07-04-2014, 01:32 PM
(07-04-2014, 10:19 AM)rnsmth Wrote: I'd be interested in knowing how ya'll define HYLG.
There are also some HYHG stocks available, like OHI, for example, unless you consider 5.5% to be lower than high yield.
By my definition, HY stocks yield greater than 8%. MY stocks yield from 4% to 8%. OHI is a MYHG stock.
(07-03-2014, 11:17 PM)Ok Red Wrote: Thanks for the primer, Be Here Now! That is excellent!
In my transition from LYHG to HYLG I had stumbled upon Upstream and Midstream MLPs along with BDCs. Don't know a thing about the ETNs but now I have homework. mREITs still scare me.
The big challenge is in the portfolio construct. Obviously, this is a pretty limited group of securities, and so it would be nice to figure out a way to smooth out the returns. For instance, I have been restructuring my port and am a bit heavy in REITs and BDCs right now. Today was a pretty solid day for all the 'normal' indices, but my port was in the red because REITs were punished for some reason.
I don't have a solution, but I'm thinking that for now - in my transitory phase, with 5-10 years to retirement - that I will keep some high quality LYHG equities while I increase my HYLG positions. And if I pick right, some of those LYHG positions will get me my desired 10% YOC over that time period, so I can simply keep them in the port!
It will be interesting for sure....
And here is an interesting SA article on just this subject....
http://seekingalpha.com/article/2298795-...-investing
Hmmmm....
If you have as many as five years to retirement, there is no need that I can see to do more than dabble in HY, just enough to get experience with the various categories without putting a significant amount at risk. Maybe 5% of your total portfolio spread across the various categories. There is nothing like first hand experience as a teacher. In the time until your retirement you will see at least one of your HY stocks go out of favor and drop in price.
I have 14% of my portfolio in equity REITS. These are in my MY category. Some are HG - e.g. OHI, DLR, VTR, WPC. Others are LG - e.g. O. When the equity REIT category swooned last year, I was able get some real bargains, and none of them froze or cut their dividend. I currently use most of my HY dividends to fund purchases of either equity REITs or the consumer stocks that I want to be holding into my old age, such as GIS, PG, MCD, MO.
My posts are getting disjointed. In hopes of clarifying any confusion, here are my categories (I copied this from my Seeking Alpha profile):
> HY categories (yield > 8%)
* 2x leveraged ETNs with monthly reset from UBS: BDCL, CEFL, DVHL, MORL, MLPL
* mortgage REITs
* BDCs: e.g. NMFC
* Upstream MLPs (however, as the bear raid on LINE/LNCO becomes a distant memory, some of these are now MY)
> MY categories (yield >=4%, <8%)
* 2x leveraged ETNs with monthly reset from UBS: DVYL, SDYL
* Unleveraged ETNs: BDCS, DVHI
* BDCs: e.g. HTGC
* Tobacco
* equity REITs
* midstream MLPs