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

To: LTBH who wrote (19869)	6/6/2014 4:13:34 PM
From: E_K_S	Respond to of 34328

MWE on my buy list for MLP's as it is lagging several of the others. Eventually their CAPEX expenses will help stimulate growing revenues. Similar to EPB w/ no growth in 2014 and perhaps 2015. This is an excellent site to look at "Yield to CAGR" I like to buy w/ a minimum 10% total yield (growth + distribution). You can still find severl good names that are higher. The wild card is the growth. Those w/ low expected growth could be at a discount if they have been spending CAPX now for future growth. That growth will eventually kick in. It's not what you really buy today but what it will look like 2-3 years from now. If/when the growth kicks in, the MLP price rallies and could be a time to sell and move proceeds into another name. So, for me, MWE is looking like one of those buys w/ perhaps a 20% price move in 2-3 years. No position but watching. Similar stories w/ SXE and RGP. I recently bought these 10% lower last month. I expect further revenue and distribution growth based on the efficiencies they obtain from their recent acquisitions. The key will be owning those companies that generate income w/ moderate leverage. As long as we are in a "0" interest rate environment (Bill Gross says could last 7-10 years), these steady dividend payers generate a higher then normal "real rate of return". Utilities have and may continue to do well but I noticed monies moving into Reits and MLPs. A lot will depend on future pricing power of the product and services these companies offer. That's where I am looking to invest new monies. EKS