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WmHilger1

WmHilger1
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  • ONEOK: A Solid Choice For Dividend Growth [View article]
    AB, perhaps you aren't aware that OKS was one of the first MLP stocks to come on the scene, and certainly not an unknown gem in the MLP world. They were part of the ENRON empire and were called NBP (Northern Border Pipeline) at that time. Fortunately, their management stayed in Omaha when that crook Ken Lay bought Northern Natural Gas, merged it with the smaller company, ENRON, and moved ENRON to Houston. They survived the ENRON debacle and have been well known for superior management and value over the years. In fact, I believe I have read that they are the second largest mid-stream pipeline company in the USA.

    I paid ~$22 to $24 per share for NBP in 1982, they have split once that I know of, were sold to OKE several years ago, and took their new name at that time. Why they are less well-known as some of their competitors, I don't know, but they have always been a well managed stock paying nice distributions. I have never regretted my initial and any subsequent purchases of NBP/OKS.
    Aug 21 03:42 PM | Likes Like |Link to Comment
  • ONEOK: A Solid Choice For Dividend Growth [View article]
    I own 1,654 shares of OKS and have owned some of them since about 1982. Unfortunately (or fortunately, depending upon your viewpoint) I have maxed out the tax deferral on its distributions. I plan to continue to hold it, however, because the dividend is still quite satisfactory, and they plan to continue increasing it for the near future. And, my ~$100K holdings can be stepped up in the case of my demise, giving my heirs a nice stock with renewed tax deferral. At least, right now I am playing with house money, getting a reasonable current yield, and paying no more taxes on it than on my extensive BDC and REIT holdings.

    The tax deferral having expired is also a small problem. To sell all of it or even a significant part of it now would play hell with my taxes! So, I'm keeping it and smiling with every distribution increase. After all, my ROI(YOC) is infinity percent!
    Aug 21 11:46 AM | Likes Like |Link to Comment
  • I'm Glad I Have This West Coast Gem In My REIT Portfolio [View article]
    Very interesting article, but not for me or any of my friends. I own no (OTCQB:ZERO) shopping mall REIT stocks and don't plan to ever own any. I have seen too many go down! I also agree with the person who posted earlier that the West Coast is overbuilt with malls and that the Safeway/Albertson's deal will leave more than a few vacancies. It already happened here in Omaha several years ago. There isn't a Safeway or Albertson's within many miles of Omaha, nor any of their subsidaries. Even Hinky-Dinky failed in Omaha.
    Aug 20 06:10 PM | Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    BTW, VNR may say that they are the "Monthly Distribution MLP" but they are not the only one that I own. QRE is also a monthly distribution MLP. You/they should change that "the" to an "a". I also own about a dozen BDC and REIT stocks that pay monthly, but only those 2 MLPs.
    Aug 19 10:31 AM | Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    If it walks like a duck and quacks like a duck, it probably is a duck. I own stock in 55 different companies. Of those 55, CODI acts like a BDC; EFC and VNR act like REITs. And, no other BDC or REIT companies in my portfolio issue K-1 forms. All 12 of my other MLPs do!

    Actually, the original comment was about K-1 forms. I only stated what I know for sure. I treat all 3 of these companies as the type of ducks they seem to me to be. After all, there are hybrids all over of various types of investments --- whatever the investors will buy! All 3 issue K-1 forms whereas most other BDC and REIT companies DON'T! Fifty-five (55) companies may not encompass the entire universe of BDC, REIT, and MLP companies, but it seems to me to be a pretty good cross section.
    Aug 19 08:51 AM | Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    CODI is a PE-BDC type company that reports its tax information on a K-1.
    EFC and VNR are LLC-REIT types that report on K-1s. Any good CPA knows how to handle them, and any other variances in the K-1 universe. The advantages outweigh the disadvantages.
    Aug 18 12:21 PM | Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    And BTW, Gail, be sure to use an online discount broker. They won't give you as much investment advice as a full service broker will, but that is probably a good thing, as their advice is more costly and frequently slanted anyhow. Get your advice from SA and other similar sites.

    I personally prefer TDAmeritrade as my discount broker. They give me great service, but are just a tad more costly than some others. If you don't have on online broker, check around and see what the others offer.
    Aug 17 10:53 AM | Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    Gail - In that case, I highly recommend Medium Risk, High Yield (MRHY) stocks such as BDCs, REITs, and MLPs. Especially MLPs because most of the income is tax sheltered until you divest yourself of 100% of your interest in the stock, almost like a traditional IRA.

    I am 83 years old and have a much larger portfolio than you do, but it is 90% invested in MRHY stocks, so that I AVERAGE >10% annual dividend payments. To hell with worrying about risk. You need to make your money work as hard as possible for you! My MRHY stocks work hard for me with hardly any more risk (maybe even less) than those blue chip, low yield (LRLY) stocks. In fact, most of them are rated about the same as T and VZ, which will pay you nice dividends of ~5% to 6%, but still not >10%.
    Aug 17 09:16 AM | Likes Like |Link to Comment
  • The Case For High Yield In A Dividend Portfolio [View article]
    So, while I collect $1,000 annually for every $10,000 invested, you collect $100, or I get $100,000 on a $1,000,000 portfolio versus $10,000 for you. Doesn't sound like a very good deal to me, regardless of what the capital gains may be, especially since I am almost 84 years old.

    And, if you want to do a one time boost to your income some day for some unexpected reason, during the accumulation phase, you have to sell the stock and forego some of those "bird-in-the-bush" future gains. Whereas I should be able to handle that unexpected expense more easily with my larger income. Capital gains are fine, but they aren't guaranteed. Dividends aren't guaranteed either, but they seem to me to be much more likely than some hoped for future capital gains.
    Aug 15 01:23 PM | 2 Likes Like |Link to Comment
  • The Case For High Yield In A Dividend Portfolio [View article]
    I can't, for the life of me, understand why anyone would want to invest in AMEX or Moody where their dividend is about 1.5%, when there are some very good BDC, REIT, and MLP stocks available that pay upwards of 9-10% dividends. Of course, the Medium Risk, High Yield (MRHY) stocks might not grow in value as quickly as the LRLY stocks, but the 1.5% dividends of those LRLY stocks, compounded annually, would take 47 (FORTY-SEVEN) years to double in value while a 10% yield would take only 7.2 years. In fact a yield of 1.5% would not even keep up with inflation. I can't wait 47 years to receive the same amount as I can in 7.2 years, regardless of possible market value growth.

    BTW, a 5% yield would still take about 14.5 years to double, all other factors excluded.
    Aug 15 10:57 AM | 3 Likes Like |Link to Comment
  • Constructing A Monthly Income Portfolio [View article]
    First of all, I invest mainly in BDC, REIT, and MLP stocks and I have definitely fashioned my portfolio to try to equalize my monthly receipts. My dividend receipts are quite different from the frequencies that he mentions. The months of 1, 4, 7, 10 seem to have the most payors, with the other months fluctuating as I buy and sell stocks that pay their dividends in those months. I frequently pass up good candidates in the 1,4, 7, 10 months because I am overloaded there.

    The main problem that I have is that so many companies pay their dividends on the 1st, the 15th, or the end of the month. Don't they realize that, even though these are the most convenient dates for them, they inconvenience the stockholder? The payments tend to pile up at the end of each month. After all, the first day of any month comes right after the end of another! For example, after I receive my dividends on 8/30/14, I have nothing more coming in until 9/15/14.

    Now, I will grant you that, with the size of my receipts averaging about $18,000 per month, I shouldn't have any great problems meeting my financial obligations during those dry days but, with sizeable incomes also come sizeable obligations. Each month, I sit down and try to decide when and how much I need to set aside at the beginning of a month to cover my outgo for the rest of that month (until the end of the month dividends are receivable).

    So, in essence, I do firmly recommend attempting to balance your monthly income with your outgo, but even that runs into problems since it is almost impossible to smooth out the little glitches that develop.
    Aug 14 07:55 PM | Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    Gratian, you obviously haven't looked at my previous comments very closely! Other than those crappy preferred stocks, my portfolio has been increasing at the rate of about 10-15% each year since that late unlamented Great Recession. I now invest ONLY in Medium Risk, High Yield (MRHY) stocks paying me absolutely NO LESS than 6% annually with about 90% of them paying me over 10%. My holdings of those stocks has quadrupled since 2008 and my annual income has done likewise.

    BTW, I owned my first few shares of stock, AT&T, in about 1942. They were given to me by my father, and I added to it slowly until I retired in 1987 and took up investing in great dividend paying stocks as my hobby. I now own about 120,000 shares of MRHY stocks. Not a single default since 2009!
    Aug 13 10:03 PM | Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    So what did the "preferred" in their titles mean? Not much, except slightly lower yields than the common stocks!!!!!! So, I should buy preferred stocks that pay lower yields merely because of the titles? I "prefer" to take my chances on the commons and disregard the preferreds all together!
    Aug 12 12:24 PM | Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    About 10 years ago, I also thought I was buying preferred stock in companies very unlikely to go bankrupt, such as Conseco, Fedders, Lehman Brothers, and Delphi. Boy, was I WRONG, to the tune of about 77K! I realize that was an exceptional time in the markets, but AAA ratings meant nothing in those days. Who can tell if you are being lied to when everything that comes out in the media is positive? Figures don't lie, but liars sure can figure!
    Aug 12 10:26 AM | 2 Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    And, if the company does go bankrupt, preferreds usually get wiped out along with the common stocks and their dividends. They may be called preferred, but I have found out, to my sorrow, that they can be wiped out just the same as the common stocks.

    I don't find much in them that I "prefer"! Usually lower yields than the common stocks and not that much preference!
    Aug 12 10:16 AM | Likes Like |Link to Comment
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