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  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    Yes I know by reading your articles (in the past) that some of the EV option funds do distribute ROC due to the very nature of the funds and the option premiums. In fact I think many small investors that know "just enough to be dangerous" run away from these funds when they see they are distributing mostly ROC.

    Ok, I will keep in mind to focus more on the NAV in the future. Thanks for that advice.

    Nov 11, 2014. 09:19 AM | Likes Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]

    I'm long EXG and interested in your comment about it (above). If you think they will, in the future, have problems meeting their current distribution of .0813 per share....wouldn't they already have started adding some ROC? I use that is one of my first warning signs...and they have not yet used any ROC in 2014 (though they certainly have in past years).

    Any insights?

    Nov 11, 2014. 08:10 AM | Likes Like |Link to Comment
  • Top Monthly Pay Dividend Dogs: 3 Action Lists For September [View article]
    Ok, I was not going to comment about the comments above this, but now I feel compelled to do so.

    The first rule of writing is "know the audience you are writing for".

    What can we say about the "SA audience"? We can say they are investors or are interested in investing. We cannot make any assumptions about their level of knowledge or experience. There are very experienced investors like Stanley Cutler (comments above), there are experienced investors (like me) and there are rank amateurs.

    With investing you learn quickly (sometimes through financial pain...) that you don't take any advice from anyone blindly. However, you CAN get "ideas" from people (like Fredrik) and use that as a starting point for your own research.

    Actually Fredrik has decided to write about a fairly complicated subject (MoPay stocks). Its complexity stems, in part, from trying to verify an enormous amount of data. I caught one discrepancy (comment above) and Stanley also caught another.

    As a serious investor you must verify and research each and every stock you buy.

    Fredrik, keep up the good work. I enjoy your articles and use them often as a starting point for my own research.
    Sep 11, 2014. 05:29 AM | 1 Like Like |Link to Comment
  • Top Monthly Pay Dividend Dogs: 3 Action Lists For September [View article]

    You have a lot of stocks and funds to try to can't be easy.

    I wanted to point out one "error" I found. You listed the preferred shares of OXLCN as 11.52% (annual dividend of 2.91). I believe the source you used included the special dividend in August in the total annual divided. Which BTW, is NOT incorrect. However to buy OXLCN today (no special dividend), you would expect about 8.05%

    Monthly div .1693 x 12 = 2.03 / 25.20 (stock price) = about 8.05%

    Here is the link to the story:

    Again...great job with the article!
    Sep 10, 2014. 09:47 AM | 1 Like Like |Link to Comment
  • Top Monthly Pay Dividend Dogs: 3 Action Lists For September [View article]
    Nearly all my stocks are monthly payers as I like the even income stream.

    You did some great work with this article! I also like the lists you gave for the month funds and stocks. I always enjoy reading your MoPay articles.

    Thanks for your contribution to SA
    Sep 10, 2014. 09:22 AM | 2 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 1 [View article]
    BDC Buzz: Thanks for the article and will look forward to the second part. When do you think it will be published?

    May 13, 2014. 08:34 AM | 2 Likes Like |Link to Comment
  • Avoid These 2 High-Yield Mortgage REITs [View article]
    I fully agree...buyer beware. I'm long ARR (for years), and dearly wish that I was not.

    I see no indication (whatsoever) that ARR management has any concern for the shareholders. advice (and the authors) is stay away. If you are "chasing yield"....find a better candidate
    May 7, 2014. 06:10 AM | 3 Likes Like |Link to Comment
  • Prospect Capital: Good For Income, Not Appreciation [View article]

    Of course you do have a good point...and you are right. But, I personally feel that the raises in distribution are far more psychological than financial.

    Been long PSEC for years now. As far as appreciation, it is a DOG of a stock. However, I bought it for the cash flow and could care less if it ever appreciated.

    May 7, 2014. 05:18 AM | 1 Like Like |Link to Comment
  • Dividend Investing? Buy Growth, Not Yield [View article]
    (About the covered calls)
    jlg5385 asks "do you write covered calls on your monthly divvy stocks"
    Here is my response:
    I do not write covered calls on my monthly dividend stocks. I buy stocks specifically to write covered calls on them. I get my ideas on which stocks to buy through this service:
    They have a weekly report (for premium members) that says which stocks are the best to buy for covered call writing. Without someone telling me which stocks are best for covered calls, I doubt I would be as successful with the strategy as I have been.
    Jan 31, 2014. 08:54 AM | Likes Like |Link to Comment
  • Dividend Investing? Buy Growth, Not Yield [View article]

    I will send you an e-mail. Then you can ask me whatever you want, whenever you want. I was going to cut and paste some of my trades here but they don't "paste" well...the excel format does not follow on the paste.
    Jan 31, 2014. 08:21 AM | Likes Like |Link to Comment
  • Dividend Investing? Buy Growth, Not Yield [View article]

    No, I will not share some of my picks....I will share ALL of them

    AGNC American Capital Agency --> Quarterly
    AOD Alpine Total Dynamic Dividend --> Monthly
    ARR ARMOUR REIT --> Monthly
    ARR-B ARMOUR REIT Preferred shares (B) --> Monthly
    BDCL BDL x 2 --> Quarterly
    BGH Babson Global --> Quarterly
    CYS Cypress Sharpridge Investments --> Quarterly
    DFP Flah&Crum Dynamic Pref Income fund --> Monthly
    DHF Drefus High Yield common --> Monthly
    ETJ Eaton Vance Index Buy-write Fund --> Monthly
    EOS Eaton Vance Buy-Write Equity Income --> Monthly
    ETB Eaton Vance Buy-Write Inc Common --> Monthly
    ETW Eaton Vance Buy-Write Global --> Monthly
    ETV Eaton Vance Buy-Write Oppor --> Monthly
    ETY Eaton Vance Buy-Write Div Equity --> Monthly
    EXG Eaton Vance Global Diversified --> Monthly
    FAM First Trust Global Common fund --> Monthly
    FHY First Trust Strategic High Income --> Monthly
    FFC Flah&Crum Preferred Stock fund --> Monthly
    FSC First Street Finance --> Monthly
    GNT Gamco Nat. Resources Gold --> Monthly
    GOF Guggenheim Strategic Fund --> Monthly
    HIX Western Asset High Income --> Monthly
    HRZN Horizon Technology Finance --> Monthly
    HTD John Hancock Dividend --> Monthly
    IGD Global Equity Divided --> Monthly
    IVR Invesco Mortgage Capital --> Quarterly
    KCAP KCAP Financial --> Quarterly
    LRE LRE Energy --> Quarterly
    MEMP Memorial production LP --> Quarterly
    NCV AGIC Convertible Income --> Monthly
    NCZ Allianz GI Converible Fund --> Monthly
    NTI Northern Tier Energy --> Quarterly
    PFLT PennantPark Floating Rate Capital --> Monthly
    PMT PennyMac --> Quarterly
    PSEC Prospect Capital --> Monthly
    TICC TICC Capital Corporation --> Quarterly
    TWO Two Harbors REIT --> Quarterly
    WHZ Whiting USA Trust II --> Quarterly
    ZTR Zweig Total Return Fund --> Monthly

    I have to say that perhaps you should shy away from the REIT stocks I listed. I have stuck with them through thick and thin....but they did poorly last year...on the other hand, perhaps now is a good entry point (you decide)
    As far as GGN (it is a gold decide if it is a good entry point or not)

    Also if you do some research on the Eaton Vance funds you will see that they have enormous ROC (Return of Capital). That is due to the nature of the type of investments they make (covered calls / options). This ROC is NORMAL and in some ways desirable tax-wise. That is why you will see "Tax-managed" in some of the full fund names like ETW. (I did not list the full fund name here).

    My current goal is a monthly liquid dividend stream sufficient to retire (I'm 49 years only). I have actually already arrived at that goal...maybe soon I will move on to the next chapter in my life.

    There are a couple things I should mention. I have recently moved mostly out of corporations and into CEF's (closed-end funds). I got tired of the gut churning ups and downs of corporate stocks and prefer the lower-beta CEF's. A downturn like yesterday of - 176 in the DOW used to cost me about $5000 in paper losses...Yesterday I "lost" -$479. So the low beta does help. Of course the upside is not that great with CEFs but it makes up for it in income.

    My strategy also includes covered-call writing. About half my monthly income comes from this strategy. This guy is my "guru" and was a "game changer" for me. I use his service and have been VERY happy with it.

    (see beginner's corner at the top right...there are free videos to get you started if you are interested)

    If you have any questions, write me a personal message on SA and I will for sure get back to you.

    Good luck with your trading!
    Jan 24, 2014. 04:35 AM | Likes Like |Link to Comment
  • Dividend Investing? Buy Growth, Not Yield [View article]
    I tend to agree with the two comments above me. I am a high-yield investor and there are many VERY high quality high-yielding stocks. However, you need to know what you are doing when you pick the stocks. You can't just do a scan for the highest-yielding stocks, buy them and pray you don't get slaughtered...because you likely will.

    So, in my experience, if you pick well, the higher yield will trump the growth dividend stocks (for current income)...which I should mention is my goal but may not be the goal of other dividend investors.
    Jan 23, 2014. 04:26 PM | 1 Like Like |Link to Comment
  • CYS Attracts Income Seekers [View article]

    You are right. Another analogy is... You don't really need to know the mechanics of a car to drive one. But if you do and something goes wrong you will likely understand why it is going wrong and you have the possibility to fix it.

    Same with your REIT. If you hear the "noises" and know the problems maybe you can sell the "car" before it dies.

    In the words of "R we there yet": "... that is why some of us are devoted readers of SA; we are trying to educate ourselves."

    I know for a fact that education is the reason I'm participating in SA.

    Disclosure: Long CYS...but I would rather be someplace else to be honest. Sold 50% of my shares at a big loss and I'm holding the other 50% and waiting for better days.
    Oct 2, 2013. 09:49 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: The Most Undervalued And Overvalued Funds - 6 Months Later [View article]

    Good comment. I bought HTD before the drop and would also like to hear Doug's current view on the fund.
    Sep 25, 2013. 05:06 AM | Likes Like |Link to Comment
  • Whiting USA Trust 1 & 2 Reality Check: Comparison Shop Before You Buy [View article]

    Your post is "worrying". It implies that you are already invested in WHZ (you said: Definitely will hold a WHZ long-term) then you go on to say "I didn't even know expiring trusts existed".

    How can you not know they exist when you are invested in one? So if you are long WHZ, my suggestion is in the future make sure you fully understand what you are investing in. As you can see, it is dangerous to not. Good luck with WHZ and your future investments.

    BTW: I'm long WHZ
    Sep 25, 2013. 05:02 AM | 1 Like Like |Link to Comment