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panda0317 (< 20)

High(er) dividend yields

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August 04, 2012 – Comments (7) | RELATED TICKERS: ARR

Being close to retirement, I am looking for high(er) yielding dividend stocks for my portfolio. My initial screening criteria is dividend yield above 9% and monthly payout. From there, I check the charts to see how the stocks have fared over 4 time periods; 21 days, 3 months, 21 weeks, and 1 year. I select stocks that are are uptrending, and when a stock begins to trend lower I trim positions. I'm no expert, but I think this might give me a good balance between the lower-paying dividend stocks which are the stalwarts of dividend investing which have a fairly low yield, but are "supposed" to be "good investments".

Currently, I have a watch list on my website and my 'favorite' stock is ARR.

I am not 'married' to any one investment, and will sell if the price declines. Since I buy near the bottom of an uptrend channel, this usually works out well. Usually.. 

I also don't believe in "buy and hold" as an investment strategy. That did not work out too well for me in 2008-2009, where I lost almost all of my 401k. Thank you, Mr. Market.

Now, I'm just trying to get it back.

This is one way.I have others.

I also play some options, and I also look for uptrending lower-priced stocks.

So far, so good.

But, I'm both a fool and a Fool, here for your amusement.

7 Comments – Post Your Own

#1) On August 04, 2012 at 1:30 PM, HarryCarysGhost (99.77) wrote:

Hi panda,

 That did not work out too well for me in 2008-2009, where I lost almost all of my 401k.

The way I see it the only way you could've lost it is if you sold?

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#2) On August 04, 2012 at 8:21 PM, bcvz (82.39) wrote:

The DOW is almost where it was post crash?  If you were smart, you held, and bought a ton more post crash.....  

Or if you're like the average investor, you panicked, almost had a heart attack, sold near the bottom for huge losses, and said you'd never invest again.

The BUY and HOLD is a great strategy..... buying more during period of downturns, trimming gains and moving those gains towards your fixed income portion during the high years.  

The stock market has produced average returns of around 8-10% during the last 100 years, but on any given year, it is rarely close to that range.  ie. up 30% down 5% down 5% up 15% down 2% etc.....

It is not for the weak of stomach!

 

As for your question, I don't have anything yielding more than 9%, I do however have one on my watchlist that is yielding 12%.....  MMT.V (toronto venture exchange).....

Unfortunately, it remained on my watchlist and I never pulled the trigger.... it is up substantially this year.

 

PSD.TO is definitely one of my favorites, yielding 3.5% only, but that yield only represents about a 15% payout ratio of their FCF.   Once their timely 2008 acquisition of a competitor is paid off, look for this dividend to increase substantially. 

PSD licenses their seismic library to oil and gas companies. 

Their economic moat is extremely wide as it would cost a competitor billions of dollars to replicate PSD's seismic library (it wont happen).  This is the reason why PSD's gross margins are extremely high (above 90). 

Net income is affected by "depreciation", which is a stupid accounting rule that makes them depreciate their data over a 7 year period, even though they sell data from the 1960's still!!!!  This is actually good though as they create massive FCF, and rarely pay much income tax because of this favourable depreciation model!

Good luck!

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#3) On August 05, 2012 at 1:15 AM, awallejr (80.10) wrote:

Might want to check out PSEC.

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#4) On August 05, 2012 at 11:51 AM, bcvz (82.39) wrote:

PSEC -- How do they make their money?

Looking at the cash  flow statements, all the money coming in is under "other financing activities". 

Looking at the Income statement, there share float increases substantially every year.

It looks like they are just issuing more shares in order to pay the dividend, instead of making money from existing operations. 

 

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#5) On August 05, 2012 at 6:23 PM, awallejr (80.10) wrote:

Well BDCs tend to issue new stock for new funds which hopefuly become quickly accretive to earnings.

Here is another link to read up:

 http://caps.fool.com/Blogs/prospect-capital-portfolio/692710

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#6) On August 05, 2012 at 7:01 PM, ravens9111 (56.10) wrote:

If you are near retirment and risk averse, you should be in fixed income like bonds and annuities. 

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#7) On August 05, 2012 at 10:47 PM, Silver182 (24.43) wrote:

IN&OUT Likes...DHF X's on 8/7/12 @ 9%, EAD X's on 8/10/12 @ 8%, and the top monthly dividend payer I like is CLM X's on 8/13/12 @ 18.5%.

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