Dividend Stock Investing

[The Virginian]

I would add to the above - I concentrate on how much income is produced - not the portfolio's value. I am the first to admit it is difficult psychologically but what matters is that the income is intact and growing ..................

[The Virginian]

Just to let everyone know - In case I win the lottery tonight - You may not hear from me for a while -  I'll be trying to figure out what to invest in and with 900 million it could take a while !

[Ombud]

Cancelled open stock & option limit orders. I know it's stupid but I really need to focus and I'm way to tied up in finishing all these home repairs. I'll be back soon, but for now:

Hall bath
o Replace mirror, sink, light
o Remove light, install fan
o Paint all including ceiling

Other rooms
o Paint
o Remove blinds and install new rods
o Office: light switch, build out shelves
o Move built in TV

To do:
Garage: chain latch on side door
Kitchen: oven repair
Side yard: fence repair
Coit: floors, vents on Tuesday
Salvation Army: clear out donations taking up 1/2 garage on Friday
Community Mattress: Friday delivery


At least I'm still getting dividends to pay for this

[The Virginian]

I didn't win the Power Ball last night but it is now up to 1.3 Billion ! I would guess by Weds drawing it will be way over that.  I know the odds but it is fun to play.

[Ombud]

The only thing I keep thinking is that those who held on in the great recession recovered. No new limit orders but not selling .... still getting dividends too

Can you hear me trying to talk myself into not selling? Is it working?

[The Virginian]

Can you hear me trying to talk myself into not selling? Is it working?

It's just a correction Ombud , nothing more. This is actually a good thing for the market in the long term. I am hoping it holds out long enough to pick up some serious bargains like people did in 2008. ( I was in the market but through one of them so call "Financial Planners" who could have cared less about anything because he made money regardless )

Anyway, I know it is difficult and who knows how long it will last but you have to think in terms of Dividend Income , not equity prices.

[ModE98]

Picked a few HCAP and HRZN about 2 p.m. today.  Hope it proves timely.  We shall see as next few days and weeks pass by. 
Dividend stocks will reimburse a few points down if that's how this turns out.

[The Virginian]

WOW - Sometimes you just get lucky !

I bought NGL @ $8.51 x 233 Shares = $1,983

It closed yesterday @ $12.37 = 233 x $12.37 = $ $2,882.21 which equals a profit of $899 in just a couple of weeks. I could just take a nice profit now but I bought this stock for the yield of 30.08 % though so it will provide me with an average of $50 per month - forever I hope !


The stock still has a nice yield of 20.70 % in spite of the 40%+ rise in it's price.

Sometimes it's just nice to have a win !

[The Virginian]

Here is an excerpt from a recent article on Seeking Alpha on NGL  :

Picking an Investment Value

At its lowest recent unit value, NGL was priced to yield over 31%. With the price boost from the deal announcement, the units still yield over 21%. In a logical world, an MLP that can at least maintain its current distribution with excess coverage and has significant growth prospects a couple of years out should yield what? Maybe 8% to 10%? To get the NGL would need to double to get to around $25. It is difficult to understand how the market is currently putting values and exceeding high yields on companies like NGL Energy Partners. The company has a business model that has should be more profitable with lower energy prices and has solid growth prospects. It seems that investors just need to be patient, live with the volatility, collect the very high yields and see what happens two to three years down the road.

The deal to sell the TLP GP interest show that MLPs have additional flexibility and options to meet their capital needs in the current market conditions. NGL was able to sell an asset for a high multiple of cash flow and give itself the capital cushion it needs to secure and grow distributable cash flow.

To read the entire article and why the author still thinks it's a good buy even with the recent run up click on the link below:

seekingalpha.com/article/3805546-ngl-energy-partners-makes-a-deal-that-gives-hope-to-the-mlp-sector

[The Virginian]

We are approaching 12% correction from the all time highs. Will this be a 20% correction or more before things turn around ?

In the mean time keep looking for bargains and add to positions. You can get double or more in Dividend yields just by snatching them up at the right times. Look at this as a rare opportunity to buy stocks on sale (because it is).  Hard work now will double your rewards in the recovery.

[ModE98]

Addded a few late today.  Enough blood, time to start the transfusions.  Now a bit on margin.

[The Virginian]

Jan 13, 2016 15:47:50 GMT -5 ModE98 said:

Addded a few late today.  Enough blood, time to start the transfusions.  Now a bit on margin.

How do margin accounts work Mod ? I have never done it. Does the broker charge you a fixed rate? Does it expire within a certain time period? What happens if the amount borrow exceeds your account worth - Is the difference due immediately ?

[Deleted]

Jan 13, 2016 15:24:37 GMT -5 The Virginian said:

We are approaching 12% correction from the all time highs. Will this be a 20% correction or more before things turn around ?

In the mean time keep looking for bargains and add to positions. You can get double or more in Dividend yields just by snatching them up at the right times. Look at this as a rare opportunity to buy stocks on sale (because it is).  Hard work now will double your rewards in the recovery.

As of close the DJIA is (-13.62%) below it's all time high & (-7.31%) YTD.

[ModE98]

www.scottrade.com/investment-products/interest-margin-rates.html?sctr=31997&kwid=24443394363&adgrpid=894840349&amovid=16a9fc23ae62fe4e610398507d3f1128&s_kwcid=AL!4503!10!3366407701!24443394363&ef_id=U2gOEAAABF8D9T2D:20160113234601:s

VA.....hope this answers your question.

[The Virginian]

Jan 13, 2016 17:33:59 GMT -5 @di said:

Jan 13, 2016 15:24:37 GMT -5 The Virginian said:

We are approaching 12% correction from the all time highs. Will this be a 20% correction or more before things turn around ?

In the mean time keep looking for bargains and add to positions. You can get double or more in Dividend yields just by snatching them up at the right times. Look at this as a rare opportunity to buy stocks on sale (because it is).  Hard work now will double your rewards in the recovery.

As of close the DJIA is (-13.62%) below it's all time high & (-7.31%) YTD.

 Thanks DI,  I should have said from the 52 Week high but the point is still valid - We are in serious correction territory. And , I still believe you should be a stock buyer - Keep adding beaten down stocks and wait patiently for a recovery.

[The Virginian]

Thanks MOD - So as far as I can tell the lowest rate is 8% so you have to make over 8% on your trade just to break even. Might be good in some cases but not something I would do on a regular basis.

[The Virginian]

This guy thinks the S&P could go to 1600 - That would represent another 15% downside.
The good news if you build cash you could pick up some wonderful values.  For me this is scary but it's exciting to think of the possible bargains we might be able to pick up.

www.cnbc.com/2016/01/14/sp-500-could-go-to-1600-merrill-strategist.html

[Value Buy]

Jan 14, 2016 8:43:12 GMT -5 The Virginian said:

This guy thinks the S&P could go to 1600 - That would represent another 15% downside.
The good news if you build cash you could pick up some wonderful values.  For me this is scary but it's exciting to think of the possible bargains we might be able to pick up.

www.cnbc.com/2016/01/14/sp-500-could-go-to-1600-merrill-strategist.html

The problem is you do not build cash with drip programs and falling stock prices.
You build cash by selling, but right now anything you sell is at a cheaper price than your cost basis unless your holdings are from years past at lower prices.
Selling below cost basis is not building cash in my book

[The Virginian]

I agree Value, I wasn't suggesting for anyone to sell positions. I raise cash by swapping one stock I might be unhappy with, or know I have an opportunity to replace it with a better stock ( usually that pays a higher dividend) , or by not dripping dividends ( if a stock has an extremely high PE I might choose to take it in cash in lieu of paying over price for that particular stock, or I put more external cash into the account. Just this morning I put an extra $4,000 into my taxable account hoping to catch some good buys if the market continues its declines. I try to add at least $2,000 each month right now to my taxable account but I always wish I had more available to meet my ultimate goal.

[The Virginian]

Realty Income Announces Dividend Increase Of 5%

seekingalpha.com/pr/15882796-realty-income-announces-dividend-increase-of-5-percent

[The Virginian]

Omega Healthcare Investors declares $0.57 dividend


This increase represents an increase of 1.8% and is a Quarterly increase of 1 cent per share from $.56  to $.57.

Small but I will take it - the dividends keep on rolling in !

[The Virginian]

WOW !

Wal-Mart to close 269 stores as it retools fleet



www.cnbc.com/2016/01/15/wal-mart-to-close-269-stores-as-it-retools-fleet.html

[Value Buy]

Jan 15, 2016 9:41:50 GMT -5 The Virginian said:

WOW !

Wal-Mart to close 269 stores as it retools fleet



www.cnbc.com/2016/01/15/wal-mart-to-close-269-stores-as-it-retools-fleet.html

Yep, the economy is really humming along.
In fairness less than 160 stores are here in U.S. and most are their new express format.
Still thousands of new unemployed coming soon.

[ModE98]

Bought a few more HRZN.  Hope it's the right move at the right time.

[The Virginian]

I only have one stock in my portfolios up today and that is Abbvie (ABBV) up almost 3% - Not sure what's driving it - I read one speculation about a possible acquisition coming but nothing official.

[The Virginian]

Here's a nice list of BDC's if anyone is interested along with their returns for 2015:

[The Virginian]

I bought Shares in :

UAN - @ $5.80

AHGP - @ 14.67

[The Virginian]

Market down about 15% from highs - some individual stocks off by 50% or more. Keep looking for bargains - you will be glad you did.

[Deleted]

The Virginian

The DJIA is currently, as of EOB 1-20-2016 (-16.39%), or another way (-2,584.62) below the All Time High of 18,351.36 set 5-19-2015.

YTD the DJIA, as of EOB 1-20-2016 is (-9.52%).

 

Other notes, the DJIA violated the 8-25-2015 EOB low of 15,666.44 during the Wednesday 1-20-2016 session & closed above the 8-25-2015 low by a mere 100.30 points.

Additionally, there have been 7 session with negative triple digit losses; 3 of those over (-300) points, 3 of those with over (-200) points but less than (-300) points & 1 which was over (-100) points but less than (-200) points.

There have only been 5 positive sessions for the DJIA YTD & only 2 of those have been triple digit gains 1-12-2016 +117.65 & 1-14-2016 +227.64.

So far this year the DJIA is (-1,658.29) points.

This is all germane as there have only been 12 sessions YTD, and a lot of the reported earnings have in fact been rather decent; yet the forest has been set on fire.

Current indications portray a real possibility of the DJIA ending 2016 (-20%) or greater.

Yes still early, but the old saw goes "So Goes January; So Goes The Year".

[The Virginian]

DI - I am too lazy to figure out the exact percentage of the market drop ( or rise for that matter) but ...........  I still say that this is a great time to be buying. As all of you are aware I have never stopped buying , even as the market has fallen - 2015 and so far this year. I don't pretend to know where the market is headed in the coming year or two but I do know that history shows that it will gain about 8-10 % on average over time. So, long term is all that matters. I have positioned myself to concentrate on Dividend Income streams rather than portfolio value. My income keeps coming in and GROWING despite all the turmoil and declines in the market.

My ultimate goal is to have my portfolios produce the income I need for my retirement so that I will  never have to touch the principle. I am on track to reach that goal in the next year or two. And I expect to reach that objective even if the market sinks -20% this year.

My solace is knowing that eventually the market will recover. I have a lot of exposure to oil & gas but again despite all the rhetoric about renewable energy ( which I fully support) I know that fossil fuels will be here for years to come. You just can't magically flick  a switch to convert from one to the other. So I have been, and will continue to invest in these stocks for two reasons; 1) they will not only bounce back but because I bought them so low they will have above normal appreciation in price. 2) Because the prices have declined 30 - 50% or more in most cases, the yields have increased to very lucrative amounts. Once you purchase a stock at the high yield your yield is "locked in"  unless there is a reduction in the dividend. Now I know that will be the case for some of the stocks, that is why I have limited exposure in most of my new purchases ( I have been purchasing in $2,000 lots). Should the unthinkable happen this limits my risks.

Call me crazy but I like the market declining as I believe it brings great opportunities for people to jump in at bargain prices.

I read an article the other day that had this example: Why is it that people love to go to stores when they are having a 50% off sale - yet when the stock market is having a 50% off sale all is doom and gloom and they are panicking? ( Well we know the answer - because they see their money disappearing) but ......... in reality the market is just going through its cycles.


Now is the time to be buying stocks and getting into the market  ---- unfortunately most people wait until they see the headlines about the market setting new highs which is usually the worst time to get into the markets. Just human psychology