Consumer Staples: Like Apple At $700 Or Gold At $1900 [View article]
I am debating if I should sell my position in GIS. I bought in early November, and my position is up 24% not counting dividends. That is roughly 6 years' worth of dividends. I bought for the long term dividend growth, but at a P/E of 19.3, there is an opportunity cost.
Given that GIS is one of the most solid companies you can own, I've decided to refer to one of my favorite stock market adages:
"An investment portfolio is like a bar of soap; the more you touch it, the smaller it gets."
Kinder Morgan Energy Partners: Good Combination Of Yield And Growth [View article]
I'm not sure I agree that KMP would be the pick. If you want current income from KMR, sell the number of shares that are distributed. You will pay capital gains tax at most, and if you are port of the 47%, you will pay no tax. If you own KMP, you will not pay tax for that portion that is ROC, and you will pay ordinary tax on the rest. However, if you hold KMP long enough, your basis will drop to zero, and at that point you will pay capital gains tax on the ROC portion of your distribution.
Each individual must evaluate this for themselves. I don't think a blanket assertion works.
The Truth About The Impact Of Dividend Reinvesting [View article]
There are any number of classic DGI stocks that are not currently over-valued. You just have to keep looking and stay on your toes. Examples: AFL, TEVA, WU, KMP, KMR, EPD.
A slide in commodity prices turns into a rout: GLD -3.2%, SLV -4.2%, USO -3%, Copper (JJC) -2.2%. At $1,506/oz., gold is threatening a $1,400 handle for the first time in nearly 2 years. After an early bounce, stocks move to session lows, the S&P 500 -0.7%. The long bond gains three-quarters of a full point, its yield down to a 2013 low of 2.93%. Update at 11:05: Now off 4.3%, gold slips below $1,500. [View news story]
Are These Natural Gas Stocks Posed For Big Gains? In Short ... Yes [View article]
Interesting that you are applying GAAP metrics to an MLP (MWE). EPS is not the correct valuation metric for a parntership. The correct metric is distributable cash flow (DCF). Also, MWE does not pay a dividend; it pays a distribution, which is very different from a dividend. I suggest you learn more about MLPs in general before publishing.
Congratulations on your first Seeking Alpha comment! And welcome to the vibrant and informative community that it is.
I hope for your sake that FGP can continue its dividend policy into the distant future, but I think you are taking a big risk. FGP looks a lot like a Ponzi scheme. It does not generate enough cash to pay the distribution, so it borrows. That cannot go on forever. Please go back and read what Bryce_in_TX says.
How To Be Protected Before The Next Market Crash [View article]
Regarding your first scenario, I have more suggestions. The places to double down are on life's necessities, those things that we will all buy regardless of the economic conditions. In addition to utilities, we all need 1) food (GIS, HRL, KO, PEP), 2) fast food (MCD), 3) personal hygiene (PG, CL, CLX, KMB), 4) low cost retail (WMT, COST), and 5) for those addicted to tobacco, more of the same (LO, MO, PM, RAI). Or simply buy XLP and XLU.
Yes Virginia, There Is A Dividend Growth ETF Portfolio That Delivers [View article]
Whether or not owning both KMI and KMR makes sense depends on the unique situation and goals of each investor. A blanket assertion is not useful.
I own both so that I can get the benefit of the IDR high splits between the GP and LPs of Kinder Morgan. The IDR high split limits the distribution growth of KMP/KMR, and the beneficiary is KMI, which as a result has a much higher dividend growth rate. So it really does make sense FOR ME.
3 Healthcare REITs With Mispriced Risk [View article]
After reading this article I am starting to wonder the same thing. My combined position in OHI is up 61%, and my first purchase is up 119%. The problem is that the alternatives are also up strongly.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
If only there were such MLPs. Neither KMR nor EEQ is an LNCO equivalent. Both pay stock distributions and do not do any tax reporting - no 1099 and no K-1 - so neither do you until you sell, then it is all capital gain.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
I'm not smart enough to know how accurate your conclusion is, so I await the inevitable shower of abuse, but I hope in the end that you are correct because what you say seems reasonable.
The part I am not sure about is the capital gains in this:
"What if in a given year LINE's distribution is part earnings and part ROC. Well, when LNCO recycles that distribution to you, the part that would have been income is capital gains and the balance is ROC."
Consumer Staples: Like Apple At $700 Or Gold At $1900 [View article]
Given that GIS is one of the most solid companies you can own, I've decided to refer to one of my favorite stock market adages:
"An investment portfolio is like a bar of soap; the more you touch it, the smaller it gets."
Kinder Morgan Energy Partners: Good Combination Of Yield And Growth [View article]
Each individual must evaluate this for themselves. I don't think a blanket assertion works.
The Truth About The Impact Of Dividend Reinvesting [View article]
The Truth About The Impact Of Dividend Reinvesting [View article]
Is Gold Foreshadowing A Stock Market Implosion? [View article]
More Bad News For Stock Buybacks [View article]
The fact that LO has the same philosophy is one of the factors that convinced me to start a position recently. Long both LO and PM.
A slide in commodity prices turns into a rout: GLD -3.2%, SLV -4.2%, USO -3%, Copper (JJC) -2.2%. At $1,506/oz., gold is threatening a $1,400 handle for the first time in nearly 2 years. After an early bounce, stocks move to session lows, the S&P 500 -0.7%. The long bond gains three-quarters of a full point, its yield down to a 2013 low of 2.93%. Update at 11:05: Now off 4.3%, gold slips below $1,500. [View news story]
Are These Natural Gas Stocks Posed For Big Gains? In Short ... Yes [View article]
Ferrellgas 'Distributable Cash Flow' Really Isn't [View article]
Congratulations on your first Seeking Alpha comment! And welcome to the vibrant and informative community that it is.
I hope for your sake that FGP can continue its dividend policy into the distant future, but I think you are taking a big risk. FGP looks a lot like a Ponzi scheme. It does not generate enough cash to pay the distribution, so it borrows. That cannot go on forever. Please go back and read what Bryce_in_TX says.
How To Be Protected Before The Next Market Crash [View article]
Yes Virginia, There Is A Dividend Growth ETF Portfolio That Delivers [View article]
I own both so that I can get the benefit of the IDR high splits between the GP and LPs of Kinder Morgan. The IDR high split limits the distribution growth of KMP/KMR, and the beneficiary is KMI, which as a result has a much higher dividend growth rate. So it really does make sense FOR ME.
Yes Virginia, There Is A Dividend Growth ETF Portfolio That Delivers [View article]
3 Healthcare REITs With Mispriced Risk [View article]
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
The part I am not sure about is the capital gains in this:
"What if in a given year LINE's distribution is part earnings and part ROC. Well, when LNCO recycles that distribution to you, the part that would have been income is capital gains and the balance is ROC."