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

To: E_K_S who wrote (8825)	5/1/2011 2:09:41 PM
From: Steve Felix	Read Replies (1) \| Respond to of 34328

I really have no turnover strategy. Sooner or later there is bound to be a "problem" stock. Of course the problem could be in my mind. More likely I feel a stocks dividend growth could be traded for something better, or maybe a higher yield without the growth. I haven't followed funds for years, but I vaguely remember that some of the best funds had the lowest turnover rates. I remember there were a few studies that what fund managers sold did better over the next six months/year, than what they kept. Imho, higher turnover rate = lower returns for all but a small minority. Studies show that once you cast off the 20% highest yielding stocks, the returns on the next 20% out pace the rest. Not really where Achievers and Champions show up. Starting out I wanted to balance high yield and safety. I've mostly kept my highest yielding ( should I say shakiest ) positions small: 400 CIM, 200 BKCC, 158 HTGC, etc. The plan, which at times I execute poorly, is that any money from sales of non Achievers, etc., can go into non Achievers, etc. All incoming dividends I want to direct to Achievers, Champions, etc., slowly increasing the side of safety and growth. This has been more challenging than I anticipated, with the market moving up. Seems something compelling in the non Achiever line comes along and.... I need to buckle down on this. As for the BMY sell, in a rising market most stocks we look back on will be higher. I'm usually not much for trimming. MCGC was the only stock that I didn't sell completely last year. True to form, with my sister not getting cashed out of one of her private reits in time, I had to find something to sell for her. Since BKCC is in my "shaky" box and it is one of the few stocks that overlap her and her husbands accounts I sold at $9.90 last Tuesday. Now $10.52. At least I am consistent. lol! Since I'm in for the dividends, I don't try to think of selling "tops". Usually ends up not being the top anyhow. Current case in point CPLP up another 7% since this post: "..I did sell all from my taxable account to take some of the pressure off holding the 900 in my IRA. So far that was a dumb move." The dividends really are the bottom line for me. The plan is to never have to liquidate a position because I am in need of the cash. Of course we never know what life brings. The current market is only making it harder to build the bottom line. Last years sells: 11/11/2010 10:03:11 Sold 300 SSS @ 39.7101 11,902.87 --- 08/11/2010 09:55:34 Sold 100 ED @ 47.97 4,786.96 --- 06/07/2010 10:34:43 Sold 300 EROC @ 4.8001 1,430.05 --- 06/07/2010 10:33:41 Sold 5 EROCR @ 3.05 15.24 --- 06/07/2010 10:33:41 Sold 100 EROCR @ 3.0501 295.05 --- 04/29/2010 13:59:21 Sold 100 O @ 34.45 3,434.99 --- 04/26/2010 10:03:03 Sold 100 EROC @ 7.2101 711.04 --- 04/26/2010 09:58:56 Sold 298 MCGC @ 6.9 2,046.21 --- 03/01/2010 15:07:08 Sold 100 SUG @ 24.3001 2,420.02 --- 02/08/2010 13:18:05 Sold 100 VE @ 31.6101 3,151.01 --- 01/07/2010 15:31:59 Sold 400 AHT @ 5.35 2,129.99 ---

To: E_K_S who wrote (8825)	5/1/2011 3:03:35 PM
From: Steve Felix	Read Replies (3) \| Respond to of 34328

Hi E_K_S, You got me thinking and as it is pouring outside, I thought I would check how badly I have done with my Aristocrat, etc., plan. Adding in an exception, as I think ESP is one great little dividend paying company, but won't make the lists. I'd buy more under $21. Last years actual income was $12,316. $10,477.16 went where it was intended to: 11/16/2010 11:29:14 Bought 13 CLX @ 63.0994 -830.24 --- 11/04/2010 13:12:55 Bought 10 CLX @ 62.65 -636.45 --- 08/11/2010 10:59:04 Bought 35 CLX @ 64.9894 -2,284.58 --- 08/03/2010 11:16:17 Bought 10 PG @ 59.6 -605.95 --- 07/21/2010 14:57:26 Bought 23 JNJ @ 56.9197 -1,319.10 --- 06/07/2010 10:37:07 Bought 100 ESP @ 18.79 -1,888.95 --- 05/20/2010 15:42:20 Bought 12 CL @ 81.2494 -984.94 --- 03/04/2010 15:36:14 Bought 100 ESP @ 19.17 -1,926.95 --- This years income so far = $4,494.70. I've got $1729 in cash ( carried over $1416 at year end ) and these two "qualifying for me" buys to show for it. 02/16/2011 11:40:04 Bought 35 ABT @ 46.24 -1,628.35 --- 01/26/2011 09:58:44 Bought 100 ESP @ 19.5 -1,959.95 Better than I thought and a good exercise for me.