Early Retirement Extreme Forums

JENNY,
Yeah, there's alot of volatility right now with AVON. Management changes and the ex dividend date next week. It was up over 5% yesterday. I think I'll just set a sell order with a limit to cover the comission and maybe a small return. If it executes, that'll give me some more cash for the next downturn. If not, then I'll collect the divy next week and continue to watch it closely.
Larry

Sold 150 of Avon (AVP) at $19.80 for a small gain. Holding cash for correction.
Larry

George the-original-One,
What is your investment thesis on GOOD?
Thanks,
Larry

@larry - GOOD has a steadily increasing gross revenue and yields over 8%. They weathered the economic downturn without cutting the dividend. If the economy continues to plug along as slow growth with low interest rates, I'll happily pocket 8+% dividend (about 5% higher than inflation) in my Roth account even if though this isn't a dividend growth company.

George, those seem like good screens. Do you know of other REITs with those characteristics that you own or are considering?

Apart from my #1 pick (OHI, which is also a decent dividend growth REIT), I'm watching ADC for a re-entry point (when yield is >7%).
ADC had to cut their dividend when Borders went belly up, but they've been rather nimble at getting back on their feet. I was last in at 23.70 and sold in the 25+ range. I owned ADC when Borders was in the walking dead category (when the yield was extraordinary) and waited to sell until Borders was definitely not going to be rescued.

@George the-original-One,
Thanks for the info on GOOD. I'll take a look at it.
I've looked at OHI before, but didn't buy since I already have positions in UHT and SNH. I'm not real sure where healthcare reimbursements are headed and I think further cuts could hurt the healthcare Reits.
What are your thoughts on GOV?
Larry

I looked at GOV last year, I think, but it doesn't have a long enough track record for my tastes.
It's starting to look better now... considering the short track record and the possiblity of government expenses tightening, I'd like to see the yield closer to 7.5% before biting, so watch for the drops (dang, missed it in the fall when yield shot over 8%).

Hoping to sell AIG today. I'll make a little money on the trade, but it was a bad call and I feel like a dodged a bullet with that one.
Added to AA when the price got close to $10 last week.

Added to AA again. Last time. Currently watching JNJ, DNDN, and YHOO. All would be on the long end of my usual time frame. Waiting around for someone in the market to blink and get things moving is driving me crazy. Even in my regular investment fund I'm down to 40/30/30 stocks bonds cash. I can't find much that looks appealing right now.

Recently sold out of my XOM position and purchased:
40 shares of UNS.

55 shares of AVA.

DNDN . . . come on down.

I have a feeling this one will replace AIG (which I did sell) as the pick I worry about a little too much.

Watching to buy / add more with next correction:
Arch Coal (ACI) Down, but I think it could go lower. Dividend Challenger.
Archer Daniels Midland (ADM) Long term ag play. Dividend Champion.
CSX Rail (CSX) Long term play on higher fuel costs leading to more use of trains for freight. Down, since it's exposed to the coal market. Dividend Challenger.
Ecology and Environmental (EEI) Small cap environmental engineering firm. Worldwide services for governments and companies. Dividend Challenger.
Emerson Electric (EMR) Dividend Champion. Stable Dividend over 3%.
Pepsi (PEP) Dividend Champion. Beaten down right now, more diversified than KO.
Simulations Plus (SLM) Very small cap software firm concentrated in the drug development industry. Yields about 5%. "A" rated at Schwab. Possible buyout target? Good yield until then.
Walgreens (WAG) Value Play? or Value Trap? Dividend Champion. I don't know, but the price is really beat down.
Long: CSX, ACI, ADM, PEP, KO
Thoughts?
Larry

recently bought PEP and unfortunately BTU

Bought another 100 shares Arch Coal (ACI) at $12.24
Larry

Hi Larry,
I own ADM, CSX, KO, PEP, WAG, and KO. They're all great at returning value to shareholders, with steady long term growth. All good picks. I'm not worried at all about WAG. They are very well managed and dedicated to returning value.

Hey Obadobadope,
I'm watching all these closely. I guess I pulled the trigger a little too soon on Arch coal, but I think it'll be good for the long term holdings of metalurgical coal. Energy, even "unpopular energy" such as coal, is still needed and will be needed until something better comes along.
WAG has a good long term growth record, consistent dividend increases, and lots of geographic diversity. I will probably go ahead and start a small position soon and watch to add as I can.
Larry

Bought some MMM on the dip today. Not sure whether this is a temporary pullback or not, but I've been looking to grab some more dividend stocks and this seemed like a decent time. Will be waiting a week or two see how this settles out before buying something else.

Bought another 60 shares CSX at $20.24 on 03/07/2012. Waiting for upcoming dividend increase.
Larry

Buying more ARR with an order for tomorrow morning. There will be a temporary dip in the price due to an announcement. I will use a fairly tight sell stop and collect the dividends.