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Technology Stocks : KMI- a fallen high dividend yielder - for how long? -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (222)	1/28/2024 11:22:44 PM
From: robert b furman	Read Replies (1) \| Respond to of 357

Hi Johnny, Like you, as I reached and achieved retirement. I chose to take a portion of what was an all tech portfolio into dividend aristocrats. That transition has taken me 5-8 years. It becomes a buy the dip strategy, when the dividend yield is what you find acceptable. Then there are black swan events which are opportunistic, when you have cash - a long term event that requires huge patience. After I repositioned that, I had dividends coming in and yet valuations were high, so I bought preferreds. I was not so much concerned about the valuation of the preferreds as I was setting up a 6 year minimum of steady income to our account, with the idea if something happened to me, my wife would not have to time anything (she's not involved in my interest in markets). I just wanted a solid revenue stream that would allow her to cover: taxes, insurance, utilities,food, without being concerned on timing. So far, since I chose a low interest time period to buy the preferreds, it represents a loser if I sold today. That being said, the yield I'm getting is what I was and am happy with receiving. Note to file, now is a really good time to do that! In fact I have doubled down on T/A and TDS V and U as their yields are now more than acceptable. Blending the 5 and 6 % with 8 - 11 % yields has set her up to be more than comfortable if I go to the happy hunting grounds. <smile> If liquidation occurred it would be a small percent of the portfolio and I chose that approach vs the annuities or deferred income approaches out there. I viewed it as a wholesale cost of security. Lastly, my last positioning has been CD's with JPM and Treasury's (none longer than 13 months in duration) with the higher rates available now. If the market rates available implodes, I can't envision having my money tied up for longer than that - just me and I'm OK missing a 5 to 10 year 1%- 2 % differential, again just me. I think your realization that retirement is near and is shocking to a degree is almost universal. I waited for a passion to surface, and it was a no show <LOL>. I got up each morning and watched the market. I'm a slow adopter, but found dividend investing where I wanted to go. Take it slow and be opportunistic. I found selling put premiums on my cash to teach me patience. Strike price assignment less put premium taught me to be enjoy time decay on put premium. I found it lucky to be assigned stocks with my cash allocated for retirement income. It taught me patience without trading frequently on a speculative basis. In time decay I trust. I still think it is what annuity sellers do. And they make big money with that! Retirement took me a while to enjoy. After you get revenue such that you still are increasing your net asset value, you'll slowly enjoy spending more vs. saving. Then after a while the bigDshocker hits you as your friends of similar age begin to pass. You realize your savings may well out last you. That's a bit of a paradigm shift. I hesitantly ponder that now. It is not to be feared, it is very comforting after a life of fearing market downswings. <smile> I know you'll morph into conservative thinking and handle it well. I suspect you were well on that approach already. Buying preferreds for the first time, I think is on the money for today. do a budget, and cover your families needs. In today's market they are as good as treasuries but at half the tax rate - not bad. (not sure in Canada tho). I've enjoyed recapping my thoughts on retirement. If you have further issues, feel free to discuss! Bob

To: Johnny Canuck who wrote (222)	1/31/2024 5:53:15 PM
From: Logain Ablar	Respond to of 357

Hi JC: Just to keep this on the same thread. I started switching to dividend paying stocks 2 years ago but really added at the beginning of last year with a position in Petrobas A ADR (2 shares / ADR). The dividend is 45% of Free Cash Flow so is variable and while paid quarterly they split it into two pieces. Last year the dividend ended up paying 23% (the 2022 4Q dividend was still at a higher FCF level). Now the stock is up to $16.4 and if the dividend is 11% (my base case if Brent averages $72 then the dividend will only be 46 cents / quarter, this was the Q2 dividend amount so round to $1.8 / $16.4 = 11%. Last year the dividend totaled $2.31 but the Q4 dividend of $1.10 paid in May - 0.54, June - 0.36 and December - 0.20, is now probably only 50 cents. When I purchased I was thinking the dividend would be between $3 and $4 but the new administration changed the board and changed the payout. I can still live with $1.8 to $2.20 depending on the oil price. If Brent breaks below $70 then the $1.80 won't be the floor.