Income Stock Investing/Suggestions/Opinions

[ModE98]

Holding ANH, CIM, RIT and RRD in port currently. Always looking for new prospects. Need to spread the risk. Like the monthly checks, but still a good quarterly dividend works just fine.
Just thought a thread for income stock talk and discussion might be a good subject to add for SI.

[ModE98]

RIT pays MONTHLY ... but there is risk in realty and the payout is certainly tied to the future of the real estate market.... Fortunately it has a long term record, so most likely will survive the ups and downs, with the payout amount geared to the varying state of realty in U.S.
LMP Real Estate Income Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund’s primary investment objective is high current income and its secondary objective is capital appreciation. The Fund invests in securities related to the real estate industry. It invests at least 90% of its total assets in income-producing common shares, preferred shares, convertible preferred shares and debt securities issued by real estate companies, including real estate investment trusts (REITs). The Fund may invest approximately 60% to 80% of its total assets in common shares issued by real estate companies, and 20% to 40% of its total assets in preferred shares, including convertible preferred shares, issued by real estate companies. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund’s investment manager. AEW Capital Management, L.P. (AEW) is the Fund’s sub-adviser. LMPFA is a wholly owned subsidiary of Legg Mason, Inc.

[ModE98]

DI, that was a detailed list. Probably anything paying over 5% might be "good dividends" if one is looking for CURRENT income. I know some who are more concerned with GROWTH as well. So if you have the list, feel free to input. It sounds good to sort by sector for better diversification prospects. Whether 300+ might be "to much to contemplate" by some is moot, but a good top 5 in each sector (say, 10-12 sectors with highest divi) might be easier... it's up to you.... lot of work.

[ModE98]

DI, was also hoping that as the thread develops, members would input comments (pro/con) on specific stocks. There may be some overlooked issues involved in a stock ("red flags" or special advantages) that may exist that should be considered in selection or axing. We cannot individually keep up with all the stuff going on... and some may be more detail-observant than others. We'll see what develops here and hope it becomes somewhat useful to our divi-interested members.

[ModE98]

DI, see if Rovo's method would work for you. See the 5-15-50 Moving Average thread where he posted a trial balloon for the Stock Pick of the Week set up ... neat. Hope it works for you.

[Bluerobin]

DI, I am still working the old list which I thank you for daily.

ModE, I do have AOD and ETG for monthly dividends. I think ETG may be the more stable. AOD recently dropped from almost $9 to about $5.80, so if you don't mind risk, might be worth the dividend.

[ModE98]

DI - Nice job in producing that new table. Neato! You 'da man!

Ole Blue, noted your mentioned stocks for some DD and possible additions in the new year. In a year or two (hopefully 5 or 6), I will probably be moving to an Assisted Living facility and the monthly income would definitely come in handily meeting the cost as supplement to my LTC policy which would pay about 3/5ths the monthly price of residence. Costs keep going up since I obtained the policy.

[Bluerobin]

Mod E, having gone through elder care with relatives and having a few cousins doing the same, I found a few things out. Instead of Assisted living, you may want to consider in home assistance. In some cases it worked out cheaper and better. It is one on one if you can find a good agency. A social services agency can steer you. Crabby and I will probably do the Assisted Living thing if we both need it. Otherwise, the survivor gets to spend it all!!!
One word of caution: You may want to be the one to sign yourself in if you go to a "home". That way, you get to make the decisions. My wife's aunt's room mate did that, and could pretty much come and go as she pleased from the nursing home. When they were both in better shape, she signed out to come to our place for holidays.

[Small Biz Owner]

Wow DI thats quite a list. You did a great job

[Small Biz Owner]

Ok someone is changing emoticon codes as I post.

[Bluerobin]

Mod E, one preferred I have may interest you. It is for PNC bank, symbol is PNH - it yields about 7.4 % at the present price of almost $25.98. PNC was one of the annointed banks that got to take over NCC.
Boy, you are gonna be busy checking out all this stuff!

[ModE98]

Thanks, Ole Blue, I certainly will put on my watch list. I like 7%+ for good return.
Just need to have my China ADRs get going so I can cash in for some good profit. Looks like perhaps next Spring/Summer period may be best chance.
They have been a big drag on my port this year.

[rovo]

ModE, Again I caution and warn you about the Chinese ADRs. Most of these issues are not what they appear to be and are subject to the whims of a still communist government.

[yclept]

Following is my latest screen of low beta, high dividend stocks. I don't own any of them at present.
NLY MFA PTNR TNE TMX

I did own CIM until recently, but the pay-out ratio got over 100%, so I sold it. I presently own AGNC, which while probably a bit riskier than the stocks in the table above, pays an amazing dividend and doesn't quite pay out more than they earn (pay-out ratio less than 100%). They also appear to have the next two dividends sitting in cash, so should be safe for awhile. At least that's how I'm playing it for now.
Man, what a pain in the ass it is to insert a table. I'll keep trying on the next reply, but this might have been the last one I ever do.

[Bluerobin]

Mod, one caution, par on PNH is $25.

[yclept]

Ticker	Name	Last	MktCap	Yield5YAvg	Div3YCGr%	ROE%TTM	PayRatioA	EBITA	Beta	Yield
NLY	Annaly Capital Management, In	17.83	11088.09	9.53	64.56	8.2	71.8	1481.32	0.35	14.36
MFA	MFA Financial, Inc.	8.25	2312.76	7.89	67.68	12.36	96.36	235.18	0.4	11.39
PTNR	Partner Communications Compan	20.23	3145.02	6.91	37.65	96.48	92.81	456.76	0.68	10.42
TNE	Tele Norte Leste Participacoe	14.19	5429.52	9.33	6.26	12.13	24.66	973.24	0.82	23.26
TMX	Telefonos de Mexico, S.A. (AD	16.04	14590.62	4.76	24.5	38.79	76.16	2667.68	0.97	8.71

Yep, that's a first class pain in the ass, and perhaps the last one I will ever post.

[yclept]

Note:
TNE above pays its dividend very erratically. There are other factors about the stock that would keep me away from it. D/E is a whopping 3.83, and BV/sh shows as minus 4 bucks. On the other hand, they report 18 bucks cash per share (against a price of 14). P/E shows 9.1, but the P/E normalized is 1.9, perhaps indicating some rough sledding ahead.
It may keep paying the high dividend. It may be a wonderful investment opportunity. It's probably too big to fail outright (i.e. the government would intercede, but whether that would leave anything to the shareholders is another matter) -- I think I'll leave that one for the Brazilians to figure out!

[livinincali]

I've always liked GLP but I don't love the technicals if you were to buy it right now. Might want to take a look at this one on a pullback to the 50 day moving average if it holds.

[ModE98]

Jim Cramer has several times given kudos to NLY when someone asks about dividend stocks. He may be correct on this one while money remains so cheap.

[danshirley]

Writing covered calls is considered a valid method of increasing income from owning stocks. You can get call premiums on top of dividends.
amateurassetallocator.com/2010/07/21/writing-covered-calls-for-income/

[Deleted]

Good day all

I have become a buy and hold type of investor mostly

Other than adding to positions, i think i changed out of one stock during the year

I like to keep my holdings down to a maximum of ten equities (easier to track and follow) but leaves me open to large swings in a select few companies

Largest positions
GE
JNJ
NYB
DUK
XOM

Smaller positions in
EOI
DPO
MTW (this is my top pick for 2011)
OC

I had BP before the disaster and switched out immediately to XOM

[dividend]

Is this an appropriate place to ask what some of these this stuff means? So, for an example, I looked up the top one on DI's list - GPC, on Market Watch.
current price $52.35
P/E ratio 18.19
EPS 2.87
Dividend (hey, that's me! 0.41
Div yield 3.19%
Ex dividend date 12/8/10.
What does that information mean to me if I bought shares of this?
What's the difference between investing for current income and investing for growth?
Talk to me like I've never invested before, because, well, I haven't.

[yclept]

current price $52.35 -- the price of the last buy/sell at the time you extracted the data
P/E ratio 18.19 -- the above price divided by the company's yearly earnings (usually TTM, which is trailing twelve months)
EPS 2.87 -- earnings per share (the amount of last year's company earnings divided by the number of shares outstanding)
Dividend (hey, that's me! ) 0.41
Div yield 3.19% -- the yield or % return paid last year based upon the current price of the stock, or in other words the sum of all dividends paid the last year divided by the current stock price.
dividend -- the amount per share paid, in this case, 41 cents per share; if the stock pays quarterly, you would get this or some other amount 4 times a year.
Ex dividend date 12/8/10. -- the last date on which you could have bought the stock and been eligible to receive that period's dividend (for most stocks dividends are paid quarterly).

P/E is a commonly used valuation metric -- the lower, the better. 18.19 is higher than I like to pay in this market.
Income investors buy stocks with substantial dividend and bonds. They are hoping primarily to maintain their current principal and receive ongoing income.
Growth investors buy stocks that they expect to increase in market value; they want to grow their principal and are not as concerned with current income.

You have more work to do. This is a small amount of fundamental analysis; you asked nothing about any elements of technical analysis.
Dan Shirley had a good list of books for learning about investment analysis. Maybe he'll happen by this thread and be able to post it for you. It's still back somewhere on the MSN Start Investing Board (which I'm guessing is still running -- I have no use for MSN anymore, their analysis tools suck), but I can't remember the thread name.

[rovo]

dividend -- the amount per share paid, in this case, 41 cents per share; if the stock pays quarterly, you would get this or some other amount 4 times a year.

Yclept, Your comment above is a little confusing. Dividend usually refers to the total dividend paid for the last 12 months or the annual dividend. The quarterly dividend is 1/4 of the stated amount.

[yclept]

Yes that's most often the way dividend is stated. But in the above case, the yield is stated as 3.19% -- so far as I know that's always a yearly amount. 0.0319 x 52.35 is $1.66, so the dividend stated (.41) has to be a quarterly.

[rovo]

I agree with your statement in #30. The important thing is to be sure to check, like you did, to make sure the numbers mean what one thinks they do.

[clarkrl2]

I sometimes check bigcharts for dividend yield. It's important to remember they always calculate the yield as last dividend x no. per year/price. When I look at HYG for example they pay dividends 12 times per year and the amound of the payment fluctuates from month to month. I've noticed that the yield on other popular etfs like DIA also pay monthly and tend to fluctuate from month to month. Most United States based companies pay regular quarterly dividends but companies not based in the U.S. sometimes don't pay regularly scheduled amounts. It would be very wise for anyone looking at yield or dividend rate to be sure of the payment schedule and the yield being reported.

[bimetalaupt]

D.I.,
If you want to look at current dividends plus future growth in dividends.. Try Value Pro. IT IS . More about future Discounted Cash flow...

It give interest results like PEP has more upside the KO!! It also things like AA and EE have zero future intrinsic stock value...
www.valuepro.net/index.shtml

[soycapital]

The strongest dividend yielding stocks, no specific order, see link at bottom of post link for more info. XOM, JNJ, MMM, KO, ED, PG
Since I don't really enjoy hanging around the computer watching the market or losing sleep whatever I've been buying these type of stocks with about 80% of my portfolio. Would anyone like to discuss these stocks? Personally I am looking at buying more JNJ and PG since I think they are a good value right now. I don't know much about ED. Many of these companies are expanding strongly overseas, I think owning stocks like these in a volatile market is a good idea at least with a good portion of your portfolio. Then you can play (and learn) with the rest in more speculative areas.

boards.fool.com/dr-doom-smiles-29004289.aspx

[Bluerobin]

soy, I like the stocks. At present I only have PG. I have looked at ED, but for some reason not yet pulled the trigger.