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

To: Max Fletcher who wrote (17688)	12/1/2013 6:31:24 PM
From: wilywilly	Respond to of 34328

Max, Thanks. I'm on the same page, and will be adding at these prices as I sell off some non dividend payers for tax losses this month.

To: Max Fletcher who wrote (17688)	12/1/2013 6:33:14 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Hi Max - "... as markets tend to over-react . . ." I am thinking the same thing but not trying to time the market and/or sell those dividend payers that I have been accumulating. It's not an all or none proposition for me but some announcement regarding that "the tapering" has started may present a buying opportunity. I will deploy at least 20% of my cash and maybe more on any significant correction. I have been trying to figure out what the "normalized" rate should be especially on the high quality REITs and MLP's. I look at the high quality preferreds to give me an indication of where that yield is. For now it's right around 7%- 7 1/4%. Therefore, on the high quality REITs and MLPs if their revenue streams are solid and growing, I am using a benchmark of 6% or higher as my first possible "buy" signal. I also follow the longer term yield trend both before and during QE 1-3. You are right that the market will overshoot as the retail investor will sell driving the yields higher. I am keeping a fairly high cash position for me now (about 9%) buying mainly selective MLP's for the taxable account that yield 6% or greater. I have several REITs on my watch buy list too. I am always concerned about the amount of debt my dividend payers have especially coming out of QE and am looking at the quality of their earnings too. Debt levels are coming down which is a good thing. Many companies have been cutting expenses while revenues are not growing and/or are flat. They still are making their earnings numbers but the quality of those earnings are not to my liking. Therefore, for an income portfolio I am focused on MLPs and REITs. I am also deploying a very small amount of money in the small cap area as this typically is the first sector that will rise significantly if/when a sustained recovery is in place. Good investing EKS