Looking for Income

[The Barbarian Investor]

I realise there are a lot of Investors out there that use the markets dividends as a source of Income.. any ideas of sites to point someone to?

One of the older guys at work holds shares in stocks such as BHP, RIO and a couple of LPTs such as Abacus and Duetsche..however he is searching for sites to increase his knowledge..

He is also looking at Barrick mining..

Any tips for him?

 

[bvbfan]

Well Barrick has been one of the worst gold stocks (of the non South Africans)
Newmont, GoldCorp, IAMGold, Kinross Gold, Glamis Gold all have done quite well on my hypothetical US portfolio.

Barrick is taking a bet that gold prices will continue to rise with the takeover offer for Placer Dome, if you agree then it would be prudent to look at the other shares that while more risky may produce a better capital return (but may not produce much income return as dividends)

Unfortunately I don't really look at income investing but maybe others know some places.
Huntleys does produce an income portfolio that I recall

 

[The Estimator]

Barbarian, If he is looking for information in regard to dividends paid so as to sort through the market to pick out high yield stocks I'd reccomend he go to http://www.exdividendwatchlist.com.au and try the 1 month free trial. This is Rozella's (Don's) site from this board. Everyday he mails out a list of stocks that are close to profit anouncment or exdiv date. It lists the actual or expected div amount plus franking credits and also the gearing available through margin trading. Although Don's system is more focused on short to medium term trading it doesn't mean his list wouldn't be helpful to the long term buy and hold trader looking for income. Maybe your friend could sort out with him to get backdated lists for the year that way he can see which stocks have the highest yield.

John

 

[tech/a]

Gotta say I'm really impressed by Dons work.

From what I have read and seen from Dons postings he has a viable working method. A good income stream is possible.

I've noticed his equity curve has flattened over some months and no longer making new highs.

Don--- any comments?

 

[RichKid]

Gotta say I'm really impressed by Dons work.

From what I have read and seen from Dons postings he has a viable working method. A good income stream is possible.

I've noticed his equity curve has flattened over some months and no longer making new highs.

Don--- any comments?

Tech, may be best to repost that question in the dividend thread of Rozellas.

 

[rozella]

G'day all,

No need to post in the other thread, I do my best to read everything, but I just got back from golf.....what a sticky day.....the flies were driving me around the bend. Good to come back & see all green, especially WBC.

The equity curve becomes jagged because certain sectors like LPT's & banks all report in the same periods, but when they make the dividend payments it spikes back up again. October's correction made a dent, but is coming back nicely now. We had a low on the w/e 14th Oct, which put us back to the same as the beginning of Sept, but now we are pegging down the profits again.

I have found that having a reasonably tight stoploss is the key, so that we are on the right rung of the ladder most of the time. The strategy is up 22.84% return on equity (from 30th June 2005 until close yesterday) in 125 days, still a far cry from the same period last year being 42.64%, but last year it was magic until a correction in April. I don't count outstanding dividend payments until received, even though they are "earned"

Yes you can achieve a nice income stream, but obviously it is relative to the working capital available.

Just bought some more BOQ @ 1407.0 & I think I will bail out of WBC, & worry about it again tomorrow....a bird in the hand.....will post in the dividend thread.

 

[The Barbarian Investor]

Thanks for that I've e-mailed him the link to Don's thread.

He's a long term investor not a trader as in his opinion if he sells a great stock he just has to try and find another one just as good or better; he doesn't have the inclination or know how, so he tries to buy for value, dividend and hopefully increasing share price (not that it matters to him as he doesn't sell too often).

 

[Julia]

Thanks for that I've e-mailed him the link to Don's thread.

He's a long term investor not a trader as in his opinion if he sells a great stock he just has to try and find another one just as good or better; he doesn't have the inclination or know how, so he tries to buy for value, dividend and hopefully increasing share price (not that it matters to him as he doesn't sell too often).

A really simple alternative for someone looking for yield is to check out the Saturday newspaper (for me in Qld it's the Courier Mail) which has a list of the top 100 (which sounds like what your friend is looking for if he doesn't want to be involved in spec stocks), with their + or - change for the week, dividend yield, and franking etc.

If he has stocks with which he is really happy and which are providing him with a good return, plus growth, why does he want to sell? One of Warren Buffet's admonitions was to "buy stocks that you never want to sell"
e.g. I bought more CBA in July 2004 at under $31. It is now $42 and has a
dividend yield of 4.7% with 100% franking. Why would I want to sell it?
Perhaps I could get more in some spec stock, but at the same time I might lose my initial investment. Meantime, I would certainly lose a lot of sleep at night worrying about it.

If he is going to sell a good stock only to buy another similar, why would he want to incur the CGT involved?

I guess there's a "trading" personality and a "buy and hold investor" personality. Having had a go at both, I'm much more comfortable with the latter.

Some of the infrastructure stocks are providing very good returns and would mostly be regarded as pretty solid.

Julia