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Old 01-11-2015, 05:52 AM
 
105,975 posts, read 107,921,072 times
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if I was to dabble I think I would split a bit of money between MLPL and KMI. these do carry pretty big risks . MLPL is very interest rate dependent since the underlying companies count heavy on loans to finance projects.

would I ever attempt to retire on them and not a diversified mix of assets ? not on your life!

Last edited by mathjak107; 01-11-2015 at 06:10 AM..
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Old 01-12-2015, 08:13 AM
 
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boy mlpl down almost 8% today. phew!
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Old 01-12-2015, 02:38 PM
 
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It's stupid to put all your money in high-yield ETFs. They are high-yield for a reason, you are permanently losing capital steadily year over year. And many constituent companies are run by less-than-exemplary characters.
Do him a favor and ask him to compare the total returns (dividends + capital gains) of the high-yield funds and the broader-base market representative funds and see who comes out ahead.
On second thoughts, a fool and his money. Tell him to go ahead.
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Old 01-12-2015, 05:02 PM
 
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high dividend payers like "O" and MLPL had really good total returns. i was kind of amazed they did so well. never owned them myself.

but the past is not an indicator of where they are headed. mlpl hads almost a 10% fall today. it is quite tempting now. don't be surprised if i report back my buy.

these are not investments for me but just speculations.
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Old 01-12-2015, 05:25 PM
 
Location: Central CT, sometimes FL and NH.
4,501 posts, read 6,744,916 times
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Quote:
Originally Posted by mathjak107 View Post
high dividend payers like "O" and MLPL had really good total returns. i was kind of amazed they did so well. never owned them myself.

but the past is not an indicator of where they are headed. mlpl hads almost a 10% fall today. it is quite tempting now. don't be surprised if i report back my buy.

these are not investments for me but just speculations.
What about the Fidelity Select Biotech Fund, FBIOX? It has shown some impressive gains over the past 5 years and the sector is showing some encouraging trials in many key fields such as diabetes, alzheimer's, MS, hepatitis, etc.
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Old 01-12-2015, 05:32 PM
 
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the discussion is about those high yielding etf's not growth stocks.
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Old 01-12-2015, 11:48 PM
 
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25 funds is way too many. He could probably narrow it down to 5.

I'll give an example

Templeton Global Bond TGBAX (with this much money he can get into this share class easily enough)

Vanguard REIT Index (VGSLX)

Vanguard Equity Income (VEIRX)

Vanguard Small Cap Value Index (VSIAX)

...and then maybe to a low volatility international ETF. I would recommend Dodge & Cox International Stock, but the fund is closing on 1/16. Dodge & Cox Global Stock may be a reasonable substitute.

So that's basically covering almost all your bases with 5 funds.

Here is an article that covers the bases better, and even it only uses 10 funds/ETFs:

http://www.marketwatch.com/story/is-...lio-2014-06-12
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Old 10-04-2015, 04:22 AM
 
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Quote:
Originally Posted by A Professional View Post
Many stocks have never decreased their dividends ever:

The 2014 S&P Dividend Aristocrats

you keep seeing just invest in this group and call it a day .

however what constitutes this group changes all the time so get ready for lots of selling trying to keep up as they get bumped and replaced AFTER THE FACT THEY DID NOT LIVE UP TO EXPECTATIONS . you could be behind the curve here very easily .

these dividend aristocrats are not somehow immune to all the things that effect company's and stocks . Just like other companies, their outcomes change.

in 2009 there were 52 stocks that met the group’s strict criteria.

As of 2012, there were 51.

But of those 51, 13 were different than the original set. So over the course of just 3 years, there was a 27% change in the group’s composition.

in fact going back to 1989's list :

Of those 26, seven are still on the list today, ten were removed because they either cut or froze their dividend, four were removed for an unknown reason, and the remainder were aquired at some point. So at least ten of the 26 had an outcome that is different from the assumption of dividend growth every year through thick and thin.

Indeed, dividend stocks are a fine investment vehicle, but one needs to practice reasonable diversification and also own some high-quality bonds when in retirement.

Last edited by mathjak107; 10-04-2015 at 04:34 AM..
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