6 thoughts on “Recent Sell – Mutual Funds

  1. Well, because we are committed to picking up more ETF and Mutual Funds in the coming year, our vote is to invest the money into a mid-cap dividend stock focused ETF. 🙂 I think we have concluded the 2015 year with the same sentiment as you did, in that we are going to stay more committed to ETFs and/or dividend aristocrats as we too are tired of seeing our dividend income decrease by cuts! 2016 will be a year of slower growth but hopefully more stable and reliable income as a result. 🙂

    Cheers to a better 2016! AFFJ

    • AFFJ,

      It sounds like we will have some similar purchases in 2016. Isn’t it funny how the different, unexpected experiences in the stock market such as KMI can mold/change your investing strategy. Luckily, I think this made us all better investors and was the wake-up call we needed. Let’s build better and stronger dividend income in 2016 and stop messing around. We don’t need to find the gem or be the smartest people in the room with every purchase. Focus on fundamentals and purchase strong companies/ETFs.

      Have a Happy New Year and cheers to a great 2016 for you and your family!


  2. Hi Bert,

    I vote for the dividend aristocrat, it will hit one of your goals straight away, give you a great share and good income.

    I love the sound of your guitar goal though, you should make it a goal to get it for your birthday some way or another.


    • Tristan,

      I appreciate the advice here. Good call with linking it to one of my goals, I will have to make some moves to knock out adding five new aristocrats. One theory is that if I purchase enough companies my overall portfolio will essentially function as a mutual fund. Plus, my self created mutual fund will only feature companies that I know are strong and fit my investing strategy versus a standard MF that consists of a bunch of non-disclosed stocks.

      Only time will tell with the guitar. I would love to learn how to shred though…it would be so much fun haha.

      Thanks for stopping by!


  3. Hi Bert

    For that yield, I would not buy any ETF with an expense ratio higher than 0.15%.
    I suspect you could find an ETF with similar yield and risk as DON but with a cheaper expense ratio.

    I would suggest to keep an eye on KMI over the next 6 months.
    KMI was basically financed like an MLP but it’s not the case anymore.

    Its book value is about $16, so a 10% discount is interesting but I’d wait for it’s price to get dragged down more giving it a yield higher than 4%, possibly closer 5%, then I would buy some.

    Here are some coming events (many will all know will happen) with simplistic and expected results.
    The anticipation, distortion, and amplification by the media of the events will cause some overreactions that are to be taken advantage of.
    – Rate hike after February will impact companies with high debt
    – Rate hike after February will strengthen the $
    – Easing in Europe and Asia will strengthen the $
    – Stronger $ will push the oil price down
    – Saudi Arabia not changing policy at next OPEC meeting will push oil price down
    – Iranian oil news will push oil price down (even though a lot of it already finds its way illegally to the market)
    – Oil glut data will push oil price down
    – China slowing growth news will push oil price down
    – Bankruptcies in MLPs
    – Dividend cut in at least 1 major commodity company (more impact if oil company)

    Even though some events have no direct impact on KMI and oil price is not supposed to impact midstream companies directly here we are today. So I’ll stick with what I have listed above and I expect KMI to continue to go down during the first half of 2016, yielding closer to 5%, then stabilize for the rest of 2016, and eventually grow it’s dividend again at some point in 2017. I bet Rich Kinder wants it to be a mean dividend growing machine again as soon as possible.

    Finally, thank you for your blog and happy new year.

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