tag:blogger.com,1999:blog-2986124651030959736.post40907617273082853..comments2024-03-28T09:42:38.695-05:00Comments on Stocks, Bonds & Politics: Romney's False Remarks about the Cairo Embassy Statement/Lottery Ticket Basket Table as of 9/12/12/NBN, SDIV/SOLD 100 ARCC at $17.54-IRAs in Two 50 Share Lots/Bought 50 TITN at $19.88/Sold 1 J.C. Penney 5.65% at 93.379 TENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2986124651030959736.post-40154383032864138132012-09-13T21:20:06.842-05:002012-09-13T21:20:06.842-05:00There has recently been some upward movement in vi...There has recently been some upward movement in virtually all high yielding dividend stocks that I own, including BDCs and Mortgage REITs. An article in tonight's Barrons highlights Mortgage REITs as a potential beneficiary of the Fed's action today. The author of that article mentioned the ETFs REM and MORT. I own 200 shares of REM. The author also mentioned NLY and MFA, which I own in small quantities in the Roth IRA. Mortgage REITs make me nervous, given their leverage and the way that they make money. <br /><br />Some of this uptrend in these high yield securities can in my opinion be attributed to individuals chasing yield. Since the Fed is now likely to continue its Jihad against the Savings Class until mid-2015, the tendency toward chasing yield may easily accelerate, ultimately causing a bubble to form in these securities. <br /><br />Coping with this abnormally low interest rate environment becomes more difficult by the day since income securities are being redeemed by the boatload, thereby requiring the investor to find less satisfactory alternatives for the proceeds, both in terms of risk and yield. I would feel a lot better about the Fed's Jihad if I could have back about 30 bonds which were redeemed by either the issuer or the owner of the call warrant (applicable for trust certificates)<br /><br />Mr. Conway from Barrons and I are discussing a particular ETF, SDIV, which chose to reduce its income level some by jettisoning BDCs. TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-5029392285210494872012-09-13T19:56:14.728-05:002012-09-13T19:56:14.728-05:00Actually one of my Fidelity screens (yield >6%,...Actually one of my Fidelity screens (yield >6%, B to B1,<2023) returned some 84 candidates today for the average yield of something like 7.4%, median around 6.5%. Presumably some of them make sense. <br /><br />True though, the trend is clearly downward for obvious reasons, Fed interest policy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-77000881626895643962012-09-13T12:44:24.279-05:002012-09-13T12:44:24.279-05:00Brendan: The dividend is variable on a month-to-mo...Brendan: The dividend is variable on a month-to-month basis. I would not have a comparison until a year rolls around when I could compare the payment for May 2012 with May 2013 for example. The fund could probably give you this information.<br /><br />The elimination of BDCs would have to lower the yield some. Most of them are yielding anywhere from 8% to 12%. (e.g. PSEC, ARCC, TICC, all owned by me). Since the BDCs have risen since the fund purchased those securities, I would anticipate seeing some trading gains from selling them when the fund issues its next report. <br /><br />The Global X site lists the SDIV current 30 SEC day yield at 7.7% while the 12 month yield is shown at 7.81%. The BDCs would be included in the 12 month yield, but would probably not be included for the entire 30 day period. TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-26283489345823956862012-09-13T12:19:51.346-05:002012-09-13T12:19:51.346-05:00Dear TennIndependent: THanks for linking to the SD...Dear TennIndependent: THanks for linking to the SDIV blog item. Your view on the subject is most welcome -- would you mind sending me an email when you get your next distribution? I'm interested to know how much the removal of BDCs will crimp the yield. Sure sounds like you're on top of the subject. Rgds Brendan Conway e m a i l at brendan dot conway at barrons dot com.Brendan Conwayhttps://www.blogger.com/profile/00205144113379418891noreply@blogger.com