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Tortoise #1

Tortoise #1
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  • Have I Been A Successful Investor? What Constitutes Success? [View article]
    Tortoise #1 is a long-term, dividend-growth investor who began buying dividend paying stocks in the 1960s to augment my career income and help pay our growing family expenses. As years passed, I began to note that our dividend income and portfolio value were increasing without any action on my part. I had stumbled onto dividend-growth investing and have essentially followed that strategy the rest of my life.

    How do I measure investment success? First, I study the performance of our total investments - and not individual stock performance. On that basis, our dividend income is larger than our household expenses. Now in our late 80s, Mrs. Tortoise and I live comfortably without ever having to invade principal! I consider that the successful result of a lifelong, D-G, buy and hold high quality stocks, strategy.

    Some of my favorite stock holdings many of which go back to the 1960s, 70s and 80s are: Chevron (NYSE:CVX), Abbott (NYSE:ABT), Kimberly -Clark (NYSE:KMB), NextEra Energy (NYSE:NEE), SCANA Corp. (NYSE:SCG), Southern Company (NYSE:SO), Taubman Centrs (NYSE:TCO) and Verizon Communications (NYSE:VZ).

    In the last decade, we have added the MLP Spectra Energy Partners (NYSE:SEP) and the ETF Alerian MLP ETF (NYSEARCA:AMLP)

    In addition to the growing dividend income, many of our positions have huge
    capital gains (if we were to sell).

    Finally, I have never bought a stock with the thought of trading it for gain. All purchases were based on Dividend-Growth!

    I offer this history to encourage our younger investors to become INVESTORS and not traders!

    Tortoise #1
    Aug 24 06:20 PM | 10 Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    The Distributions from most MLPs in the energy sector, held in taxable accounts, are Tax Deferred that reduce the investors original cost basis. Should you decide to sell your holding, the difference between the sale price and the original basis price will be taxed as long-term capital gains; whereas, the difference between the original cost basis and the adjusted basis price will be taxed at the full income tax rate.
    (source: InvestingDaily Personal Finance, Dec.28,2011)
    Aug 24 05:28 PM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Ron, Acknowledged with thanks!
    Aug 22 12:36 PM | Likes Like |Link to Comment
  • Dividend Champions: 7 Increases Expected By Halloween [View article]
    For long-term, dividend-growth investors, I want to add that continuing dividends during Bear Markets helps us tolerate declining portfolio values as occurred in 2008/March 2009. And, as markets recovered, we were, and are, richly rewarded.
    Aug 21 09:40 PM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Ron, When I began adding shares of AMLP to our household portfolios, I was aware that the ETF was structured as a C-Corporation and would pay corporate taxes that would reduce our total return. That said, the investment has fulfilled our expectations with 6.3% yield on our cost basis and 16% increase in value. I was not deceived and am happy with the results!

    Without being argumentative, your readers know your position on AMLP. Please tell us your recommendations, in a general way, to replace AMLP in a portfolio.

    Thanks in anticipation!
    Aug 21 01:10 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    In the above, I mention "Don". Sorry, I meant RON.
    Aug 20 10:28 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Folks, On my 1099-DIV for 2013 for a Trust account, the Distributions from AMLP are reported, 100%, as "Non Dividend Distributions". This confirms Don's position that these Distributions are "Return of Capital" and are not immediately taxed.

    However, our cost basis is reduced for Capital Gains determination when (and if) we sell any or all of our AMLP holdings!
    Aug 20 10:26 PM | Likes Like |Link to Comment
  • Dividend Champions: 7 Increases Expected By Halloween [View article]
    maybenot, The correct spelling is "Mrs. Tortoise and I live comfortably". And, thanks for your comments. That was my intention!

    Tortoise #1
    Aug 19 08:42 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Ron, I, too, respect your knowledge and your judgment! We own 700 shares of AMLP in our household portfolios and this investment has met our expectations!
    Since purchase 2/3 years ago, the price gain is 16% above our cost.

    The dividend yield on our average cost basis is currently 6.3%. I am delighted with this performance and do not feel deceived by management! I knew from the beginning that AMLP was structured as a C-Corporation and would pay corporate taxes before our distributions were determined!

    Finally, the tax consequence you sight in the KMP consolidation is the same as with any other MLP that we have to sell. Tax consequences develop when we sell a position. We own the MLP Spectra Energy Partners (NYSE:SEP) as well as Spectra Energy (NYSE:SE) and do not intend to sell either!

    I solicit your comments!

    Respectfully,

    Tortoise #1
    Aug 19 06:07 PM | 1 Like Like |Link to Comment
  • Dividend Champions: 7 Increases Expected By Halloween [View article]
    Thank you David for your focus on Dividends and Dividend-Growth investing! From the beginning of my investing experience in the 1960s, I bought stocks of corporations with long records of paying quarterly dividends. As years passed, I began to note that our dividend income was increasing and that the value of our investments was rising. I had stumbled on D-G investing.

    No one ever mentioned D-G investing to me nor did I read about it anywhere. I admit I happily stumbled on to it! Some of our favorites D-G investments are Chevron (NYSE:CVX), Kimberly-Clark (NYSE:KMB), NextEra Energy (NYSE:NEE), Southern Company (NYSE:SO) and Verizon Communications (NYSE:VZ).

    In recent years, we have added an ETF Alerian MLP (NYSEARCA:AMLP) and an MLP Spectra Energy Partners SEP).

    Now in our late 80s, Mrs. Tortoise and I live comfortable in a financially secure retirement without ever having to invade principal.

    I think there is a lesson in our experience and I offer it for that reason!

    Thanks for listening!
    Aug 17 01:33 PM | 16 Likes Like |Link to Comment
  • Chevron beats by $0.31, beats on revenue [View news story]
    Correction! The Gorgon and Wheatstone projects are in northwest Australia.
    Aug 3 10:42 PM | Likes Like |Link to Comment
  • Chevron beats by $0.31, beats on revenue [View news story]
    The Gorgon and Wheatstone LNG projects in northeast Australia are among the most expensive private investments but will not begin to deliver revenue until mid-2015. When these two projects come on-line, we can expect increasing profits for years to come! In the meantime, CVX is doing quite well! It would seem to this longtime Chevron stockholder (since March 1970) that the future is bright for our company!
    Aug 3 10:39 PM | Likes Like |Link to Comment
  • NextEra Energy profit slips as expenses rise [View news story]
    As a longer than 50 year holder of the same NEE stock, I am encouraged by their 2nd quarter report and the revised estimate of FY 2014 EPS of $5.15/$5.35. The current annual dividend is $2.90/share.

    NEE has raised their dividend for 20 consecutive years. It would seem that we will see the 21st consecutive annual dividend increase in the first quarter 2015.

    In 2013, the dividend increase was 10%. In 2014, it was 9.8%.

    For those who follow the dividend-growth strategy, in 2001, the NEE annual dividend was $1.12/share. In 2014, it is $2.90. As Jimmy Gleason used to say, "How sweet it is!"
    Jul 30 09:45 PM | Likes Like |Link to Comment
  • These 3 Facilities Will Help Chevron Capture The Asia-Pacific LNG Market [View article]
    Bryan, Thanks for the well-written and detailed article. I may have missed this reference; however, I think it is worth mentioning that the Gorgon and Wheatstone projects in Australia are among the most expensive private developments ever but not until mid 2015 will CVX begin to generate profits from these projects. Yet, during the time that the company has been absorbing this cost, they have been able to raise their dividend substantially every year!

    For that accomplishment, they deserve credit! And, this points increased profitability when the projects are completed and functioning!

    Tortoise #1
    Jul 18 09:25 PM | 1 Like Like |Link to Comment
  • Robust Dividend Growth Continues For ConocoPhillips [View article]
    My all-time favorite stock holding is Chevron (CVX) that I first bought in March 1970 with 100 shares of Std. Oil of California. Now, after four 2 for one stock splits, we happily own 1,600 shares of CVX. We are delighted by the price appreciation and the growing dividend income!

    Two years ago, we began accumulating COP stock in our portfolios and are delighted by the price appreciation and dividend growth. 5.8% annual dividend growth and the substantial price appreciation completely satisfies this old investor.
    Jul 11 12:50 PM | 11 Likes Like |Link to Comment
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