't get its operations focused sufficiently to keep its market share.

    I like Apple because it has a fully integrated platform that allows it to have a distinct edge over its competition and an attitude that each product has a relatively short shelf life. Risky, yes. However, a "bet" I'm willing to take as an investor. I switched over the Apple products (iMac and iphone 4) about 15 months ago from a Dell laptop and a Samsung phone. I am totally satisfied as a consumer.
    Jan 25, 2012. 11:17 AM | Likes Like |Link to Comment
  • Bill Gross Picks 3 Levered Closed-End Funds [View article]
    Bill Gross made one bad call last year and has a long term record that is the envy of many. I also have some money with Grudlach's Doubleline Total Return Fund. Interest rates will saty in a tight range through 2012 and probably 2013. When (not if) Europe blows up, there will be another rush to U.S. Treasuries.
    Jan 24, 2012. 11:42 PM | Likes Like |Link to Comment
  • ETFs Needed In 401k Plans [View article]
    You are correct and there are many more reasons why sell side Wall Street companies such as and others get these accounts. Executives like these providers because they provide cheap processing of executive's stock options, company stock and sometimes provide loans against their individual portfolios. The average employee gets to pay high individual fund expenses and "fees" that are basically a rip off. HR departments work for the executive committee, not employees.
    Jan 23, 2012. 12:37 PM | 1 Like Like |Link to Comment
  • Equity Residential's Implied Cap Rate, And Why It Matters [View article]
    I generally agree with all the comments made here. However, investors typically look for income from REIT's today and EQR's dividend yield is approximately 2.87% (Dividend of $1.58/$55 common price). This yield may be acceptable to some investors, but the common price is very high today. EQR sells for +20 times "Funds from Operations", the industry's standard measurement. This is expensive given the run-up in apartment REIT's over the last year. I agree that you can obtain a relatively steady yield over time from a diversified portfolio like EQR, even though they cut their dividend 30% a few years ago from $1.95 to $1.35.

    Given the high multiple today, I would look for a pullback to $45 (15X cash flow) before buying more. Rent growth has limited upside as eventually more apartments will be built. The same is true for AvalonBay (AVB) another large apartment REIT. Note: Long EQR
    Jan 23, 2012. 12:06 PM | Likes Like |Link to Comment
  • Spain Announces Beginning Of End: The Unfolding Global Fiasco Is Near [View article]
    Stanley, you summarize the issue quite succinctly. I have long given up on the MPT optimization nonsense due to high correlations.
    Jan 21, 2012. 03:18 PM | Likes Like |Link to Comment
  • Looking For The Next Procter & Gamble [View article]
    Also consider Unilever (UL) and Nestle for significant emerging markets growth. Long: PG, KMB, GIS
    Jan 20, 2012. 03:25 PM | 1 Like Like |Link to Comment
  • Dividend Growth Portfolio Core Holdings Performance For 2011 [View article]
    Bob, thanks for sharing all the details. I too have a core portfolio that includes your stocks and also hold KMB, JNJ, INTC, EQR and EPD as core holdings. I recently sold Frontier (FTR) and swapped it for Winstream (WIN) as a non core. I also picked up Atlantic Power (AT) and PPL for good dividend paying utilities. I like BHP for its diverse natural resources and will probably buy more on a pullback with a minimum yield of 3%. I enjoy your articles.
    Jan 20, 2012. 11:03 AM | 1 Like Like |Link to Comment
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