Comments on: Reagan’s “Stimulus Dividends” — Greatest Income Investment of All Time http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Mon, 22 Mar 2010 03:37:46 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Maryanne Huang http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html/comment-page-1#comment-6739 Maryanne Huang Sat, 22 Nov 2008 23:26:36 +0000 http://www.stockgumshoe.com/?p=640#comment-6739 What about Kayne-Anderson ETF ?(KYN mlp-only and KYE mlp, canroys, other energy) What about Kayne-Anderson ETF ?(KYN mlp-only and KYE mlp, canroys, other energy)

]]> By: StockGumshoe http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html/comment-page-1#comment-5667 StockGumshoe Fri, 10 Oct 2008 14:33:31 +0000 http://www.stockgumshoe.com/?p=640#comment-5667 Just a quick note with an update on the Tortoise funds -- when I warned you to check on leverage for closed end funds, I didn't realize they would be as close as they are to being concerned about that. TYG recently gave an update on their leverage, and the massive decline in MLPs this summer has caused their leverage to climb significantly (not because they've borrowed more, but because the value of their assets has fallen). If the leverage falls more, they may be at risk of having to cut or halt their dividend. As with most other things, avoiding leverage now seems to be the prudent path -- TYG has fallen significantly today on this news, if you're going to invest in MLPs probably a basket of high quality individual partnerships is safer at the moment than a leveraged closed end fund. And I forgot to mention that there is also an Exchange Traded Note for MLPs that’s based on the Alerian index — it's called the BearLinx Alerian MLP Select Index ETN (ticker BSR), so that wouldn’t use leverage and represents a diversified portfolio of midstream MLP companies. Yield is about 10%, and since it’s an ETN, not an ETF, it’s not a fund — it’s a note that’s guaranteed by Bear Stearns, the sponsor, to match the performance of the index (so now that would be a JP Morgan Chase note, I assume, though it still uses the BearLinx name). That means it carries credit risk, which I assume means JPM credit risk, so it's surprising that it doesn't yield more than the index, but perhaps it's worth looking at. Just a quick note with an update on the Tortoise funds — when I warned you to check on leverage for closed end funds, I didn’t realize they would be as close as they are to being concerned about that. TYG recently gave an update on their leverage, and the massive decline in MLPs this summer has caused their leverage to climb significantly (not because they’ve borrowed more, but because the value of their assets has fallen). If the leverage falls more, they may be at risk of having to cut or halt their dividend.

As with most other things, avoiding leverage now seems to be the prudent path — TYG has fallen significantly today on this news, if you’re going to invest in MLPs probably a basket of high quality individual partnerships is safer at the moment than a leveraged closed end fund.

And I forgot to mention that there is also an Exchange Traded Note for MLPs that’s based on the Alerian index — it’s called the BearLinx Alerian MLP Select Index ETN (ticker BSR), so that wouldn’t use leverage and represents a diversified portfolio of midstream MLP companies. Yield is about 10%, and since it’s an ETN, not an ETF, it’s not a fund — it’s a note that’s guaranteed by Bear Stearns, the sponsor, to match the performance of the index (so now that would be a JP Morgan Chase note, I assume, though it still uses the BearLinx name). That means it carries credit risk, which I assume means JPM credit risk, so it’s surprising that it doesn’t yield more than the index, but perhaps it’s worth looking at.

]]> By: StockGumshoe http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html/comment-page-1#comment-5665 StockGumshoe Fri, 10 Oct 2008 14:29:42 +0000 http://www.stockgumshoe.com/?p=640#comment-5665 I believe so -- you're buying shares of a company that owns those assets, so your dividends would probably be regular dividends. Check with your tax advisor to be sure. I believe so — you’re buying shares of a company that owns those assets, so your dividends would probably be regular dividends. Check with your tax advisor to be sure.

]]> By: Cool Soupy http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html/comment-page-1#comment-5664 Cool Soupy Fri, 10 Oct 2008 14:26:14 +0000 http://www.stockgumshoe.com/?p=640#comment-5664 Travis; Excellent work as usual! Are the dividends in TYG and FMO a way to avoid the tax accounting problems with MLP distributions? Thanks; Neil Travis;

Excellent work as usual!

Are the dividends in TYG and FMO a way to avoid the tax accounting problems with MLP distributions?

Thanks;

Neil

]]> By: sequential http://www.stockgumshoe.com/2008/10/reagans-stimulus-dividends-greatest-income-investment-of-all-time.html/comment-page-1#comment-5630 sequential Wed, 08 Oct 2008 15:31:19 +0000 http://www.stockgumshoe.com/?p=640#comment-5630 Travis Perhaps check out that Eastern European EFT that yields 24.5% its probably beaten up and could be a buy if any one has any cash left. S Travis
Perhaps check out that Eastern European EFT that yields 24.5% its probably beaten up and could be a buy if any one has any cash left.
S

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