As long as Bank Deposits/treasuries yield so little, the dividend payors will flourish. When deposits start yielding 4-5% or more , the 3-4% yielders will no longer be attractive. When will that happen is hard to predict except that , that day will too come.
We would have very few bubbles if investors only rewarded companies that every quarter or month send a check to the investors in the shape of a decent yield. If that were the case we would have never had a dot com bubble and many other bubbles which are based on fiction and not facts like "yield".
What Will $2 Million Get You In Retirement? [View article]
There are 2 million ways or more for them to invest 2 M$ and earn good returns. One of them would be to invest 1 million in preferred shares and funds like FFC ( 8% return ) , that only invest in preferred shares. I would say 7% return from preferred stocks like FFC,SSW-C, NCT-B etc is doable and safe. That would get them 70K/yr The remaining 1 million they can split into 3-4% yield dividend growth stocks ( PG, INTC, XOM etc ) and the other 1/2 million in MLPs, REITs, BDC's that yield in 6-10% range. Together they would provide some growth and another 6-7% returns. So you should be aiming for atleast 120-140k Return/yr from 2 millon investments. While aiming a too high return increases risk , aiming a too low return is as foolish and detrimental.
What Is Due Diligence For (Exponential) Dividend Growth Stocks? [View article]
"So, what is a poor soul to do? " You have defined your methodology in detail and thanks for it. So what outcome / recommendations of stocks does that methodology produce today for the poor souls ?
The Dividend Income Magical Mystery Tour [View article]
No I have not missed anything since I have taken charge of my investments since 2007. You still avoided my question. So would you say that your best opinion today is someone buy those 5 today and expect similar results for next 20 years ? The past is history. In fact , those 5 picks collectively have under performed my investments since 2007. But then that itself does not mean much.
The Dividend Income Magical Mystery Tour [View article]
I am sure that in 1994, someone looking at investing 65K, had many more similar permutation and combinations of dividend paying stocks available than the combination of 5 you chose to pick now with perfect hind sight. Will the 5 you mention , show similar gains for next 20 years ? The safe answer is NO. For that to happen , these companies would have to grow 10 times market cap.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
Wow, XOM share price same as 5 years ago ( 2008 peak ) and per/share earnings even less than that in 2008, even after billions spent on buy backs to reduce share count. So earnings per share just below 2008 earnings per share even though number of shares is almost 30% less than that in 2008. What does that tell !!!!!!!!!!
Don't blame Apple. Blame the law makers ( tea-party , GOP types ) , whose policies have created a culture of 'dooh-nibor' ( that's 'Robin-hood spelt backwards, which means, take every advantage that this great country offers , its laws, infrastructure built with tax payor money over generations and use it now to rob the common good/common man so as to enrich the rich.
A 10% Yield That Investors Should Stay Away From [View article]
I bought a little ATPG preferred when it had fallen from 80$ to $40 ties, yielding about 22%.
Well , I lost all my investment in that preferred. However, that's the only preferred stock I have had a very bad experience with. So thanks for the warning and this company may have trouble paying its 10% preferred.
Don't Ignore These 4% Yielders [View article]
Don't Ignore These 4% Yielders [View article]
Don't Ignore These 4% Yielders [View article]
What Will $2 Million Get You In Retirement? [View article]
One of them would be to invest 1 million in preferred shares and funds like FFC ( 8% return ) , that only invest in preferred shares. I would say 7% return from preferred stocks like FFC,SSW-C, NCT-B etc is doable and safe.
That would get them 70K/yr
The remaining 1 million they can split into 3-4% yield dividend growth stocks ( PG, INTC, XOM etc ) and the other 1/2 million in MLPs, REITs, BDC's that yield in 6-10% range. Together they would provide some growth and another 6-7% returns.
So you should be aiming for atleast 120-140k Return/yr from 2 millon investments. While aiming a too high return increases risk , aiming a too low return is as foolish and detrimental.
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Buybacks Outperform High Dividend Strategies As Central Banks Drive Yield Low [View article]
What Is Due Diligence For (Exponential) Dividend Growth Stocks? [View article]
You have defined your methodology in detail and thanks for it. So what outcome / recommendations of stocks does that methodology produce today for the poor souls ?
The Dividend Income Magical Mystery Tour [View article]
Looking forward to it.
The Dividend Income Magical Mystery Tour [View article]
The past is history. In fact , those 5 picks collectively have under performed my investments since 2007. But then that itself does not mean much.
The Dividend Income Magical Mystery Tour [View article]
Will the 5 you mention , show similar gains for next 20 years ? The safe answer is NO. For that to happen , these companies would have to grow 10 times market cap.
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
How Increasing Dividends And Stock Buybacks Leads To Long-Term Capital Gains, Part II [View article]
Shame On You, Apple [View article]
A 10% Yield That Investors Should Stay Away From [View article]
Well , I lost all my investment in that preferred. However, that's the only preferred stock I have had a very bad experience with. So thanks for the warning and this company may have trouble paying its 10% preferred.