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austinhippie (71.08)

Dividends and Good Performers in market downturn



September 24, 2008 – Comments (3) | RELATED TICKERS: MNST , MIDD , BWLD

     There are so many great opportunities right now that it is very tempting to sell off some shares of the winners in my portfolio to raise capital for new portfolio additions.  I am aware that I will feel let down if those shares sold then rise as expected or if I do not act and the shares of the companies I wish to buy rise as expected. 

     Last Friday my real portfolio was at a higher dollar value than it had ever been before.  And I remember looking at it thinking it will be a long time until it is at that level again.  Recently I have done some trimming of companies in my portfolio that for some reason have both gotten beyond the portion of the portfolio that is desirable and have had some kind of feedback either on TMF or Mstar or other source that just makes me not as confident as I once was.  After trimming a couple of positions and making room for new ones, I saw the shares I sold rise and the shares I bought decline.  These are only short term market fluctuations so the decisions still give me long term comfort with the balance of my portfolio. 

     It feels odd, and rather lonely, when reading on TMF or other sites, the interpretations of other serious investors who sound convinced that this one really is different.  It is possible to find good bargains in any market at any time.  Anyway, when I am adding cash to my portfolio now I am thinking of buying more dividend payers so that I can have a greater source of cash available for new purchases without having to sell shares.  But then again, dividend payers are not as likely to appreciate at the rate of my good growers like HANS, MIDD, and BWLD.  My time horizon is exceptionally long.  Any thoughts?

3 Comments – Post Your Own

#1) On September 24, 2008 at 3:20 PM, TMFHighYield (81.07) wrote:

How significant do you expect your annual dividend payout (for the whole portfolio) to be? Are we talking hundreds or thousands of dollars? You don't have to be uber-specific, but the amount of the dividend payout could change my answer here. 

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#2) On September 24, 2008 at 10:48 PM, awallejr (55.89) wrote:

Here are a couple cheap ones with very high yields, but there is always risk.  PRGN, getting pummeled because of the decline of the charter rates (BDI), is at $10 now  (I started my position at 12 and have been adding and adding).  Pays atm .50 per quarter.  This company actually locked in longer charters so the daily BDI decline hasn't killed their financials.  I think 20-30 is a reasonable price growth and you collect a sweet dividend.

I still like ACAS and now its cousin AGNC.  Both pacing to pay $4 per year dividends.  Financials, so risk there.  But I expect the "bailout" plan to pass which will help all financial stocks.  

There are alot of energy stocks with 10%+ yields too and at pretty low prices. (PVR, LINE, EEP, ATN to name a few). 

And then there are some solid bluechippers I like for long haul. T, NUE, BP, GE (especially when bailout is announced), PM.  All averaging 4-5 yields with long term appreciation potential.

So if you want income with potential appreciation there are my picks.  Every one I mentioned I have a position in so I did put my money where my mouth is. 

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#3) On October 06, 2008 at 11:05 AM, austinhippie (71.08) wrote:

Hi TMFHighYeild.  My portfolio yeilds about $1200 - $1500 per year, which for me is enough for four or five small positions or two or three better filled in positions.  My yeild is within about 12% of the S&P 500 and my 5 Year Projected EPS Growth % is about 145% of the S&P 500 according to Morningstar.  They don't provide all of the relevant statistics for some ADRs though.  So I think the statistics are a little different from my actuals.  I own a few shares of Chinese companies and a few European ones too. So, what do you think?  Thanks TMFHighYeild.,


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