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drdata

drdata
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  • Investing In High Dividend Yield Stocks: A Sucker Bet? [View article]
    The investment does not need to be held for over a year in order for the dividend to be qualified.

    You are thinking of long term capital gains vs. short term.
    Mar 24, 2015. 07:39 PM | 6 Likes Like |Link to Comment
  • Beware Of Convertible Bond Funds [View article]
    NCV and NCZ have been trading at a premium for over 5 years.....and, even before that as well. Once in a while they slip to a discount....not often and not for long. They pay too well, and they pay much too consistently to linger in the market discount rack. I have come to terms with this and purchase whenever the price is down, regardless of exact premium. To me they are just cash cows that pay every month and enable me to have money available for investment purposes when the market drops for some reason. I don't really even consider them for capital gains.
    Feb 22, 2015. 11:24 PM | 6 Likes Like |Link to Comment
  • Is It Time To Dump JPMorgan Stock? [View article]
    'We make money the old fashioned way' was Smith-Barney, I believe.

    EF Hutton was something about 'When EF Hutton talks, people listen.'

    Not trying to invalidate your comment, just trying to remember the commercials......how quickly forgotten. :)
    Feb 21, 2015. 11:02 PM | 1 Like Like |Link to Comment
  • 'Income Growth' Vs. 'Dividend Growth' - The Re-Match [View article]
    So.....SG, you plan on hiring people to help you die? :)
    Feb 10, 2015. 03:41 PM | 1 Like Like |Link to Comment
  • 'Income Growth' Vs. 'Dividend Growth' - The Re-Match [View article]
    I am with you 100% on this concept, Stephen. My portfolio of CEFs may be different than yours, but they are doing the same thing.....cranking out oversized dividends for reinvestment purposes. The dividends replenish my cash position so that I am prepared to take advantage of the next market dip. Before locking into this strategy, I was always faced with a decision about where to find the resources to take advantage of the prices Mr. Market was offering. It was always a case of selling low to buy low. Not any more.

    That's not to say I don't appreciate a DG strategy. I see no reason you can't do both. In fact, the high yielders can provide the extra firepower to help you buy DG stocks more often. The two strategies can be made to complement each other.
    Feb 5, 2015. 07:32 PM | 12 Likes Like |Link to Comment
  • Equity CEFs: Buy Alert On ETY [View instapost]
    Thanks Doug. Picked some up below 11.00.
    Jan 14, 2015. 04:13 PM | Likes Like |Link to Comment
  • Beware Reversion In YieldShares High Income ETF And ETRACS 2x Closed-End Fund ETN [View article]
    In an IRA, ROC has no impact. ROC lowers the cost basis, which in a non-qualified account would affect capital gains when sold. In an IRA, capital gains and/or losses have no effect, so ROC has no bearing.
    Jan 6, 2015. 06:33 PM | 1 Like Like |Link to Comment
  • Retirees, This Is Not Your Father's Retirement Plan: Constructing The 2015 Fill-The-Gap Portfolio [View article]
    Bonds lack the liquidity of bond funds. Bond funds will regain value as their holdings near maturity. When their holdings mature, the fund can reinvest the principle in higher coupon bonds (assuming a rising rate environment). When rates rise the value of existing bonds goes down, regardless of who owns them. Looking at the value of individual bonds in your portfolio gives one a false sense of security. The price shown is the last traded price for that issue.......when could have been months or even years ago. It may not properly reflect the current value at all. And, as far as getting your principle back on an individual bond......probable, but certainly not guaranteed.

    I have nothing against holding individual bonds. I've done it myself. But, in order to do it properly, you must invest in quite a large number to achieve diversification. By doing so, you will have for all practical purposes, created your own bond fund. I ended up selling my individual bonds because I did not have the desire to manage that portion of my portfolio. Your mileage may vary.
    Dec 26, 2014. 08:43 AM | Likes Like |Link to Comment
  • Update: My Reaction To Annaly Capital's Dividend Announcement [View article]
    If it gets back to your entry price, you will have made quite a bit on the dividends. It will have done exactly what you should have expected. So, you will sell at that point because ??? Because it happened to go down in price between the time you bought it and the time you sold it. How dare it do that?
    Dec 21, 2014. 10:09 AM | 5 Likes Like |Link to Comment
  • Eaton Vance Tax-Managed Global Diversified Equity Income Fund declares $0.0813 distribution [View news story]
    It would have been more beneficial to have received this post earlier in the month. Having it arrive on the dividend pay date is not very helpful.
    Nov 28, 2014. 12:07 PM | 2 Likes Like |Link to Comment
  • A 7.3% Income Stream You Likely Haven't Considered [View article]
    Preferred shares are NOT equity. They do not show up in the equity portion of the balance sheet. Owners do not have voting rights. They do, however, show in the liability section. They are subordinate to bonds. They are usually rated a bit lower than bonds issued by the same company for this reason. Look at it this way....they wouldn't have a "par value" if they were equity.

    That being said, JPS and its brother JPC are well managed preferred share funds. I own shares of each. They are steady income producers. I did not, and would not buy them for capital appreciation. They are interest rate driven, like bonds. Both JPS and JPC fell in price in 2013 during the "taper tantrum". They will do so again when interest rates rise. Depending on the situation at the time, such an event may present the investor with a buying opportunity.
    Nov 6, 2014. 05:22 PM | 7 Likes Like |Link to Comment
  • New Mountain Finance: BDC Risk Profiles [View article]
    In all fairness, NMFC has issued special dividends in 2012, 2013, and again this year. It can be confusing trying to figure it out. But in the end, it was a positive.
    Sep 3, 2014. 09:56 PM | Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio Delivers 8.8% Of Income For This Retiree [View article]
    "PSEC cuts it dividend by 75% in the crash."

    Where do you get that???? As a PSEC shareholder, I know that did not happen. Yes, there was a cut when they changed over from quarterly dividends to monthly, but it was nowhere near 75% reduction.
    Jul 24, 2014. 03:56 PM | 6 Likes Like |Link to Comment
  • Dividends Do Matter - Especially In Retirement [View article]
    I think it boils down to how much the retiree investor is willing to bet that the next bear market is only "average"......and, how long he/she can afford for it not to be "average".

    I think the answer for the DGI investor is "I'd rather not take that bet if I don't have to".
    Jul 18, 2014. 01:06 PM | 5 Likes Like |Link to Comment
  • Buy-Write CEFs Are An Alternative To An S&P 500 Dividend Fund [View article]
    In regard to DNI, I checked cefconnect and you are correct. DNI's NAV distribution is greater than it's NAV total return. I originally bought shares of DNI in 2011, and added more in 2012, and a few more in 2013. My average cost was $14.06. It now trades around $16 per share. In addition, during that time, DNI paid the same distribution every quarter, and I have collected over $6800. So, the NAV TR being less than the NAV distribution is a bit perplexing. I do see one thing that is different with DNI as compared to the other buy/write funds we have been discussing.....it has a managed distribution policy, which means it tries to distribute the same amount every time in spite of what may be "lumpy" income to the fund. It may be that what we are seeing is the lag between distributions given out and "lumpy" income received.

    Given my track record with the fund, I can only recommend it. I don't think it's a "buy" at this time. I am waiting for the market to cool off a bit before adding any additional shares. But, based on actual performance, I believe it is a good fund.
    Jul 16, 2014. 11:36 AM | Likes Like |Link to Comment
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