Here's what Fidelity did in my account: They took my original cost basis for NCT and divided that amount allocating 45% to NCT and 55% to NRZ. Seems alright to me.
Somebody correct me if I'm wrong, but I don't think exchange traded notes like MLPL are even required to own the stocks in the index. You're totally at the mercy of the institution who sold you the notes. That may be what made your broker a little leery.
Re Tesla: Keep in mind, much of their 'profit' was from selling electric car credits to other companies to meet California regulatory requirements. I sense the heavy hand of government in this. But I'm curious about driving an electric car. Seems like a good idea. If they get too popular the authorities will figure some way of inflicting a 'road' tax on cars that don't buy gasoline to make them pay their share of road maintenance (assuming that's where the gasoline tax goes but in NJ I doubt it)
Stagg, did you see the article in wednesday's WSJ on page B1? It outlines why more insecticide is being used in corn farming as the rootworms develop resistance to the Monsanto Bt corn. The reason these articles catch my eye is my son works for FMC and does research and development on insecticides here in NJ. Seems it's a constant battle to stay ahead of the bugs.
Bob, Assuming the market assigns a 7% yield to NRZ, and assuming the yield turns out to be 61 cents. Then .61/.07 = $8.71 Thats a lot of assumptions but at least it gives me something pleasant to think about while waiting for the actual numbers to present themselves.
we just wait and see what the actual distribution will be for the separate entities,NCT and NRZ. I remember seeing an estimate for the combined but not an estimate for the individual companies.(unless I missed it, in which case I'm sure someone will straighten me out). But even if I missed it, an estimate is just that, an estimate. We need to see the actual cash distribution. Estimates can be changed but nobody ever restated a paid out dividend. IMO the closest business model to NRZ is HLSS which currently yields 7%.
Investing in fixed income is a real challenge these days. CSQ is a mix of stocks and bonds and I can't quite see how they generate that much yield. I did notice almost 1/5 of the yield is listed as 'return of capital' but subtracting that the yield is still good. I'm searching for something for my IRA that's easier to understand like a traditional preferred stock, for example WFC preferred O. Only problem is this type of security sells at a premium so a small capital loss is baked into the calculation.
.38 or .40 ? I haven't a clue what the next dividend will be. Actually, not currently a holder of SFL. Might buy on a pullback. This is just a great board to learn and get ideas.
I sold half my FAX at a small loss. Here's why: The return of capital is 28% of the distribution. That means the apparent 5.8% yield is actually 4.1% with the remainder being return of my own money. I think I can find better places to earn 4.1%. Picked up some WRB preferred stock. Should be a lot more stable and better paying. And if the premium on AWF comes down a little, I might roll the rest of FAX into that fund.
Eliciting opinions about what is going on here. The volume spike on yesterday's drop was huge. I don't like the 'return of capital' feature that has crept into FAX's distributions since late last year but I feel something else is in play here. Possibly Japan poisoning interest rates for the whole Pacific trading group but that's just a guess.
gambler, Just a reminder that my IRA is made up of long term holdings which I don't trade but instead use the yield to put bread on the table. I don't know if PBA is a good trading stock but I like it as an income producer.
ed, one reason I've been quiet is lately Yahoo isn't letting me sign on using my ipad. I have to use the computer. I hold 39 equities in my taxable stock account. Too many to monitor. Lately, I've beeen going off into more funds and letting someone else do the choosing. TYY for pipelines, MAPIX, IAE and IAF for Asia and Australia, FGB for BDCs, and lately SDIV and DIV for US and international high-yielding companies. The latest individual companies have been NCT and HLSS. I think I'm like everyone else enjoying this market but not really trusting it.
I like my daily drivers to be reliable. Honda Pilot for me, Honda Accord for my wife. No more repairing GM cars. Hobby cars are another story. I have a '65 VW Beetle and a '99 Corvette.
A while back I bought some Pembina Pipeline(PBA) for my IRA. Turned out well. A Canadian company mostly pipelines and growing. If you hold Canadian companies in a U.S. IRA there's no 15% Canadian tax extracted. And its not an MLP so there's no UBIT concerns.
Sometimes I just get lucky. In 2003 you could throw a rock in any direction and, if it hit an energy stock, you'd make a frofit. Not any longer. One needs to be real careful in chosing where to invest in energy. At 30% of my portfolio, I've capped my energy investments. AT 20% I'm also capping my REITs. Trying to get more diversified with future investments. Have been buying funds like SDIV and DIV even though some of their holdings are energy and real estate related. Oh well. Best of luck to all.
Hey Stagg, Down 7% yesterday. This might be a good entry point. Article in Monday's WSJ was about how coal production in the Illinois basin has actually increased. They mentioned Peabody and how the cheaply mined high sulfur coal was more in demand as utilities were forced to add scrubbers to eliminat SO2 from their emissions and natural gas prices were creeping up. They didn't mention export. I've owned ARLP since 2003 with a cost basis of $15. My only coal holding.
I never let the tax tail wag the investment dog. If you like a company, its prospects, its yield, then buy and hold it until something changes. Let the tax chips fall where they may. I'm certainly not selling any of my NCT to avoid some nebulous "tax event". If you're not 'lucky' enough to have carry forward capital losses from the bad old days (2008,2009) , just accept taxes as the price for being a good investor. Confession: I did adjust my investing style to avoid getting K-1s when I did my own taxes. That's one of the reasons I started using an accountant so that I was free to concentrate on the investment and not have to think about the tax or paperwork consequences.
If you're looking for something a little off the beaten path, try business development companies. they're particularly hard to understand because much of the businesses they're involved with are privately held so no financial data is available to us. But in a good economy, they generally do quite well and pay a good dividend. My personal choice is to own FGB, a closed end fund holding a basket of business development companies (and a few REITS). Currently selling at par and using only 17% leverage it pays about 7% yield.