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  • Main Street Capital: An Investment For All Interest Rate Environments [View article]
    Bart,

    We all make mistakes, especially me!

    After writing the above comment, I discovered that I had used the opening MAIN quote for PSEC. This makes a big difference. Instead of PSEC returning $0.69 for each initial dollar invested, it has actually returned $0.60.

    These numbers speak to the long term effect of shareholder friendly internal management vs management friendly external management.
    Jun 22, 2015. 03:01 PM | 1 Like Like |Link to Comment
  • Main Street Capital: An Investment For All Interest Rate Environments [View article]
    BartAtTheRanch,

    I also work with MAIN data, in a spreadsheet. You found an initial closing price for MAIN on 10/07/2007 as 14.88. That was the open, the close was 14.90, which is the number I use.

    One of the studies I maintain is a comparison of the total dividends paid by MAIN and PSEC, not reinvested, for the same dollars invested in each, since the first quote for MAIN. MAIN is newer so that is where a fair comparison must start. Over that time period, you would have received $0.98 in dividends from MAIN for each $1 invested. PSEC would have paid you $0.69 in dividends for each $1 invested.
    Jun 22, 2015. 01:11 PM | Likes Like |Link to Comment
  • Scanning The SA Family For Alpha: Daskapital1000 [View article]
    an10,

    I am definitely interested. Maybe someone younger with better functioning wetware can tackle this.
    Jun 21, 2015. 08:06 PM | 2 Likes Like |Link to Comment
  • Do Buybacks Benefit Dividend Growth Investors? [View article]
    Robert,

    I read Tim's article and then put together a spreadsheet to see how the 10 worst buybacks had fared since the article was published. All but 2 are still substantially in the red. I posted a comment with the results[1]. Surprise - RRD is in the black.

    [1] http://bit.ly/1BFxdXQ
    Jun 21, 2015. 07:56 PM | 2 Likes Like |Link to Comment
  • The 10 Worst Stock Buybacks Of The Millennium [View article]
    Jason B,

    This article itself, and then your comment about C, got me wondering how all of these companies have done since this article was published.

    I created a quick and dirty spreadsheet to back-calculate a single price for each stock that represents what it theoretically would have been if the buybacks had all happened at once. The difference between the market value at buyback and the market value as of this article's date is a percentage that I applied to the closing price as of this article's date, giving the theoretical price at buyback. Of course there are problems with this procedure so take it for what it is.

    I then compared the most recent closing price to the theoretical price at buyback. Only two of these stocks are currently priced above their theoretical price: EA (+52%) and RRD (+13%). All the others are substantially below their theoretical price, ranging from HIG (-57%) to AIG (-94%). C is -91%, so although C was at an insanely low price at the time, it has not improved by much since then.
    Jun 21, 2015. 07:45 PM | 2 Likes Like |Link to Comment
  • Main Street Capital: An Investment For All Interest Rate Environments [View article]
    Off hand I do not, but if I wanted to know, I would search their web site for investor presentations, and I would read their SEC filings.
    Jun 21, 2015. 06:32 PM | Likes Like |Link to Comment
  • Do Buybacks Benefit Dividend Growth Investors? [View article]
    Robert,

    Thanks for that link. Bookmarked (and thank you Tim).
    Jun 21, 2015. 04:57 PM | 1 Like Like |Link to Comment
  • After A Recent 20% Pullback, Health Care REIT May Be Ready To Rise [View article]
    Standard deviation is a much better measure of volatility than beta. Some comparisons of 3 year STD:

    HCN: 19.57
    MCD: 10.71
    MLPL: 26.09
    OHI: 23.39
    PG: 13.57
    SPY: 8.45
    VTR: 20.38

    Source: Morningstar
    Jun 21, 2015. 12:39 PM | Likes Like |Link to Comment
  • Scanning The SA Family For Alpha: Daskapital1000 [View article]
    John Foster,

    I also need to have the dividend growth in my TIRA exceed the RMD growth for as long as possible. As one gets older, this becomes more difficult. The percentage growth in the RMD is upwards over the long term, even though some year on year growth rates are less than the previous year's.

    The percentage growth in the RMD distribution percentage starts at 3.4% at age 71 (from 3.65% to 3.77%), rises to 4.28% at age 80 (from 5.13% to 5.35%), and then to 5.26% at age 90 (from 8.33% to 8.77%).

    I think there is a realistic chance that my wetware will not be functioning well enough at age 90 to allow me to have a portfolio total current yield of 8.77%. I can easily see yield on cost hitting that number, but not current yield. Thus I expect that there is a very good chance that I will be distributing not just dividend cash but also capital.
    Jun 21, 2015. 12:20 PM | 2 Likes Like |Link to Comment
  • Will The Fed's Rate Hike Kill REITs? [View article]
    Is there any way to compare dividends paid - not current yield - to the 10 year Treasury?

    It is easy to generate a chart that compares VNQ price to the 10 year Treasury yield[1], but if you are interested only in the income generated, then what you want to see is a chart comparing total dividends paid by VNQ (or your favorite REITs) to the 10 year Treasury yield (or whatever other yardstick you think is appropriate).

    We have seen some fairly wide price fluctuations in REITs recently, starting with the taper tantrum. I have owned individual REITs through all of it, and my REIT income has only increased. From my perspective as an income investor, it was all nothing but noise.

    [1] http://on.mktw.net/1Gf...
    Jun 21, 2015. 11:19 AM | 5 Likes Like |Link to Comment
  • Scanning The SA Family For Alpha: Daskapital1000 [View article]
    RS,

    I did not know that authors who opt in must upgrade their free articles. That is a definite plus for all of us. I had assumed the worst, that participants were devoting less effort to their free articles, and I see now that I was not only wrong but more wrong than I might have imagined.
    Jun 21, 2015. 10:50 AM | 4 Likes Like |Link to Comment
  • Which BDCs To Buy After Selling Prospect Capital? [View article]
    You need to learn about weighted average cost of capital (WACC) and how it affects BDC profitability.
    Jun 20, 2015. 09:24 PM | Likes Like |Link to Comment
  • Which BDCs To Buy After Selling Prospect Capital? [View article]
    rafraf,

    RumbaGuy was making a prediction about the future 30 years, not about the past 30 years.
    Jun 20, 2015. 05:50 PM | Likes Like |Link to Comment
  • Which BDCs To Buy After Selling Prospect Capital? [View article]
    RumbaGuy,

    "Unlike PSEC, MAIN makes money off of their shareholders."

    Please explain how you reached this conclusion. In my personal experience, neither MAIN nor PSEC has made money off of me.
    Jun 20, 2015. 05:49 PM | 1 Like Like |Link to Comment
  • Dividend Smackdown: REITs Vs. Utilities [View article]
    That was definitely a typo. Anyone can check the 10 year Treasury yield here: http://bit.ly/1Jsj1Eq
    Jun 20, 2015. 05:33 PM | 1 Like Like |Link to Comment
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