I bought a few more today under $19.00. In 2 or 3 years others will wish they had done so also when it passes $30 and $35 on its way to $40 and $50 with the dividend at or above $2.00 per year. Unless it gets bought out along the way.
UBTI varies for each investor and also varies from year to year. There is no "Might be per share" that means anything.
I have owned MLP's for over 12 years and welcome the K'1's because they represent a huge tax advantage by deferring taxes for many years while giving me the cash to spend ans/or reinvest on a current basis.
ETP is a Publicly traded Master Limited Partnership MLP's are tax shelters. IMHO it makes no sense to invest in a tax shelter in an IRA and give up all the tax advantages of the investment and even pay taxes at your highest rate on all the cash from the investment when the money is withdrawn from the IRA when you either need the money or are required to do so. You might even be subject to heavy penalties if you are below the minimum redemption age.
This is a solid payer for over twenty eight years Month after month after month after month.
That tells me the manager knows what he is doing. And He has been doing his job for over seventeen years providing all those monthly dividends..
You can keep looking elsewhere, or you can keep buying DNP to maximize your portfolio and income. One more point--If you are dripping the dividends into additional shares DNP gives a discount of up to 5% to further increase the income over time.
DNP will trade x-div on Tuesday April 28, 2015. The dividend will be $0.065 and will be paid on Monday May 11, 2015. For those dripping the dividend into additional shares you should receive the shares a few days after with the appropriate discount up to 5%.
The trick to successful investing IMHO is to build up your incoming income from investments to replace your current income before retiring. As it keeps growing while working the investment income will help cover inflation later.
I was not fortunate enough to be in that position. I had a forced retirement due to unexpected events and I retired with minimal assets and had to build the assets and grow the income while I was living off the assets.
Much harder to do.
If you don't need the income now, be sure to drip the dividends. DNP drips the dividends at a discount up to 5%. Check with your broker to make sure you get the discount. The discount info is on the DNP website. If you are a buy and hold investor sometimes it is more important to get the shares and start compounding the monthly dividends now than try to outguess the price with low bids. If you are looking for nickels and dimes thats the most you will ever find. You won't find the 4-5 or 6 figure winners because you will have sold them a long time ago with nickle and dime profits and then watched from the outside as they went up later without you.
You don't have to be an expert in the market and know everything about every stock You only have to know everything you can about a very few stocks and accumulate them to
compound your gains. I only own 10 or 11 securities but I own most of them a long time 5 of them I own 10 to 24 years.
It really is not what anyone else favors. ----The question for you is what are your goals and your needs?
Current growth of income---ETP
Current growth of capital---ETE
ETP is paying a higher current income percentage but it is not increasing as much as ETE. ($0.02 per quarter)
ETE is paying a lower current income percentage but it is increasing more that ETP ($0.035 per quarter)
The yield on ETE currently is 2.72% The yield on ETP is 7.15%
So it really boils down to what do you want and need? It would be nice to have everything --but the world doesn't work that way.
I believe a good part of the price increase is do to Safe Haven feeling by the investors that fear the rest of the market. The NAV has increased 34.7% including the dividend paid since last months Ex-Div day. Price up $0.36 NAV up $0.485..
So actually the DNP share price today is cheaper compared to the NAV you are getting for buying at the current price. The premium is down from 9.29% to today's 8.3%
HASI went public on April 23 2013. Happy Birthday 2 year old. IMHO HASI haves a bright future ahead of it. Growth investors should do some serious Due Diligence at this time while HASI is still a toddler with maximum growth potential ahead of it.
It's not a coincidence. Today (4/17/2015) the DOW is down over 300 points again and at the present time DNP is up $0.02.
It is definitely being considered a Safe Haven by investors in these troublesome times.
Back in the 1960's Warren Buffett took over Berkshire Hathaway the stock price was around $20 Today it is $214,580 per share. Never had a split or a dividend in all the years since. A split won't drive the price up. Good steady growth, good management and a favorable market will. I've been here since 2004 and I am satisfied with the progress so far.
Hi Witikind: As I also said the next event by DNP management is April 28, 2015 when DNP goes X-Dividend again bringing you another $0.065 per share and another up to 5% discount per share.
The secret to making money with DNP is ---DON'T DO ANYTHING JUST WAIT
In the last year or two DNP management invested about 19% of the assets in MLP's. Dividends from MLP's are considered ROC distributions and not taxed upon receipt but are tax deferred. I personally would prefer that all dividends were classified as tax deferred distributions. I can't eat or invest the approximate 20% I would have to pay the IRS and State governments if the distributions were taxable. But I can eat or grow my portfolio value and/or increase the income if it is tax sheltered if I defer the taxability of the distribution. If the security continues to perform there is no reason to sell and pay capital gains on the sale. DNP has paid the distribution every month for the past 28 through the good-the bad and the ugly without fail. The manager has been running DNP for the past 18 years. Why would you want to sell and pay taxes?
Relax and wait for April 28, 2015 which is the next X-Div date and make more money
As expected dripped shares arrived this AM before market opening and it was at the discounted price of $9.994 as I expected. Next expected event for DNP is X-Div day for the next dividend which will be April 28, 2015 which is 14 days from today. It will be payable May 11, 2015 and dripped shortly thereafter.
Going from memory at the time---MWE made a JV/Sale with SLMP where they bought/took over the the ownership of some connecting pipe lines from customer's wells to MWE processing plants. MWE got money and SLMP got the right and obligation to hook up new wells. It appeared at the time to be a cost saving measure for MWE The pipes were connected to MWE processing plants and MWE processed gas.SLMP received a part of the fee for building connecting and maintaining the pipes.
Zeit: the main difference IMO is all the buybacks are NON-TAXABLE events for me and therefor benefit me the most. Taxable dividend events are not as beneficial for me because a portion gets siphoned off to the Fed and State.
i'm in a good mood this morning so I am willing to add you and Jeffy to make a Final 5 with one ACAS share each buyback goal. .
Hi Foxy: And so do I., when the SP is below NAV as it is in ACAS's case. I just read a negative article in Barron's from a non-staff member Morris Propp entitled The Buffett Loophole (Available on google) and IMHO required reading for wealth building investors (like me-NMB- You and others here)
I believe (As Warren Buffett does) that deferral of taxes as legally allowed by law can and should be a major tool in reaching our goal
Billings Learned Hand (January 27, 1872 – August 18, 1961), usually called simply Learned Hand, was an American judge famous as an avid supporter of free speech and for applying economic reasoning to American tort law. He is noted as one of the most influential American judges to have never actually served on the Supreme Court of the United States.
Famous Quote from Judge Learned Hand
"Anyone may arrange his affairs so that his taxes shall be as low as
possible; he is not bound to choose that pattern which best pays the
treasury. There is not even a patriotic duty to increase one's taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands."
I vote for the buybacks of ACAS shares while they can be bought by ACAS below NAV down to the last 3 shares if necessary-one for me one for Foxy and one for NMB
NMB: Thanks for the reply. What's not clear is Right now if I have 100 shares of ACAS trading at $15 with a NAV of $20 After the split-spinoff in your 1/5-1/5-3/5 example I would have the same NAV and the share price (to start) at the same of the split-spinoff. My question is Why is therea a tax due if I didn't receive any additional value? I have the same I started with only it's divided into 3 unequal pieces.
Thanks-I'm listening-Now suppose I don't want to sell Where do I stand if part of the spin-off is taxable? And what could I reasonably expect for the long wait from 2009 in the form of dividends (distributions?).
I know we've gone through this at least 100 times but I'm getting older and it would be nicer if management did something other than futz around telling us what they will do. I'd prefer they do it and we move forward or whatever from there.