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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Roth selections Date: 7/28/2009 8:19 PM
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Hey -thank you on all boards for your great input - any comments on this list for Roth dividend stock selections? My goal is solid dividend payers
here goes;
WFM Whole Foods ( hope that will go back to paying a dividend)
TEG Integrys
FTR Frontier
VOD Vodophone
ATO Atmos
Se Spectra
CTL Century Telephone
Duk Duke Energy
ATR Water company
Ed Con Edison
and NU and BKRclass b for growth
I am looking for an overall return between 7 and 8% andwould like to add 2 more stocks but am uncertain which ones to choose -I have centered round utilities for safety) - also have some VZ outside of this account.
retirement looks like about 3- 5 years away - reshaping so that 35% of portfolio will be is in U.S.Treasury money market, 35% in cash - cd and money market and savings -5% in short- and intermediate bond fund - to be 10% when i figure out the corporate bond part of the porfoilio-
this will be accomplished when my annuity )HOPEFULLY goes back to where it should be) -it is currently 50% Contrafund and S and P when i cantake outthatmoney iplanto put that into the 35% mix which is my goal for the treasury andcd part - now my thinking that this gives me security (as best It can do) as well as growth
VALUE your opinions any commets here?
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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65973 of 76237
Subject: Re: Roth selections Date: 7/28/2009 8:28 PM
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error - i mean AWK -water

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Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65974 of 76237
Subject: Re: Roth selections Date: 7/28/2009 9:03 PM
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You're pretty heavy on the electric utilties - while that provides diversification against any one of them losing value, if the who sector takes a hit you're going to take a big hit.

You can invest in the utilities sector with the ETF VPU (Vanguard) 4.3% yield if you want to stay company diversified but with a smaller dollar amount.

Utilities aren't as safe as they used to be - VPU fell from 78 to 47 between Aug 2008 and March 2009.

You might want to look at oil tankers - I've owned NAT for years, and it has yielded 10-15% throughout that time.

This screen: http://screener.finance.yahoo.com/b?im=^SPC&mc=100000000... shows the 73 stocks in the S&P 500 yielding above 4%.

WRJ

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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65978 of 76237
Subject: Re: Roth selections Date: 7/30/2009 4:21 PM
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thank you for your suggestions - 10-15% for a decade? wow! do you consider that an aggressive , moderate or conservative investment?

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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65979 of 76237
Subject: Re: Roth selections Date: 7/30/2009 4:26 PM
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Have you invested in any of these? i was thinking HZ Heinz to add to thelist just for some diversification

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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65980 of 76237
Subject: Re: Roth selections Date: 7/30/2009 5:23 PM
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what are the tax implications frothis investment? Nordic tankers

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Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65981 of 76237
Subject: Re: Roth selections Date: 7/30/2009 7:29 PM
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thank you for your suggestions - 10-15% for a decade? wow! do you consider that an aggressive , moderate or conservative investment?

I consider it an aggressive position - I'm actually surprised that they've been able to maintain the 10-15% for so long. They have 15 (i think) oil tankers right now, and that's all they do - haul oil. They sell stock every year, diluting current shareholders, but only to buy a new tanker, which will help keep the dividend high.

Their price isn't related the cost of oil, but the demand - as demand goes down, there is less need to ship it. I would not be surprised if their next quarter earnings are lower than expected, due to the recession.

No tax issues in a Roth. Outside of a Roth part of the dividend is treated as a return of capital, so you don't pay taxes on it now, but it lowers your cost basis, increasing your gain in the future.

WRJ

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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 65990 of 76237
Subject: Re: Roth selections Date: 8/1/2009 4:08 PM
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Thank you for your suggestions - what do you think of Ed versus NI? If I were only to choose one of these for the electrical allocation along with DU?
So the list would then look like:
WFM
TEG 8.00%
FTR 14.00%
VOD 8.00%
ATO 5.00%
SE 5.7%
CTL 9.40%
ATR 4.2%
DU 6.2%
ED 6.5% or NI at7.0%
HNZ 4.5%
NAT 11.0%
That would leave room for 3 additions - my goal is 15 so I can reasonably keep eye on on them. any additional suggestions?
An aside here: My mom was bedridden from age 37 to 70 and I took care of her- she had 7 stocks- small investment at the time - 20,000 but it provided supplemental income for her and her needs - so I consider choices made here as very important!!!
Thanks for all the wonderful postings here as well - as a soon to be 57 year old gal I am learning here EVERY day! Thanks all!!!!

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Author: 101PFDR CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 66008 of 76237
Subject: Re: Roth selections Date: 8/7/2009 4:59 PM
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I'm not sure what your views are (some wouldn't purchase a tobacco company, preferring "socially responsible" companies) but I personally love Philip Morris International (PM).

It yields a current 4.6%, has great cash flow, is arguably one of the greatest businesses of all time, has room to expand internationally and is not beholden to goverment regulators (not lawsuit prone ala it's mother company Marlboro (MO).


Disclosure- Very long PM in both my accounts and my children's college funds

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