Dividend Stock Investing

[The Virginian]

Nike: $12B buyback, dividend hike, 2-for-1 stock split


www.cnbc.com/2015/11/19/nike-12b-buyback-dividend-hike-2-for-1-stock-split.html

[Deleted]

Which is cool; now they need to lay out the details as they pertain to the Options.

[The Virginian]

Pfizer and Allergan agree to merge

seekingalpha.com/news/2946046-pfizer-and-allergan-agree-to-merge

Most of you are probably already aware of this deal but what is interesting is this statement:

"""The company will make a decision on splitting its innovative and established businesses no later than the end of 2018.""""

Splits coming in 2018/2019 ?   Gives us something to look forward to in a couple of years ! Long PFE !

[Deleted]

The Virginian

Just so you are aware; if not already. The PFE side of the PFE/AGN deal is expected to be taxable to PFE shareholders; where as the AGN side is expected to be tax free.

Also, PFE holders will get 1 share of the new combined company; where as AGN holders will get 11.3 shares of the new company.

Another point to add here is that the deal values AGN @ $363.63 per share; & AGN is currently trading at $305.26, well below the deal valuation.

So this deal may be more accretive to an investor/trader if they seek to run the AGN side on the front side; while still holding any PFE they have.

Just a thought which came to mind after reading the deal details as they are presently from the info site provided by PFE.

[The Virginian]

Unfortunately I have a large stake in PFE DI. But ........ it is in a tax free account.  I am looking for the possible spit in a couple of years ...........  I did very well with the ABT & ABBV split a couple of years ago. Hopefully this will be a repeat. It will also be interesting to see what the per share value is after the merge.

[The Virginian]

Anyone see that the NYSE will no longer accept - Good till canceled limit orders ? I read it yesterday but cannot find the article to link to this morning. This is going to hurt me a bit and will cause more work for me.

[Ombud]

www.cnbc.com/2015/11/18/why-will-the-nyse-stop-accepting-stop-orders.html only states that it'll stop accepting and cancel open stop orders & GTC orders 2/26/16 but not limit day orders. I've currently got 3 GTC limit orders out there .... it'll be interesting to see if Schwab will still accept them but hold them internally as this article states: www.fa-mag.com/news/nyse-eliminates-stop--gtc-orders-23911.html. if so, I might not be affected

[Deleted]

Yeah; I saw that and it bites donkey ******. They say they are doing it because {really boiling this down} the general public is to stupid to know how to use them.

They also say that this is to help protect and educate folks.

Whatever; the fact that Brokerages will be able to process these "internally" {Meaning the SEC hasn't set rules for elimination of these Orders}, will just leave a HUGE HOLE through which Financial firms can apply even more pressure to Equities they either like or don't.

Think about it "Internal Settlement" means that; all in all more and more trades will be horse traded between Clients and the Brokerage House; which means that it is more than likely that the Client will end up paying far more than fair price or getting a lot less than fair price on trades settled in that manner.

That in turn would mean that Equity prices would even more easily be able to be sent plunging or soaring; depending on the whim and fancy of the Brokerage Houses & the 1% of the 1%.

May sound all tinfoil hat; but really consider the power that will be concentrated in a much more closed loop once the Orders are no longer accepted to PUBLIC transmission.

If this is the choice of the EXCHANGES; then the SEC should step up and in & make these Orders no longer legal in any manner, way or form.

We do not use STOP orders; but We do extensively use GOOD UNTIL CANCELLED orders. So this is going to straight suck.

[Ombud]

So now the big benevolent NYSE is going to protect me from my educated 'guesses' (their ASSumption not mine). I don't trade much when fully employed bc of the time / researched involved. I don't need someone else assuming I'm too dumb to know the pitfalls (and no, I wouldn't short a $2 stock)

If they really want to 'protect' us they'd raise the requirement for margin trading

I've been burned a few times by trailing stops but each time it was a profit, not loss, so I guess I just dn make as much as I could've

[Deleted]

Ombud

If they really want to 'protect' us they'd raise the requirement for margin trading

That would be too blatant a move by the 1% of the 1%. In order for their game to work, they need the "little" guys to be involved. 

[The Virginian]

Added ALDW today. $25 @ 15.56%

[ModE98]

Sold HRZN, NMFC, TCRD to lock away some cap gain profits,  Bought TSLX and more HCAP for upcoming dividends.

[Ombud]

At Schwab today they stated we wouldn't notice a change. The GTC limit order & stops will reside within their system until implemented

[The Virginian]

Hey thanks for the update Ombud. I use Schwab so that is good news for me.

[The Virginian]

Mod - Are you just trading these stocks for short term until they go ex dividend ? If so let me know how that strategy works for you.

[ModE98]

Virginian, I tend to sell if and when the capital gains are building to the equivalent to six months or better of the dividends and buy a new stock.  This occurs occasionally when market trend is positive.  It provides a modest bit of extra income.  I maintain a list of high dividend payers in BDC's and REIT's (9%+) with current prices, pay dates, ex-div dates, etc, and do the trades from that list.  I maintain a Scottrade Elite account which provides up to minute data in charts and data with fast trading at the click of buy/sell as desired.

[The Virginian]

Interesting Mod - Are you doing this in a taxable account ? Has this strategy been working well for you ?

[ModE98]

In a fully taxable account.
It is NOT a big money thing, just to bring in an extra $100+ each month when markets are in a positive mood for large dividend stocks (BDC's & REIT's).  Since Scottrade has good charts, I just "pay attention" to my lists and sell when one of my holdings runs up in price and presents a good capital gain, and then buy a yield level replacement for next dividend.  This is not a day-trade thing, opportunities are only periodic...have to go with the flow and recognize when to act.  

 

[Ombud]

Of course market's down. I bought

[The Virginian]

Dec 2, 2015 15:14:48 GMT -5 Ombud said:

Of course market's down. I bought

I think what makes me mad is that the markets always seem to decline after my drips purchase new shares instead of before so I can get shares cheaper.

[ModE98]

Yes, it was a bad day today.  Should have, of course, bought TSLX this afternoon instead of yesterday.  Who really knows what tomorrow may bring? 

But glad I was able to lock in those cap gains the other day.

[The Virginian]

I bought another 122 Shares of ARLP today - couldn't pass up this 16.5% Yield. It is the top coal producer so I (hope) the dividend is safe.  Adds about $27.50 per month to my dividend income. I had intended to buy CVRR but I couldn't get the price I wanted.

[ModE98]

Mr V, see,,,,, www.finviz.com/quote.ashx?t=ARLP

Earnings are projected to decline in 2016 (maybe beyond).  Coal is "yesterday's fuel" and use declining.  That is a very high risk investment, it seems to me.  There is always reason to be "suspicious" of extremely high dividend companies.  Hope you have good luck with this one, while it lasts.  just my humble opinion and something to ponder.

[The Virginian]

Dec 4, 2015 15:41:31 GMT -5 ModE98 said:

Mr V, see,,,,, www.finviz.com/quote.ashx?t=ARLP

Earnings are projected to decline in 2016 (maybe beyond).  Coal is "yesterday's fuel" and use declining.  That is a very high risk investment, it seems to me.  There is always reason to be "suspicious" of extremely high dividend companies.  Hope you have good luck with this one, while it lasts.  just my humble opinion and something to ponder.

It is a bit of a risk Mod but ARLP from what I have read is in no danger of a dividend cut and they are said to be one of the best coal companies out there.
Coal is on the decline and many companies will go under but I believe (hope) this one will just consume failing competitors and come out on top. Coal will still be around for many years to come, as much as everyone believes Solar and wind will replace fossil fuels the low oil, gas and coal prices will actually slow that down quite a bit. I will however, keep a close eye on it. Thanks for the concern. I might also point out that my positions in these high yield stocks are small , usually limited to $2000 each. so if something does go terribly wrong my losses are minimized.

PS: If you notice on the link you provided Finviz has ARLP rated at a 1.90 which is a strong buy recommendation. I don't usually pay attention to ratings but it is interesting.

[ModE98]

Good setup, limiting risk of loss should anything go awry.  In the meantime, returns are nice and high.  Hope you have smooth sailing in the choppy waters for a long time to come. 

[The Virginian]

Thought this was great !

[ModE98]

  Agree.  That's what a nice dividend portfolio can do.  Just collect and enjoy.  No labor involved.  

[The Virginian]

Upcoming Dividend Increases :

seekingalpha.com/article/3736956-15-dividend-increases-november-23-to-december-4-2015

[The Virginian]

Eli Lilly increases Dividend by 2% !

Eli Lilly declares $0.51 dividend

seekingalpha.com/news/2970376-eli-lilly-declares-0_51-dividend

[ModE98]

Kinder Morgan has slashed its 2016 quarterly dividend to $0.125/share from the current $0.51, marking the company's first-ever dividend cut. The company said the move will enable it to use a significant portion of its cash flow to fund the equity portion of its expansion capital requirements, eliminate any need to access the equity market for the foreseeable future, and maintain a solid investment grade credit rating.