I am a former Investment and Commercial Banker with over 30 years experience in the field. I have been advising both individuals and institutional clients on high-yield investment strategies since 1991. As author of “High Dividend Opportunities”, a premium subscription service at Seeking Alpha, my objective is to bring investors the most profitable and newest high dividend ideas, with special focus on the Energy sector. The service includes an actively managed model Portfolio targeting an overall dividend yield of 6-9% in addition to long-term capital gains. My research aims to maximize returns by identifying undervalued securities in the High Yield space.
In addition to being a Certified Public Accountant CPA from the State of Arizona, I hold a BS Degree from Indiana University, Bloomington, and a Masters degree from Thunderbird School of Global Management (Arizona). I am also a Certified Mortgage Advisor CEMAP, a UK certification. My Research and Articles have been featured on Seeking Alpha, Investing.com, ETFdailynews, and on FXEmpire.
For more information on how to subscribe to “High Dividend Opportunities” and gain exclusive access to the portfolio, live alerts and market commentaries, check the post: Introduction to “High Dividend Opportunities” on my Instablog or just email me at firstname.lastname@example.org .
Hoya Capital Real Estate is a Connecticut-based Registered Investment Advisor that focuses on research of the commercial real estate industry, and advisory of well-balanced public real estate equity portfolios.
All of our research is for educational purpose only, always provided free of charge exclusively on Seeking Alpha. Recommendations and commentary are purely theoretical and not intended as investment advice. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. For investment advice, consult your financial advisor.
John Thomas graduated with a bachelor’s degree in biochemistry with honors and a minor in mathematics from the University of California at Los Angeles (UCLA) in 1974. He moved to Tokyo, Japan where he was employed by a medium-sized Japanese securities house. Thomas became fluent in Japanese and was trained as a domestic Japanese research analyst and money manager. In 1977 Thomas became the Tokyo correspondent for The Economist magazine and the Financial Times of London. Thomas traveled extensively throughout Asia, interviewing premiers, presidents and prime ministers, writing on macroeconomic trends, and producing countless features about individual companies. Thomas witnessed China’s cultural revolution and was one of the first American correspondents to enter China prior to the U.S. normalization of relations. Thomas authored several books about the Japanese financial system still in use by business schools today. In 1983 Thomas joined a top US investment bank in New York with the mandate to develop an international equity business for the firm. In 1985 he moved to London, England to establish a presence in Japanese equity derivatives for the firm. In 1989 Thomas was appointed a director of one of the big three Swiss Banks with a mandate to design sophisticated hedging strategies for the bank’s considerable holdings of Japanese equity warrants and convertible bonds. With the invasion of Kuwait by Iraq, Thomas was drafted by the US Marine Corp to serve as a pilot. In 1990 Thomas became a pioneer in the nascent hedge fund industry by founding the first dedicated Japanese hedge fund. The firm managed segregated accounts for a variety of government agencies, banks, and high net worth individuals in Europe, the Middle East, and Asia. After a decade of spectacular absolute and relative performance he sold his firm in 1999 and retired to manage his personal investments in the oil and gas industry. Seeing incredible opportunities in the marketplace and yearning for the adrenaline and satisfaction offered by active management, Thomas launched a new hedge fund in 2007. In his free time Thomas is a commercial aircraft pilot, long distance hiker and mountain climber, wine collector and avid photographer.
The author has worked in the transportation profession for over eight years of which the previous three have been strictly focused on goods movement and freight. Transports, by James Sands includes extensive research and analysis of publicly traded companies in the U.S. This includes direct comparative peer review among multiple transport industries, and macro and industry key performance indicators, KPIs.
The author has successfully managed a self-developed equity-based portfolio of U.S. public companies prior to the development of Transports, by James Sands. This included an average return of 13% per year over the previous three years for the portfolio, as well as numerous detailed articles covering multiple sectors and industries. Transports by James Sands includes two current portfolios under management.
Transports, by James Sands will provide investors with access to exclusive research and data analysis stemming from the tools generated to evaluate public freight companies. The ultimate goal is to define investment options and recommendations for a wide variety of investors. All subscribers of Seeking Alpha are encouraged to review the Marketplace offering by James Sands for additional information. Feel free to contact the author with any inquiries through the Seeking Alpha message platform.
DISCLAIMER: It should be noted that while the author is providing stock analysis and recommendations based on this analysis, any information disseminated by articles, stock talks, messages, or public chats represent the opinions of the author. The author is not an investment professional, and as such, all readers and subscribers should perform their independent due diligence and/or consult with an investment professional prior to making investment decisions.
Robert Hauver, MBA, is a Registered Investment Advisor Representative. He publishes The Double Dividend Stock Alert, a monthly investment newsletter that features the best dividend stocks and option selling strategies for income investors.
TipRanks rates DoubleDividendStocks in the Top 10 of all financial bloggers.
The https://www.DoubleDividendStocks.com website also features High Dividend Stocks By Sector Tables, and Covered Calls & Cash Secured Puts Tables, a Dividend Stocks blog, and a a Stock Market News & Data page. 845-225-4094
I suspect that most preferred income investors are conservative by nature. I am. I don't believe I have any special talent or gift for trading, a crystal ball, or any access to insider information. Consequently, I have little expectation of prospering by consistently buying low and selling high. In fact, prior to becoming a fixed income investor, my trading history boasted the opposite, buying high and selling low. Tis sad but true, over those years, I've given more to the market than I've taken from it. However, that's yesterday's news, and of no real interest. Of importance is that I'm patient, analytical, organized, pretty good at math, and always looking for that angle, strategy, or edge to help guarantee my market success. The Art & Science of Preferred Dividend Investing details my history, education and growth as a preferred investor and the lessons I learned along the way. I want to share that knowledge by introducing you to this effective, profitable, and safe way to invest in preferred equities.
Brad Thomas is a research analyst and he currently writes weekly for Forbes and Seeking Alpha where he maintains research on many publicly-listed REITs. In addition, Thomas is the Senior Analyst at iREIT Forbes and Editor of the Forbes Real Estate Investor, a monthly subscription-based newsletter.
Thomas has also been featured in Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, and Fox Business. He was the #1 contributing analyst on Seeking Alpha in 2014 (as ranked by TipRanks) and he is currently writing a book on the legendary investor Donald Trump.
Thomas has co-authored a book (The Intelligent REIT Investor) that is available on Amazon.
Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College where he played basketball. He resides in South Carolina with his wife and kids.
I am a retired professor, a retired investment adviser, and currently a private investor and full-time tennis pro. I bought my first stock in a custodial account in 1958. I am a student of history, particularly military and economic/market history. The intellectual passions of my retirement years are markets, mathematics, and quantum theory. I like to travel. I served in Vietnam.
I have been helping startups and investors understand the value of emergent business models in the technology, media, and telecommunications industries. In my own personal portfolio, I have been looking for income opportunities and companies with deep value and strong growth potential whose value propositions are misunderstood by the broader market. I do this by an in-depth study of the markets where these companies operate, marrying that to traditional securities analysis to uncover hidden value and under-appreciated growth.
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At Valuentum, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Valuentum therefore analyzes each stock across a wide spectrum of philosophies, from deep value through momentum investing. We think companies that are attractive from a number of investment perspectives--whether it be growth, value, momentum, etc.--have the greatest probability of capital appreciation and relative outperformance. The more investors that are interested in the stock for reasons based on their respective investment mandates, the more likely it will move higher.
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I hold a PhD in the field of epidemiology a masters degree in public health. My undergraduate training is in policy, economics and the sciences. I have utilized my training in employment with government, academia, private industry and to further analyze the fundamentals and technicals of all manner of companies in different sectors. Specifically, I like to trade growth companies, REITS, biotechnology/ pharmaceuticals, precious metals, blue chips and small-cap companies.
Each market day I get up at 530 am and begin working/analyzing data before my day job. I focus much on current events, earnings, and developments. I also work after market hours to cover after hours developments or interesting action during the day. I aim to conduct 2 analysis per business day, which helps me stay focused on my own finances.
I have been investing for about 10 years. I also enjoy trading short expiration options, and investing in stocks with 3-20 year horizons. I enjoy writing with Seeking Alpha to share my opinion and analyses. I am a large believer in the crowd source model championed by Seeking Alpha and believe every ounce of analysis and opinion should be considered when you invest your personal finances.
The author is a former hedge fund trader now working as an Independent Trader, Consultant and author of the Panick Value Research Report. The Panick Report is a newsletter and alert service focused on undervalued high yield preferred stock issues and some undervalued micro cap equities. Sign up in the Dividends section of the Seeking Alpha Marketplace to receive exclusive subscriber articles, daily sector updates, advance drafts of public articles and more. Email email@example.com for more information. See also my Panick Value Research Report Facebook site for tips on upcoming articles.
I am the investment manager for Darkravenwind LLC, a small software development consulting firm. 20% of our pre-tax revenue is my responsibility to invest and grow. I also help moderate the "Value Investing" group on Facebook. My hobbies include fighting the Fed, martial arts, and old video games.
I have been using value investing techniques as first described by Benjamin Graham since approximately 2005. I was wasting my life up to that point. My specialty, over and above corporate valuation, is analyzing people. Human behavior is remarkably consistent and can lead to huge gains when you understand what motivates them.
In my own portfolio, I have a diversified income focus with a preference for long term earnings and dividend growth. When a good opportunity comes along, I'll focus a large percentage of assets into that single holding. I'm also maintaining an income portfolio with a little over 180 high yielding companies inside of it as a bit of an experiment.
I was mostly self taught, but do have a partially completed business degree behind me as well. In 2008, I quadrupled my money in the crash, and saw numerous opportunities that I jumped on throughout the next few years. By 2012 my total portfolio was over 50,000% higher than when I had first started.
I was previously an employee at Countrywide Financial Corp., and was present during the mortgage meltdown. I saw firsthand how the company was falling apart from the inside while management continued to believe the organization could be rescued. Because of that experience, I have made bond analysis and studying the effects of inflation a specialty of mine.
Market direction is irrelevant. I look for value. Profitable companies that are low or even fairly priced, so long as the results are dependable. Intrinsic value is subjective, but earnings power matters. I am absolutely fearless of the future and do not make political views a part of my investment process.
I additionally make frequent updates to a blog maintainted at WhoTrades called "Brand Power", you can read and subscribe to it at bandpower.whotrades.com.
Jennifer's areas of expertise include energy trends —their economic and geopolitical implications—and resource sustainability issues. Other interests include shale oil and natural gas, climate change, green and efficient infrastructure, China, India, and the energy-water nexus.
Her work has been published in various academic, policy and business publications such as Far Eastern Economic Review, Economist Intelligence Unit’s Executive Briefing, Journal of Structured Finance, Lloyd's List, D CEO, Energy Trends Insider, Financial Sense, and many others. She has been interviewed for numerous radio broadcasts and news stories, and presented her work at various conferences. From Dec 2010 to April 2013, she was the CEO/President of a global affairs organization focused on cutting edge trends. She organized and moderated panels on global gas, energy security, energy infrastructure finance, and urban development.
She has a master's degree from London School of Economics, and bachelor's in finance/marketing. She is principal of Concept Elemental, a strategic communications consultancy focusing on knowledge work, and includes over fifteen years of financial services industry work. She works with a top University, "translating" cutting edge research as well.
Economic background. Former owner and manager of a commodities trading company. Now retired and trying to understand the financial markets.
Long term investor with an objective of achieving a 10% internal rate of return on a 7-10 years period.
Enjoying Seeking Alpha for all the information and analysis it provides.
I had my first passbook account in the 1960s, and lost money in the 1987 crash. Subsequently, I have run investor chat rooms and an investing blog. I also am a published author and write a film animation blog at animatedfilmreviews.filminspector.com.
I bought my first Manhattan property in 1993 and also own property in Colorado. I enjoy investing in real estate and writing about it. I invest in income stocks such as REITs and consider that my area of expertise.
Oh, and I was mentioned in "Scam Dogs And Mo-Mo Mamas: Inside the Wild and Woolly World of Internet Stock Trading" (2000), by Wall Street Journal reporter John R. Emshwiller, a good guy. It's about the bad old dot.com days.
Mr. Berger is the creator and developer of the YDP screening tool, a chart system and its analysis for screening and monitoring dividend income equity investments. The recipient of Seeking Alpha's Outstanding Performance Award, he also has been Seeking Alpha's #3 ranked Author for Income Investing Strategy & #4 for Utilities.
20 years of sitting in the board room gives me unique insights into Oil & Gas investments and corporate deal making in general. Additionally, he offers a Premium Research subscription service for boosting income while reducing market risk using covered option writing on a dividend income equity portfolio.
Residing in Brazil gives me a local's inside view on the pulse of its economy, politics, investment climate and breaking news. A view of my front yard is available here.
A former Chief Operating Officer, Director, Vice President and General Manger of Oil and Gas for Southern Pacific's Oil and Gas Operations, Business owner, geologist, and cribbage player, I've been an investor for over 48 years (started young at 13) and learned my lessons the way that makes them stick, by hard knocks and both big and little mistakes. Hopefully I can share some of those lessons with others.
I am an American expatriate that decided to retire at age 57 in 2009 and now live in Brazil. As an early retiree I invest for income and manage portfolio risk by screening for strong and reliable historic data along with favorable fundamental and technical current trends.
I spend 6 months/year living at home in Brazil and 6 months/year traveling the world. I have structured my financial positions so that I live virtually tax free with much of my income exempt from US tax since I live ex patriot and a lot of my US derived income over the annual ex-patriate exemptions is held in my tax free ROTH and tax deferred IRA/SIMPLE plans. This enables my tax savings to pay for my 6 months of annual traveling :) .
My investing is for income and appreciation with a balance of low to moderate short term risk and low long term risk. To accomplish this I use quality dividend payors with a long track record of steady or increasing dividends along with slowly appreciating equity prices. I target a 6 to 9 % yield and almost exclusively require a minimum history of 5 years of steady/increasing dividends and no decreases in dividend ever or at least past 10 years. I diversify through sector, country and currency unit the stocks are traded in, and security type (equity, royalty trust, REIT, mlp, etf, and ADRs).
I use covered call writing to enhance my portfolio yield with no added risk. In fact, it lowers the risk substantially. Once I identify a stock I want to own and an entry price for it, I write cash covered puts at or below that entry price (with a minimum of 1%/month time premium. Thus i obtain at least a 12% annualized yield before compounding just from the option premium.
Likewise, I use the sale of cash covered puts to generate income and and generally get an entry point at 5 to 10% below my acceptable entry level price if/when the put stock does get presented. Thus my strategy provides a 12% pre compound yield on cash and entry into stock purchases at a 5 to 10% discount from "retail".
Because I only select stocks that I am willing to hold long term for their reliable dividend yields of > 6%, I am not concerned much with market volatility or short/midterm risk. Indeed, market volatility is my friend since it increases the premiums paid on the options I sell. I also selectively sell covered calls on positions I hold long so as to add to my yield that way while not taking on any additional risk.
This strategy has kept me happily living off my portfolio income and traveling 1/2 the year while my portfolio has been slowly increasing in value even after my harvesting income for living expenses. Of course my income will incrementally increase when social security kicks in for me in a few more years and I may then slightly mofidy my goals and strategies.
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I am a retired investor with market experience going back to the 1960s. I was a software engineer for 42 years, and currently do some part-time consulting, which lets me contribute to a Roth IRA. I am not an accountant and not a financial professional.
My wife and I have established a set of guiding principles for our investment life:
• Change is the only constant in life. Everything in this plan is subject to change.
• Never touch your principal. Wealth is built and maintained by not spending it. Wealth is the primary buffer between ourselves and blind chance.
• Exploit folly, do not participate in it (thank you, Chuck Carnevale). Do not follow the crowd, which is more often than not wrong.
• A portfolio is like a bar of soap – the more you touch it, the smaller it becomes. Do not be a trader.
• Own assets, avoid liabilities. Assets generate income. Liabilities generate expenses.
Based on these principles, we have established two investing goals: 1) sufficient current income with a comfortable buffer, and 2) increasing future income to maintain our buffer.
Our primary investing goal is to generate sufficient current income to cover that part of our living expenses not covered by pensions, with a comfortable buffer. We are retired and depend on investment income to meet a significant minority of our living expenses.
As we age and get closer to the end, current income becomes ever more valuable, and future income becomes ever less valuable. This reality informs all of our investing decisions. However, we know that inflation will cause our income needs to rise, so we also plan for increased future income, which is our second investing goal.
To meet our current and future income needs, we rely on 2 Social Security pensions, 1 private pension, a consulting retainer, income generated by investments, and fully paid up long term care insurance.
It is common to allocate a retirement investment portfolio with some percentage in stocks and the balance in fixed income, such as 60/40. We look upon our pension income as the equivalent of fixed income, with the added benefit that Social Security is indexed to the CPI. In the past we owned no fixed income and had no plans to do so in the future. The future has arrived and we have discovered baby bonds and preferred stocks, and we like the higher current income we can get from these investments. We have therefore started to redirect some of our investment capital into these investments, and as a result our investment income is now greater than it would have been otherwise.
We categorize dividends and interest as income, and capital gains as return of capital, not income. Therefore, our goals are to be met from dividends and interest only.
Investment income currently meets our primary investing goal. We invest in a blend of mostly medium yield (3%-6%) stocks with medium dividend growth, a few high yield (>6%) stocks with no dividend growth, low yield (<3%) stocks with high dividend growth, and fixed income securities with yields in the range of 5%-8% with no growth.
We expect our medium yield and low yield stocks to provide the income growth needed for the future, our second investing goal.
We currently own common stocks, preferred stocks, and bonds. Our portfolio requires regular attention to avoid possible dividend cuts and deletions. As we age, our mental faculties are in decline, and we will become increasingly less able to perform portfolio monitoring intelligently. There will come a time when we will need to use some form of income oriented index ETFs to carry the income generating burden.
We want to behave like landlords and collect rents, but without the risks and demands of owning real estate directly. Dividends and interest are our rental income, and as once-removed landlords we expect to own real estate investment trusts (REITs).
We want our non REIT income to be generated by long-lived, steady companies that provide products and services that we all need regardless of the economy, and thus can be relied upon to provide steady, and steadily growing, income. This requirement points primarily at consumer staples stocks. We own some of the best consumer staples stocks, such as mighty MO, and plan to own one or more ETFs that concentrate on the consumer staples sector of the S&P 500. Our preferred shares are mostly in the REIT sector, with the major exception of the CHS preferreds (CHSCL etc).
• Some of my investing history
During much of my working years I used technical analysis (TA) to invest in individual stocks (I was an early fan of Joseph Granville and I bought an Apple II in 1980 because Granville brought out OBV software for the Apple at that time), and I speculated with short selling and commodity trading. Those were not the best investing decisions I ever made. Later I invested in stock mutual funds and ETFs for total return, with inconsistent results, and no comprehensive plan. Being a software engineer in a lead position left little time or energy for serious investing skills development. In 2005 I had pretty much given up on getting market beating results, and felt that I was getting too old and too close to retirement to continue swinging for the fences, so I decided to buy a variable annuity that guaranteed a minimum return of 6% per year, compounded, with the upside limited only by the performance of the mutual funds offered for investment. I decided to let the insurance company bear the market risk for me. I also had a 401k plan at work to which I contributed the maximum and got the company match. A year or so before 2008 I used a retirement investing projection tool provided by Fidelity, which said the worst returns I could expect in retirement were positive but not spectacular, and the best were indeed spectacular. At that time I was invested in mutual funds and ETFs through my 401k and the variable annuity and had not directly owned stocks since shortly before the start of the great bull market in 1982 (Granville famously missed the whole thing). I thought, with a bit of skepticism but not much, that I was set. We all know what happened in 2008-09. That experience put me off Monte Carlo simulations and Modern Portfolio Theory for life.
When I retired I converted my 401k to a rollover IRA brokerage account and invested in ETFs. I thought I was being appropriately conservative but also ready to capture capital gains by investing in VIG and VCSH.
Then I found Seeking Alpha, and then - thank my lucky stars - David Van Knapp, and the DGI light went on. I had spent most of my adult life thinking I was smarter than most people by relying on TA, and then later letting the insurance company assume market risk. I remember learning about the 200 DMA when I was in my 20s, which is a long time ago, and thinking how revolutionary this idea was and how I should be able to use it to my advantage. Fortunately for me and my family, I also was pretty good at software engineering, so I had a reasonable retirement nest egg accumulated when the time came. With the concepts and methodology of dividend growth investing, and more recently REITs, I now have sleep well at night investments that just keep on churning out increasing income, something that could never be said about using TA.
I started with DGI too late in life to commit totally to low yield, high growth stocks. I hope to capture the double compounding of DRiP investing with that part of my portfolio that is low yield, high growth.
We have recently (Nov 2014) rolled over all of the variable annuities into brokerage accounts. We now believe that we can get sufficient income from our dividend investing strategy, and we want to retain ownership of the annuity capital.
• Tools and Teachers
Tools I use include the CCC list, F.A.S.T. Graphs, Morningstar Premium, the EDGAR web site, and Excel. I get ideas from the many informative articles by (among others) the following (in no particular order): Bill Stoller, Chuck Carnevale, Brad Thomas, Ron Hiram, David Van Knapp, David Fish, Robert Allan Schwartz, Dividend Growth Investor, Dividends4Life, David Crosetti, Tim McAleenan Jr., Reel Ken, Bret Jensen, Alan Brochstein, Chowder, Dane Bowler, Bob Wells, BDC Buzz, Scott Kennedy, Bill Maurer, Darren McCammon, Richard Shaw, Bruce Miller, Preferred Stock Trader, Norman Roberts. Favorite commentators who are not yet authors include Elliot Miller, Paul Leibowitz, mbkelly75, surfgeezer.
I use FAST Graphs heavily for valuation research. Since my pivot toward REITs, FAST Graphs has done a similar pivot. I never consider an investment before first consulting FAST Graphs. Thank you Chuck.
The best investment advice outside of Seeking Alpha have been 'The Intelligent Investor', ‘Securities Analysis’, and 'The Single Best Investment'.
• Some historical portfolio stuff
My DGI portfolio was started on 2011/4/20 with CTL, which I have since sold. It was a beginner's mistake. Subsequent mistakes were MLPs, and to a lesser extent, mortgage REIT common. I did not allow for any circumstance that could cause WTI to fall as far and as fast as it has, so I lost money on MLPs. The prolonged flattening of the yield curve, plus the persistent markdown from NAV for the mortgage REIT commons, has made these unappealing as long term investments. Now I keep my distance from anything that is dependent on commodity pricing, and I invest very carefully in the carry trade. A glaring mistake was selling JNJ when it languished for several years.
Subsequent to my disenchantment with mortgage REIT common, I discovered mortgage REIT preferreds, along with preferreds and baby bonds in general. I have decided that mREIT preferreds are a reliable source of steady income and I own some.
• Some ongoing portfolio stuff
The target dividend growth rate for our entire portfolio was formerly 5%. With our pivot to higher current income at the expense of higher future income, this target is not realistic, and I now hope for 3-4% growth.
I use yield on cost to allocate our investments so that each position in aggregate generates approximately the same amount of income. I learned the basic methodology from a comment on a SA article. SA is a wonderful resource! I have published an SA Instablog that describes the method: http://seekingalpha.com/instablog/902946-be-here-now/4581516-portfolio-allocation-for-equal-income-from-each-position-using-excel
• Current portfolio:
equity REIT: we recently sold some of our health care REITs in favor of data center REITs, which leaves us with: CONE, DFT, DLR, EPR, LTC, NSA, O, OHI, STAG, WPC
consumer staples: we recently sold our positions in most consumer staples to invest in preferreds with much higher current yields, leaving the one stock that should never be sold: MO
financial: GBDC, GSBD, HTGC, MAIN, TCPC
baby bonds: HTGX, NEWTL, TCCA, TPVZ
preferred: AGNCB, AGNCP, AHT-F, AHT-G, CHSCL, CYS-B, DFT-C, DLR-F, GAB-G, GGZ-A, HT-D, LXP-C, MNR-C, NLY-C, STAG-B, VER-F
Prospective additions: none currently; I plan to buy more CHSCL at the right price
Darren owns ProActive Financial LLC where he provides Financial Planning and Analysis consulting services. Darren's education includes a Bachelors in Economics, an MBA, and a Certificate in Personal Financial Planning.
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MicroCaps.com was founded on the emphasis to provide 100% Independent Research to investors. We have two subscription products focused on finding undiscovered NanoCap and MicroCap Ideas. Then we have an Ala Carte Due Diligence product that digs deeper for hedge fund managers since many of them don't have the time to do so. We also have an active investor blog where passionate analysts contribute content to build their reputations within the marketplace.
I reside in the greater Detroit area. During the winter you will find me on the mountain chasing the fresh powder.
Retired English prof & scuba diver (instructor certification) living on investment income, pension and Soc Sec. Now entering my geezer years and every day is like Christmas. More of an income/dividend investor, especially with closed end funds and preferreds, but pay intense attention to moving averages on etfs. On the fringes I speculate with options from time to time -- but I'd have more money today if I'd never heard the words "calls and puts". Political beliefs tend to be center-right, but growing weary of it all. Active member of the Morningstar discussion groups. Happily married to my beautiful, mail-order Latina bride; just celebrated our 12th anniversary. Grown daughter from first marriage happily got a good job at last and is now off dad's payroll .... almost. Now living the best years of my life. Other than travel and veterinary bills, I try (not very successfully) to live simply. The greatest luxuries are leisure to read and no financial worries. The greatest lament: slow physical deterioration and losing friends as they drift away. Discussions with intelligent people on the internet are a great help.
Favorite recent books: Tom Wolfe's A MAN IN FULL. Steven Gains' PHILISTINES AT THE HEDGEROW, MY SOUTHERN JOURNEY by Rick Bragg. Lastly I'll add SECONDHAND TIME by Svetlana Alexievich, tragic oral histories from the last of the soviet people.
(The photo is of me outside a Paris cafe, watching the nightlife pass me by.)
50/50 Portfolio; Dec 2016 YOC 10.0% about 0? months before retirement, dividends at 72% of my gross employment income. I created a High Yield Investment dividend generator that contains a 50% weighting between agency mortgage REITs and BDCs.
**** Home of the POT (Portfolio Online Tracking) tool.
My current investment method started January 2014 to concentrate on high yield equities that put more importance on income and less on capital appreciation. Investment purchase is based on each individual stock generating a minimum dividend per year. As long as stocks are generating income to meet or exceed my minimum dividend they will not be added too or removed. Currently all dividends are reinvested back into stocks that require their dividends to be increased to meet my minimum yearly dividend. We will see how this works over the years.
1) The REIT sector consists of residential and commercial property investments. What better way to invest in hundreds of properties without actually owing the physical property.
2) The BDC are Business Development Companies that invest in hundreds of businesses that create products and employment opportunities. Here again the BDC does all the research to lend to businesses and the investor does not have to actually own the physical business.
3) The investment selection is based on this principle; BDCs outperform when markets are going up (positive correlation), and mREITs, outperform when markets are going down (negative correlation). This is based on a research study performed by Wells Fargo titled “The 50/50 Portfolio, Milton Friedman’s Only “Free” Lunch. And runs through an analysis in demonstrating how combining BDCs and Agency mREITs leads to sustainable long-term alpha throughout cycles.
4) Capital gain does not apply to my investment method since this implies the anticipation of buy and hope for price increase in order to sell at a profit. I have already stated the HYBRID method holds investments based on cost basis and dividends per share as the method of yearly appreciation.
5) A bird in the hand is worth 10 in a bush, applies to this investment style. The return I get on my investment is what counts toward the recapture of my initial investment cost. I can calculate how many years it will take before my initial cost will be repaid and that investment now becomes perpetual income. I’m not a trader, just a buy, hold and collector (dividends * shares). I can’t count on capital appreciation since all investments will increase and decrease in any market cycle. Dividends I can count on as payment for investment risk that accumulates over time.
6) Update 20140612, Portfolio Plan; Build a portfolio that generates income 150% of minimum required. Example I need 10K from 30 stocks made up of REITs and BDCs. Diversification is already built into each stock because each one contains hundreds of properties and business, so 30 stocks is plenty. Now to generate 10K minimum income I will establish a 50% margin of error (or income default). So to get 10K minimum I will need 15K of income (10K * 1.5). This means each stock is required to generate at least $500/yr each. I can withstand a 33% hit in the dividends and still meet my 10K minimum requirement. That is 10 stocks can go to zero and the remaining 20 will create my minimum 10K.
7) Update 20140729, I do not invest in individual companies, too risky. The following is the logic behind this statement compared to BDC investments. If I invest in 30 dividend companies, anyone of them may have financial problems and drag down the portfolio very quickly. The Due-Diligence (DD) would take all my time to analyze past performance and make judgments for the future, and current events can tank a stock fast. Every company needs money to run operations and for capital improvements and this is where BDCs come into play. The individual company has to borrow funds and BDCs are there to provide the capital. So the BDC is like a bank to lend money. Each BDC may contain hundreds of separate loans going to hundreds of different companies making the BDC less risky than owning individual companies. If one of the companies that the BDC has a loan with goes bankrupt, the BDC will recover some if not all of the loan monies lent to the failed company, and the BDC will continue with a very small disruption to its bottom line. So in effect owing BDCs that contain hundreds of investments (loans to companies) earning a consistent repayment to principal and interest is safer than just owning an individual low yielding company. When you invest in a BDC or REIT you are investing in the managers that perform the DD by analyzing the companies first before loaning them money to run their business.
Owing 10 or more BDCs is like having investments in thousands of companies with a very low risk of any one individual company causing portfolio damage, while your portfolio grows faster with the high yields from BDCs and REITs.
8) I have developed FREE Excel applications for planning retirement during the accumulation and distribution phase, the links are in my articles, (Dividend Growth Calculator... and Predicting Retirement...) As I develop additional Excel 2010 applications I'll make them available to all SA members. We are all in the same boat trying to achieve a better life in retirement.
First of all, let me state that I am NOT a CPA, attorney, nor financial planner. I am just a relatively savvy stock investor who wants to help the general public find their way through some of the maze of stock investing. I am 85 years young, although you might not think so from my accompanying newest picture. Yes, that is reallly me, age 84 and 11 months. I have been investing in stocks and bonds for about 60 of those years. It is now my main hobby. I invest mainly in high-yield stocks rated A- or lower down to B. I got stung a few years ago when Lehman Brothers, rated AAA, went down the tubes, costing me over $25,000, so decided to never again get involved with highly rated (over-rated) stocks that paid only small dividends. I prefer the high-yield stocks like BDCs, REITs, and MLPs from which I can get paid NOW, even though I actually expect to last another 20 years or so. I have developed my own stock investing system that I call MRHY (medium risk, high yield). I took early retirement in 1987 from a job as manager of a Computer Systems and Programming department at a large life insurance company. I am the holder of a CDP (Certificate in Data Processing) from the Data Processing Management Association (DPMA). During my working years, I frequentlly worked closely with the company actuaries and accountants. I even took some actuarial classes to be able to work with the actuaries in their own language and skills. Those experiences, plus my computer skills and high IQ, have alllowed me to build my stock portfolio from less than $300,000 in 1987 to over $600,000 in 2007. I also have the benefits of ~95% long term retention of whatever I read or hear, which is very useful in stock market investing. I inherited $everal hundred thou$and in 2011, which I have invested in medium-risk, high-yield stocks (MRHY), so that my total stock portfolio is now well over $1.25 million. The above Bio was posted a couple of years ago and has now (October, 2015) been updated. My stock holdings are now over $1.5 Million and my annual dividend income is now just over $175,000. I also collect income from SSA, 3 annuities that my deceased wife and I started receiving when we retired, and a restaurant seating about 120 that I bought in November, 2014, for a total annual income of about $240,000. Folks, if I can do it, you can too. All that it requires is a good brain with an understanding of the financial world, mathematics, and a little actuarial science, plus a high risk tolerance!
I'm the lead investment research analyst for income and dividend investing at Investors Alley, an independent investment research service. My primary role is editor of several investment advisories bringing deep dive research and actionable income and dividend investment recommendations to investors. These advisories include The Dividend Hunter, 30 Day Dividends, and Tax-Smart Income Hunter.
Prior to joining Investors Alley, I was a stock broker, a Certified Financial Planner, and an F-16 fighter pilot and flight instructor with the United States Air Force. In addition to my primary duty of flying the F-16 to defend our nation's skies I was an instructor in the F-16 Flying Falcon as well as the OV-10 Bronco. During my time in the service I was stationed at various military locations in including Osan AB, Korea, Patrick AFB, Florida, and Nellis AFB in Las Vegas. I graduated from the United States Air Force Academy with a degree in mathematics.
It was during those years when I was a Certified Financial Planner and helping families and individuals plan their finances and make wise investment decisions that found my second passion in life: investment research. (Flying was and still is my first.)
My area of specialty is evaluating income generating investments to find the combination of sustainable and growing dividends, special dividend opportunities, and share price appreciation driven by management's commitment to dividend growth. I have a particular emphasis on master limited partnerships, business development corporations, and real estate investment trusts.
I've previously written for USA Today, The Motley Fool, eHow, SFGate, Chron.com, Wikinvest.com, Moneynews.com, iStockAnalyst, among others, and have contributed vast firsthand research to a major provider of data on master limited partnerships, another area of extreme interest to me. Along with my duties with Investors Alley I'm a regular contributor to Seeking Alpha.
In addition to the articles posted here on Seeking Alpha you can find my investment analysis on the Investors Alley website and the weekly newsletter, The Market Cap.
Ph.D. economics and Finance MBA finance
Globe Institute of Technology
Professor – Economics and Finance, Chair of Business Department
Colorado Technical University
Adjunct Professor – courses: Applied Managerial Finance (Graduate Level), Microeconomics, International Finance
European School Of Economics (New York Campus)
Adjunct Professor – Economics (Graduate Level) Courses taught: Microeconomics
Metropolitan College of New York
Adjunct Professor – Economics, Banking and Finance
Courses taught: History of Economic Thought, Macroeconomics, Money and Financial Institutions
World Gold Council
New York, NY
• Constructed econometric models relating to gold's role as a portfolio diversifier primarily aimed at institutional investors.
• Focused on models of the embedded optionality of gold in terms of its relation to other investment assets and economic fundamentals such as inflation and business conditions.
Founder and President, Internet Startup company with polling and investment advice websites.
Fundamental Portfolio Advisors, Inc.
Chief Portfolio Strategist – President
• At the predecessor company I started the New York Muni Fund, the first single state triple tax-free municipal bond fund.
• I took the fund from a one-employee start-up where I performed every function to a family of mutual funds which had five funds with total assets above $300 million and which did all of its distribution, accounting and transfer in-house.
• I wrote the initial prospectus and was responsible for managing the portfolios of what eventually grew to be a family of 5 mutual funds.
• Was chief economist for parent company’s brokerage affiliate.
• Involved on the buy-side in the development and monitoring of various structured municipal finance products. Worked with major issuers such as New York City and major investment banks such as Merrill Lynch and Goldman Sachs.
• Designed and submitted a U.S. Patent Application for a portfolio management system for mutual funds involving derivatives.
Note: In 1996 Fundamental Portfolio Advisors and myself were subject to civil litigation by the SEC which resulted in deregistration and a permanent bar from the securities industry.
A. Gary Shilling & Co.
Senior Economist – Vice President
Economic consulting, modeling and forecasting. Both macro and micro.
• Clients included: Emerson Electric, Bethlehem Steel, Castle & Cooke, Cooper Industries and the U.S. Department of Transportation.
• I was the author of the 1979 study commissioned by the U.S. Government Interstate Commerce Commission, which calculated the expected economic impact of trucking deregulation.
White, Weld & Co, Inc.
• White, Weld was the sixth largest investment banking and brokerage firm when Merrill Lynch bought it.
• Extensive work was done on the All-American Pipeline Proposal to tap the Alaskan Gas Reserves.
• The economics department of White, Weld formed A. Gary Shilling & Co. at the time of the Merrill Lynch merger.
American Stock Exchange
New York University
June 1978 Ph.D.
• Ph.D. dual field, economics and finance.
• Doctoral dissertation was in contingency claims (options) theory
June 1973 MBA with concentration in economics and finance
NYU Engineering School
June 1971 Bachelor of Science - Nuclear Engineering Tau Beta Pi
Analysis of the Embedded Inflation Optionality in Gold Prices. World Gold Council, 2000. New York, N.Y.
The Economic Impact of Trucking Deregulation. Interstate Commerce Commission, 1979, Washington D.C.