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  • Learning From The Masters: Q&A Session With WmHilger1 [View article]
    SDS, Yes, I dabble in other sectors, but infrequently. Please note my past investment in T. I also bought some New England Power and Light about a year before it merged with National Grid. I got the information directly from NEP&L in one of their news releases about a year before it happened, and was very surprised that so few others latched onto this nearly guaranteed way to make a few bucks.

    There was a slight misstatement somewhere by a commenter (or SA). MRHY didn't come into existence prior to the advent of computers (and Google). And I get my ideas from voracious reading of the newspaper, SA, and a few magazines. I am always on the alert for a possible new investment, including the restaurant that I purchased last year. (;-} !

    I pay almost NO attention to YOC except when I buy or sell a stock. Yield is NOW, at the current price, and all that has gone before is history! Please re-read my motto about that very issue.
    May 28, 2015. 08:38 AM | 1 Like Like |Link to Comment
  • Learning From The Masters: Q&A Session With WmHilger1 [View article]
    That is 40 BDCs, REITs, and MLPs, times approximately 20 companies in which they each invest. Thus, I am invested in ~800 discrete and separate enterprises all over the USA, each helping me a TINY bit when they help themselves.
    May 28, 2015. 08:21 AM | 2 Likes Like |Link to Comment
  • Learning From The Masters: Q&A Session With WmHilger1 [View article]
    When I first started using MRHY, I set my range at 6% to 10%. Now that the Fed is thinking of raising interest rates soon, and so many good MRHY-type stocks have been beaten down so far (thus raising their dividend percentages) I have temporarily raised my range for new acquisitions, and even dropped some older ones.

    BTW, I have found a slight misstatement in my explanation of the Rule of 72. I should have said that i could be the decimal equivalent of any amount of interest. I used 5% and 10% (1.05 and 1.1) for convenience, but it COULD be .06523478, if you are using your computer to do the calculating (ROTFL). I wouldn't even try to do it by hand. It could even be something like X=(1+.0123456789)^63. And, once you get your mind wrapped around that formula with 3 variables, it is a "relatively" simple matter to solve the formula for any one of those 3, or to use multiple iterations of it to arrive at the result you want to know.

    And, I guess I'll list a few of my favorite MRHY stocks later today or tomorrow. I'm going in today for a biopsy on the bladder cancer I have been fighting for the last 10 months or so. They think they have it controlled, but only a biopsy will tell for sure. I am concerned but "you gotta do what you gotta do to stay alive in this world".
    May 28, 2015. 08:11 AM | 5 Likes Like |Link to Comment
  • Why You Shouldn't Put Too Much Weight On Dividends [View article]
    dask, Not correct! If your taxable income is below a certain amount, about 10K per year, you are not required to file income tax reports or pay any income tax on your Social Security or pensions. I know because I know several people who live on SS and pensions, and my munificence!
    May 24, 2015. 02:09 PM | Likes Like |Link to Comment
  • Why You Shouldn't Put Too Much Weight On Dividends [View article]
    Total Return is a mirage, a chimera that may disappear before you can even benefit from it!

    A dividend yield projection is also a mirage but, at least it comes to you in small pieces along the way. It may also eventually disappear, but you will have had some benefit from it along the way.

    I prefer to reap those small benefits as I go, rather than constantly waiting for a larger total return that may never happen, or I might miss when it does happen while I hope to get an even larger return, SOMEDAY!
    May 24, 2015. 09:05 AM | 2 Likes Like |Link to Comment
  • The Great Beta Hoax: Not An Accurate Measure Of Risk, After All [View article]
    All of this conversation about Alpha, Beta, Gamma, Delta, etc. reminds me of the old humorous jingle:

    A, B, C, D puppies,
    L, M, N, O puppies,
    O, S A, R
    C, M, P, N!

    And, in my estimation, is just about as useful! I don't use any of those Greek (or Arabic) letters in my investing, just good old common sense.
    May 22, 2015. 05:35 PM | 1 Like Like |Link to Comment
  • Overcoming The Pitfalls Of High Yield Investing [View article]
    Maverick, I can't speak for Kurtis, but I will tell you that my MRHY (Medium Risk, High Yield) investing went from 750K in 2007 down to 277K on 3/6/2009, then back up to ~1.2M in 2011. It hit ~ 2.0M in 2014 and is now down again to 1.78M, but supplying me with 1.85K of annual dividends, of which about 60K is tax sheltered in IRAs and/or MLP stocks.

    Obviously the dividends haven't declined as much as the market price of the stocks, but it has been an interesting ride and my current income is more than I ever expected to net any time in my life!!! (;-} ! It is too bad that I am now too old to enjoy it to the fullest, but my lovely, somewhat younger and very active girlfriend and I do our best at THAT!
    May 21, 2015. 12:12 PM | 6 Likes Like |Link to Comment
  • Overcoming The Pitfalls Of High Yield Investing [View article]
    Kurtis, I was with you until you listed the sectors and stocks in which you recommend investing, and the yield range. Your ideas fairly well parallel my own system, MRHY, up until then, and especially in the idea of being careful when it comes to the very high yielding stocks. My personal preference is the range of 10% to ~16% and the sectors are BDC, REIT, and MLP. High yields outside those sectors bother me! Most of those sectors are not designed for high yields and I approach them with trepidation!

    I also highly recommend researching my potential buys CAREFULLY! I don't like to pore over charts, graphs, and voluminous studies when deciding on my purchases. I prefer to go straight to the source --- the company's web site home page and articles written about the company, especially in SA!

    I can't say that I never have any misfires, and my preferred sectors all seem to be down together right now, but they ARE presently providing me with annual dividends of ~11%, which takes the sting out of the current low valuations. And I have faith that they will eventually recover, just as in 2008-2009. I made a ton of money off them in 2010 and 2011! In my estimation, stock market price quotes are about the same as beauty contests. They don't matter much in real life unless you are in show business, beauty contests, or modeling!
    May 21, 2015. 09:16 AM | 4 Likes Like |Link to Comment
  • Publicly Traded Partnerships - U.S. Taxation For Limited Partners [View article]
    They tell you right there in the K-1 material to use its figures, not the one on the 1099b from your broker, as reporting both will cause you double taxation. Therefore, I think this warning should be to ALWAYS read tax material sent to a person by the issuing company.

    BTW, I recently found that the K-1 preparation company for one of my MLP stocks had received, or copied, erroneous information as to the number of shares I held with the company. I had to contact several sources to get it straightened out! This sort of thing was also warned about in the K-1 material.

    YOU, and only you, are ultimately personally responsible for the accuracy of ALL information that goes into your tax returns. Your CPA , if you use one, warns you in writing about this! I think it, therefore, behooves all of us to stay current on this data. Otherwise, you have no one to blame for an error, except yourself!!!!!!!!!!

    I also agree with you, Sammym, that my MLP stocks save me a lot of current taxation. In my case, a total of federal and state taxes of about 35% of $60K each year.
    May 16, 2015. 09:59 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Greek Tensions In Focus [View article]
    FDR's original idea was a hare brained monster to begin with. Now it is a preposterously ridiculous hyra-headed monster doling out money to all kinds of people who don't deserve it!
    May 11, 2015. 12:45 PM | 6 Likes Like |Link to Comment
  • Publicly Traded Partnerships - U.S. Taxation For Limited Partners [View article]
    Absolutely the BEST article that I have ever read about this subject. I consider myself pretty knowledgeable about taxation of MLPs and LLCs, but I learned several things that I didn't know or misunderstood. THANK YOU!

    One thing that I do understand (realize) is that very few IRS employees have much more than a basic understanding of their own rules on this subject! Therefore, I don't worry too much about getting 100% accuracy in this reporting. As they say, "Close enough for government work!" When/if an IRS auditor flags my reports is soon enough to respond and either correct their erroneous assumptions, or agree to some or all of what they say and pay the correct taxes and penalties. These are seldom large enough to really adversely affect my total income from all of my 13 MLP and LLC stocks.
    May 11, 2015. 11:38 AM | 3 Likes Like |Link to Comment
  • Oops, TravelCenters Of America Did It Again - Buy Time? [View article]
    I acquired 90 shares of Travel Centers in 2007 from HPT. I rode it for a few years hoping the concept was as good as it sounded, and sold it in 2010 for about 3 cents on the dollar, leaving a bad taste in my mouth for both TA and HPT. I will never again own stock in either of those companies. I don't think either companies' management knows what they are doing half the time!
    May 8, 2015. 09:40 PM | 2 Likes Like |Link to Comment
  • Prospect Capital's Rights Offering: A Pure-Play Value Added Subsidiary [View article]
    I voluntarily restrict myself to 5,000 shares of any single stock holding, or ~$50,000, whichever is lower, on a ~$2M portfolio. In that way, I can't get hurt too badly on any one stock. Your holdings in PSEC seem a little high to me unless you are working with a >$5M portfolio.

    Of course, with the lousy way that BDC, REIT, and MLP stocks have been treated in the past 2 years, I am down about $350K during this period. I hope and expect these stocks to come back up soon. In the meantime, I have been collecting about 12% dividends on them, so I haven't been hurt too badly! I also expect to make in all back on my principle, with a substantial gain on those I have bought recently at these sale price values!!
    May 7, 2015. 08:49 AM | 2 Likes Like |Link to Comment
  • Stock Valuation - The Mystery Of The Discount Rate [View article]
    In other words, the discount rate is a personalized evaluation of how much YOU think you should earn for your investment in a company. I use a much more simple calculation, also related to the risk that I (notice I said "I", not Wall Street or you) determine for the company --- the dividend yield rate. My own dividend yield range for any buy is 9% to 16%. Anything less than 9% isn't worth my time, and over 16% always has me wondering why it is so high!

    For the very few who don't know how to calculate a dividend yield rate, in MY case I use the total annual dividend that I expect to receive for this purchase divided by the total amount (including fees and commissions) that I will have to pay for this purchase. Others may prefer to use the price quotes from the broker, but I find that my method is only slightly more complicated and is also slightly more accurate. After I calculate MY dividend yield rate, I then decide whether I am satisfied with it and make the buy, or try a different total cost at which I "Might" make the buy, and proceed accordingly!

    Simple, isn't it? And without a lot a fancy calculations and assumptions!
    May 5, 2015. 09:20 AM | 1 Like Like |Link to Comment
  • New Investor Dividend Growth Portfolio - April Update [View article]
    DN, Not a chance! Or, as we used to say, "Only a slim chance of that, and Slim recently left town!". At my age and position in life, I DO NOT want or need the money, or the stresses that writing an SA article might entail. I prefer to dispense my investing philosophy in short segments.

    Sorry! (;-{!
    Apr 30, 2015. 12:41 PM | Likes Like |Link to Comment