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Old 05-16-2008, 08:45 AM   #1
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Income stocks...

I'm trying to find some stable income stocks with dividend income over 7%. Any help would be appreciated.
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Old 05-16-2008, 11:37 AM   #2
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Originally Posted by Art G View Post
I'm trying to find some stable income stocks with dividend income over 7%. Any help would be appreciated.
Kind of rare territory isn't that? I'm not sure how stable you would consider it, but I was looking at NLY recently. Yield is over 10%, that's come down recently from more than 11.

7% would normally the edge of the envelope for me, I would be interested in your philosophy regarding the risk of a yield trap in the +7 range.
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Old 05-16-2008, 12:35 PM   #3
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Look up Alpine Dyanmic Dividend- fund pays out more than 10% in dividends.
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Old 05-16-2008, 12:55 PM   #4
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I've owned NLY in the past. It's not bad, but pretty volatile, but this may be a decent time for it.
There are actually tons of 9%+ income vehicles out there, but obviously there's risk associated with many.
My philosophy of the risk of a yield trap?? Yeah, there's gonna be some.
BTW, why do you have a picture of Emilio Estevez as your avatar?
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Old 05-16-2008, 12:57 PM   #5
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Look up Alpine Dyanmic Dividend- fund pays out more than 10% in dividends.
Funny you should say that. I just bought some yesterday. 12.6% yield. However, I'd like to diversify a bit more so looking for others.
Anyone got any thoughts on CRT?
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Old 05-16-2008, 02:31 PM   #6
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Several pipeline Master limited partnership have yields around 7%
My favorites are
KMP, XTEX, BPL, and MMP

A couple of propane/heating oil distributors SPH, APU

In the financial sector. BofA BAC has dividend yield of 7%. The UK Bank Lloyds has a dividend yield close to 9% (it is paid twice a year and is subject of currency fluxuations.).

I'll forward a copy of the M* dividend investor newsletter which has a nice list. The new issue should be published in a few days.

In the REIT universe one of my favorite stocks Realty Income O is at 6.5%, and couple of others around 7% are DDR, and FPO
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Old 05-16-2008, 02:40 PM   #7
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Thanks for the names, and I'd appreciate the list when you get it. I really like the looks of APU. I'd get rid of XTEX if I owned it, today.
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Old 05-16-2008, 02:43 PM   #8
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Thanks for the names, and I'd appreciate the list when you get it. I really like the looks of APU. I'd get rid of XTEX if I owned it, today.
XTEX is that based on technical reason or fundamentals?
I think the fundamentals are reasonable.
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Old 05-16-2008, 02:49 PM   #9
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There are actually tons of 9%+ income vehicles out there, but obviously there's risk associated with many.
My philosophy of the risk of a yield trap?? Yeah, there's gonna be some.
I asked because I usually don't consider stocks with that high of a dividend because I do worry about traps. Maybe if I felt more confident in my abilities when it comes to tearing apart the financial picture I might go more in that direction. As you say, now might be a good time.
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BTW, why do you have a picture of Emilio Estevez as your avatar?
I'm not sure I remember anymore. I think it started as a joke and then one time when there were some changes on the board I wound up using some other avatar because the saved Emilio was gone. There were calls to bring him back and he's stayed ever since.

I'm not a big fan of Emilio Estevez, but he is memorable to me for two reasons:

Way back when I was in my teens and twenties I struggled to make a buck anyway I could. Including buying repos at the GMAC auctions, fixing them up and selling them. Whenever I picked up a car from that I won at the auction there was always, without exception, a pine tree shaped air freshener hanging from the rear view mirror. A few years later Estevez was in a movie called Repo Man, and there was a recurring theme of finding pine tree shaped air fresheners in every repo'ed car:
Quote:
You find one in every car, kid. You'll see.
To me that was just a hilarious line in that context.

At the same time the movie came out, my wife and I were first dating and we frequently played Trivial Pursuit with all of her siblings and their spouses (cheap date). One night I got the right answer to "What's Martin Sheen's real name?", and when somebody asked I explained I knew it because I knew Emilio Estevez was his kid. A few minutes later I had another question regarding some person's name and I said "#$%$, I don't know, Emilio Estevez." It got a laugh and from them on my standard answer to anything I didn't know was "Emilio Estevez". It became an inside family joke that I still use every now and again.

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Old 05-16-2008, 03:00 PM   #10
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XTEX is that based on technical reason or fundamentals?
I think the fundamentals are reasonable.
Both. They are losing money, the analysts hate it, and the chart has just hit the resistance level and is reversing back down. JMO.
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Old 05-16-2008, 03:05 PM   #11
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I asked because I usually don't consider stocks with that high of a dividend because I do worry about traps. Maybe if I felt more confident in my abilities when it comes to tearing apart the financial picture I might go more in that direction. As you say, now might be a good time.I'm not sure I remember anymore. I think it started as a joke and then one time when there were some changes on the board I wound up using some other avatar because the saved Emilio was gone. There were calls to bring him back and he's stayed ever since.

I'm not a big fan of Emilio Estevez, but he is memorable to me for two reasons:

Way back when I was in my teens and twenties I struggled to make a buck anyway I could. Including buying repos at the GMAC auctions, fixing them up and selling them. Whenever I picked up a car from that I won at the auction there was always, without exception, a pine tree shaped air freshener hanging from the rear view mirror. A few years later Estevez was in a movie called Repo Man, and there was a recurring theme of finding pine tree shaped air fresheners in every repo'ed car:To me that was just a hilarious line in that context.

At the same time the movie came out, my wife and I were first dating and we frequently played Trivial Pursuit with all of her siblings and their spouses (cheap date). One night I got the right answer to "What's Martin Sheen's real name?", and when somebody asked I explained I knew it because I knew Emilio Estevez was his kid. A few minutes later I had another question regarding some person's name and I said "#$%$, I don't know, Emilio Estevez." It got a laugh and from them on my standard answer to anything I didn't know was "Emilio Estevez". It became an inside family joke that I still use every now and again.

Couldn't you have just picked the movie Stakeout? Then perhaps we could be looking at a picture of Madeleine Stowe.
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Old 05-17-2008, 11:41 AM   #12
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I like business development companies (BDCs). Two I own include Allied Capital (ALD) and American Capital Strategies (ACAS). Both are currently yielding over 12%.

I use the MSN Money Deluxe Screener with the following settings:
(1) Div. Yield: 5-Year Avg. >= 5%
(2) Current Dividend Yield >= 5%
(3) 5-Yr Dividend Growth >= 3% (to stay ahead of inflation)
(4) Industry Name = various [BDCs show up under "Closed-End Fund - Debt" in Financial Services]

You will likely find more high-yield stocks that are "passthrough entities" (e.g., BDCs, REITs, and MLPs). These kinds of companies are not taxed at the corporate level. Rather, they are taxed at the investor level and as such, do not qualify for qualified dividend treatment.

My goal is to supplement my "total return portfolio" (which the 4% SWR of Work Less, Live More is based on) with a "cash generator portfolio" that is made up of solid dividend payers and is not dependent on Mr. Market being in a good mood when I need to pay living expenses.
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Old 05-17-2008, 03:16 PM   #13
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Look at the Canadian Royalty Income Trusts (Conroys). I have Advantage Energy (AAV) and it currently yields 11.5%. There are several Conroys, so do your research. The dividends are ordinary qualified dividends (15%). Stock impacted by Oil/Nat Gas which suggest a bullish future even though the stock has had a pretty good run over the last 3 mths.
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Old 05-18-2008, 08:19 PM   #14
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Roger, you may want to read the new book, "Fooling some of the people ALL of the time". Author David Einhorn has a very interesting perspective on "Allied Capital". Fascinating reading for any investor.
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Old 05-19-2008, 09:05 AM   #15
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Originally Posted by rogersteciak View Post
I like business development companies (BDCs). Two I own include Allied Capital (ALD) and American Capital Strategies (ACAS). Both are currently yielding over 12%.

I use the MSN Money Deluxe Screener with the following settings:
(1) Div. Yield: 5-Year Avg. >= 5%
(2) Current Dividend Yield >= 5%
(3) 5-Yr Dividend Growth >= 3% (to stay ahead of inflation)
(4) Industry Name = various [BDCs show up under "Closed-End Fund - Debt" in Financial Services]

You will likely find more high-yield stocks that are "passthrough entities" (e.g., BDCs, REITs, and MLPs). These kinds of companies are not taxed at the corporate level. Rather, they are taxed at the investor level and as such, do not qualify for qualified dividend treatment.

My goal is to supplement my "total return portfolio" (which the 4% SWR of Work Less, Live More is based on) with a "cash generator portfolio" that is made up of solid dividend payers and is not dependent on Mr. Market being in a good mood when I need to pay living expenses.
I currently own ALD. I bought into it when they started building all those breakfast restaurants (the name currently escapes me). I've owned ACAS in the past and have done quite well with it. This may be a good time to get back in as it has pulled back.
Thanks.
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Old 05-21-2008, 05:08 PM   #16
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I've now fallen into yield traps with ACAS, MCGC and a Canadian income trust called Connors Brothers Seafood. I had a lump sum to invest last January and thought I would pick a few income stocks in addition to the index funds I generally favor. Each is down at least 30%, some down 70%. All depends on the timing - now might be a much better time to buy.
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Old 05-21-2008, 07:25 PM   #17
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I would say keep looking - most 7% are traps. Closest one I know of and think is safe is RAI - 6% + but you have to be ok with owning a tobacco stock. They cig market is kind of lackluster but the Conwood unit is where the value is and was a great acquisition on their end. Conwood will help RAI keep payouts coming and growing.
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Still at War, David Einhorn Weighs In
Old 05-25-2008, 11:42 AM   #18
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Still at War, David Einhorn Weighs In

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Roger, you may want to read the new book, "Fooling some of the people ALL of the time". Author David Einhorn has a very interesting perspective on "Allied Capital". Fascinating reading for any investor.
David Einhorn, president of Greenlight Capital, discusses his long-running battle with Allied Capital and his new book Fooling Some of the People All of the Time:
TheStreet.com : Video -
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I don't agree with this premise, but....
Old 05-26-2008, 06:49 PM   #19
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I don't agree with this premise, but....

globeandmail.com: Globe Investor Magazine
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Old 05-26-2008, 08:30 PM   #20
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Good article. Maybe fair & balanced. I think anyone that takes such an extreme position is just trying to generate readership. Many big pension funds invest in dividend payers because they have to pay out pensions every month. Kiss them off at your peril!
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