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  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Cal Boomer,

    Go one step further and use Morningstar to compare the 3 year compound annual total return of AMLP to MLPI. AMLP is 15%, MLPI is 22.6%. What you are missing is an additional 7.6% of compound annual total return. Why would you knowingly do this?
    Aug 20 01:10 PM | 2 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Adam,

    Do you have an opinion about the fixed maturity bond ETFs?
    Aug 20 01:04 PM | Likes Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    I accumulate dividends from MLPs, mREITs, BDCs, and ETNs, and DRiP my other dividends, all of which are C corps except KMR and LNCO. I keep a list of stocks I want to buy, and at what price. I use the accumulated dividends to either buy when opportunities present themselves, or to fund living expenses.
    Aug 20 12:59 PM | 2 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    PriusBob,

    If you are asking me, my portfolio is in my profile.
    Aug 20 12:16 PM | Likes Like |Link to Comment
  • Kinder Morgan: What Now? [View article]
    nicholas,

    You are incorrect. It is a tax-free exchange.
    Aug 20 11:03 AM | 1 Like Like |Link to Comment
  • High-Yield BDCs For Q3 2014: Part 3 [View article]
    jasneskis,

    The reinvestment issue is a problem caused by your broker. Have you shopped around for a broker that allows reinvestment? I am in the process of doing this since my broker imposes the same restriction.
    Aug 20 11:00 AM | Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    I share your view of mREITs. We are in a distinct minority.

    I have read many comments (and articles) that claim that the mREITs were destroyed in the financial crisis. That is true for those that owned subprime mortgages exclusively, such as Thornburg, but it is demonstrably not true for the agency mREITs. During 2008 and 2009, (NYSE:NLY) increased its dividend, while uninformed investors sold it like crazy, creating a fantastic bargain for those that understood the agency mREIT model.
    Aug 20 10:54 AM | 2 Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    According to Morningstar, the 3 year total return of AMLP is 15%, MLPI is 22.6%, a difference of 7.6%. There is the penalty that Ron is talking about.

    Why would you own AMLP in preference to MLPI in an IRA? It makes no sense.

    Better yet, the 3 year total return of MLPL is 48%. Why would you own AMLP in preference to MLPL in an IRA? Makes even less sense.
    Aug 20 10:45 AM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Ron,

    True, LINE is not an MLP, it is an LLC that chooses to be taxed like an MLP.
    Aug 20 10:38 AM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    MLPL does not have this issue. It is an ETN, i.e. a bond, and as such it pays interest. The only expenses are the fees stated in the prospectus supplement, which are the cost of the leverage to UBS plus a very low tracking fee. Just like any bond, there is no hidden tax liability.
    Aug 20 10:37 AM | 2 Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    >your IRA cannot distinguish "yield" from "capital appreciation". Your IRA only cares about "total return".<

    That is a fact that took me over 3 years of retirement investing to digest and really own.

    Why is this a fact? Your RMDs are based on the total value of your IRA at year end. How that value is achieved is irrelevant.

    I have had to start rethinking how I invest my IRA because of this realization.
    Aug 20 10:33 AM | 2 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    "I suspect the higher yield will produce more income over time than the higher growth."

    I have a spreadsheet that compares two dividend payers.

    Example 1: stock #1 pays 3% and grows 10% per year, stock #2 pays 10% and grows 3% per year. Total dividends paid by stock #2 exceed total dividends paid by stock #1 for 28 years. After 28 years, stock #1 exceeds stock #2.

    Example 2: stock #1 pays 3% and grows 10% per year, stock #2 pays 7% and grows 4% per year. Total dividends paid by stock #2 exceed stock #1 for 23 years, after which stock #1 exceeds stock #2.

    For a retired person like me, these studies demonstrate that holding a low yield, high growth dividend portfolio in retirement is a good way to reduce your income. I own mostly high yield low growth dividend payers, with a minority of low yield high growth dividend payers. This allows me to have a portfolio current yield of 6.7%, and yield growth of 6.6%.
    Aug 20 10:24 AM | 10 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    surfgeezer,

    A leveraged play on MLPs is MLPL. I own it and BDCL.
    Aug 20 09:55 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: What Now? [View article]
    Just a clarification. No ETN will be required to sell anything. ETNs are unsecured debt instruments, emphasis on 'unsecured'; there is no basket of securities behind an ETN. For example, MLPL is a 2x leveraged ETN that is linked to the performance of the Alerian MLP Infrastructure Index (AMZI), but UBS is under no obligation to use the proceeds from the sale of MLPL shares to invest in anything in the index.
    Aug 19 04:39 PM | 4 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    My experience has been that it is possible to get both high yield and decent dividend growth. The current yield of my portfolio is 6.7%, and the one year weighted average dividend growth rate is 6.6%. I don't yet have longer term dividend growth rates because a few of my holdings have not existed for long enough to have that much dividend history.

    My portfolio is in my profile. I don't show my market value weightings (they change daily), but my largest holdings currently are KMI+KMR (soon to be only KMI), PM, MO, BBEP, VNR, and AGNC.
    Aug 19 04:23 PM | Likes Like |Link to Comment
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