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  • Abbott Laboratories: Quality Dividend Aristocrat For Long-Term Dividends [View article]
    I also own KMB, CVX and many other dividend growers. I am simply following my plan when I sold ABT. I had the same issue with Kraft (KFT) before it split into KFT and MDLZ. I have retained the two spin offs from Kraft while I see how it plays out. MDLZ has a yield of 2.79% on my cost and is below my 3% threshold. The two combined yield 6.00%. With ABT, I viewed the risk as too high in the new companies, so I took a significant capital gain and invested in other dividend growers. I believe I cut my risk and put unrealized gains to work. I don't do this very often, but will do so when I can increase my cash flow. Regards
    Jan 5, 2013. 02:48 PM | Likes Like |Link to Comment
  • My Dividend Strategy Doesn't Bow To The Fiscal Cliff [View article]
    Tim, the Roth may be good for you, but not for retirees. The math doesn't generally work for after-tax dollar compounding to catch up with the pre-tax IRA. I believe it is a fallacy for many middle class people to believe their retirement tax bracket will be substantially lower to justify this move. Obviously, each case is different and you need to run the numbers. The Roth can make sense if you don't need the money in retirement and want to pass the money to descendants. Thanks for your articles.
    Jan 5, 2013. 12:44 PM | 1 Like Like |Link to Comment
  • My Dividend Strategy Doesn't Bow To The Fiscal Cliff [View article]
    Dave, you make an excellent point. It takes many years for the earnings of after-tax dollars to compensate for moving funds from an IRA to a Roth. The hype surrounding Roth IRA's is obnoxious and frequently misleading. A lot of copy talks about avoiding paying taxes later in life as if all tax rates will go up 25% or more, not how much money you will have after taxes. Roth's make sense if you are young and have many investing years ahead of you or if you won't need the money when you retire and want to avoid minimum distributions and/or pass the money to descendants. Disclosure: I have a small Roth and a much larger regular IRA. The smaller Roth is for estate planning reasons.
    Jan 5, 2013. 12:39 PM | 2 Likes Like |Link to Comment
  • Abbott Laboratories: Quality Dividend Aristocrat For Long-Term Dividends [View article]
    I agree with your conclusion if you assume its relatively the same company with the same business strategy. I reached a different conclusion as one side of the business no longer supports the other. Which one is better? I don't know, so I sold. Don't evaluate the company or companies based strictly on past dividend payments. You now have two CEO's and boards in different business segments. I hope it works out for you. If one or both work out, I will revisit and attempt to buy when the price is right for me. Regards
    Jan 5, 2013. 12:28 PM | 2 Likes Like |Link to Comment
  • Why Dividend Stocks Are A Shield Against Mr. Market [View article]
    Although I understand the point that Pompano Frog makes, I wonder how much money he intends to lose in going from 3% interest rates to 8% interest rates or is this post simply an academic argument? Is he only holding individual bonds or bond funds? Duration risk is a killer in a rising rate environment. We are definitely near the end of a 20 year bull bond market, but the only "safe" alternative to dividend stocks is staying in cash until interest rates rise. This is a viable strategy if you have alternative sources of funds to live on. I live on cash flow and my 4% yielding and growing, low beta stock portfolio pays more of the bills versus my 2.34% and declining bond mutual funds. Of course, my cash portion pays 42 basis points with a chunk of it with Amex Bank (90 bps).
    Jan 5, 2013. 12:23 PM | 4 Likes Like |Link to Comment
  • Southern Company - Priced To Perfection? [View article]
    I hold a small position in SO at $38 per share and will hold it for the near future. Solar is not a big threat. Nuclear plant construction overruns are always a pain, but SO management will get through it. As to Del of Microsoft as alternatives, only MSFT comes close to a steady dividend player that will survive. Long: nine other utilities
    Jan 5, 2013. 12:07 PM | 1 Like Like |Link to Comment
  • Can You Retire With A $1,000,000 Portfolio? An Urgent Follow Up [View article]
    RS, you are spot on. I have studied this issue and women, on average, continue to lag men in "comparably employed " positions. Those are the facts. Keep up the good writing.
    Jan 5, 2013. 11:37 AM | 6 Likes Like |Link to Comment
  • Can You Retire With A $1,000,000 Portfolio? An Urgent Follow Up [View article]
    Prices continue to climb and some companies are getting out of the LTC business. I bought this product two years ago and plan to use it as a hedge against rising health costs.
    Jan 5, 2013. 11:33 AM | 2 Likes Like |Link to Comment
  • Dividend Growth Safety Superstars - 2012 Update [View article]
    Nick, you should look at both REIT's and MLP's based on "free cash flow" or "cash available for distribution" after required capex. REIT's use an acceptable Funds From Operations (FFO) or a more appropriate AFFO which is after capital reserves. Ron Hiram here on SA regularly writes on MLP's and charts their distributable and sustainable cash flow. I hope this helps. Long: Many MLP's and EQR (apartment REIT).
    Jan 5, 2013. 11:19 AM | 2 Likes Like |Link to Comment
  • Dave Van Knapp Positions For 2013: Tuning Out Market 'Noise' With Dividend Growth Investing [View article]
    I love SDRL but must have bought after you. My YOC is 10.75% and a much smaller percentage. Regards
    Jan 3, 2013. 12:14 PM | 1 Like Like |Link to Comment
  • Hello Taxes... Goodbye MLPs [View article]
    Reel Ken, your articles are very informative and draw numerous comments. You have incredible patience to answer the same question over and over from article to article. You are indeed a glutton for punishment and a tremendous service to SA readers.
    Jan 3, 2013. 11:31 AM | 3 Likes Like |Link to Comment
  • Cap Rate Compression: A Harbinger Forming For REIT Investors? [View article]
    Brad, good article on potential cap rate compression. One note: the yield on Equity Residential is 3.14%, not the 2.38% you have in your chart. The company currently pays a fixed dividend of $0.3375 for the first three quarters and a variable dividend in the 4 fourth quarter based on a total payout of 65% of FFO. For 2012, the total dividend was $1.78or a 3.14% yield of your price of $56.68. Both Equity and AvalonBay are well managed companies with strong portfolios. AVB continues to sell at a premium to its peers and is art a higher risk of cap rate compression. Long: EQR Regards
    Jan 3, 2013. 11:07 AM | Likes Like |Link to Comment
  • 'Team Alpha' Beats The S&P By 30%; Our Forecast For 2013 [View article]
    Lorica, I must disagree with you. The author reported his dividend yield and posted his original prices. I automatically "assumed" his yield was on his cost basis, as I believe most readers would do. This is not misleading. Your comment was over the top in that you stated the authors reply "compromised the integrity of your work". Easy does it.
    Dec 31, 2012. 12:19 PM | 3 Likes Like |Link to Comment
  • Dividend Investors Should Get Ready To Load Up [View article]
    richjoy403: as to your points above, none of us know how the market will react, so I will buy a few stocks if they move down to entry points I am comfortable with. If the debt ceiling circus debate causes further erosion, I will buy more at further depressed prices by selling some bond funds. Whatever I buy, I hope to hold for a number of years.

    As to BAC, this is a horribly run company and it's hard for anyone to understand their intentionally confusing financials. With that said, I was so "smart" to buy BAC around $15.50 two years ago because I thought it had significant upside. I'm still holding with very patient money and will sell out if I exceed my basis by a few dollars. I hope both of us are correct and BAC finally makes its move in 2013.
    Dec 31, 2012. 11:43 AM | 1 Like Like |Link to Comment
  • Dividend Investors Should Get Ready To Load Up [View article]
    WmHilger1, buy a copy of Turbotax and the program will do all the calculations for you. (If you hate socialist programs, you could always forgo collecting Social Security and Medicare or as some others call, them, "earned benefits".) It's best to keep politics and emotions out of investing. Taxes affect me as well, but making a profit comes first. Happy New Year! Long: T, VZ, BCE, WIN, VOD, CHL, CHT
    Dec 31, 2012. 11:33 AM | 21 Likes Like |Link to Comment