There looks to be a correction developing in the MLP sector that may bring up a significant opportunity that income investors should begin to have a plan for. Lets look at the drop in prices recently, potential reasons for the drop, and what it means for the sector and more Read more…
The price you pay for an investment is the primary determiner of risk. Plain & simple. As legendary value investor Seth Klarman puts it; Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Absolutely! I find that Read more…
With the end of Q1 2011 upon us, and earnings reports to start coming soon, I thought it was a good time to re-look at MLP valuations, specifically the top 5 market cap MLPs and the Alerian MLP index. I posted on year end 2010 values in this post. Below Read more…
In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and Read more…
What if I told you that there was a way to glimpse into the future? To somewhat accurately estimate the future returns on your investments? Well, with dividend investing there is a way. Its called the Gordon Growth Model or as I like to call it, the Magic Dividend Formula. Read more…
Tech stocks, especially some of the big cap names, are transitioning to becoming great dividend stocks, in particular great dividend growth stocks. I’ve written about this rising trend previously (here). Also, I wrote about MSFT in particular, here, when it was at $24, although I didn’t think it was cheap Read more…
2010 was another great year for the MLP sector. The MLP index, AMZ, finished 2010 with a total return (including dividends) of 36% compared to the S&P500 total return of 15.1%. And that was after a 76% return in 2009! Those kinds of returns will sure help you lead a Read more…
Quick post this morning on some worthwhile news this week out of my stealth dividend darling Fairfax which I posted on here. On January 5th 2011Fairfax Financial Holdings (FFH.TO on the TSX or FRFHF.PK in the US) declared its annual 2010 dividend. The full press release is here. The 2010 Read more…
Huh? Why the question mark in the title of this post you may ask? Well, it has to do with my thoughts on forecasts. This time of year is one of the more entertaining. Slews of economists, investment strategists, and research houses put out there forecasts for market performance in Read more…
Energy Transfer Partners (ETP) is another of the big cap MLPs. Along with KMP and EPD it makes up a good portion of the Alerian MLP index. Like my earlier posts on KMP and EPD this post takes a look at the partnership’s historical performance and how its positioned for Read more…
In an earlier post I discussed the big boy of the MLP space, Kinder Morgan. Today, I’ll talk about the new big boy in the MLP space, Enterprise Products Partners (EPD). EPD is now the largest MLP by market cap. Like KMP, EPD’s historical performance as an investment is downright Read more…