Don't Get Suckered By This Popular High-Yield Investment [View article]
mobilepreacher,
GOOD like all REITs is valued on its Funds From Operations (FFO), not GAAP EPS. GAAP metrics are misleading for REITs.
Why the author would single out GOOD as a 'good' REIT investment seems strange to me, considering that it has not raised its dividend since 2008, and REITs are primarily income investments.
Not All Dividend Increases Are The Same: 2 Dividend Trends That Can Make A Difference [View article]
A dividend machine is what I am looking for. High current yield, high sustainable dividend growth, sleep well at night business.
What? There is no such thing? How could that be?
OK, I'll compromise. I'll take a mix of high current yield/low growth (HYLG), medium yield /medium growth (MY/MG), and low yield/high growth (LYHG). High yield is >8%, medium yield is >5%, low yield is >3%. Distribute funds on a bell curve. Be vigilant.
Don't Get Suckered By This Popular High-Yield Investment [View article]
Bruce,
"NLY got it wrong a few times and their stock cratered."
When exactly did this happen? Looking at a long term chart of NLY, I do not see evidence of when they 'got it wrong'. What I do see is the effects of an inverted yield curve, and the effects of 'getting it right' by continuing to pay a dividend when that happened.
See my reference to the dynamic yield curve above, and then compare to this chart of NLY: http://bit.ly/100EnNm
Your example of gold in 1980 is not cherry picking for this gold dupe. I bought then and at Friday's close I have an annual return of 1.8%. But no dividends, thank you! Just a non-productive lump of metal. :-(
I own a Sodastream charger, and I like the fact that I don't add plastic bottles and aluminum cans to my recycle stream, but I think it is a very big stretch to think it could ever have a meaningful impact on KO or PEP or DPS.
Interesting that it goes back 35 years. Also interesting that it never came to my attention then, but recycling was not a big deal or any deal then either. I think that can be interpreted several ways.
Is This Security A Safe Haven? Absolutely Not [View article]
Look at what happened to NLY's dividend and share price when the yield curve last went negative which was 2006: http://bit.ly/15UUZ0u
That is not what I would call safe.
During that same time, NLY had a compound annualized total return in the range of 6.2% (Morningstar) to 9.5% (FAST Graphs and longrundata.com). If you can tune out the news when short rates exceed long rates (but not by a lot) then in the long run you can do well with NLY. But again, that is not what I would call safe.
Moody's And Preferred Stock Investors View Same Market But See Very Different Risks [View article]
Every time I read one of your articles I marvel at the clarity of your explanations.
I am not a preferred investor but if I were, I would look to your articles for guidance. Is there any non-laborious method for finding and analyzing preferreds? Something analogous to the CCC list? How would a beginner, begin?
Don't Get Suckered By This Popular High-Yield Investment [View article]
This author used a singularly inappropriate example of what happens when interest rates rise. The last time the yield curve went negative, 2006, NLY continued to pay a reduced dividend. It did not go out of business and did not eliminate its dividend.
"Faulty reasoning. Your example seems to assume gold will not gain in value. If you believed that 10 years ago you missed an opportunity for some significant gains."
Here is my real world experience. I bought gold when it hit its peak in 1980 at about $800. Spot gold closed at $1462 last Friday. Compounded over 33 years, that is an annual compounding of 1.84%.
I don't know what KO's annualized return is for 33 years, but I do not doubt that it is a lot better than 1.84%.
Twenty Dividend Stocks I Recently Purchased For My IRA Rollover [View article]
Don't Get Suckered By This Popular High-Yield Investment [View article]
GOOD like all REITs is valued on its Funds From Operations (FFO), not GAAP EPS. GAAP metrics are misleading for REITs.
Why the author would single out GOOD as a 'good' REIT investment seems strange to me, considering that it has not raised its dividend since 2008, and REITs are primarily income investments.
What Happens When You Sell An MLP? [View article]
If you really want to be informed about MLPs, start here: http://naptp.org
Not All Dividend Increases Are The Same: 2 Dividend Trends That Can Make A Difference [View article]
HY/LG: AGNC, PSEC, DX, QRE, PSEC, TWO, CYS, CMO, BBEP, NMFC, TCPC, VNR, ARCC
MY/MG: TCAP, HTGC, LINE, KMR, SUNS, GBDC, LNCO, OHI, MWE, LO
LY/HG: RAI, MO, HTA, DLR, EPD, ETE, HTA, KMI, INTC, PM, WU, PG
Those are all current yield. Using my YOC, then DLR, EPD, ETE, HTA, KMI, MO, PM, RAI are MY/MG.
Not All Dividend Increases Are The Same: 2 Dividend Trends That Can Make A Difference [View article]
What? There is no such thing? How could that be?
OK, I'll compromise. I'll take a mix of high current yield/low growth (HYLG), medium yield /medium growth (MY/MG), and low yield/high growth (LYHG). High yield is >8%, medium yield is >5%, low yield is >3%. Distribute funds on a bell curve. Be vigilant.
Don't Get Suckered By This Popular High-Yield Investment [View article]
"NLY got it wrong a few times and their stock cratered."
When exactly did this happen? Looking at a long term chart of NLY, I do not see evidence of when they 'got it wrong'. What I do see is the effects of an inverted yield curve, and the effects of 'getting it right' by continuing to pay a dividend when that happened.
See my reference to the dynamic yield curve above, and then compare to this chart of NLY: http://bit.ly/100EnNm
Is This Security A Safe Haven? Absolutely Not [View article]
With a beta of .15, NLY has very little to do with the market.
Don't Get Suckered By This Popular High-Yield Investment [View article]
http://bit.ly/15BMN4V
http://1.usa.gov/wxWTJ2
Gold Vs. Coca-Cola [View article]
Gold Vs. Coca-Cola [View article]
Interesting that it goes back 35 years. Also interesting that it never came to my attention then, but recycling was not a big deal or any deal then either. I think that can be interpreted several ways.
Is This Security A Safe Haven? Absolutely Not [View article]
That is not what I would call safe.
During that same time, NLY had a compound annualized total return in the range of 6.2% (Morningstar) to 9.5% (FAST Graphs and longrundata.com). If you can tune out the news when short rates exceed long rates (but not by a lot) then in the long run you can do well with NLY. But again, that is not what I would call safe.
Moody's And Preferred Stock Investors View Same Market But See Very Different Risks [View article]
I am not a preferred investor but if I were, I would look to your articles for guidance. Is there any non-laborious method for finding and analyzing preferreds? Something analogous to the CCC list? How would a beginner, begin?
Don't Get Suckered By This Popular High-Yield Investment [View article]
Gold Vs. Coca-Cola [View article]
Gold Vs. Coca-Cola [View article]
"Faulty reasoning. Your example seems to assume gold will not gain in value. If you believed that 10 years ago you missed an opportunity for some significant gains."
Here is my real world experience. I bought gold when it hit its peak in 1980 at about $800. Spot gold closed at $1462 last Friday. Compounded over 33 years, that is an annual compounding of 1.84%.
I don't know what KO's annualized return is for 33 years, but I do not doubt that it is a lot better than 1.84%.