Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JimisJim who wrote (13367)	12/11/2012 7:54:43 PM
From: chowder	Read Replies (2) \| Respond to of 34328

I agree Jim. WM is borderline. I'm still in the thinking aloud mode. With the dividend increase and the current yield, that puts it at a 6.9% total dividend return. My objective is 8% minimum, but I will allow it to drop to a 6% total dividend return if part of the reason is capital gains causing the yield to lower. That isn't the case with WM and why I'm leaning heavily to replacing it. The thing I like about dividend investing is that you can take your time and think things through because you're being paid while you contemplate. ... Ha! I really think SYY has to go though. I've given it 3 years to start their dividend growth again and it just isn't growing enough. I can get a 4% yield with DRI which is more than SYY, and if DRI cuts their dividend growth in half, I'm still ahead of SYY. I'm waiting on the dividend from SCG the first of the year before I determine whether it goes or not. I want to see what their next earnings report states. If things are improving, I may hold. It's closer to a sell though because I like the expected dividend growth from LNT which I will use to replace SCG. I don't own any BDC's, so I can't comment on them. I've already added to CVX and COP this year, so they are good to go for now. I sold CINF a month or two ago and let NRP go a while ago! I got rid of ARLP as well back just as coal stocks started diving. I'm not looking to own coal anymore, although I consider ARLP as best in breed. I'm looking to drop down to 42-45 positions.

To: JimisJim who wrote (13367)	12/11/2012 8:32:35 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Jim In your calculation do you consider capital gains tax or is everything you own in an IRA. I always look at the capital gains tax and when I add that into the equation, I go with the low dividend payer. In the taxable "income" portfolio, I keep my capital gains inside the portfolio and only sell when I can offset those gains w/ losses. Managing the IRA account(s) this is not a factor. It's a much easier "trade" decision. I am not sure if you use the same criteria in your analysis, so it helps other readers if you can delineate between your IRA and/or the taxable portfolio. So, yes taxes do matter. Also, I sell my high priced shares first when I sell because the capital gain is smaller. EKS