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

To: JimisJim who wrote (18815)	2/20/2014 9:47:33 PM
From: LTBH	5 Recommendations Recommended By Bernie Diamond JimisJim Mannie Max Fletcher Steve Felix Read Replies (2) \| Respond to of 34328

Although down a bit over last 10 days, I am up 5.4103% from Dec 31 2013. I am interested in a predicable steady income stream. I manually increase the stream through reinvesting the income. I also attempt to hold income growers which also appreciate in pps. Lastly I attempt to invest in management, BGS, VNR and SUI are some examples of, I believe, good transparent managers and I may soon mentally add NMM to that list if only I could better understand Angelicka's very heavy Greek accent. I have recently rearranged holdings to include some holdings that have predictable yields with limited cap gains ability and lower than my typical cutoff of 10% yield . The intention is to provide more folio stability. Should be noted that buying a qualified preferred at a $3 or so discount which is callable in 3 or 4 years does provide a limited and predictable cap gain even in this type investment. I believe there are plenty of cap gains and Div/Dis growth if you look. I believe if you check my MLPs you will find an average of at least 5% divie growth (although I have not discretely checked in a long time) with the notable exception of LINE/LINCO which is a special situation medium term trading position which is paying me a monthly 9.18% while I wait and is already up $5 on my purchase price. Most of these MLPs do have cap gains capability with MWE probably at the forefront for the next 3-5 years as the major gather processor in the Marcellus and Utica shales of W VA, PA and Ohio. My original MWE purchase was 04/24/2009 for $14.24 which I sold for $70.11 on 02/11/2014 and it sold for 72.84 and 72.95 on 2/14/14 & 2/18/14. MWE paid .64 per Q in 2009 and pays .86 in 2014. Both Cap gains and income growth. I purchased CLMT on 09/29/2011 for $16.74 and sold part of position on 03/4/2013 for $40.03 while collecting .475 to todays .685 per Q. I will give you one other example (if interested you can check the others yourself). VNR payed .445 per Q in 2008. VNR currently pays .208 monthly, my calcs indicate that's a 40.22% increase in five years. Going a step further in an admitted extreme example, I purchased my original position in VNR on 12/5/2008 for $5.33 with a yield of 40% at the time. VNR closed today at $30.51 and has evolved into a very price stable MLP but one with steadily increasing distributions. However I also would suggest that a portfolio which yields ~9.5% to 11% at any point should be able to easily keep pace with inflation whether or not its an income grower and I do reinvest (but not drip) that ~10% yearly income. A brief summary of several of the unusual: CLMT: refiner and specialty petroleum products, although my position is full, could be had yesterday/today at "good" price although for adds believe 25s is place to be NMM: Dry Bulk shipper, could be had today at decent price due to mistaken dump on earnings disappoint for symbol NM ... believe it or not this does happen often CMRE preferreds: Container Shipper and both issues are qualified for 15% STON: cemetary/funeral home MLP UAN: fertilizer manufacturer using pet coke feedstock rather than NG ... variable distribution AWLF: owner of ONLY two mid deep drilling rigs, new holding for me. 22.2% current yield, X in a few days, pays in US dollars, no taxes but broker will nip you for FX. New holding for me, major risk are only 2 rigs. If interested recommend reading all the 300 posts here for well rounded understanding: investorvillage.com EPR: entertainment REIT and common pays monthly, preferred quarterly SUI: recreational park and manufactured housing park REIT BGS: packaged foods, buys the neglected brands from majors and revitalizes Lastly, remember that MLPs provide tax advantaged/deferred income and do also come with the pain of K-1s, although there are a small handful that do issue 1099s. FWIW, I am 70, wife 75 and we live very modestly. Major concerns are ensuring I will be able to meet the ever soaring healthcare costs and secondarily leaving something behind that my 5 offspring will blow in ways I never would ). I just sold old home which was mortgage free, purchased a new one with 20% down on a 3.375 30 yr and applied the excess to current portfolio. So 3 months later I have everything where I think I want it. All of my major positions are not new to me although I have increased size in most. Luck LTBH

To: JimisJim who wrote (18815)	2/20/2014 11:00:40 PM
From: LTBH	Read Replies (2) \| Respond to of 34328

Another comment on dividend/cap gain & growth ... I believe there are sometimes circumstances which if viewed unconventionally, will yield surprising results. Take FFC for example. I really like this CEF, The very first time I purchased it was because I wanted some preferred holdings but wasn't well informed on preferreds. Just as I have a position in EHI for bonds. After holding and observing FFC over time it has revealed some interesting facts. FFC historically has weathered well, pays a very nice dividend which it earns (currently 8.6%), pays monthly, is NOT a CC fund (which I think are poison) AND if purchased on one of its NAV excursions below 6%, held collecting dividends and then sold on one of its trips to the NAV 6% plus arena ... can suddenly become a pps grower. FFC been around for 11 years, pays excess UNII as a special in December. My current batch was purchased on 11/26/2013 for $17.51 and hit a high of $19.05 yesterday even though its was X that day, closed today at $18.70. When it hits a plus 5-7% NAV premium, I'll wash and rinse again. Luck LTBH