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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (6366)	11/11/2010 11:43:54 PM
From: E_K_S	Read Replies (2) \| Respond to of 34328

Steve - Re: Portfolio management Here is a custom YAHOO display I created to determine what stocks in the portfolio I might want to peel off shares from that have had large moves YTD (Pct from Yr Low). I put in your list of stocks so you can view the fields in the table below. Symbol Trade EPS (ttm) P/E Div/Shr Yield Pct from Yr Low 50d MA 200d MA I try to buy new positions below the 200d MA and sell above the 50d MA especially if the PE gets too high (PE>14). These positions become potential sell candidates. finance.yahoo.com For example, I sold a large portion of my MPW bought earlier this year around $9.50/share. Booked a 35% gain. Reduced my holding to a .5% portfolio position. Your MCGC might be a candidate for a sale especially if you are approaching the YTD gain of 83%. I have a lot more positions where the dividend yields are now only in the 4%-5% area but sit on large capital gains. If the position is not a dividend grower, then these become candidates for sale to be moved into either (1) a better dividend grower w/ equivalent yield and/or (2) a dividend/income producer that spins off a better than average yield w/ low risk profile. My #2 candidates now are preferred stocks and some MLP's. I have limited my exposure in the portfolio to no one position greater than 6% of the portfolio (I own one in this category: BHP). Many of my top 10 positions still represent 3%-5% holdings. My average full position size is about 2% of the portfolio. Most new positions start out at .5%. I will usually build to a 1% or 2% position and let it grow to a 4%-5% position. I will then peel off shares and put the proceeds into new dividend growers or special situation stocks. I average into new positions and try to buy on dips, company specific news & events and ex dividend dates. I am also turning over the portfolio a bit more. My average holding period is down to about 3 years from 5 years. Most of my top 10 holdings I have held for 10 or more years. This year I took profits on GOV and MPW which netted me greater than 30% returns even though their dividend yields were still quite high (>6%). Finally. I started a position in EDE earlier this year when it was yielding over 7% (stock was $17.5/share). I sold the December $20 call to lock in a 25% gain. The stock should be called away in December as it now trades around $22.00/share and yields 5.74%. This one will be let go and the proceeds will be put into something else in December. I generally do not like to trade my dividend payers but when I can book 30% in 12-18 months and the stock is more than fairly valued (14PE or higher) and/or high payout ratio and/or low dividend grower, I will reduce or eliminate the position. I always seem to have other dividend growers to invest in. Hope some of this helps you or others when setting up your portfolio and managing your dividend income. EKS

To: Steve Felix who wrote (6366)	1/4/2011 1:16:40 PM
From: Bocor	Read Replies (1) \| Respond to of 34328

Interesting CWH analysis pulled from Yahoo: Income Analysis Gross Rent from Real Estate $ 859.6 M Operating Expenses ($ 362.2 M) Mgt & Adm Expenses ( 41.2 M) Total Expenses ($ 403.4 M) Net Operating Income $ 456.2 M Capitalized at 7.5% .075 Capitalized NOI $6,082.7 M Plus Stk Hldgs (25% of GOV) 269.0 M Plus Cash 175.0 M Total Value $6,526.7 M Comments: The Gross Rent from Real Estate, Operating Expenses, Cash Position, Stock Holdings figures were extracted primarily from its third quarter 2010 supplemental. The overall rate of 7.5% was selected after looking at office cap rates (CBD Av.- 7.5%, Suburban Av- 8.2%) and industrial cap rates (Av.- 8.0%) from a 4th quarter 2010 survey by PWC and leaning slightly towards the lower end of the spectrum because cap rates have lately been declining and part of the CWH’s income is from Hawaii land leases that should have a lower cap rate than most improved properties. Conclusion: CWH has a total depreciated book value of $6,374 M ($40.38/basic sh). The market value of its hard assets (real estate, stock holdings, & cash) was estimated at $7,712 M by the above Sales Comparison Analysis and at $6,527 M by the Income Analyses for a potential combined average of $7,120 M ($52/basic sh assuming no changes in debt & preferred). CWH with a current stock price of $26/sh +/- would need to increase approximately 55% to reach its book value of $40.36/sh and 100% to reach its potential average (hard asset) market value of $52/sh +/-.