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


To: JimisJim who wrote (10499)12/4/2011 7:08:44 AM
From: Bocor  Read Replies (1) | Respond to of 34328
 
I had never considered POM either. I had FE from 36, and like the old trader I was, I sold it under 42, and have waited unsuccessfully for it to come back. Sold EXC after the mess in Japan, presuming EXC would have a huge sell off which, needless to say, didn't happen.

Two good examples of buy and hold:)

Here is an interestng take on POM from S.A.

Pepco Holdings, Inc.
( POM), a mid cap utility, is currently trading around $19 per share. POM has the least attractive return on equity (5.86%) of all the utilities we are examining today. Price to book is 1.01 and the dividend yield is 5.60% but its sustainability is questionable given the current payout ratio of 91%.

http://seekingalpha.com/article/311641-illinois-tool-works-and-harris-corporation-two-3-yielders-worth-picking-up-now?ifp=0&

I sort of lost faith in Carla after she recommended STON and GTY. I bought STON, got out even thankfully at 29 after too many red flags started to appear.

I will definitely investigate it further because the yield is certainly attractive, but there must be a reason for a yield higher than usual.



To: JimisJim who wrote (10499)12/4/2011 8:05:51 AM
From: Bocor  Read Replies (1) | Respond to of 34328
 
Jim,

Have you looked at Atlantic Power Corporation {AT}?

It owns interest in various power projects and a transmission line in the United States. It consists of 13 operational power generation projects with approximately 878 MW generation capacity; a 500 kilovolt 84-mile electric transmission line in California; a biomass project under construction in Georgia; and various development stage generating projects. The company also sells steam under sales agreements to industrial purchasers.

I got this one from Carla P. also, and what I think she liked most was their stated objective to maintain a stable dividend to shareholders and to maximize the value of the company. They have a history of acquiring quality assets while being able to maintain their financial stability.

The company has quite a diverse mix of energy generating assets from natural gas, coal, wind, biomass, and hydro. As a result of the recent sell-off, yield is 8.4%, and is distributed on a monthly basis, which makes this stock that much more appealing to me since I can better capture the market volatility which seems to be destiny for some time to come.