Thursday, July 26, 2012

Boring Terms We Need To Know: Master Limited Partnership (MLP)

Master Limited Partnerships (MLPs), it just sounds like a boring term doesn't it.  MLPs, like REITs, are typically strong dividend payers because they pay out most of their generated cash flow to investors, or "unit holders", in lieu of paying taxes.  I've had several readers email me asking me to do a dividend analysis on specific MLP stocks. Since MLP's operate differently than normal stocks though, running them through my current dividend analysis (growth or income) wouldn't be valid.  So I guess I need to add a MLP Dividend Analysis Template to my "to-do list".  Before I do that though, it would be a good idea to educate those of you aren't familiar with this type of stock and what we should consider before investing in them.

Tuesday, July 10, 2012

Roth IRA Move: Sold Some (O) to buy (HAS)

Since doing my analysis on Hasbro I've been digging deeper into the company's financials and continue to like what I see.  On Tuesday I decided to make a purchase in my Roth IRA, the problem was I didn't have cash in that account as I'm fully allocated. Something I have been contemplating though was selling some of my Realty Income (O) stock as it has been on a tear the past few years.

You may recall that Realty is the company I used to show the power of compounding.  It has been a strong performing REIT since it became a public company, and has treated me well for the past several years I have owned it.  In fact, I was lucky enough to purchase the majority of my shares in 2009 when the market was at record lows, so I'm up over 100% on my position and have been collecting monthly dividend payments along the way.

So if its been treating me so well why sell?  Good question, here's why.

Thursday, July 5, 2012

Highlighting Seven Unique Dividend ETFs

Dividend ETFs can be an easy way to diversify your dividend holdings with one purchase.  I have considered dividend ETFs in the past, especially ones focused on international companies, but have yet to invest.  The following is a repost from and discusses several potential dividend focused ETFs. 

Dividend-paying stocks continue to be a popular investment theme in the low rate, high volatility environment. With expectations for record low yields on traditional sources of income expected to continue for the foreseeable future, more and more investors (both large and small) are seeking out dividend payers as a critical component of their portfolios.

While some prefer to focus on evaluating the best dividend stocks, there has also been a surge in interest for dividend-focused ETFs. There are now more than 50 ETFs that specifically target dividend-paying stocks, including variations that focus on yield, consistency, and other characteristics.  READ MORE