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Old 10-28-2012, 01:49 PM   #41
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Try non-MLP versions: LNCO and KMI. The same holdings, less taxes (= no K-1 headaches) and easy to have in an IRA.

And, yes, small positions in both.
I already have a position in LINE. Because of my various other MLP holdings (mostly pipelines), the marginal headache and cost of sanity time for adding "just one more MLP" is fairly low.

Also have had KMR for a number of years.
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Old 10-28-2012, 02:09 PM   #42
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I already have a position in LINE. Because of my various other MLP holdings (mostly pipelines), the marginal headache and cost of sanity time for adding "just one more MLP" is fairly low.

Also have had KMR for a number of years.
Similar for me. I understand the process of tax reporting, and I believe I understand some modestly esoteric aspects of MLP investing. However, I don't want any more of them for several reasons. Number one, all MLPs, no matter what business they are in, are exposed to political whim. To me, it appears that the tides are running against people who take their future into their own hands and use our capital markets well.

Second reason is that MLPs are roach motels. Easy to check in, but after a very few years the tax penalty to exit can be huge. I keep a spreadsheet that keeps an estimated capital gain and ordinary income increment to get out of a position. How many of us modetrate income investors want $40K ordinary income, and $40K LTCG added to our other taxable income in one year? And this is after only a few years of ownership. I have never sold a partial position in an MLP, so I am not sure of the process, but I have been told that selling partial positions is complicated tax wise.

I have only three, and I looked very carefully at the stability and apparent honesty of management and large shareholders. But things do change, though so far, the changes that have come along have for the most part tended to help my positions at least somewhat.

KMI is in a different class, since it is a C-Corp. Anytime I can get a reasonably priced C-Corp that acts as GP for MLPs and thus has IDRs running upstream to it, I want it. Since MLP investors usually are seeking yield, IMO these C-Corps are often much better priced from the buyer's POV than the limited partnerships. Though, if political change damaged the tax status of MLPs, I would guess that their GPs would also suffer.

Ha
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Old 10-28-2012, 02:22 PM   #43
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I started following his blog/articles last year. I like his thought process, so I guess that might be dangerous. But I am using the dividend income from "High Yielders" and capital gains to build positions in Dividend Growth Stocks within our IRAs. Wish I had come across his blog earlier.
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Old 10-29-2012, 09:08 AM   #44
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Good Morning,

Several years ago, I started directing my investments towards income and dividend growth. Now, with the lack of income in the bond, CD, Money market accounts, many investors seem to be rushing into any equity that pays a dividend and therefore driving up the prices and lowering yields along the way.

My dividend growth portfolio for anyone interested:

Updated Monthly Dividend Portfolio

However, there are opportunities for investment, especially in the cyclical industrial, energy, and transportation sectors from time to time. Many of these companies offer above average dividend yields, or above average dividend growth, and can be a good value when purchased at the right time.

I regularly use the following web resources:

Seeking Alpha Dividends and Income

Yield Hunter
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Old 11-01-2012, 12:16 PM   #45
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Dividend Income Portfolio updated for October 2012:

Added:

KMI
NNN
PPL
SCHF
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Old 11-01-2012, 12:25 PM   #46
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Dividend Income Portfolio updated for October 2012:

Added:

KMI
NNN
PPL
SCHF
How can you keep track of all these stocks you list? A full time professional analyst would not try. I don't mean these 4, but your entire list.

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Old 11-01-2012, 06:59 PM   #47
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@ha

I enjoy keeping up with the market, and researching new ideas. It's not always easy.

Some of the stocks (MCD, EMR, MDT) are long term core holdings that I don't spend much time on. Others, like the small caps require more frequent monitoring.

Eladio
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Old 11-03-2012, 09:22 AM   #48
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Stock tickers: COP, XOM, MO, T, PPL, AEP, DUK, AWF, EXC, FE, PFE, LLY.

Check out www.seekingalpha.com
Exc is not your gramma's utility stock. Very volatile. There is some belief div will be cut after recent q3 call. I think that is baked into price. Sure hope so as i own it.
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Old 11-03-2012, 02:05 PM   #49
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Exc is not your gramma's utility stock. Very volatile. There is some belief div will be cut after recent q3 call. I think that is baked into price. Sure hope so as i own it.
The CEO answered a question and mentioned that dividend was secondary to maintaining credit rating. If pricing continued into 2013 it might be necessary to look at dividend if credit rating was in jeopardy. Price got hammered.
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Old 11-03-2012, 02:40 PM   #50
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The CEO answered a question and mentioned that dividend was secondary to maintaining credit rating. If pricing continued into 2013 it might be necessary to look at dividend if credit rating was in jeopardy. Price got hammered.
Yes I read the transcript - not sure if market is already pricing in a cut. Do you own any? I only recently added this and definitely second guessing myself here.
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Old 11-03-2012, 11:48 PM   #51
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Yes I read the transcript - not sure if market is already pricing in a cut. Do you own any? I only recently added this and definitely second guessing myself here.
I have a small position. I'm not second guessing at this point. If anything, I'm considering adding a little. Personally, if the comments regarding the divy were in the prepared statement I'd expect the cut before the next quarterly. In this case the CEO was answering a question and basically stated the obvious. Assuming rates tank further, then of course the divy will be cut to protect the credit rating. I think some of the decline is Sandy related, but in any case I think the 3-5 yr capital appreciation potential out weighs any temp decline because related to the storm or concern about the divy.
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Old 11-05-2012, 07:36 AM   #52
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Exc is not your gramma's utility stock. Very volatile. There is some belief div will be cut after recent q3 call. I think that is baked into price. Sure hope so as i own it.
Yeah... It was 3 months ago and I forgot to mention or forecast the hurricane, random questions posted to ceo, and misc other random events that make this an ever changing world. I would not stick with the buy/hold theory on any stock for 30 years. Even the much beloved here vwelx & vwinx have annual turnover rates of 38% & 48%.

If in a tax deferred account and you think the stock is oversold, buy 25-50% of your present position and if it bounces up sell to help lower your cost basis on the previous position.
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Old 11-05-2012, 01:23 PM   #53
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Yeah... It was 3 months ago and I forgot to mention or forecast the hurricane, random questions posted to ceo, and misc other random events that make this an ever changing world. I would not stick with the buy/hold theory on any stock for 30 years. Even the much beloved here vwelx & vwinx have annual turnover rates of 38% & 48%.

If in a tax deferred account and you think the stock is oversold, buy 25-50% of your present position and if it bounces up sell to help lower your cost basis on the previous position.

It's getting hammered again. Either the CEO is incompetent in not knowing that a comment re: dividend cut would hammer the stock, or it is a carefully crafted forewarning of a cut sometime in 2013. Neither of these are good scenarios. If the latter, the question becomes does this drop fully anticipate a div cut? I don't think that's the case. If they did actually cut dividend I could easily see this in the mid 20's as it does not have any growth to speak of so investors are only holding it for the dividend. For that reason I have put in a stop loss order abit below what it's trading at.
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Old 11-05-2012, 02:17 PM   #54
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It's getting hammered again. Either the CEO is incompetent in not knowing that a comment re: dividend cut would hammer the stock, or it is a carefully crafted forewarning of a cut sometime in 2013. Neither of these are good scenarios. If the latter, the question becomes does this drop fully anticipate a div cut? I don't think that's the case. If they did actually cut dividend I could easily see this in the mid 20's as it does not have any growth to speak of so investors are only holding it for the dividend. For that reason I have put in a stop loss order abit below what it's trading at.
That may be a good idea, but likely it is not. EXC has not shown any recent growth, but it is highly leveraged to power prices, and thus to natural gas prices in their market generation unit. Recent history has been very negative, both for NG prices and power prices. These things tend to be cyclical. EXC is not a typical grind-it-out electric utility. It has the largest nuclear fleet in USA, and in most years the one with the best operating statistics. It performed admirably during Sandy. However, the merger was likely an error, a monument to the retiring CEO, as it saddled them with debt that pinches right now.

A utility needs satisfied shareholders in case it needs equity, but even more urgently it needs to please the bond rating agencies as it will certainly and frequently access bond markets. That is the big bind that Exelon finds itself in right now.

Say the dividend were cut to $1.00, in my mind an unlikely but not impossible event. At current prices it would have a yield a bit over 3%, not great and not a good scenario, but also not a big disaster.

My guess is that barring further negative news, the big selling pressure is gone, but also there is very little buying interest. Earlier today there was a burst of volume on falling prices, but it dried up and prices have continued a slow fall on low volume.

Likely best to neither a buyer or a seller be- unless you are too exposed to short term losses and your hand is forced.

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Old 11-18-2012, 09:51 AM   #55
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I have found this site useful when researching preferred securities with a quarterly dividend:

QuantumOnline.com Home Page

You do have to register with your email address but there are no subscription fees.
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Old 12-01-2012, 12:09 AM   #56
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Here are the issues vis-a-vis dividend bearing stocks, of which I own many, if the politicians in this country cannot solve the 'fiscal cliff' and the only way for these two ignorant parties to do so is via compromise then the economy will falter, possibly fail, and dividend stocks will not be a decent investment. I personally favor having at least 20% of one's portfolio in gold mining, not gold, but gold mining stocks because they help to counter a downturn.

If the 'fiscal cliff' issue is resolved, here are some decent dividend paying stocks: SCCO, MSB, GNI, SDT, AGNC, NLY, ECT, CYS, PER, TWO, FRHLF (or FRU.TO), VOC, HTS, CHKR .
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Old 12-01-2012, 09:55 AM   #57
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Good info here. Thanks.
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