Investing 102

[Spiffav8]

Originally Posted by GregWeld

I decided this morning that I'd publish the last 6 months of DIVIDENDS on the Schwab account. WHY? Because I want to remind you all about what the dividend is doing -- REGARDLESS of what the SHARE PRICE is doing. IN other words --- I'm getting REAL LIVE CASH CONSTANTLY.... the share price today is NOT important as long as these companies are sending me checks --- it's NOT important really - until I want to sell. If I don't want to sell - then the daily share price is nothing but a place marker.






Date Action Quantity Symbol Description Price Amount Fees & Comm
11/14/2012 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
type: ORD DIV - CASH
$15,120.00
11/13/2012 3903609 GEN ELEC CAP 6.625XXXPARTIAL CALL @ 25.
type: CREDIT INT
$1,707.18
11/01/2012 T A T & T INC NEW
type: QUALIFIED DIV
$6,600.00
10/30/2012 SCHWAB1 INT 09/27-10/29
type: INTEREST
$5.51
10/29/2012 NLY ANNALY CAPITAL MGMT REIT
type: ORD DIV - CASH
$17,500.00
10/10/2012 MO ALTRIA GROUP INC
type: QUALIFIED DIV
$8,800.00
10/05/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$9,701.68
10/01/2012 KO COCA COLA COMPANY
type: QUALIFIED DIV
$3,825.00
09/28/2012 GEA GEN ELEC CAP 6.625%32PINES DUE 06/28/32
type: CREDIT INT
$4,140.63
09/27/2012 SCHWAB1 INT 08/30-09/26
type: INTEREST
$7.35
09/17/2012
as of
09/15/2012 ED CONSOLIDATED EDISON INC
type: QUALIFIED DIV
$3,630.00
09/12/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$6,682.32
09/10/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$5,845.32
09/10/2012 PFF ISHARES S&P U S PFD FUNDS&P U S PFD STK INDEX FD
type: ORD DIV - CASH
$2,516.50
08/30/2012 INTEREST 07/30THRU 08/29
type: MARGIN INTEREST
-$29.73
08/30/2012 SCHWAB1 INT 07/30-08/29
type: INTEREST
$2.05
08/15/2012 NNN NATIONAL RETAIL PPTYS REIT
type: ORD DIV - CASH
$4,740.00
08/14/2012 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
type: ORD DIV - CASH
$4,920.00
08/14/2012 EEP ENBRIDGE ENERGY PTNRS LP
type: ORD DIV - CASH
$5,435.00
08/09/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,296.25
08/07/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$3,280.55
08/07/2012 PFF ISHARES S&P U S PFD FUNDS&P U S PFD STK INDEX FD
type: ORD DIV - CASH
$2,514.86
08/01/2012 T A T & T INC NEW
type: QUALIFIED DIV
$6,600.00
07/31/2012 BLW BLACKROCK LTD DURATION INCOME TRUST
type: ORD DIV - CASH
$1,075.00
07/30/2012 INTEREST 06/28THRU 07/29
type: MARGIN INTEREST
-$15.74
07/30/2012 SCHWAB1 INT 06/28-07/29
type: INTEREST
$1.91
07/26/2012 NLY ANNALY CAPITAL MGMT REIT
type: ORD DIV - CASH
$19,250.00
07/12/2012 PM PHILIP MORRIS INTL INC
type: QUALIFIED DIV
$5,390.00
07/11/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,356.51
07/10/2012 MO ALTRIA GROUP INC
type: QUALIFIED DIV
$8,200.00
07/09/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$3,366.31
07/09/2012 PFF ISHARES S&P U S PFD FUNDS&P U S PFD STK INDEX FD
type: ORD DIV - CASH
$2,464.25
07/03/2012 KMB KIMBERLY-CLARK CORP
type: QUALIFIED DIV
$1,480.00
07/02/2012
as of
07/01/2012 KO COCA COLA COMPANY
type: QUALIFIED DIV
$2,040.00
06/29/2012 BLW BLACKROCK LTD DURATION INCOME TRUST
type: ORD DIV - CASH
$1,075.00
06/28/2012 GEA GEN ELEC CAP 6.625%32PINES DUE 06/28/32
type: CREDIT INT
$4,140.63
06/28/2012 SCHWAB1 INT 05/30-06/27
type: INTEREST
$1.47
06/15/2012 MCD MC DONALDS CORP
type: QUALIFIED DIV
$3,500.00
06/15/2012 ED CONSOLIDATED EDISON INC
type: QUALIFIED DIV
$3,025.00
06/11/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,368.39
06/07/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$3,523.85
06/07/2012 PFF ISHARES S&P U S PFD FUNDS&P U S PFD STK INDEX FD
type: ORD DIV - CASH
$2,428.70
06/01/2012 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$4,042.97
05/31/2012 BLW BLACKROCK LTD DURATION INCOME TRUST
type: ORD DIV - CASH
$1,050.00
05/30/2012 SCHWAB1 INT 04/27-05/29
type: INTEREST
$2.34
05/22/2012 KFN KKR FINANCIAL HLDGS LLC REIT
type: ORD DIV - CASH
$2,700.00
05/15/2012 NNN NATIONAL RETAIL PPTYS REIT
type: ORD DIV - CASH
$2,695.00
05/15/2012 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
type: ORD DIV - CASH
$7,200.00
05/15/2012 EEP ENBRIDGE ENERGY PTNRS LP
type: ORD DIV - CASH
$5,325.00

I didn't break out a calculator but that looks to be in the neighborhood of 200k. Sweet return for letting your money work for 6 months.

[mdprovee]

Still giving us great information Greg, thanks. I still dont understand alot of it. Apple is kicking my butt, I keep telling myself, remember long term, and dividends, so I am not panicing.

On the bright side we are saving a little, and have been able all year to pay cash for things that normally we would have to charge. Thanks.

[Bucketlist2012]

Funny how when the market is down like last year during the 400 point drops and now after the election, I get calls from investment firms asking,"How am I doing " ?

They don't call me on the up days...They want to review my portfolio....No thanks...

[GregWeld]

Originally Posted by Spiffav8

I didn't break out a calculator but that looks to be in the neighborhood of 200k. Sweet return for letting your money work for 6 months.

I never add it up - so couldn't tell you what it is. Let's just say that I don't have any cash flow problems.... and this is just ONE account.

My point is... if you've invested your 401 or ROTH IRA.... then you shouldn't be concerned about the markets ups and downs. If you pulled out now in order to save yourself the market sell off..... you'd miss out on the dividends.... while you were in cash. Then I guarantee you that congress would announce overnight that they've settled on a fiscal cliff fix... and the market would go up 500 points and you'd miss out on that too! That's the problem.

Let's say the market goes south ala 2007.... and it just steps down and down and down daily and weekly for a year. You're down 35%. BUT -- you'd still be getting the dividends and they'd be buying shares down there at the low prices every quarter... they'd be adding to your share count FASTER than if the prices where higher! Now each one of those shares is paying a dividend - they're like rabbits - the more shares you have the more shares you buy.... 10 years from now you'd not be worrying about what happened to the friggin' fiscal cliff!!

[toy71camaro]

Anyone care to chime in on where i should look next for my next area of investment for some good diversification?

I currently own these in my ROTH IRA. And all roughly the same value ($1k-1.5K)

I ready to make my next $1k purchase to (i think) round out my $5k ROTH for the year! (woohoo! maxed that puppy out!)

Anywho, here we go:

ABT
CVX
ED
KMB
KO
MCD
MO
T

I was thinking something in the transportation (railroads) arena, or construction, or, jump back into a high yield one (NLY?) since its nicely valued now or something of that nature to bring up my overall yeild?. lol

Or, should I just hold out and wait for something later, if this market keeps going lower?

thoughts?

(By the way, I'm gettinb 0.8% interest on this cash before I toss it into my Roth. and I can hold onto it a couple months into 2013 and still back fill my $5k 2012 ROTH allotment. If its suggested i stick with cash so I can "be ready" to jump onto something)

[GregWeld]

Originally Posted by toy71camaro

Anyone care to chime in on where i should look next for my next area of investment for some good diversification?

I currently own these in my ROTH IRA. And all roughly the same value ($1k-1.5K)

I ready to make my next $1k purchase to (i think) round out my $5k ROTH for the year! (woohoo! maxed that puppy out!)

Anywho, here we go:

ABT
CVX
ED
KMB
KO
MCD
MO
T

I was thinking something in the transportation (railroads) arena, or construction, or, jump back into a high yield one (NLY?) since its nicely valued now or something of that nature to bring up my overall yeild?. lol

Or, should I just hold out and wait for something later, if this market keeps going lower?

thoughts?

(By the way, I'm gettinb 0.8% interest on this cash before I toss it into my Roth. and I can hold onto it a couple months into 2013 and still back fill my $5k 2012 ROTH allotment. If its suggested i stick with cash so I can "be ready" to jump onto something)

Got any bleeders in that current group you might want to "average down" on? I'd be looking at that FIRST....

If not this instant -- you do have until April 15th to fund I think?? If that's true -- I'd wait until we see some clarity on the "fiscal cliff" negotiations.

[toy71camaro]

My big bleeder was MCD at 10%, which I averaged down to ~4% last week (after my break even sell on NLY).

Right now, Im looking at:

ABT = -8.4 (so i would cut that in half)
CVX = -4.65 (i would probably cut that down to around -3)
ED = -6.08 (that would be cut in half)
KMB = +5.87
KO = -2.25 (Id cut that in half)
MCD = -5.52 (that would be cut to about 4)
MO = +0.36
T = -1.01 (could cut that to in half)

Only worthy ones I see close would be ABT or ED. ABT is now paying a 3.2% yield on that price (and soon to split into two separate companies in Jan, so who knows what that could bring (+ outcome)/take away (- outcome)). ED is paying a 4.4% yield now, which is actually pretty good. Their recent "down fall" recently being the result of Sandy, could go down farther depending on their outcome of this whole "how they handled the hurricane situation" investigation that's being dumped on them.

Come 2013, I'll have another "buy moment" with another $1k ready for purchases too as I am about 2 months "ahead" in my ROTH investment to reach $5k/yr. Which sit in a 0.8% savings account until I'm ready to make my buy. Otherwise they sit in the ROTH IRA cash account at 0%. So i try and work the system for just a few extra bucks a month.

[GregWeld]

Originally Posted by toy71camaro

My big bleeder was MCD at 10%, which I averaged down to ~4% last week (after my break even sell on NLY).

Right now, Im looking at:

ABT = -8.4 (so i would cut that in half)
CVX = -4.65 (i would probably cut that down to around -3)
ED = -6.08 (that would be cut in half)
KMB = +5.87
KO = -2.25 (Id cut that in half)
MCD = -5.52 (that would be cut to about 4)
MO = +0.36
T = -1.01 (could cut that to in half)

Only worthy ones I see close would be ABT or ED. ABT is now paying a 3.2% yield on that price (and soon to split into two separate companies in Jan, so who knows what that could bring (+ outcome)/take away (- outcome)). ED is paying a 4.4% yield now, which is actually pretty good. Their recent "down fall" recently being the result of Sandy, could go down farther depending on their outcome of this whole "how they handled the hurricane situation" investigation that's being dumped on them.

Come 2013, I'll have another "buy moment" with another $1k ready for purchases too as I am about 2 months "ahead" in my ROTH investment to reach $5k/yr. Which sit in a 0.8% savings account until I'm ready to make my buy. Otherwise they sit in the ROTH IRA cash account at 0%. So i try and work the system for just a few extra bucks a month.

I'd put more into ED right now.... I did personally. The "I'm on sale" light is flashing due to the issues you sighted --- SANDY. That will go away in a couple quarters or maybe even next quarter. This is a steady eddy. It pays "decently" - events like this cause it be on sale. I'll take that any day.

What you'll get is the rise back to the norm (always makes me feel good) AND the dividend.

[toy71camaro]

Yeah... good point. Thanks for asking "the question" which made me think differently about it. 4.4% is a pretty solid yield in my book .

[GregWeld]

Today was the kind of day I talk about..... A little "kiss and a promise" about the fiscal cliff and all of a sudden stuff jumps.


That's the problem with trying to "time" the market. You'll never be in to get the nice bumps - if you'd sold out trying to protect the downside. You'll never get out at the top - and you'll never catch the bottom. Just give up and invest and ride it out. The dividends will come in -- and eventually you'll be a winner.

That's why I say to scale in and scale out. If you want out of a stock -- okay -- sell half and wait...

Same with buying in.

Now ---- if you have enough money. As in millions or hundreds of thousands invested.... THEN you can afford to take some off the table when you have outsized gains -- and sit on the side - but I'm talking about a situation where you're still going to have major skin in the game.