The more pennies you pinch over the years , the better your retirement will be. In some cases it might even be the difference in retiring , or not retiring at all.
------You got to taken profits now and then. ---------
Why? Do you like to pay taxes and more transaction costs?
I would suggest you find out what kind of a security you plan to buy BEFORE YOU BUY IT. Everybody gets a bunch of stuff in the mail at tax time. It is sent because you will need it to pay your taxes. Its not because they want to spend money and when you get it ,it should be thrown out. Are you serious about investing or just playing games? Maybe you should buy CD's at your local bank they are easier to deal with. It must be cold in Minnesota in March.
I'm sure you are aware that all your fancy tricks you are thinking about to make a few extra pennies(if you are successful) wii make you lose hundreds and hundreds of dollars by trying to time the market and missing x-div dates and pay dates ? Or maybe you aren't aware. Why don't you write your strategy out and send it to Warren Buffett so he can increase his portfolio also. I am sure he doesn't know about it and might even offer you a vice-presidency at Berkshire Hathaway . You might even get in the running to be his successor when he retires.
IMHO Actually not so odd . There are probably other new contracts for processing plants that have been signed. It will all come out on the August 6 update. With all the plants currently in various phases of construction they could be trying not to overwhelm the investors who are looking to see a more rapid increase in distribution growth going forward. Mr Semple announced at the Investors Conference in June that MWE will increase the distributions 5% in 2014, 7% in 2015 and 10% in 2016.
That translates approximately into the following quarterly payments
2014 ---5/14 $0.87--8/14 $0.88--11/14 $0.89--2/15 $0.90
2015--5/15 $.92---8/15 $0.94--11/15 $0.96--2/16 $0.98
2016---5/16 $1.01--8/16 $1.04--11/16 $1.07--2/17 $1.10
There are some investors out there that want the capital expenditures to slow below the current $2+ Billion per annum , so that the distributions can get increased faster and/or higher.
The obscene profits are always made "in the dark days". It take courage to swim against the tide. it also takes courage to avoid taking small profits because of fear when your gut tells you there is a lot more profits coming.
Reminds me of my father in law back in 1960 that owned 50 shares of Disney that he paid $28 a share for. In a short time it jumped to $35 and he was so afraid he would lose his money he sold even though I told him not to. Well it turned out to be a mistake to sell. Those 50 Disney shares in 1960 are now 19,200 shares selling for over $85 each. Plus an unknown amount of dividends for all those years.
Sometimes we are staring at the pot of gold right on the table in front of us and we throw it away because we don't see it, or believe it is what we are looking for, or are afraid.
Good catch. I'm sure you also noticed that MWE has been running up to the all time high of $75.79. It should be interesting in the next few weeks to see what happens, if anything.
My thoughts are what I believe is best for me.
I don't know what your goals are for your portfolio. You should know. its your money. Its your portfolio. Why are you investing if you don't know why you are doing it, or what you want the portfolio to do for you?
If you have ~25% of your portfolio in one security, you should be prepared for volatility and not surprised or concerned by it.
President Harry Truman said it many years ago during the 2nd WW. If you can't stand the heat, get out of the kitchen. That's good advice even today
Sentence by sentence --
1) You haven't received a K-1 because you bought this year. The 2014 K-1 will be issued in March 2015 for you to be able to do your 2014 taxes.
2) The distribution for an ETP (which is an MLP _Master Limited Partnership) is totally a Return of capital. You are a partner in the ownership of ETP and you are entitled to your share of the ROC distributions and you get a credit for your share of the company's expenses. For all these benefits it will reduce your taxable purchase cost and most of the distributions are TAX DEFERRED as long as you own the partnership units and don't sell. If you pass away your heirs will normally receive a step up in value to the value at the date of your death. While you are alive you can spend the ROC distributions with little taxes (if any) payable or reinvest the income (also with no tax) into additional units and receive more income (again with little or no tax)
3)Thats why they have tax accountants. Be smart USE ONE- It will be very beneficial to own MLP's in your portfolio --Mainly due to the fear of the tax complications of people like you. It is always easier to follow the herd to tax slaughter than to find and follow a better and safer path. I'm sure you went to school years ago to learn something. Now its time to go back and learn something thats important to your pocketbook.
The dripped shares were credited to my accounds at about 5:00PM Friday July 11, 2014. The dripped price was $10.0561 which was the NAV per share as of the close on July 9. Friday's closing share price was $10.26.
Next event is July 29, 2014 when DNP goes X-dividend again when the$0.065 will be paid on August 11 or dripped soon after.
I disagree. There is a buyer and seller on every transaction. One is a winner and one a loser. However the winner and loser can and do change as time goes on and the current selling price changes from the transaction price.
---If you're so good, you should be working at Goldman Sachs or Morgan Stanley----
Not true again. If you are so good, you don't need to work for Goldman Sachs or Morgan stanley. They might need to work for you.
------Get on the Forbe's List, then a lot of people in the world will know how good you are and maybe listen to what you're preaching------
And why is that important?
The advantage of "dripping" is that it happens without your emotions to interfere with the process. At the end of the year you will have more shares grinding out more income each month that will be dripped into more shares each month. VERY UNEMOTIONAL AND MUCH MORE EFFICIENT . It avoids the money being in the account and you debating to buy because the stock went up a nickel yesterday, and you decide to wait for it to go down that nickel and it keeps going up so you don't buy and then it goes x-div without you. And then what do you do?
Personally, I drip the securities I want to drip and I let it happen the way it does. One month I pay a few cents more and another month I pay a few cents less. The important metric to me, is I have the additional shares growing each month for my benefit.
Everyone has the same information on ACAS. but everyone interprets that information differently
In the last few hours we heard 3 different ACAS strategies and opinions
Pete reported in and said he is expecting ACAS to reach $20 in the near future.
Ca 12 is ready to bail on ACAS
Imjoe is out. Maybe will come back in.
So, it appears that there are A lot of different opinions. thats what makes markets, and thats why there is only one Warren Buffett that has made $65 Billion from being right more often than wrong.
When you have a monthly payer and drip the monthly dividends the dripped shares you receive the first month are dripped the second month and it keeps compounding month after month. Another method to increase the share count is to keep the shares in an IRA (or ROTH IRA even better) to defer the taxes have more funds to invest. Deferring taxes where possible is another key investment strategy for retirement.
I've been dripping PSEC for almost 2 years. I also buy on dips on occasion. If you want to reinvest the cash I would suggest you continue dripping. Otherwise you will have to time the investment and sometimes you will be wrong and lose out. PSEC doesn't give much time between the divvy payment and the x-div date for the next divvy. This will be much easier and "X" years down the road the only thing you will remember is the constant increase of owned shares and increasing cash reinvestments every month. You won't even remember whether you paid a few cents more or less. What will be important will be the growing share total in your account.
I am dripping the dividends into additional cheap shares. I get more shares for the same money when the price is lower. And then the "more" shares that I get pay more dividends the next month so I have more money dripping into more additional shares that will pay even more money next month. Month after month. Before you know it, you can make a lot of money. The CEO didn't buy 200,000 shares recently to make a few pennies per share. He currently has over $40 M invested in PSEC and has never sold a share.
That's something to think about before you hit the "sell" button.