Monday May 18, 2015
I will be on vacation until June 1, 2015.
Calls expired on 5/15/2015 and I had no stocks assigned. I will look for new covered calls, discount bonds and Dividend Machines for me and to share with you when I return.
TheMoneyMadam
Sunday, May 17, 2015
Vacation Time
Thursday, May 14, 2015
MLP's are often recommended for taxable instead of qualified retirement accounts to take advantage of the MLP tax structure.
Here is a case where it may be better to have held WPZ in a retirement account.
TheMoneyMadam
Williams deal means higher taxes, lower income for some investors http://seekingalpha.com/currents/post/2522066?source=ansh-d $WMB, $WPZ, $KMI
Monday, May 11, 2015
For
every expert opining that interest rates are going up, you can find another who
is convinced they are not. I know that
predicting interest rate direction can make a fool of the best trained and
intentioned economist.
Predicting
interest rates can also make fools of traders.
Yet, we are not traders or economists; we are income investors. History, (see the previous Dividend Machine
portfolios) suggests that we should ignore economic noise and stick to a
disciplined strategy for picking our income stocks.
In
this post I am profiling the next 2015 Dividend Machine. I selected this stock using my four 2105
Dividend Machine criteria. The
connection to interest rates is based on the fact this new Dividend Machine is
a regional bank.
Theory
holds that if interest rates do go up, banks will benefit from a steepening of
the interest rate curve. When long
duration interest rates are greater than short duration interest rates, banks
can lend out at an interest rate higher than they pay depositors. If interest rates do not go up, this stock
has a history of paying and growing the dividend.
Washington
Trust, symbol WASH Dividend History
Washing
Trust is a regional bank in Rhode Island.
Dividends have been paid since 1988.
During the major credit market disruptions that occurred in 2008, WASH
held the dividend steady at $.21 for 11 quarters. In March of 2011, they commenced dividend
increases again. If you look back five
years to 2010 you will see the dividend increases have averaged 7.75%.
WASH
Dividend Machine Fundamentals
WASH
earned $2.51 during the past four quarters and paid out $1.36 in
dividends. Today it is trading at
$36.87 with a dividend yield of 3.68%.
Debt to Equity ratio, D/E is 1.155 which is within industry standards. The table below presents WASH’s Dividend
Machine Fundamentals.
In
addition to its Dividend Machine fundamentals, Washington Trust, WASH, provides
industry diversification for a 2015 Dividend Machine Portfolio that is heavy on
energy.
Consider
WASH for the income producing portion of your portfolio.
TheMoneyMadam
Portfolio Updates
May 11, 2015
I would like to post portfolio value updates but cannot due to an Excel Dividend Data download issue. Trying to fix it. I appreciate your patience.
TheMoneyMadam
I would like to post portfolio value updates but cannot due to an Excel Dividend Data download issue. Trying to fix it. I appreciate your patience.
TheMoneyMadam
Friday, May 8, 2015
Monday, May 4, 2015
Nothing
is certain but death and taxes and some say insurance. This post is not about taxes or death but it
is about insurance.
Insurance
stocks have been good performers over time especially for income investors. Re-insurance is a special type of insurance where
the insurer insures other insurers.
Lloyd’s of London is probably the best known of these types of companies
but we have one for you to consider for the income producing portion of your
portfolio that is affordable and available.
The
next 2015 Dividend Machine is Maiden Holdings, Ltd., symbol MHLD.
Maiden
Holdings
MHLD
operates in the U.S., Europe and other global areas to provide property and
casualty insurance with re-insurance as a major portion of their business.
April
28th, MHLD declared their next quarterly dividend of $.13 payable on
July 15, to those on record July 1.
MHLD
is a small cap company with a valuation of $1.07 billion. It is not an expensive stock. MHLD closed today at $14.69. MHLD was a Dividend Machine in 2014.
Dividend
Increases
One
of the characteristics of MHLD is the dividend growth. Dividend growth has averaged about 20% for
the past 5 years. Dividends have been paid since 2008. This is not a very long duration of dividend payout like Travelers, symbol TRV. TRV has raised an average of 13.88% over the past year but the yield is only 2.15%. Currently the
dividend yield for MHLD is 3.56%
Dividend
Machine Fundamentals
The
table below presents the dividend machine fundamentals for Maiden Holdings Ltd. Earnings over the past four quarters were
$1.00 with the dividend payout of $.52.
This is a good coverage ratio.
D/E ratio is .39 and that is very acceptable.
MHLD
is not a volatile stock and covered calls are rarely traded. As a plain old Dividend Machine at an
affordable cost, MHLD should be considered for the income producing portion of
your portfolio.
TheMoneyMadam
Disclosure: no position but may add