tag:blogger.com,1999:blog-79118681348136974812024-02-18T23:00:31.106-08:00Dividend Harvest InvestingUnknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-7911868134813697481.post-44902660408094414692011-03-27T07:55:00.000-07:002011-03-27T07:55:02.106-07:00Sunday, March 27 Update<h2 style="background: white;"><span style="color: #222222;"><span class="Apple-style-span" style="font-family: Verdana, sans-serif; font-size: small;">Sunday, <st1:date day="27" ls="trans" month="3" w:st="on" year="2011">March 27, 2011</st1:date></span></span></h2><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Recent Activity</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">It has been a few weeks since I’ve published an update to what I had hoped would be a weekly blog.<span style="mso-spacerun: yes;"> </span>To be honest, I’ve been preoccupied with a number of activities, both personally and professionally related – nothing bad, I assure you, but of higher priority than publishing what I believed was a lightly followed publication.<span style="mso-spacerun: yes;"> </span>This blog is facilitated by Google, and they have a set of excellent tools that provides me with information about the number of visitors who land on my page, and where they originate by country.<span style="mso-spacerun: yes;"> </span>It appeared to me that the majority of the people who were visiting resulted from my post about the blog on Facebook.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><br />
</span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">But since my last post, I’ve received encouraging emails from a few people I have never met, and I was encouraged to continue, so I will.<span style="mso-spacerun: yes;"> </span>I will try to post updates at least once a month, and provide the horizon for dividend stocks whose ex-dividend dates are approaching over that timeframe that I am considering myself.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Looking back on the events that have occurred in the world since I last published makes one realize how quickly things in the world can change, and reminds me that it is important to consider the consequences that world events can have on investments of all types, including dividend yielding stocks.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Since my post on 2/21, there have been a number of developments around the world that every person should be aware of, and every investor should consider carefully, in my opinion.<span style="mso-spacerun: yes;"> </span>The situation in <st1:country-region w:st="on"><st1:place w:st="on">Libya</st1:place></st1:country-region> surfaced, and has developed to the point where the US and NATO allies are involved militarily in an attempt to oust Khadaffi.<span style="mso-spacerun: yes;"> The entire Middle East remains unstable politically, and appears to be headed for more disruption. </span>The multi-faceted tragedy in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region> has occurred, with the implications of the nuclear danger still unfolding.<span style="mso-spacerun: yes;"> </span>And on Friday, the Canadian Parliament voted to oust Prime Minister Stephen Harper, who has held that positon since 2006.<span style="mso-spacerun: yes;"> Elections will now occur that could significantly change that government. </span>Also in the past month, we have witnessed a correction in the stock market, which declined precipitously to the 11,600 range, but has now rebounded above 12,200, and is again approaching its 12 month high.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><span style="mso-spacerun: yes;"> </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><o:p> </o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Closed positions </span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Throughout these events, I was able to close the following positions at a profit, consistent with my rules, where profits on the stock are taken as soon as possible after the ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Southern Company was sold on <st1:date day="28" ls="trans" month="2" w:st="on" year="11">2/28/11</st1:date> at $38.15 for a $0.20 per share profit, coupled with the dividend of $0.455 that had accrued, and was paid into my account on <st1:date day="05" ls="trans" month="03" w:st="on" year="11">03/05/11</st1:date>.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Northeast Utilities was also sold on <st1:date day="28" ls="trans" month="2" w:st="on" year="11">2/28/11</st1:date>, at $33.80, for a $0.30 per share profit, coupled with the dividend of $0.275 which had been paid on <st1:date day="25" ls="trans" month="2" w:st="on" year="11">2/25/11</st1:date>.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Another utility, Dominion Resources, was sold on <st1:date day="3" ls="trans" month="3" w:st="on" year="11">3/3/11</st1:date>,<span style="mso-spacerun: yes;"> </span>at $45.55, for a very nice gain of $1.37 per share, and its dividend of $0.4925 per share arrived on schedule on <st1:date day="20" ls="trans" month="3" w:st="on" year="11">3/20/11</st1:date>.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Finally, one more utility stock was sold at a slight profit.<span style="mso-spacerun: yes;"> </span>CenterPoint Energy was sold on <st1:date day="21" ls="trans" month="3" w:st="on" year="11">3/21/11</st1:date> at $17.05, for a per share profit of $0.90, coupled with the dividend payment of $0.1975 per share that arrived on <st1:date day="09" ls="trans" month="03" w:st="on" year="11">03/09/11</st1:date>.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The utility stocks treated me very well recently.<span style="mso-spacerun: yes;"> </span>As the nuclear disaster unfolds in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region>, however, I think it will be very important to consider the implications on the players in this vertical market.<span style="mso-spacerun: yes;"> </span>I’ve read that the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> depends on nuclear power generation for about 25% of its demand for electricity.<span style="mso-spacerun: yes;"> </span>There are 104 nuclear power plants authorized and in operation in the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> today.<span style="mso-spacerun: yes;"> </span>The impact of the disaster in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region> is resulting in a global evaluation of the risks vs the rewards of nuclear power.<span style="mso-spacerun: yes;"> </span><st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> is already on record for planning to phase out the use of nuclear power.<span style="mso-spacerun: yes;"> </span>What this all means for the companies that provide our power is unclear to me at present.<span style="mso-spacerun: yes;"> </span>I only know that it is something to be aware of and to stay current on whenever considering the purchase of power companies in the future.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">So here is the summary of what was sold, and the profits that were booked since my last blog was published: <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 105.85pt;" valign="top" width="141"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 71.25pt;" valign="top" width="95"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Profit per share<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Captured<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Days Held<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">SO<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 105.85pt;" valign="top" width="141"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Southern Company<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 71.25pt;" valign="top" width="95"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.20<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4550<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">52<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">NU<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 105.85pt;" valign="top" width="141"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Northeast Utilities<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 71.25pt;" valign="top" width="95"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.30<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.2750<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">12<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">D<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 105.85pt;" valign="top" width="141"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dominion Resources<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 71.25pt;" valign="top" width="95"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$1.37<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4925<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">30<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CNP<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 105.85pt;" valign="top" width="141"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CenterPoint Energy<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 71.25pt;" valign="top" width="95"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.90<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.1975<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">49<o:p></o:p></span></b></div></td> </tr>
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</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">New Purchases<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Since my last post, I’ve used the funds from some of these sales to purchase positions in the following companies:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><st1:city w:st="on"><st1:place w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Cincinnati</span></b></st1:place></st1:city><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"> Financial (CINF)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">This is a stock I have successfully purchased and sold in past quarters.<span style="mso-spacerun: yes;"> </span>I had opened a position on 2/22 at $34.02, and the price declined during the market correction, so I added an equal amount to reduce my average purchase price on 3/10, at $32.98, bringing the average purchase price to $33.51.<span style="mso-spacerun: yes;"> </span>CINF went ex-dividend on 3/20, and will pay a $0.40 per share dividend on 4/17.<span style="mso-spacerun: yes;"> </span>The stock price remains below the average purchase price, at $32.47, so I will continue to hold it.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Pennant Park Investment Corp (PNNT)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">This is a new purchase I made, which surfaced in the weekly screen of stocks that I examine.<span style="mso-spacerun: yes;"> </span>The company is engaged in making investments in middle market companies, through loans, preferred and common stock, warrants and options.<span style="mso-spacerun: yes;"> </span>It has a very high annual yield of 9.2%, so it is riskier than most of the companies that I choose, but the company has been successful, and I was impressed with their revenue growth and recent performance, as well as their management.<span style="mso-spacerun: yes;"> </span>We’ll see how this turns out over time.<span style="mso-spacerun: yes;"> </span>I purchased it on 3/7 at $12.45 per share, on what appeared to be a slight decline, which turned into a larger decline.<span style="mso-spacerun: yes;"> </span>The stock is now at $11.74 per share, but the dividend of $0.327 per share makes up for much of the paper loss.<span style="mso-spacerun: yes;"> </span>Similar to another “higher than average” yielding stock purchased in the past, Century Link Tel, there are higher risks in some situations.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Current Holdings</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><br />
So here is the updated list of stocks that I am holding, either awaiting the ex-dividend date to pass, or awaiting the opportunity to sell where the dividend is due or already paid.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; margin-left: 5.4pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="height: 31.85pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Breakeven Share Price</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Current Share Price (03/25)</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Captured</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">HNZ<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">Heinz<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$49.19<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$48.64<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;"><span style="mso-spacerun: yes;"> </span>$0.4500<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">PCG<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">Pacific Gas & Elec.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$48.22<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$43.90<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$0.4550 *<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">CINF<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><st1:city w:st="on"><st1:place w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">Cincinnati</span></b></st1:place></st1:city><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;"> Financial<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$33.51<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$32.47<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$0.4000<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">CTL<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">Century Link Tel<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$45.19<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$40.97<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$0.7250<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">BCE<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><st1:city w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">Bell</span></b></st1:city><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$36.27<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$35.71<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 9.0pt;">$0.4550<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">PNNT<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Pennant Park Investment Corp<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$12.45<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$11.74<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.3270<o:p></o:p></span></b></span></div></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">* Ex-dividend date has not yet passed</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">All current holdings are below their break even points.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I am watching all of these closely, but do not see any reason for selling any of them at a loss.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">PCG has declined, and I think this may be due to concerns about what could occur if their Nuclear Reactor plant in Diablo Canyon, CA (near <st1:city w:st="on">San Luis Obispo</st1:city>) suffered the same type of disaster as happened in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region>.<span style="mso-spacerun: yes;"> </span>This nuclear plant straddles 2 of <st1:place w:st="on"><st1:state w:st="on">California</st1:state></st1:place>’s fault lines.<span style="mso-spacerun: yes;"> </span>The <span style="mso-spacerun: yes;"> </span>facility is designed to survive the effects of a major earthquake, but emotions sometimes dominate short term investment decisions, and perhaps some investors exited this stock, causing the price to decline.<span style="mso-spacerun: yes;"> </span>The 2 operating nuclear reactors at the <st1:place w:st="on"><st1:placename w:st="on">Diablo</st1:placename> <st1:placetype w:st="on">Canyon</st1:placetype></st1:place> plant are licensed to operate by the NRA until 2024 and 2025.<span style="mso-spacerun: yes;"> </span>Barring any actual disaster occurring in <st1:state w:st="on"><st1:place w:st="on">California</st1:place></st1:state>, I see the decline in price as a temporary setback, and I will be watching it for a possible addition if the price does not recover shortly after the ex-dividend date this week, and I continue to hold it until the next quarter’s dividend date in June.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Heinz actually climbed above the breakeven point recently, and I was tempted to sell it, but ultimately decided to continue to hold it until the next ex-dividend date which is approaching.<span style="mso-spacerun: yes;"> </span>Positive comments from the CEO about sales boosted the stock.<span style="mso-spacerun: yes;"> </span>Perhaps the pullback is also partially attributable to the situation in <st1:country-region w:st="on">Japan</st1:country-region>, since Heinz’ products are sold throughout Asia, and this may hamper sales in <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region> in the near term.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Century Tel received the final regulatory approval for its acquisition of Qwest Communications. <span style="mso-spacerun: yes;"> </span>The FCC had approved the deal, but 21 State Public Utility Commissions also needed to approve it, and <st1:state w:st="on"><st1:place w:st="on">Oregon</st1:place></st1:state> was the last one to do so on Friday, March 25<sup>th</sup>.<span style="mso-spacerun: yes;"> </span>The “merger” as it is being called should be effective on 4/1.<span style="mso-spacerun: yes;"> </span>Like PCG, this stock is significantly below my initial purchase price, and I will continue to hold it, and possibly add to it over the next quarter if necessary.<span style="mso-spacerun: yes;"> </span>I see the decline in this stock as temporary, and that as the dust settles, investors will be attracted to this combined company and its dividend.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">On the Horizon</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; margin-left: 5.4pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Closing Price 03/25</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Expected</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Ex- Dividend Date</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">VZ<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Verizon<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$37.29<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4875<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">04/06<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">T<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">AT&T<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$28.90<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4300<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">04/06<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">PGN<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Progress Energy<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$45.35<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.6200<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">04/07<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">BGS<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">B & G Foods<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$19.40<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.2100<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">03/29<o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">AT&T recently announced its planned acquisition of Cingular Wireless.<span style="mso-spacerun: yes;"> </span>The price of AT&T did not rise or fall significantly on this news.<span style="mso-spacerun: yes;"> </span>My belief is that the consolidation that is occurring in the telecommunications industry will be good for the companies in this industry in general.<span style="mso-spacerun: yes;"> </span>This announcement does not, in my opinion, prevent either AT&T or Verizon from being a short term dividend harvest play for their respective upcoming dividends.<span style="mso-spacerun: yes;"> </span>I’ve purchased and sold both of them successfully in the past, and based on their payouts and cash flow, I would not be averse to holding either of them if necessary.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Progress Energy is a company that I’ve had on my watch list in the past, but have not purchased.<span style="mso-spacerun: yes;"> </span>The company provides power to several states in the Southeast US, and the stock price fell about 4 points recently, and is below its 52 week high, perhaps again as a sell-off due to the nuclear disaster in Japan.<span style="mso-spacerun: yes;"> </span>PGE has 4 nuclear plants.<span style="mso-spacerun: yes;"> </span>2 are in <st1:state w:st="on">North Carolina</st1:state>, 1 in <st1:state w:st="on">South Carolina</st1:state>, and 1 in <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state>.<span style="mso-spacerun: yes;"> </span>It is seeking approval to build another plant in <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state>.<span style="mso-spacerun: yes;"> </span>Revenues and earnings are trending upward, and I see this as a potential opportunity to capture a nice dividend payment while the price of the stock is temporarily depressed.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">A new candidate is B & G Foods (BGS).<span style="mso-spacerun: yes;"> </span>Most people are not familiar with the name of the company, but have probably purchased one or more of the products that it owns, including Vermont Maid syrup, Ortega, Brer Rabbit, Grandma’s Molassas, Polaner, Cream of Wheat, Emeril’s Underwood, and B&M Baked Beans and Brown Bread, which are my personal favorites.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The company’s stock price has moved up recently, and it has garnered attention in the press due to a recent outstanding quarter, and because it is increasing gross margins and profits.<span style="mso-spacerun: yes;"> </span>My belief is that the upward move is not over yet, and this offers an opportunity to capture a dividend and a possible gain in the share price as well.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">Note: Although I am not going planning to publish a weekly update going forward, <span style="mso-spacerun: yes;"> </span>I will try to update the “On The Horizon” dividend candidates in between general updates.<span style="mso-spacerun: yes;"> </span>You may want to “Follow” this blog, as I believe that provides you with email updates whenever new content is added.<span style="mso-spacerun: yes;"> </span>Having more “followers” will also serve as encouragement for me to update things routinely.<o:p></o:p></span></i></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Q&A<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The only feedback I’ve received was from 2 people who I don’t know who sent me emails when I didn’t publish for a few weeks.<span style="mso-spacerun: yes;"> </span>I do appreciate knowing that there are people who like what I am doing.<span style="mso-spacerun: yes;"> </span>Please send this link on to others who might like it as well.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Closing Comments<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The Official Disclaimer: <span style="mso-spacerun: yes;"> </span>I am not a licensed investment professional, and that what is contained in this blog is the result of my own research and opinions only, and is not investment advice.<span style="mso-spacerun: yes;"> </span>It is only a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks.<span style="mso-spacerun: yes;"> </span>Each person has different investment goals, objectives, and timeframes.<span style="mso-spacerun: yes;"> </span>As such, each person should do his or her own research before taking any action on any type of investment.</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
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</span></span></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Ken</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-27572639746604550052011-02-21T06:50:00.000-08:002011-02-21T06:50:51.308-08:00Weekly Update 02/21/11<h2 style="background: white;"><span style="color: #222222;">MONDAY, <st1:date day="21" ls="trans" month="2" w:st="on" year="2011">FEBRUARY 21 2011</st1:date></span></h2><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Past Week’s Activity</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The <st1:country-region w:st="on">US</st1:country-region> market continued its advance last week, as the revolution in <st1:country-region w:st="on"><st1:place w:st="on">Egypt</st1:place></st1:country-region> continued on a path toward a peaceful conclusion.<span style="mso-spacerun: yes;"> </span>There were some moments of angst when reports surfaced about Iranian Warships in the <st1:place w:st="on">Suez Canal</st1:place>, but apparently these were planned movements and not in response to the Egyptian uprising.<span style="mso-spacerun: yes;"> </span>Other nations in the region seem to be taking their lead from their Egyptian counterparts.<span style="mso-spacerun: yes;"> </span>It will be very interesting to watch the traditional kingdoms (e.g. <st1:country-region w:st="on">Bahrain</st1:country-region>) and the militarily backed dictatorships (e.g. <st1:country-region w:st="on"><st1:place w:st="on">Libya</st1:place></st1:country-region>)<span style="mso-spacerun: yes;"> </span>as this continues.<span style="mso-spacerun: yes;"> </span>As the will of the people is played out, will there be a confrontation or revolution, or will the people prevail with a peaceful change in politics?<span style="mso-spacerun: yes;"> </span>Will the military and police forces in these countries ultimately remain aligned with the existing governments, or will they side with the population?<span style="mso-spacerun: yes;"> </span>One thing is very clear: The telecommunications technology (e.g. Internet and Facebook) have been instrumental in facilitating the flow of information, allowing organized protests.<span style="mso-spacerun: yes;"> </span>However these other countries <span style="mso-spacerun: yes;"> </span>play out, be assured that there will be an effect on the US on a number of levels, ranging from the prices for petroleum products, to the long term political stability in the area, and our alliances and influence in the region.<span style="mso-spacerun: yes;"> </span>The effects of what is going on in the <st1:place w:st="on">Middle East</st1:place> will have long term implications, and it will be very important to understand and anticipate these effects on any investments that are being held or possibly selected.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Concerns about inflation also continue to be a theme with warnings about increasing prices for raw materials, minerals, basic commodities (and then the cascading effect on food prices) around the world, as the demand for raw materials, goods and services increases.<span style="mso-spacerun: yes;"> </span>Inflation is never good news to consumers, as it translates into higher retail prices for everything we buy and use.<span style="mso-spacerun: yes;"> </span>It results in less buying power, and puts particular stress on those with low income, since they have the least amount of discretionary spending dollars available.<span style="mso-spacerun: yes;"> </span>As this theme continues, I will write more about it in future blogs, and the effect as well as some possible opportunities that result from it.<span style="mso-spacerun: yes;"> </span>It is important when facing seemingly bad economic news to find opportunities – they are usually out there if you know where to look.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Finally, the debate that is occurring about our nation’s budget continues to play out in <st1:state w:st="on"><st1:place w:st="on">Washington</st1:place></st1:state>.<span style="mso-spacerun: yes;"> </span>State budget struggles are also coming to the forefront.<span style="mso-spacerun: yes;"> </span>It appears that America is finally getting the rude wake up call that we have to run our country like a business, and that we cannot place the financial burden of resolving today’s problems on the backs of our children and grandchildren.<span style="mso-spacerun: yes;"> </span>Most people seem to be aligned and understand that we have to reduce the deficit. <span style="mso-spacerun: yes;"> </span>It is a matter of national interest and security.<span style="mso-spacerun: yes;"> </span>The programs and cuts that will have to occur to make this happen are what will be debated and decided.<span style="mso-spacerun: yes;"> </span>Since about 57% of the National budget funds Social Security, Medicare and Medicaid, it will be interesting to see if and when these entitlements that all Americans have come to expect will be addressed.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">At a local level, the stocks in the dividend harvest portfolio all continued to act within what I consider “normal” trading ranges.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">It is said that the stock market generally reflects the anticipation of what is going to occur in the economy.<span style="mso-spacerun: yes;"> </span>After the near meltdown of the financial markets a couple of years ago, and the ensuing severe recession, the US Government has kept interest rates very low, and injected capital into the system to encourage and stimulate economic recovery.<span style="mso-spacerun: yes;"> </span>The effectiveness of these measures can be debated, but it is clear that the investing community sees hope in economic growth based on the rising prices for US Stocks.<span style="mso-spacerun: yes;"> </span>Below is a 3 year chart of the Dow Jones Industrial Average.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Note the severe decline in late 2008 and into early 2009, when it bottomed out, well under 8000.<span style="mso-spacerun: yes;"> </span>Since then, it has recovered steadily, with some intermittent corrections.<span style="mso-spacerun: yes;"> </span>Since November 2010, however, the advance has been very steady and quite impressive.<span style="mso-spacerun: yes;"> </span>Many analysts are calling for a correction soon, due to the advance.<span style="mso-spacerun: yes;"> </span>Others say that if it occurs, it will represent an opportunity to get back into equities if you have been waiting for the right opportunity.<span style="mso-spacerun: yes;"> </span>I don’t give advice, but one of the concepts I am employing in the Dividend Harvest Strategy is to only buy stocks that I would not mind holding for a long term if they decline.<span style="mso-spacerun: yes;"> </span>In my situation in life at age 57, I can still ride out most corrections that might occur in the market.<span style="mso-spacerun: yes;"> </span>I assume that well run highly capitalized companies with growing sales, margins and profits will eventually recover their value, and in the interim, if they are generating sufficient cash flow to sustain their dividend, I will be able to sleep at night while waiting out any correction. <o:p></o:p></span></b></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjswdhhb_qKaRrYAedg46vTkAWLaIpHShQS_RzPTLYxTkx0VCdZ45wdlnY8GEhYdsyqHRI6R3nThreCYw4tRVS7-xafGW6Vvgg6cxe61tBSJKinuXXZPwKPGt7mC6AL0dazlli9YIlk418/s1600/file.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="264" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjswdhhb_qKaRrYAedg46vTkAWLaIpHShQS_RzPTLYxTkx0VCdZ45wdlnY8GEhYdsyqHRI6R3nThreCYw4tRVS7-xafGW6Vvgg6cxe61tBSJKinuXXZPwKPGt7mC6AL0dazlli9YIlk418/s640/file.gif" width="640" /></a></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Whatever your investment strategy, it is clear that since early in 2009, the financial markets have been optimistic about the prospects for the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> economic recovery.<span style="mso-spacerun: yes;"> </span>Although unemployment rates are still at unacceptable levels, many companies are posting excellent growth in sales and earnings.<span style="mso-spacerun: yes;"> </span>American businesses have generally improved their operation by cutting expenses (hence, the high unemployment rate as workers have been reduced).<span style="mso-spacerun: yes;"> </span>As a result, there are a number of companies that have tremendously increased the <span style="mso-spacerun: yes;"> </span>amount of cash on their balance sheets.<span style="mso-spacerun: yes;"> </span>This eventually should translate into them investing in capital and or personnel, or possible acquisitions to continue growing their businesses and / or paying some of the cash back to their shareholders in the form of new, or increased dividends.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">As I pay particularly close attention to stocks that pay dividends, I noted a reputable new service this past week that listed 3 companies as possible candidates to increase their quarterly dividend.<span style="mso-spacerun: yes;"> </span>I have added all 3 to my watch list for possible future consideration as purchases:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"></div><ul><li><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Conoco Phillips</span></b></li>
<li><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">United Technologies</span></b></li>
<li><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">3M – <st1:state w:st="on"><st1:place w:st="on">Minnesota</st1:place></st1:state> Mining and Manufacturing</span></b></li>
</ul><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">As each has its ex-dividend date approach, I will provide research on them, and their suitability for this strategy.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">As far as the stocks I am holding in the Dividend Harvest potion of my portfolio are concerned, here is what occurred over the past week:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><u>Dividends collected</u><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">One dividend that was expected arrived on schedule.<span style="mso-spacerun: yes;"> </span>Paychex distributed $0.31 per share on<span style="mso-spacerun: yes;"> </span>2/15.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><u>Purchases </u><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Shares were purchased on a few of the opportunities listed last week:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Century Link (CTL) <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I purchased a small position in CenturyLink Tel (CTL) on Monday, as I mentioned as a possibility in last week’s blog. <span style="mso-spacerun: yes;"> </span>The ex-dividend date was Wednesday, and understandably, the price of the stock came down on Tuesday, coincident with the timing of the company’s obligation to pay the divided to shareholders of record on the ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Heinz (HNZ)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I also added to the existing position on Heinz (HNZ) which was also mentioned in last week’s blog.<span style="mso-spacerun: yes;"> </span>This doubled my holding in this stock, and I will hold all the shares through the approaching ex-dividend date in March, and then wait for the average price per share to be exceeded, so that I can sell this stock at a net profit.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Northeast Utilities (NU)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I also opened an initial small position in Northeast Utilities, as I mentioned as a possibility in last week’s blog.<span style="mso-spacerun: yes;"> </span>It remained below its recent high, and with the upcoming dividend date on 2/28, I may add to this position to bring the average price down if there is any more weakness in the stock.<span style="mso-spacerun: yes;"> </span>I would look to add shares if the price declines by more than $0.40 per share than where I purchased it.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dominion Resources (D)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I opened an initial small position in Dominion Resources, also mentioned in last week’s blog entry.<span style="mso-spacerun: yes;"> </span>This purchase results in a high weighting of companies in the Utility vertical market, but I am comfortable with this for the time being.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><u>Sales</u><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I missed one opportunity to sell the shares in Duke Energy at a profit at one point during the week, when they crossed above the breakeven point.<span style="mso-spacerun: yes;"> </span>Mea culpa. I watch the markets pretty closely throughout the day, but I got sidetracked with another unrelated project I was working on this past week when this happened, and then the price moved back down below my purchase price.<span style="mso-spacerun: yes;"> </span>The lesson I have learned from this is to take advantage of automated text alerts that the broker I use offers.<span style="mso-spacerun: yes;"> </span>I will be setting alert messages on all stocks owned and future purchases going forward, so that I can more efficiently execute trades when the stock reaches a profit.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Closed positions this past week</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">There were no sales this week, so the chart below is empty this week. <o:p></o:p></span></b></div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Profit per share<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Captured<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Days Held<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Current Holdings</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><br />
Below is the updated list of stocks being held, either awaiting the ex-dividend date to pass, or awaiting the opportunity to sell where the dividend is due or already paid.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; margin-left: 5.4pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="height: 31.85pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Breakeven Share Price</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Current Share Price (02/04)</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Captured</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CTL<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CenturyLink<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$45.19<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$41.23<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.7250<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">PCG</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Pacific Gas & Elec.</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$48.22</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$45.38</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">SO</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Southern Company</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$37.97</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$37.87</span></b></span><span style="color: red; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">DUK<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Duke Energy<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$17.92<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$17.94<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.2450<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">BCE<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Bell</span></b></span></st1:city><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$36.27<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9.0pt;">$36.41<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.455*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 6;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CNP<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CenterPoint Energy<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$16.17<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9.0pt;">$16.19<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.1975*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 7;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">D<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dominion Resources<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$44.20<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9.0pt;">$44.37<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4925*<o:p></o:p></span></b></span></div><div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> </tr>
<tr style="mso-yfti-irow: 8;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">NU<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Northeast Utilities<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$33.52<o:p></o:p></span></b></span></div><div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$33.44<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.275*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 9; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.95pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">HNZ</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.4pt;" valign="top" width="130"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Heinz</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 74.8pt;" valign="top" width="100"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$49.19</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 68.7pt;" valign="top" width="92"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9.0pt;">$47.72</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.2pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4500*<o:p></o:p></span></b></span></div><div align="center" class="MsoNormal" style="text-align: center;"><br />
</div></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">* Ex-dividend date has not yet passed</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The ex-dividend dates on the first 4 stocks listed above have all passed.<span style="mso-spacerun: yes;"> </span>They all remained below the price where I purchased them.<span style="mso-spacerun: yes;"> </span>As mentioned, I had missed the brief opportunity to sell DUK at a slight profit.<span style="mso-spacerun: yes;"> </span>I am hoping to have another opportunity to do so this coming week.<span style="mso-spacerun: yes;"> </span>Southern Company is also very close to the price where it was purchased, so I am hopeful for a slight increase there as well, so that I can sell it.<span style="mso-spacerun: yes;"> </span>CenturyLink was noted as a riskier than usual play, but I was very unpleasantly surprised by how far this stock dropped in this stock immediately after the ex-dividend date passed.<span style="mso-spacerun: yes;"> </span>I will continue to watch it closely.<span style="mso-spacerun: yes;"> </span>I saw no news about the company that caused the drop that occurred.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The doubling in the position in Heinz reduced the breakeven point on this stock to $49.19.<span style="mso-spacerun: yes;"> </span>All shares will be held until the next ex-dividend date in March.<span style="mso-spacerun: yes;"> </span>A complete discussion of my rationale on this is in last week’s blog entry.</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">On the Horizon</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
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<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Closing Price 02/04</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Dividend Expected</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Ex- Dividend Date</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">CINF<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><st1:city w:st="on"><st1:place w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Cincinnati</span></b></st1:place></st1:city><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"> Financial<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$33.58<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">$0.4000<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="21" ls="trans" month="03" w:st="on" year="11"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">03/21/11</span></b></st1:date><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><o:p></o:p></span></b></div></td> </tr>
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</div><div class="MsoNormal" style="background: white;"><st1:place w:st="on"><st1:city w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Cincinnati</span></b></st1:city></st1:place><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"> Financial (CINF)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I continue to watch and wait on <st1:city w:st="on"><st1:place w:st="on">Cincinnati</st1:place></st1:city> Financial.<span style="mso-spacerun: yes;"> </span>IT was strong this past week, but there is plenty of time between now and the approaching ex-dividend date in March.<span style="mso-spacerun: yes;"> </span>If the market has a bad day or two, this might represent a short term opportunity to purchase a new position in CINF.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Thanks also to one reader (John) who I have been emailing with about dividend stocks and a microcap growth stock that we both like (This one is not part of the dividend strategy for sure!).<span style="mso-spacerun: yes;"> </span>He<span style="mso-spacerun: yes;"> </span>mentioned 5 companies that he is following based on a recommendation from another dividend website, and I looked into them.<span style="mso-spacerun: yes;"> </span>Of those he listed, there were a few drug companies (Johnson & Johnson,<span style="mso-spacerun: yes;"> </span>Abbott Labs, and Glaxo Smith Kline).<span style="mso-spacerun: yes;"> </span>All are good companies, but none had the kind of stock price appreciation that looks as compelling to me as other companies.<span style="mso-spacerun: yes;"> </span>One was a Chinese company (<st1:country-region w:st="on">China</st1:country-region> <st1:city w:st="on">Mobile</st1:city>) that also did not have the type of steady price appreciation that I look for, and finally, a utility company, PPL in <st1:city w:st="on">Alentown</st1:city>, <st1:state w:st="on">PA</st1:state> that produces and sells electricity to customers in several areas of the <st1:country-region w:st="on">US</st1:country-region> and the <st1:country-region w:st="on"><st1:place w:st="on">UK</st1:place></st1:country-region>.<span style="mso-spacerun: yes;"> </span>I didn’t like the chart on this one, or the historical fluctuations in the revenues over the past few years.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">That’s not to say that these aren’t great companies, or that buying them for their dividends wouldn’t be a good idea.<span style="mso-spacerun: yes;"> </span>They very well may be.<span style="mso-spacerun: yes;"> </span>They just don’t look as attractive to me as other stocks for buying, capturing the dividend, and then being able to possibly sell them for a short term profit.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">With the amount currently invested, and with time as an enemy, I did not research or post additional candidates this week.<span style="mso-spacerun: yes;"> </span>Assuming a couple of current holdings can be sold at a profit, I will begin looking for more candidates over the next week and list them next week.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Q&A<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Other than the correspondence with John about the above stocks as possible candidates, there were no other questions or emails this past week.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
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</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">THE BASICS<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Last week I promised to start a topic called “The Basics”.<span style="mso-spacerun: yes;"> </span>This section is for people who are new to investing, and / or who have not had any formal classes in business.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">I am going to take one subject per week, and provide a very brief overview, and then provide a few links that can be accessed for additional reading on the topic.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">This week: What exactly are “stock and bonds”?<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">A company that needs money to start its operation can basically secure these funds in 3 ways, or a combination of any of them:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">1. It can take out a loan (a “debt instrument”)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">2. It can issue bonds (another “debt instrument”)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">3. It can issue shares of stock<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">In the first 2, the company gets the money it needs to start up its operation, <span style="mso-spacerun: yes;"> </span>but it owes that money, plus interest to whoever loaned them the funds, or to the individuals who purchased the bonds.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Let’s say you wanted to start a lemonade stand when you were a kid.<span style="mso-spacerun: yes;"> </span>You figured you would need $10 for the materials for the stand itself (an old card table, a sign, a chair to sit on, and the pitcher and large spoon that you were going to mix your beverage in).<span style="mso-spacerun: yes;"> </span>These would be the “Assets” of your business.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Additionally, you need some working capital to buy the supplies to make your lemonade.<span style="mso-spacerun: yes;"> </span>You want to buy 10 cans initially, so that you don’t have to ask your mother to run to the store every day. (Let’s also assume that she is not going to charge you for her time to do this, or the gas and mileage associated with going to the store).<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Each can of lemonade would yield 20, 5 ounce cups, and the cost of a can is $2.00.<span style="mso-spacerun: yes;"> </span>For the sake of example, assume that your mother allowed you to use the water and ice from her house.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Finally, you need to have some cash available at the point of sale, in case you need to make change.<span style="mso-spacerun: yes;"> </span>Let’s say you want to have $5 in pennies, nickels, dimes and quarters available in your cash box.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">OK, so summing it up, you need $10 + $20 + $5, or $35.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Remember, you’re a kid, and you probably don’t have $35.<span style="mso-spacerun: yes;"> </span>So you ask your father to loan you the money.<span style="mso-spacerun: yes;"> </span>He, of course, in interested in your venture, but also wants to assure that he gets any money back that he loans you.<span style="mso-spacerun: yes;"> </span>If he is a good business person, he also wants a return on this investment that he makes.<span style="mso-spacerun: yes;"> </span>Since this is a riskier investment than he could make by putting his $35 into the bank, he should want a return that exceeds this very safe alternative.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;"><br />
The first thing he probably asks you is how you intend to pay him back for this loan.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">You have figured out that between the thirsty kids in the neighborhood, plus the adults who walk or jog by your house, and the cars that pass by and will notice the sign (you have done some market research and statistical probability, plus pre-open marketing – you’ve already told your friends that you were going to start this tomorrow!) you figure that you will sell 100 cups of lemonade per day.<span style="mso-spacerun: yes;"> </span>You are setting your price at 15 cents per 5 ounce cup, knowing that a single can of lemonade will yield 20 cups.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Your projected daily income statement, then, is:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Revenue: 100 * $.15 = <span style="mso-tab-count: 2;"> </span>$15<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Your cost of goods sold = <span style="mso-tab-count: 2;"> </span>$10<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">5 cans of lemonade @ $2.00 each to get 100 cups<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Your gross margin (this is the profit on your enterprise before subtracting selling, general and administrative expenses) would be $5 per day according to your calculations.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">You plan to keep your lemonade stand open for the months of July and August (remember, you are a kid, and you don’t yet realize how boring it will be sitting there all day for 2 months).<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">So, your business plan says that you will make $5 per day for 60 days, or $300 for the 2 months of operation.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">You are also creative, and plan to promote your enterprise by making up some flyers to put up around the neighborhood.<span style="mso-spacerun: yes;"> </span>You figured that your copying and printing expenses will be about $5 for this.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Finally, your brother wants “in” on this idea, but is unwilling to sit in the sun all day.<span style="mso-spacerun: yes;"> </span>He plays baseball, and proposes that he will buy a tray of 20 cups from you that he will take to the ball field where he plays every other day.<span style="mso-spacerun: yes;"> </span>For simplicity purposes, you agree to pay your brother $0.50 per day for taking the 20 cups of lemonade.<span style="mso-spacerun: yes;"> </span>You and he agree that he will pay you $3.50 for the cups (20 * $.15) and that he is responsible for the risk associated with loss, spillage or theft of the product.<span style="mso-spacerun: yes;"> </span>Your brother has become a distributor, and he is essentially paying you a retail price, but is being paid a fee for buying it from you in bulk.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">So now you have a “Selling expense” for your distributor, of $.50 * 30 (days) or $15.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Let’s assume that the “assets” you purchased will be worthless at the end of the summer.<span style="mso-spacerun: yes;"> </span>This is known as “fully depreciated”.<span style="mso-spacerun: yes;"> </span>When a company buys an asset, it spreads out the cost of that asset over its life expectancy, taking a portion of it as an expense each month.<span style="mso-spacerun: yes;"> </span>There are several ways to do this, and perhaps this will be a topic for another time.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">So, after all of the above are accounted for, this is the business plan for your summer enterprise:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Sales revenues $15 * 60 = <span style="mso-tab-count: 2;"> </span>$900<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Cost of Goods Sold $10 * 60 = <span style="mso-tab-count: 1;"> </span>$600<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Gross Margin = <span style="mso-tab-count: 3;"> </span>$300<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Selling, General and Administrative Expenses<br />
Marketing (copies / flyers) <span style="mso-tab-count: 1;"> </span>$<span style="mso-spacerun: yes;"> </span>5<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Distributor <span style="mso-tab-count: 3;"> </span>$<span style="mso-spacerun: yes;"> </span>15<span style="mso-spacerun: yes;"> </span>($.50 per day for 30 days)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Depreciation of assets <span style="mso-tab-count: 1;"> </span>$<span style="mso-spacerun: yes;"> </span>10<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Total S,G & A = <span style="mso-tab-count: 2;"> </span><u>$<span style="mso-spacerun: yes;"> </span>30</u><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Net Profit = <span style="mso-tab-count: 4;"> </span>$270<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Based on this, your father decides to invest, and loans you the $35 to start your business.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">He could either do this as a simple loan, or you could issue him a bond.<span style="mso-spacerun: yes;"> </span>Both are known as “debt instruments”, meaning that whoever holds the loan is owed the money.<span style="mso-spacerun: yes;"> </span>If the enterprise fails, those who are holding debt are also entitled to be paid as a priority versus the owners of the company, who own “stock”.<span style="mso-spacerun: yes;"> </span>A loan typically is paid off over regular intervals, with a fixed payment that covers the principle plus interest.<span style="mso-spacerun: yes;"> </span>Most of us are all too familiar with loans of this nature, for things like cars and mortgages.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Bonds, on the other hand are typically due in total at the end of an agreed upon term (time).<span style="mso-spacerun: yes;"> </span>Between the time that a bond is purchased and when it is redeemed, the bondholder receives a periodic interest payment, and then the return of the amount loaned (principle) at the end of the agreed period.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">In the above example, let’s say that your father is happy with making $2 on his $35 investment for 60 days.<span style="mso-spacerun: yes;"> </span>He figures that it is much better than he would get by leaving it in the bank.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">You would add another $2 to your expenses above, and your net profit would now be $268.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">If he negotiated with you to repay the entire loan at the end of the summer, but with $1 in interest due at the 30 and 60 day intervals, he would essentially be a “bond holder”.<span style="mso-spacerun: yes;"> </span>On the other hand, if you and he agreed to a weekly payoff, that would include principle and interest, it would be a loan.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">But what about stock?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Take the exact same example from above, but instead of you having no money whatsoever when you started your enterprise, you crack open your piggy bank, and find that you have $17.50 available to invest yourself.<span style="mso-spacerun: yes;"> </span>Your father is interested in your enterprise, but instead of loaning you the remaining $17.50, he proposes that he would be a part owner with you, and share in the profits.<span style="mso-spacerun: yes;"> </span>Being a shareholder in a company entails more risk.<span style="mso-spacerun: yes;"> </span>For example, in our simple business case, what if it rains, or the weather is cool, and no one buys lemonade.<span style="mso-spacerun: yes;"> </span>What if the distributor relationship fails?<span style="mso-spacerun: yes;"> </span>What if the person running the business gets sick and can’t be at the lemonade stand for a few days?<span style="mso-spacerun: yes;"> </span>What if a neighborhood kid puts up a competing lemonade stand and undercuts the price that has been established?<span style="mso-spacerun: yes;"> </span>A lot of things can influence whether the business plan proposed will actually materialize.<span style="mso-spacerun: yes;"> </span>A person holding a bond or loan wouldn’t care, as they would be due their payments no matter what happened (assuming there was any money to be distributed).<span style="mso-spacerun: yes;"> </span>The stockholder’s financial success, however, is tied directly to the success of the enterprise, as the stockholder will accrue gains or incur losses based on how the enterprise performs.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Back to our example:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">You agree with allowing your father to be a part owner in the company, but this changes the game, and since you are putting in all the time and effort, you want to be paid for your efforts.<span style="mso-spacerun: yes;"> </span>You and he agree that you will make $1 per day over the 60 days that the stand is open.<span style="mso-spacerun: yes;"> </span>At the end of the summer, you and he will split the remaining profits as equal shareholders.<span style="mso-spacerun: yes;"> </span>In this example <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">If you were a company, you would issue stock.<span style="mso-spacerun: yes;"> </span>In this case, to keep the math simple, you could issue 70 shares, with a price of $.50 per share, thereby raising the $35.<span style="mso-spacerun: yes;"> </span>The initial value of the company is determined by the capital invested divided by the number of shares.<span style="mso-spacerun: yes;"> </span>In this case, it is $35 in capital, divided by 70 shares, or $.50 per share.<span style="mso-spacerun: yes;"> </span>If the results of the business matched the plan, and the company dissolved at the end of the 60 days, this would be the outcome:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Sales revenues $15 * 60 = <span style="mso-tab-count: 2;"> </span>$900<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Cost of Goods Sold $10 * 60 = <span style="mso-tab-count: 1;"> </span>$600<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Gross Margin = <span style="mso-tab-count: 3;"> </span>$300<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Selling, General and Administrative Expenses<br />
Marketing (copies / flyers) <span style="mso-tab-count: 1;"> </span>$<span style="mso-spacerun: yes;"> </span>5<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Distributor <span style="mso-tab-count: 3;"> </span>$<span style="mso-spacerun: yes;"> </span>15<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Depreciation of assets <span style="mso-tab-count: 1;"> </span>$<span style="mso-spacerun: yes;"> </span>10<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Salary <span style="mso-tab-count: 4;"> </span>$<span style="mso-spacerun: yes;"> </span>60<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Total S,G & A = <span style="mso-tab-count: 2;"> </span><u>$<span style="mso-spacerun: yes;"> </span>90</u><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Net Profit = <span style="mso-tab-count: 4;"> </span>$210<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">The net profit would be split equally between you and your father, with each person receiving $105.<span style="mso-spacerun: yes;"> </span>In this theoretical and very simple example, being a shareholder was more profitable than the examples of financing a loan or being a bondholder.<span style="mso-spacerun: yes;"> </span>In publicly traded companies, there is the assumption that the business will continue.<span style="mso-spacerun: yes;"> </span>This is known as an “ongoing concern”, versus our example of a short term business.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">Of course, things are much more sophisticated with real companies, but I hope that the above examples help to educate you on the different ways that a new enterprise can get started, through issuing stock, or by securing a loan.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 10.0pt;">There are also many types of stocks (preferred vs common) and bonds.<span style="mso-spacerun: yes;"> </span>If you want to read more, below are some websites you can visit for more information.<span style="mso-spacerun: yes;"> </span>They provide basic information, and the preferred stock article describes the differences between preferred stock and bonds:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><a href="http://www.investopedia.com/terms/c/commonstock.asp"><span style="color: red;">http://www.investopedia.com/terms/c/commonstock.asp</span></a><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><a href="http://www.investopedia.com/articles/stocks/06/preferredstock.asp"><span style="color: red;">http://www.investopedia.com/articles/stocks/06/preferredstock.asp</span></a><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><a href="http://www.smartmoney.com/investing/bonds/a-bond-primer-7921/"><span style="color: red;">http://www.smartmoney.com/investing/bonds/a-bond-primer-7921/</span></a><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">Closing Comments<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Please continue to provide comments and questions.<span style="mso-spacerun: yes;"> </span>I like hearing from people, and am open to ideas on dividend stocks that you may hold or are considering, as well as positive or negative critiques of what I am doing.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">The Official Disclaimer: <span style="mso-spacerun: yes;"> </span>I am not a licensed investment professional, and that what is contained in this blog is the result of my own research and opinions only, and is not investment advice.<span style="mso-spacerun: yes;"> </span>It is only a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks.<span style="mso-spacerun: yes;"> </span>Each person has different investment goals, objectives, and timeframes.<span style="mso-spacerun: yes;"> </span>As such, each person should do his or her own research before taking any action on any type of investment.</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">As always, if you enjoy reading this, I would appreciate it if you would forward the URL to one or two other people who might like to read it, or post it on your facebook page so that your FB friends can view it as well.<span style="mso-spacerun: yes;"> </span>This past week I saw visits to the blog from <st1:country-region w:st="on">Norway</st1:country-region>, <st1:country-region w:st="on">Germany</st1:country-region>, <st1:country-region w:st="on">France</st1:country-region> and <st1:place w:st="on"><st1:country-region w:st="on">Estonia</st1:country-region></st1:place>.<span style="mso-spacerun: yes;"> </span>I have a nephew in the military in Germany who I believe may have been in Norway this past week, but I have no explanation for the hits from Estonia and France.<span style="mso-spacerun: yes;"> </span>If anyone wants to self identify, I sure would be interested in knowing who you are, and how you came to find my blog.<span style="mso-spacerun: yes;"> </span>You can email me at </span></b><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma; font-size: 9.0pt;"><a href="mailto:ken.hannan@gmail.com"><span style="color: red;">ken.hannan@gmail.com</span></a></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;"><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">I continue to see growth in the number of visits per week, primarily coming from the <st1:country-region w:st="on">US</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region>.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Have a good week, and prosperous trading! </span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9.0pt;">Ken</span></b><span style="color: #222222; font-family: Arial; font-size: 9.0pt;"><o:p></o:p></span></div><div class="MsoNormal"><br />
</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-7911868134813697481.post-16949305633037806942011-02-13T07:31:00.000-08:002011-02-13T15:24:05.171-08:0002/13/11 Update<h2 style="background: none repeat scroll 0% 0% white;"><span style="color: #222222;"><span class="Apple-style-span" style="font-family: Verdana,sans-serif; font-size: small;">Sunday, <st1:date day="13" ls="trans" month="2" w:st="on" year="2011">February 13, 2011</st1:date></span></span></h2><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Past Week’s Activity</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">This was an interesting week in the stock market (aren’t they all?) with continuing encouraging news of the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> and global economic recovery, but tempered with hints of the dangers of inflation. As the economies of the world recover and grow, the demand for raw materials and goods and services increases. This is a 2 edged sword. On one hand, it is a natural outcome and consequence of growth. On the other hand, the laws of economics come into play, and as demand increases, prices rise. This translates into inflated prices, which eventually work their way through the system, and consumers see increases in the prices of goods and services at the retail level. This dampens demand, which hampers the recovery. Getting the proper economic policies in place to stimulate growth while managing inflation is a difficult balancing act.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The news from <st1:country-region w:st="on">Egypt</st1:country-region> of President Mubarak’s decision to step down was welcome news late Friday as the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> stock market was approaching its close for the week. But with one issue settled, the immediate question about his successor began to be discussed. Will the new government be as stable for the area? Will the flow of commerce through the <st1:place w:st="on">Suez Canal</st1:place> continue without interruption? The news I am hearing indicates that the military forces that are now in power are committed to provide a democratic process, and a continuation of the treaty with <st1:country-region w:st="on"><st1:place w:st="on">Israel</st1:place></st1:country-region>. If this plays out as described, it would be ideal in terms of stability for the region and the advances in world economies in my opinion.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I think that as this situation continues to evolve, we can be thankful that it appears to be relatively peaceful, and that the will of the people of <st1:country-region w:st="on"><st1:place w:st="on">Egypt</st1:place></st1:country-region> is being acted upon. They want improved economic conditions, higher employment, and the opportunity for a better standard of living. This does not appear to be an opportunity for extremists to seize power, as it was in <st1:country-region w:st="on"><st1:place w:st="on">Iran</st1:place></st1:country-region> when the Shah was ousted and extremists came into power. <st1:place w:st="on"><st1:country-region w:st="on">Egypt</st1:country-region></st1:place> is a great country with an incredibly rich heritage that dates back to early civilization. Since shortly after its defeat by <st1:country-region w:st="on">Israel</st1:country-region> in the brief war between the countries in 1967, it has been a stabilizing force and a moderate voice in the <st1:place w:st="on">Mideast</st1:place>, which has been good for the entire world. Let’s hope that this continues, that the transition of power is relatively calm, and that the people of <st1:country-region w:st="on"><st1:place w:st="on">Egypt</st1:place></st1:country-region> achieve a better way of life as a result of the risks they have taken.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Closed positions this past week</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">2 stocks in the dividend harvest portion of my portfolio were successfully sold this past week. PAYX (Paychex) moved up to a position of profit on Monday, so I sold it and booked a $.07 gain in addition to the $0.31 dividend that will be paid on 2/14. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DD (DuPont) remained well above its purchase price throughout the week. The ex-dividend date passed on 2/10 and the stock remained surprisingly strong. I sold it based on the rules I established for this strategy, and will definitely put it on the list to consider when its next quarterly dividend date approaches. It generated the single highest per share profit of any trade I’ve had under this strategy. I was tempted to continue to hold it, but ultimately decided to stick to my rules and not to argue with a strong gain. There may come a time when I need to sell one of these at a loss, and this will help to counterbalance that, if it occurs. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">If only ALL of my picks could be like this!<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">So here is the summary of what was sold, and the profits that were booked this week: <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: medium none;"><tbody>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Stock Symbol<o:p></o:p></span></b></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Company Name<o:p></o:p></span></b></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Profit per share<o:p></o:p></span></b></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividend Captured<o:p></o:p></span></b></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Days Held<o:p></o:p></span></b></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">PAYX<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Paychex<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.07<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.455<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">15<o:p></o:p></span></b></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DD<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DuPont<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$4.45<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.410<o:p></o:p></span></b></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">14<o:p></o:p></span></b></div></td> </tr>
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Current Holdings</span></b><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><br />
Below is the updated list of stocks being held, either awaiting the ex-dividend date to pass, or awaiting the opportunity to sell where the dividend is due or already paid.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white; line-height: 13.5pt;"><br />
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<tr style="height: 31.85pt;"> <td style="border: 1pt solid windowtext; height: 31.85pt; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; height: 31.85pt; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; height: 31.85pt; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Breakeven Share Price</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; height: 31.85pt; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Current Share Price (02/04)</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; height: 31.85pt; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividend Captured</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">HNZ</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Heinz</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$50.36</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$48.01</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4500</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">PCG</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Pacific Gas & Elec.</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$48.22</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$46.53</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">SO</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Southern Company</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$37.97</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9pt;">$38.03</span></b></span><span style="color: green; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DUK<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Duke Energy<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$17.92<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$17.84<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.2450<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">BCE<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Bell</span></b></span></st1:city><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$36.27<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9pt;">$36.39<o:p></o:p></span></b></span></div></td> <td style="border: medium none; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.455*<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.95pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CNP<o:p></o:p></span></b></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 97.4pt;" valign="top" width="130"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CenterPoint Energy<o:p></o:p></span></b></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 74.8pt;" valign="top" width="100"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$16.17<o:p></o:p></span></b></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 68.7pt;" valign="top" width="92"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #339966; font-family: Tahoma; font-size: 9pt;">$16.19<o:p></o:p></span></b></span></div></td> <td style="border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 73.2pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.1975*<o:p></o:p></span></b></span></div></td> </tr>
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">* Ex-dividend date has not yet passed</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The first 2 above remain below their respective break even points. Southern Company’s Ex-dividend date passed this week, and if the stock price remains above the break even point, I will sell it early this coming week. Duke Energy’s Ex-dividend date also passed this week, and as soon as it climbs back above its breakeven point, I will sell it as well.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><st1:city w:st="on"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Bell</span></b></st1:city><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> <st1:place w:st="on"><st1:country-region w:st="on">Canada</st1:country-region></st1:place> and CenterPoint Energy are both slightly above where I purchased them, but their ex-dividend dates are approaching, so I will have to wait until they pass before considering selling either of them. Based on experience, I expect both to decline slightly when the ex-dividend date passes.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I want to talk about Heinz, as it is the poorest performer of any stock I have purchased since I started this blog. My intent here is for complete transparency. It is easy to highlight and celebrate the victories, but I think it is equally important to evaluate decisions that don’t work out as hoped, and decide what to do next. Ignoring declining investments is not a good idea, and one of my best managers in my career had a key phrase when discussing problematic situations. She said: “Hope is not a strategy.”<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Heinz, of course is a household name and one of the most recognized great American brands. Who hasn’t had their ketchup at some point in life?<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">But Heinz is much more than ketchup, and its reach is well beyond our domestic shores. It sells a variety of food products, including condiments, sauces, frozen foods, desserts, entrees, snacks, appetizers, infant nutrition and other processed foods throughout North America, Latin America, Europe, Asia, Africa and the <st1:place w:st="on">Middle East</st1:place>.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Product sales have been fairly steady, despite the global economic problems. Profits have declined slightly year over year (2010 vs 2009) but not precipitously. Approximate 68% of Heinz shares are held by institutions, and there has been no change in analyst recommendations. Several continue to rate HNZ as a “Buy” or “Stong Buy”, and the mean price target is $51 per share.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Heinz annual dividend yield is about 3.7%. As the price of the stock has declined, this calculation of (Dividend paid annually divided by stock price) has increased slightly.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The last ex-dividend date was <st1:date day="20" ls="trans" month="12" w:st="on" year="10">12/20/10</st1:date>. Since ex-dividend dates occur every 90 days (e.g. quarterly), I have passed the midpoint date between ex-dividend dates.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I also look at some technical trading characteristics of stocks, although I don’t base decisions entirely on these. I see the technical aspects of a stock’s trading pattern as a number of interesting data points that may contribute to a decision to buy or sell, but not the only factor.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">For Heinz, there are a couple of simple things that I find interesting. See the chart below:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXyfIkTOO2FklrxFRw72y7ZjBjch4pUVSryOEYcSfKNxSbS4wQzeH21gfHIP5K06dx2LeKQ51ZC4gBp3mmFKGf_XdE_wQCixcHw_FqmZG6oJNIUQBsKcDrTfMNBUuKYjZHJKOCPh6JCwA/s1600/hnz+chart+021311.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="379" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXyfIkTOO2FklrxFRw72y7ZjBjch4pUVSryOEYcSfKNxSbS4wQzeH21gfHIP5K06dx2LeKQ51ZC4gBp3mmFKGf_XdE_wQCixcHw_FqmZG6oJNIUQBsKcDrTfMNBUuKYjZHJKOCPh6JCwA/s640/hnz+chart+021311.png" width="640" /></a></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white; margin-left: 0.5in; text-indent: -0.25in;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">1.<span style="font: 7pt "Times New Roman";"> </span></span></b><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I see an increasing price trend overall. It isn’t linear, but it is clearly trending upward.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white; margin-left: 0.5in; text-indent: -0.25in;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">2.<span style="font: 7pt "Times New Roman";"> </span></span></b><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The 50 day moving average (the green line) is above the 200 day moving average (the red line).<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white; margin-left: 0.5in; text-indent: -0.25in;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">3.<span style="font: 7pt "Times New Roman";"> </span></span></b><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The price of the stock has flirted with the 200 day moving average, but has had the strength to remain above it.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">There are a variety of technical characteristics that you can examine on any stock. There are firms on Wall Street that devote time and energy to build mathematical models and algorithms in an attempt to predict where a stock is headed based on technical trading patterns. They couple their models with computer automated trades, taking the human element (and emotions) out of the buying and selling decisions entirely. It can make your head spin when you think about it. If you want to see an example of this, look at the number of shares traded, and the price range for Citicorp (C) on any given day. Computerized trades are generated daily that result in hundreds of millions of shares exchanging hands, and many of the trades are for profits of a penny per share or less. I have neither the training nor the mental capacity to engage in this level of analysis, and certainly don’t have the capital that is required to do this either. I am a single investor, simply trying to capitalize on individual opportunities, one at a time. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The cornerstone of my “Dividend Harvest Strategy” is to only purchase shares of companies that I have examined and analyzed, and would feel comfortable holding for an extended period of time if necessary. That said, the strategy also employs selling shares shortly after there is a profit, so that funds can be redeployed to capture dividends that are approaching.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">So – what to do with Heinz. . . . My conclusion: Nothing has fundamentally changed since I purchased it. If I was looking at it for the first time as the ex-dividend date approaches this quarter, I would probably see a “bargain”, since its price has temporarily declined. Therefore, what I am likely to do is to purchase an additional position in Heinz, doubling the number of shares I hold, and capture the upcoming dividend that will occur in late March. In doing so, I will decrease the breakeven point for the stock (it will be a combination of purchase prices plus commissions divided by 2), and will consider all the shares as one block when attempting to sell them at a net profit. In the meantime, I will capture the upcoming dividend in March on all shares.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">As The Beatles said in their great song We Can Work It Out: “Only time will tell if I am right or I am wrong.”<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">On the Horizon</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white; line-height: 13.5pt;"><br />
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<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Closing Price 02/04</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividend Expected</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Ex- Dividend Date</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">D<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dominion Resources<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$44.08<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4925<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">03/02/11<o:p></o:p></span></b></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">NU<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Northeast Utilities<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$33.57<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.2750<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="28" ls="trans" month="2" w:st="on" year="11"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">02/28/11</span></b></st1:date><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><o:p></o:p></span></b></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CINF<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><st1:city w:st="on"><st1:place w:st="on"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Cincinnati</span></b></st1:place></st1:city><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> Financial<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$33.58<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4000<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="21" ls="trans" month="03" w:st="on" year="11"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">03/21/11</span></b></st1:date><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><o:p></o:p></span></b></div></td> </tr>
<tr> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CTL<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Century Link Inc.<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$45.10<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.7250<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="16" ls="trans" month="2" w:st="on" year="11"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">02/16/11</span></b></st1:date><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><o:p></o:p></span></b></div></td> </tr>
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Eli Lilly has been removed from this chart, as the Ex-dividend date passed on 2/11. It didn’t move down, and I didn’t buy it. I will put it on the watch list for next quarter, as it is a good company and it pays a decent dividend.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dominion Resources was strong this past week. In retrospect, Tuesday would have been a good day to pick up some shares. I didn’t. The ex-dividend date is still a couple weeks away, and the stock is showing strength. I may end up purchasing a small position even at the current price level.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I will be watching and possibly purchasing initial positions in the following companies over the next few weeks:<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Northeast Utilities (NU)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">This is another provider of energy services, with operations in the (drum roll) <st1:place w:st="on">Northeast US</st1:place>. The company serves consumer and business customers for natural gas and electricity in Western MA, <st1:state w:st="on">Connecticut</st1:state> and <st1:state w:st="on"><st1:place w:st="on">New Hampshire</st1:place></st1:state>. Like other utility companies, the revenue and profit is fairly predictable. Based on the harsh winter that we have had in the Northeast, coupled with the start of the economic recovery, I expect quarterly revenues and profits for this quarter to be better than what the company experienced last year. On top of this, this past week NU announced that it was raising its dividend from $1.025 per share annually to $1.10 per share. This is a sign of confidence in the future earnings of the company by NU management, approved by their Board of Trustees. In the press release that accompanied the announcement, the company stated that even with the increase in the dividend, they still expected to have $1 Billion per year available to continue to invest in improving the infrastructure for their customers.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">There is a lot to like about NU in my opinion for the Dividend Harvest Strategy, and the increase in the dividend is likely to generate new demand for the stock and attract new investors, or increases in investments from existing investors. About 76% of the shares are owned by Institutions already, and when a company increases its dividend, it becomes increasingly attractive relative to other investment choices, due to the increased return that investors will realize. Logically, this should translate into increased demand for the stock in the company, and with the basic economic laws of supply and demand, I expect this to contribute to continue the strength in the stock price. All of this makes for a great candidate for this strategy, to buy the stock, capture the dividend, and then sell the stock at a profit.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">It will be interesting to see if this plays out like I am envisioning, but in a worst case scenario, I would not have any problem sleeping at night if I had to hold NU for a while, since it is yielding over 3% per year just on the dividend.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><st1:city w:st="on"><st1:place w:st="on"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Cincinnati</span></b></st1:place></st1:city><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> Financial (CINF)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">This is a candidate that I have purchased and sold successfully in the past under this strategy, and it continues to be a good candidate to capture the upcoming dividend of $0.40 on 3/21. There is time to watch and wait for a potential buying opportunity on CINF, as the ex-dividend date is still over a month away. In the previous quarter I sold CINF at a profit at $32.17 per share. The price of the stock has moved up since then, and is now at $33.58. I will wait for some weakness, and hope to have the opportunity to purchase an initial position below where it is currently trading. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CINF is a well run insurance company, focusing primarily on property and casualty insurance. It witnessed a slight decline in revenues and profits in 2008 vs 2007, primarily caused by the effects of the recession. The revenues and profits appear to be heading in the right direction at this point, and the stock is slowly and steadily advancing as a result. They recently announced their quarterly results and significantly beat the estimates of analysts. All of this points to a good candidate once again for this strategy, in my opinion.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Century Link, Inc. (CTL)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The final candidate this week is Century Link, Inc. This is a bit more speculative than my normal candidates, and I am unsure of whether I will actually purchase it. Century Link is a provider of Telephone services, primarily in the Southeast US states, but with a growing footprint across the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region>. It provides local, long distance, internet, TV, home security and managed network services to its business and residential customers. Its subscriber base includes 7 million access lines, 2.3 million broadband (internet) customers and 587,000 video subscribers.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The company is growing and the stock price has been increasing, but recently declined. In addition, CTL is acquiring another large telephone company, Qwest Communications. It is officially being called a “Merger”, but from what I read, CTL is in the driver’s seat on this deal and will essentially run the combined company. I could write an entire article about the history of Qwest, but for the purposes of this week’s entry, suffice to say that Qwest has had a troubled past, and represents opportunity for improvement.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">If this one is purchased, it will be a quick play. The company goes “ex-dividend” on 2/16, so Monday, 2/14 is the last day to buy it to capture the dividend, since the shares traded on any stock take 2 days to “settle” in a brokerage account.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I am sitting on the fence with this one, but the combination of events, and what I see as a temporary decline in the stock price that has begun to recover, and a dividend yield of 6.6% ($0.7250) make this tempting.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Q&A<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 10pt;">Now that this blog has been going for a while, I’ve started to get some feedback and questions, so I thought it would be worthwhile to start each week with a section dedicated to Questions & Answers. Sometimes the content might only be comments that people have made, and there may be times when I get criticized for actions taken on purchases and sales of certain stocks, or other matters. That’s ok. Part of what I want to accomplish (In addition to making full retirement more comfortable and a “sooner” vs “later” possibility) is an exchange of ideas.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 10pt;">If people want to maintain anonymity, I will respect that desire. If they want their name published, I’ll accommodate that request as well. If there isn’t specific direction given, I will probably just provide a first name, and how I know the person.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 10pt;">The first entry is the result of a personal conversation with one reader, and an email with another. These are both highly intelligent young men who are college graduates. They both said that they enjoy my blog, but they don’t always understand it. I think that their respective areas of professional expertise and careers are in areas that are not directly related to the business world. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 10pt;">The learning I take from these comments is that I may need to provide more information and definitions about the investments that I discuss. I will also try to add links within the blog going forward. I thought I might also add a section called “The Basics” each week, to provide a definition and some examples about investment terms, vehicles, and concepts. As you know, I am not a registered investment professional, but I have learned about investing through 40+ years of experience. (How is that for slipping in the disclosure statement?)<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 10pt;">I will start to add “The Basics” next week.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
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</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Closing Comments<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Please continue to provide comments and questions. I like hearing from people, and am open to ideas on dividend stocks that you may hold or are considering, as well as positive or negative critiques of what I am doing. My email address is: ken.hannan@gmail.com<o:p></o:p></span></b></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The Official Disclaimer: I am not a licensed investment professional, and that what is contained in this blog is the result of my own research and opinions only, and is not investment advice. It is only a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks. Each person has different investment goals, objectives, and timeframes. As such, each person should do his or her own research before taking any action on any type of investment.</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">As always, if you enjoy reading this, I would appreciate it if you would forward the URL to one or two other people who might like to read it, or post it on your facebook page so that your FB friends can view it as well. I am seeing about 50 hits per week from around the world at this point, and getting a few comments each week as well. </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Happy Valentines Day to all. . .Have a good week, and prosperous trading! </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><br />
</div><div class="MsoNormal" style="background: none repeat scroll 0% 0% white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Ken</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-88680735257431479142011-02-07T04:34:00.000-08:002011-02-07T11:06:26.868-08:0002/06/11 Update<div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Past Week’s Activity</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
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</span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">This week’s blog will be abbreviated. I’m writing it “on the road” this weekend, traveling to attend a funeral of an Uncle who passed away at the age of 93 earlier this week. In addition to being my last Uncle to pass away, he was also my godfather. He was, very simply, a wonderful human being. He was mentally alert to the end, and he passed away quickly and without pain in his sleep. We should all be so lucky when our time comes. He was part of what Tom Brokaw described as the “Greatest Generation” – he served his country in the Army Air Corps in WWII and married my father’s sister after the war ended. He worked for the <st1:place w:st="on"><st1:country-region w:st="on">US</st1:country-region></st1:place> Postal Service throughout his adult life to raise my cousin and to support his family. You could count on him to be at every family event, and he was always up for a good time. As I grew to adulthood, he was always interested in discussions about the stock market. I will miss him dearly.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"><span class="Apple-style-span" style="color: black; font-family: 'Times New Roman'; font-size: small; font-weight: normal;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I had another busy week of activity for the dividend portion of the portfolio this week. I’ve also had conversations with, and emails from a couple of readers, and will attempt to respond next week. </span></b></span>The Market in general surprised me with its strength over the last 5 trading sessions. I truly expected some weakness due to the political unrest in the <st1:place w:st="on">Middle East</st1:place>, but it did not occur. There were a few good earnings reports, a few that disappointed, and the general economic news was neither incredibly positive nor negative from what I assessed. Yet the market continued its advance, closing above the 12,000 mark and holding its ground at the end of the week. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividends were paid on a couple of stocks that I sold at a profit last week, whose ex-dividend dates had passed recently. AT&T and Verizon dividends arrived on schedule on 2/1 at $0.43 and $0.4875 per share respectively. </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">With the funds that became available last week when some other shares were sold, I opened initial l positions Duke Energy, CenterPoint Energy and <st1:city w:st="on">Bell</st1:city> <st1:place w:st="on"><st1:country-region w:st="on">Canada</st1:country-region></st1:place> Enterprises. All 3 companies have been discussed in previous weekly blog entries, so I won’t repeat the basic information. Suffice to say that they are historically stable in terms of revenue and earnings growth, and in my opinion are likely to continue trending slightly upward in the near term, making them very good candidates for this strategy. I was able to purchase DUK just below, and CNP and BCE just above their closing prices listed last Friday. See the chart below for details.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DuPont moved up nicely this past week, and is over 2 points higher than where it was purchased. As the ex-dividend date approaches, this raises an interesting opportunity. I could simply sell the stock at its current price, and capture about $2.50 per share in profit. This more than outweighs the opportunity loss of waiting to capture the dividend itself, and may be a viable option. It would be a deviation to the “rules” I’ve established, but at the end of trading activity, maximizing profits is the goal. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Below is the updated list of stocks being held, either awaiting the ex-dividend date to pass, or awaiting the opportunity to sell where the dividend is due or already paid.</span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p> </o:p></span><span class="Apple-style-span" style="color: #222222; font-family: Arial; font-size: 12px; line-height: 18px;"> </span></div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="height: 31.85pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; height: 31.85pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Breakeven Share Price</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Current Share Price (02/04)</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 31.85pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividend Captured</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">HNZ</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Heinz</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$50.36</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$48.19</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4500</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">PCG</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Pacific Gas & Elec.</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$48.22</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$46.25</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">SO</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Southern Company</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$37.97</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$37.34</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4550</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">PAYX</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Paychex</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$33.2659</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$33.26</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.3100</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DD</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DuPont</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$50.1659</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9pt;">$52.53</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.4100*</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 6;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">DUK<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Duke Energy<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$17.92<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9pt;">$18.01<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.2450*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 7;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">BCE<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Bell</span></b></span></st1:city><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$36.27<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma; font-size: 9pt;">$36.93<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.455*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 8; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CNP<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">CenterPoint Energy<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$16.17<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma; font-size: 9pt;">$16.14<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.1975*<o:p></o:p></span></b></span></div></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">* Ex-dividend date has not yet passed</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The first 3 above continue to trade below where I purchased them. Paychex is very close to my breakeven point, and the ex-dividend date passed this past week. I am hoping to sell it at a slight profit this coming week. The last 4 companies are more recent purchases and have not passed their ex-dividend dates. The possible sale on DuPont as a deviation from the strategy has been discussed above. </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;"><br />
</span></b></div><div class="MsoNormal" style="background: white;"><b><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Closed positions this past week</span></b></div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><br />
</div><div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px;"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I was unable to sell any other stocks held at a profit, as they each continued to trade below where I purchased them, or their ex-dividend date has not yet passed, so I continue to hold and wait. Ihaven't seen any news releases or any other developments that would cause me to question my initial purchase decision. Patience is a virtue, I am told.</span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14pt;"><br />
</span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14pt;"><br />
</span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">On the Horizon</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white; line-height: 13.5pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Stock Symbol</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Company Name</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Closing Price 02/04</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Dividend Expected</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Ex- Dividend Date</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">LLY</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Eli Lilly</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$35.53</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">$0.48</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">02/11/11</span></b></span><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div></td> </tr>
<tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"></div></td><td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><span class="Apple-style-span" style="color: #222222; font-family: Tahoma;"><span class="Apple-style-span" style="font-size: 12px;"><b><br />
</b></span></span></td><td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><br />
</td><td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><br />
</td><td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"></td> </tr>
</tbody></table><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Eli Lilly moved up about $0.75 from its closing price last week. In retrospect, it would have been a good buy early in the week. Inaction on my part resulted in an opportunity loss, but I expected weakness in the market due to the unrest in the <st1:place w:st="on">Middle East</st1:place>, and was surprised by the relative indifference in the market to these events. There are still a couple of days, and if LLY moves down, I will try to pick up some shares.<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Because of the travel and funeral, I did not have much time to review the upcoming list of companies that are going ex-dividend over the next month or so. 3 from last week were purchased. <o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">I will do some more research over the next week, and add more companies to the list next week if I see any that look attractive to me for this strategy.</span></b></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 14pt;">Closing Comments<o:p></o:p></span></b></div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Comments and questions are always appreciated. As I mentioned, I had a couple of questions in email and a conversation with a reader. I will set up a “Q & A” section in the blog next week.</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">The Disclaimer: I am not a licensed investment professional, and that what is contained in this blog is the result of my own research and opinions only, and is not investment advice. It is only a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks. Each person has different investment goals, objectives, and timeframes. As such, each person should do his or her own research before taking any action on any type of investment.</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Again, if you enjoy reading this, I would appreciate it if you would cut and paste, and forward the URL to one or two other people who might like to read it, or post it on your facebook page so that your FB friends can view it as well. </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Have a good week, and prosperous trading! </span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal" style="background: white;"><br />
</div><div class="MsoNormal" style="background: white;"><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: Tahoma; font-size: 9pt;">Ken</span></b><span style="color: #222222; font-family: Arial; font-size: 9pt;"><o:p></o:p></span></div><div class="MsoNormal"><br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-9585577770555408602011-01-30T04:07:00.000-08:002011-01-30T04:07:00.382-08:0001/30/11 Update<div class="MsoNormal"><st1:date day="30" ls="trans" month="01" w:st="on" year="11"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">01/30/11</span></b></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Past Week’s Activity<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">This was a busier than usual week for me in the market. <span style="mso-spacerun: yes;"> </span>I was able to bank some profits in the dividend portion of the portfolio and also <span style="mso-spacerun: yes;"> </span>established a couple of new positions.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The Dow Jones Industrial Average flirted with the 12,000 level earlier in the week, with generally good earnings reports from a few companies contributing to the rise.<span style="mso-spacerun: yes;"> </span>I <span style="mso-spacerun: yes;"> </span>believe that President Obama’s State of <st1:place w:st="on"><st1:state w:st="on">The Union</st1:state></st1:place> address was viewed positively for business, as he mentioned a plan to decrease corporate tax rates.<span style="mso-spacerun: yes;"> </span>Late in the week, however, there were a couple of earnings disappointments which contributed to the decline that was primarily caused by the uncertainty due to the political unrest in <st1:country-region w:st="on">Egypt</st1:country-region>, <st1:country-region w:st="on">Tunisia</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Yemen</st1:place></st1:country-region>.<span style="mso-spacerun: yes;"> </span>This caused a <span style="mso-spacerun: yes;"> </span>fairly broad selloff on Friday.<span style="mso-spacerun: yes;"> </span>Uncertainty over just about anything in the world <span style="mso-spacerun: yes;"> </span>can initiate or contribute to these types of declines in markets, and the broad based political situations that are evolving can cause emotional responses that feed upon themselves as markets decline.<span style="mso-spacerun: yes;"> </span>Depending on the nature of the crisis, however, one must be alert for opportunities that can arise.<span style="mso-spacerun: yes;"> </span>The declines typically result in <span style="mso-spacerun: yes;"> </span>an overreaction, and they tend to be are short lived.<span style="mso-spacerun: yes;"> </span>Temporary reductions in prices can be viewed as buying opportunities for some stocks.<span style="mso-spacerun: yes;"> </span>That said, if the problems in the <st1:place w:st="on">Middle East</st1:place> get worse, things could get worse if the flow of oil is seriously jeopardized.<span style="mso-spacerun: yes;"> </span>If this occurs, I would expect some select oil company and oil services stocks to rise.<span style="mso-spacerun: yes;"> </span>Also, if the uncertainty increases, it is likely that demand for gold will increase, since this is the traditional “safe haven”.<span style="mso-spacerun: yes;"> </span>Gold prices have risen to all time highs in the past 12 months, but have come down slightly from these highs.<span style="mso-spacerun: yes;"> </span>I am not making any recommendations about specific purchases.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Above all else, I hope for peaceful resolutions to the problems in these countries.<span style="mso-spacerun: yes;"> </span>It appears that the people in some <st1:place w:st="on">Middle East</st1:place> countries are seeking fundamental political reforms and demanding improvements that will lead to a better standard of living and democracy. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">OK, back to a more “On Topic” discussion:<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">During the past week, the ex-dividend date for The Royal Bank of <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> passed, and since the stock price was already higher than where it was purchased, I sold it, in compliance with the rules I try to follow under this strategy.<span style="mso-spacerun: yes;"> </span>This is another rare and isolated example of being able to sell a stock profitably shortly after securing the dividend.<span style="mso-spacerun: yes;"> </span>It provides for an immediate redeployment of the funds for one or more of the next dividend candidate stocks on the watch list.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Although the price continued to move up slightly, time was running out as the ex-dividend date loomed, and I purchased a small position in Paychex (PAYX).<span style="mso-spacerun: yes;"> </span>As mentioned last week, I think this company has good business prospects as the economy recovers.<span style="mso-spacerun: yes;"> </span>That optimism, coupled with the dividend makes this a good candidate in my opinion. <span style="mso-spacerun: yes;"> </span>Time will tell if my instincts are correct about the further appreciation of Paychex.<span style="mso-spacerun: yes;"> </span>As you can see in the chart below, it moved lower between the time I purchased it and the end of the week.<span style="mso-spacerun: yes;"> </span>I think that this was partially attributable to the ex-dividend date passing, and also in part due to the weakness in the overall stock market on Friday.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">You will note a new candidate on the purchased list this week.<span style="mso-spacerun: yes;"> </span>It is DuPont (DD), which I have purchased and sold in the past successfully.<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">It did not appear on the watch list last week, as the share price was above $50.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>I generally limit candidates for consideration to a share price of under $50.<span style="mso-spacerun: yes;"> </span>DuPont, however, dipped below the $50 threshold mid-week, and I started watching it closely.<span style="mso-spacerun: yes;"> </span>I picked up an initial position on Friday, just over $50.<span style="mso-spacerun: yes;"> </span>If it falls further, I will be likely to add to my position to reduce the average purchase price while the ex-dividend date approaches.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I was also able to sell the combined position of AT&T and Verizon at a net profit on 1/26.<span style="mso-spacerun: yes;"> </span>AT&T reported earnings on 1/27, to a <span style="mso-spacerun: yes;"> </span>mixed interpretation by analysts, but a decided drop in the stock. <span style="mso-spacerun: yes;"> </span>On the surface they appeared to beat the consensus view for earnings, but it was due to the way that some accounting was done.<span style="mso-spacerun: yes;"> </span>Also, there were a few items contained in the earnings report that drove the stock down.<span style="mso-spacerun: yes;"> </span>For example, the number of new subscribers on AT&T’s wireless network was lower than expected, which is not a good “leading indicator” for revenue in this category in future quarters.<span style="mso-spacerun: yes;"> </span>As the earnings date approached, I wanted to sell it if possible, as I am aware that price fluctuations can and do occur coincident with these announcements.<span style="mso-spacerun: yes;"> </span>I was able to sell AT&T and Verizon within an hour of each other on 1/26 at a net profit between the 2 stocks.<span style="mso-spacerun: yes;"> </span>This frees up some funds for other opportunities, including <st1:city w:st="on">Bell</st1:city> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises, which treated me very well last quarter. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Closed positions this past week<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Here is a summary of the sales of stocks that I have been holding to capture the dividends:<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Average Purchase Price</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Average <st1:city w:st="on"><st1:place w:st="on">Sale</st1:place></st1:city> Price </span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Captured Per Share</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">T and VZ<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">AT&T and Verizon *<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">$31.10<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="color: green; font-family: Tahoma;">$31.26<o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">$0.4300 (T)<o:p></o:p></span></b></div><div align="center" class="MsoNormal" style="text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">$0.4875(VZ)<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">RY</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Royal Bank of</span></b></span><span class="apple-converted-space"><b><span style="font-family: Tahoma;"> </span></b></span><st1:place w:st="on"><st1:country-region w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Canada</span></b></span></st1:country-region></st1:place><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$52.17</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$53.46</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.5000 </span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="mso-list: l1 level1 lfo2; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">AT&T and Verizon were treated as one combined transaction.<span style="mso-spacerun: yes;"> </span>Twice as many shares of AT&T were purchased as Verizon.<span style="mso-spacerun: yes;"> </span>In retrospect, this was a bad decision.<span style="mso-spacerun: yes;"> </span>When AT&T was sold, it was at a net loss, but the shares of Verizon were sold at a gain that more than outweighed the loss on AT&T.<span style="mso-spacerun: yes;"> </span>Dividends have been captured on both companies, and are due to be paid in on 1/31 and 2/1. <o:p></o:p></span></b></li>
<li class="MsoNormal" style="mso-list: l1 level1 lfo2; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I will consider both companies next quarter, and continue to monitor news and share prices between now and then.<o:p></o:p></span></b></li>
</ul><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Current Holdings<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Breakeven Share Price</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Current Share Price (01/29)</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Captured</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">HNZ</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Heinz</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$50.36</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$47.62</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4500</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PCG</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Pacific Gas & Elec.</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$48.22</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$46.24</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">SO</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Southern Company</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$37.97</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$37.77</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PAYX<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Paychex<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$33.2659<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$31.69<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.3100*<o:p></o:p></span></b></span></div></td> </tr>
<tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">DD<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">DuPont<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$50.1659<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$50.29<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4100*<o:p></o:p></span></b></span></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="margin-left: .25in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">* Ex-dividend date has not yet passed<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">All of the above except DuPont are below where I purchased them.<span style="mso-spacerun: yes;"> </span>There is no company specific news that would lead me to believe that any of these were mistakes, so I will continue to hold them.<span style="mso-spacerun: yes;"> </span>Heinz’ next ex-dividend date is 3/20, so I may double my small position on this stock to decrease the average purchase price since it is almost $3 below where I first purchased it.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">On the Horizon<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 13.5pt; margin-bottom: 12.0pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Closing Price 01/22</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Expected</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Ex- Dividend Date</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">DUK</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Duke Energy</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$18.16</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.25</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="09" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/09/11</span></b></span></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">LLY</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Eli Lilly</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$34.76</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.48</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="11" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/11/11</span></b></span></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b><span style="font-family: Tahoma;">BCE</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Bell</span></b></span></st1:city><span class="apple-converted-space"><b><span style="font-family: Tahoma;"> </span></b></span><st1:country-region w:st="on"><st1:place w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Canada</span></b></span></st1:place></st1:country-region><span class="apple-style-span"><b><span style="font-family: Tahoma;"> Enterprises</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$35.62</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.455</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="13" ls="trans" month="03" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">03/13/11</span></b></span></st1:date><span class="apple-style-span"><b><span style="font-family: Tahoma;">est</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"> <div class="MsoNormal"><b><span style="font-family: Tahoma;">CNP<o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">CenterPoint Energy<o:p></o:p></span></b></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$16.03<o:p></o:p></span></b></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.1975<o:p></o:p></span></b></span></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="16" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/16/11</span></b></span></st1:date><span class="apple-style-span"><b><span style="font-family: Tahoma;"><o:p></o:p></span></b></span></div></td> </tr>
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">With the sale of Royal Bank of <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region>, AT&T and Verizon, coupled with a few recent dividends deposited, funds are available for making new purchases, and I am waiting for the right opportunities with the above stocks.<span style="mso-spacerun: yes;"> </span>Patience, patience, patience.<span style="mso-spacerun: yes;"> </span>There are still a few days to purchase DUK or LLY, and over a month remaining for BCE.<span style="mso-spacerun: yes;"> </span>I tired to buy BCE on Friday, but the stock did not decline to my limit price.<span style="mso-spacerun: yes;"> </span>Maybe it will execute on Monday.<span style="mso-spacerun: yes;"> </span>DUK has been strong recently.<span style="mso-spacerun: yes;"> </span>I suspect that the investing community is optimistic about its prospects with its recent acquisition.<span style="mso-spacerun: yes;"> </span>I will continue to watch and wait for a decline over the next few days.<span style="mso-spacerun: yes;"> </span>If it doesn’t happen, more opportunities will replace it. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I added CenterPoint Energy to the list this week, and will begin to watch this company as a possible candidate.<span style="mso-spacerun: yes;"> </span>CenterPoint is another utility company, based in <st1:place w:st="on"><st1:city w:st="on">Houston</st1:city>, <st1:state w:st="on">TX</st1:state></st1:place>.<span style="mso-spacerun: yes;"> </span>CNP has been a fairly stale stock with little price fluctuation, yet generally increasing.<span style="mso-spacerun: yes;"> </span>The company announced a slight increase in its quarterly dividend late in January, from $0.1950 to $0.1975 per share.<span style="mso-spacerun: yes;"> </span>As the economy recovers, the company could benefit from increased demand from businesses and consumers.<span style="mso-spacerun: yes;"> </span>It is the general predictability, historical low volatility, and conservative management that makes this attractive to me.<span style="mso-spacerun: yes;"> </span>Oh, and the annual yield translates to about 4.8%.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I’ve added charts for both CenterPoint and Duke Energy below.<span style="mso-spacerun: yes;"> </span>Note the similarities:<span style="mso-spacerun: yes;"> </span>They are both are below their respective 52 week high prices, but have been trending upward.<span style="mso-spacerun: yes;"> </span>As they do so, their stock prices are well above their 200 day moving averages.<span style="mso-spacerun: yes;"> </span>Each has a 50 day moving average that is above the 200 day average, and the price itself is above the 50 day average in both cases.<span style="mso-spacerun: yes;"> </span>It also appears to me that the 50 day moving average is about to rise.<span style="mso-spacerun: yes;"> </span>I see these as generally positive indicators.<span style="mso-spacerun: yes;"> </span>Each person considering purchasing either of these stocks should do their own research before making their own decisions.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">This may provide an opportunity that is similar to what I did with AT&T and Verizon.<span style="mso-spacerun: yes;"> </span>The main difference is that DUK and CNP do not compete for the same customer base.<span style="mso-spacerun: yes;"> </span>I may purchase shares in both companies, and treat the transactions like 1 aggregate purchase, so that when the weighted average of the price appreciation in the stocks is above the purchase price, I would sell, after capturing both dividends.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE4t6wj_e2xNOXhV80e9bxMHN-MbIjog53t-1RGQ4WVMfJ4esgMH5XcLiDevoUbHgeU8UrJ6tjiatCp5AAxFQlNgfHO1XJMqXtcgw50n1OSyD_30Lvw25H4JtJuj1tVACIRmP-9kxzQF4/s1600/DUK013111.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE4t6wj_e2xNOXhV80e9bxMHN-MbIjog53t-1RGQ4WVMfJ4esgMH5XcLiDevoUbHgeU8UrJ6tjiatCp5AAxFQlNgfHO1XJMqXtcgw50n1OSyD_30Lvw25H4JtJuj1tVACIRmP-9kxzQF4/s320/DUK013111.png" width="320" /></a></div><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3aJMEieFT12QxLBAjfv98SWCqjOQQpu-JWugVMqmRT-IV33uY96Bdu96Q1MVrKghE-8fa2qSq7YCIk1ft10gWGyEElpFvvwduo81TDEpjX85uhCb6JS8G0HivPJblruy2MnurFocLDlE/s1600/CNP013111.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3aJMEieFT12QxLBAjfv98SWCqjOQQpu-JWugVMqmRT-IV33uY96Bdu96Q1MVrKghE-8fa2qSq7YCIk1ft10gWGyEElpFvvwduo81TDEpjX85uhCb6JS8G0HivPJblruy2MnurFocLDlE/s320/CNP013111.png" width="320" /></a></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Closing Comments<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Last week I purposely avoided posting the update on Facebook, just to see how many incremental visits I would get without doing so.<span style="mso-spacerun: yes;"> </span>It was around 10.<span style="mso-spacerun: yes;"> </span>This tells me that there are probably 5 or so “loyal followers” who don’t need to be prompted externally to read my blog regularly at this point.<span style="mso-spacerun: yes;"> </span>That’s fine.<span style="mso-spacerun: yes;"> </span>My real motivations for creating and maintaining this blog are:<o:p></o:p></span></b></div><ol start="1" style="margin-top: 0in;" type="1"><li class="MsoNormal" style="mso-list: l0 level1 lfo1; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">It forces me to document my decisions and results in writing – this truly makes me think things through more thoroughly<o:p></o:p></span></b></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I really want to develop a network of people I can communicate with about investments.<span style="mso-spacerun: yes;"> </span>Based on the emails I’ve received, this is beginning to occur.<o:p></o:p></span></b></li>
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Comments and questions are always appreciated. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Here comes the disclaimer again:<span style="mso-spacerun: yes;"> </span>Remember that I am not a licensed investment professional, and that what is contained in this blog should not be interpreted as investment advice.<span style="mso-spacerun: yes;"> </span>It is only a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks.<span style="mso-spacerun: yes;"> </span>This blog is simply an attempt to provide dialogue and discussion about this strategy.<span style="mso-spacerun: yes;"> </span>Each person’s investment goals and objectives are different, and before making any investment decision, each person should do his or her own research.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Finally, if you enjoy reading this, and if know anyone who might also enjoy this weekly discussion, please feel free to copy and paste the URL for this site and forward it to them in email.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Until next week. . . <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Ken<o:p></o:p></span></b></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-67904583913293802422011-01-23T07:04:00.000-08:002011-01-23T11:01:20.715-08:001/ 23 Update<div class="MsoNormal"><st1:date day="23" ls="trans" month="01" w:st="on" year="11"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">01/23/11</span></b></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Another week has passed, and it is time for the weekly update from the frozen foothills of the <st1:place w:st="on">Adirondack Mountains</st1:place>. We continue to experience an “old fashioned” winter here in the northeast – we’ve had 2 measureable snowfalls in the past week (my definition of “measureable” is that I needed to use my snowblower to clear the driveway), and presently there is about a 3 foot ground cover in the <st1:city w:st="on"><st1:place w:st="on">Saratoga</st1:place></st1:city> area. After a couple of strange winters with little snow and abnormally warm temperatures, it is somewhat refreshing to see this. It also bodes well for the local water supply in the spring and summer, and it has been a boon for the ski industry nearby. The temperature dipped below zero last night, and it is headed even lower tonight. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14pt;">Past Week’s Activity<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Over the past week, dividends arrived as expected on 2 stocks whose ex-dividend dates passed recently:<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><st1:city w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Bell</span></b></st1:city><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises paid $0.455 per share on 1/15. Interestingly with this one, because of the exchange rate between the Canadian $ and the <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> $, the actual payment per share ended up as $0.4617. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><st1:city w:st="on"><st1:place w:st="on"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Cincinnati</span></b></st1:place></st1:city><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"> Financial paid $0.40 per share on 1/17.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I was unable to sell any of the stocks I am currently holding, and did not see any compelling reasons to purchase any of those I am watching just yet, so this was another quiet week. Heinz did move up from its closing price of $48.63 last week, but it remains below the average purchase price. All of the other stocks being held declined slightly from their closes of last week, but none dropped significantly enough to raise any real concern. My weighted average price for AT&T and Verizon is still under water, so I continue to hold both.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14pt;">Current Holdings<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Breakeven Share Price</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Current Share Price (01/22)</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Captured</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">HNZ</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Heinz</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$50.36</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$49.20</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4500</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PCG</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Pacific Gas & Elec.</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$48.22</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$46.94</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">T</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">AT&T</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$29.24</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$28.33</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4300 </span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">VZ</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Verizon</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$34.84</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$34.95</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4875 </span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">SO</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Southern Company</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$37.97</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$38.25</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550*</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">RY</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Royal Bank of</span></b></span><span class="apple-converted-space"><b><span style="font-family: Tahoma;"> </span></b></span><st1:country-region w:st="on"><st1:place w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Canada</span></b></span></st1:place></st1:country-region><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$52.17</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$54.27</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.5000 *</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="margin-left: .25in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">* Ex-dividend date has not yet passed<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14pt;">On the Horizon<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 13.5pt; margin-bottom: 12.0pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Closing Price 01/22</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Expected</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Ex- Dividend Date</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">DUK</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Duke Energy</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$18.16</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.25</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="09" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/09/11</span></b></span></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">LLY</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Eli Lilly</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$34.76</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.48</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="11" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/11/11</span></b></span></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PAYX</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Paychex</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$32.60</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.31</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="28" ls="trans" month="01" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">01/28/11</span></b></span></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 62.75pt;" valign="top" width="84"><div class="MsoNormal"><b><span style="font-family: Tahoma;">BCE</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 149.95pt;" valign="top" width="200"><div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Bell</span></b></span></st1:city><span class="apple-converted-space"><b><span style="font-family: Tahoma;"> </span></b></span><st1:country-region w:st="on"><st1:place w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Canada</span></b></span></st1:place></st1:country-region><span class="apple-style-span"><b><span style="font-family: Tahoma;"> Enterprises</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 63.8pt;" valign="top" width="85"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$35.62</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 72.1pt;" valign="top" width="96"><div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.455</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"><div class="MsoNormal"><st1:date day="13" ls="trans" month="03" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">03/13/11</span></b></span></st1:date><span class="apple-style-span"><b><span style="font-family: Tahoma;">est</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">No changes from last week. My funds are somewhat limited presently as I am waiting for some of the currently held stocks to cross above the point where I purchased them. That said, I may purchase a small position in PAYX early this week. PAYX has been rising steadily over the past year. It is diversifying into new areas, such as 401k management, and I think its prospects appear bright as the economy continues to recover. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14pt;">Stocks Eliminated From Consideration<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Last week I mentioned that I might discuss why I don’t pursue some stocks that pay high yielding dividends.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The selection of a stock is based on several factors. I start my process each week by using a filtering tool that is included in the website provided by the brokerage company where I make my trades. This enables me to set up as many preset “screens” as I’d like to have, based on a variety of criteria. I begin by finding companies that have an annual yield that is greater than 3%, and that have an ex-dividend date within the next 60 days. Depending on how many companies are shown at that point, I use additional criteria, such as price per share. I tend to select companies whose shares trade for less than $50. The reason for this is simple: Risk can be spread over more companies if several are purchased. Capital is limited, and if high priced stocks are chosen, they will require a higher percentage of funds available. Since there are usually 30 to 50 stocks initially on the list, limiting the candidates to those that are trading under $50 is not an impediment to finding high quality candidates. I then begin to examine as many as I can. As the weeks pass, I learn about quite a few companies, and am developing a list of possible “repeat purchases” from quarter to quarter. That sad, I do look at each stock individually, even if I have purchased it before, to assure that it has a profile that I consider attractive. I look for steady sales growth, steady to growing gross margins over time, and steady to increasing net profits. I also examine how many analysts are following the company, and what the trend is in terms of "buy" recommendations. Depending on what stocks I presently own, I add others, trying not to put too much money into any single vertical market. As a general rule, I like companies that are the following fields: utilities, telecommunications, pharmaceuticals, some financial institutions, some manufacturing and some that sell consumer goods. The utility and telecommunications companies in particular tend to be fairly predictable in terms of revenue and earnings, and they also tend to trade in a narrow range. I look at the financial statements (mainly the quarterly and annual income statements and balance sheets) and also look for any news that might have an impact on the future prospects for the company or industry. I examine a number of things, such as free cash flow, to get a sense as to whether the current dividend payment is sustainable over time. When a company announces that it is reducing its dividend, the price of its stock usually declines. If you had purchased that stock, you could be left holding shares of that company at a loss for a long time. <o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The research can be a very time consuming process, but as I examine each company, I take notes for future reference. My goal in this process is to consciously try to find attributes that I <i style="mso-bidi-font-style: normal;"><u>don’t</u></i> like about the company, giving me a reason to cross it off the list for possible purchase before its approaching ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Here are a couple of examples:<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Pfizer (NYSE – Symbol PFE)<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Pfizer is a well managed, leading Pharmaceutical company based in the US, that pays a dividend with an annual yield of about 4.3%. I generally like large Pharmaceutical companies, and it is selling for a price per share that is well below my $50 maximum guideline, at just over $18. <o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Here is what I don’t like about PFE: The ex-dividend date is 02/02, which is one day after they announce their quarterly results 02/01. The timing of the 2 events, in my opinon, introduces an unacceptable level of risk for this particular strategy. In order to capture this company’s dividend, shares need to be purchased ahead of both the earnings announcement and ex-dividend date. Many institutions hold shares in this stock, and there are several analysts who research it and provide their opinions and estimates on a variety of metrics. If the company’s results don’t measure up to the consensus view of analysts for things like quarterly revenues, gross margins, net income, or any of a number of other factors that the company usually discusses on the conference call regarding the results such as the outlook for the coming year, the pipeline of new products, or even the results of a specific product that may be key to the company’s growth, a selloff in the stock can occur. The result is usually a decline in the price of the stock. By the way, I am not inferring that that is going to happen with Pfizer. They may, in fact, report positive news, and the price os the stock may rise. But since my goal with this strategy is to sell the stock at a slight profit shortly after the ex-dividend date passes, the timing of Pfizer’s quarterly earnings announcement and its ex-dividend date simply represent a potential for volatility that I choose not to accept. There are other companies where the probability of an announcement that could affect the price of the stock is not as great. If you read other blogs on dividend stocks, you will see that a lot of people like Pfizer. Again, don’t misunderstand or misinterpret the hypothetical scenario above: To be clear - Pfizer is a great and well run company. I just don’t like it for this particular strategy due to the timing of its earnings announcement and its ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Compare the timing on Pfizer to another large Pharmaceutical firm, Eli Lilly, that I am watching and considering purchasing. Lilly will announce its quarterly results on 01/27, and it goes ex-dividend on 02/11. The time between these events should allow for any short term volatility to settle from any positive or negative information contained in the company’s quarterly results. By the way, Lilly has a forward annual dividend yield of about 5.6%, compared to Pfizer’s 4.3%, so the return is higher, with less inherent risk for price fluctuations occurring due to the timing of the quarterly results announcement compared to the ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Here is another example that is perhaps a bit more straightforward:<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Cedar Shopping Centers (CDR) appeared on my initial screen list this week. Quite frankly, I had not heard of this company before, but the dividend shows an annual yield of over 6%. I began to look into it, and found that it is a Real Estate Investment Trust that owns retail shopping space in several states, essentially making money by managing properties and collecting rents from retail tenants. <o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">So what’s not to like?<o:p></o:p></span></b></div><ol start="1" style="margin-top: 0in;" type="1"><li class="MsoNormal" style="mso-list: l0 level1 lfo1; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I first noticed that the price of the stock has declined by about 20% over the past year. This led me to ask “Why?” Upon further examination of the income statement, I learned that CDR has been unprofitable over the past 4 quarters. Now, you might say “but the economy is recovering – this could be a bargain as the retail environment improves”. Although this may be true, for this strategy I look for companies with growing sales and earnings, and generally flat to rising stock prices, so I crossed it off the list. <o:p></o:p></span></b></li>
</ol><div class="MsoNormal"><br />
</div><ol start="2" style="margin-top: 0in;" type="1"><li class="MsoNormal" style="mso-list: l0 level1 lfo1; tab-stops: list .5in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">If the above isn’t enough of a reason, here is another – the average volume daily volume of shares traded is just over 200,000. I prefer companies for this strategy that trade over 1,000,000 shares per day. When it comes time to sell any stock, a higher average daily volume provides a better opportunity to sell than those with lower average volumes. <o:p></o:p></span></b></li>
</ol><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">My conclusion: Despite the attractive yield, I will not consider buying shares of CDR at this time. I crossed it off the list for now, but will look at it in the future, since the yield is attractive. If their business improves, I might consider it in the future.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">That is it for this week. Again, comments and questions are appreciated. If you have any dividend stocks that you are considering, let me know, and I will provide my opinion on them. Please remember that I am not a licensed investment professional, and that what is contained in this blog should not be interpreted as investment advice. It is merely a strategy that I am employing personally in an attempt to capture short term dividends on selected stocks. This blog is simply an attempt to provide dialogue and discussion about this strategy. Each person’s investment goals and objectives are different, and before making any investment decision, each person should do his or her own research.<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><br />
</span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Next week I hope to have time to explore a strategy that I sometimes employ to protect profits on stocks, using Covered Call Options. Between now and then I am considering this for one of the stocks I am holding, and will provide more detail next week.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The number of visits to this site continues to increase, and I noticed that someone in <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> has visited the blog. Greetings, Matthew! (I think). Or perhaps it is my former colleague Rolf.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Please feel free to copy and paste the URL for this site and forward it to anyone you know who might enjoy reading it.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Ken<o:p></o:p></span></b></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-26028409789695583462011-01-15T08:10:00.000-08:002011-01-15T08:10:48.624-08:00Weekly update 01/15/11<div class="MsoNormal"><st1:date day="15" ls="trans" month="01" w:st="on" year="11"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">01/15/11</span></b></st1:date><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p>Greetings to all once again from the dead of winter. We survived another assault from Mother Nature or Old Man Winter (take your pick of gender specific blame) this past week in the Northeast, with a total accumulation of about 18 inches of snow in the Albany area. We refer to this as a "dusting" here. Schools were closed for a day, but we are back to normal now, and our temperature this morning is a balmy -5 F. It reminds me of Palm Beach, except there aren't any sand fleas.</o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p><br />
</o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p><br />
</o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Updates since last week:<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The week started off as expected, with the dividend of $0.45 per share from Heinz arriving in my account on 1/10.<span style="mso-spacerun: yes;"> </span>This is one company that I am holding that I haven’t mentioned in past weeks, other than its appearance on “Currently Holding” list. <span style="mso-spacerun: yes;"> </span>I bought HNZ on 12/15 at $50.36, and quite frankly, it has not performed well since then.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">However, I don’t see any specific news that would have directly caused the decline in the price per share, so I will continue to hold it.<span style="mso-spacerun: yes;"> </span>In fact, now that 4 weeks that have passed since the initial purchase, I may look to increase my position if the price continues to decline, and hold all of the shares at a lower average price until the next ex-dividend date, which will be <st1:date day="20" ls="trans" month="03" w:st="on" year="11">03/20/11</st1:date>.<span style="mso-spacerun: yes;"> </span>The annual yield on the dividend is about 3.7%, which is respectable.<span style="mso-spacerun: yes;"> </span>From what I see on Heinz’ income statement, annual sales, margins and net profits have been relatively flat over the past 3 years.<span style="mso-spacerun: yes;"> </span>My belief about the price of the stock is that it is a normal fluctuation downward in an otherwise upward trend.<span style="mso-spacerun: yes;"> </span>The strategy of doubling a position will reduce the average cost, making an exit easier to accomplish after the next ex-dividend date.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">The expected dividend of of $0.455 per share for Pacific Gas & Electric (PGE) was paid on schedule on 1/15.<span style="mso-spacerun: yes;"> </span>The share price is still about $1 below where I purchased it, but the shares continue to trade within what I consider a normal range.<span style="mso-spacerun: yes;"> </span>I will continue to hold it until it moves to the point where I can sell it with a small profit, and if necessary, continue to hold it until the next ex-dividend date if it remains below my break even point.<span style="mso-spacerun: yes;"> </span>Below is the one year chart for PCG.<span style="mso-spacerun: yes;"> </span>One of the technical indicators I look for in this strategy is that of a steadily increasing 200 day moving average.<span style="mso-spacerun: yes;"> </span>If the 200 day MA is increasing, this shows that despite daily fluctuations, the share price is generally rising. (Note: I am trying to upload a png file here for the first time - I hope it works!)<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjY-AQUaVYQUqz0oJ5_V0798qFwmQjgqdCKJn3UsLxlfOVZjqP904NZDA-cPK3B2P6w-1jztw_kvIWDo8Joa_y4dyJ-uKtHvvhxrx_Efc7EzMC7bCkQ8H_nIkY-LjSWQs6Yo04RhSqlqeU/s1600/PCG+011511.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjY-AQUaVYQUqz0oJ5_V0798qFwmQjgqdCKJn3UsLxlfOVZjqP904NZDA-cPK3B2P6w-1jztw_kvIWDo8Joa_y4dyJ-uKtHvvhxrx_Efc7EzMC7bCkQ8H_nIkY-LjSWQs6Yo04RhSqlqeU/s320/PCG+011511.png" width="320" /></a></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><span style="mso-spacerun: yes;"> </span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">This week also saw a rise in the price of Blackrock Kelso Corp (BKCC).<span style="mso-spacerun: yes;"> </span>When the ex-dividend date passed on 12/10, the price per share dropped a bit, as expected.<span style="mso-spacerun: yes;"> </span>It took a few weeks for it to recover, but it finally rebounded and I was able to close my position at <span style="mso-spacerun: yes;"> </span>$11.73, versus my average purchase price of 11.62.<span style="mso-spacerun: yes;"> </span>Coupled with the $0.32 dividend that arrived on <st1:date day="2" ls="trans" month="1" w:st="on" year="11">1/2/11</st1:date>, I can declare victory and move on, using the funds from the sale of the stock to another, to capture another upcoming dividend.<span style="mso-spacerun: yes;"> </span>The annual dividend yield on this company is higher than what is typical on the stocks that I purchase under this strategy – this one has a whopping 11.9% annual yield, as the company returns a high percentage of their earnings to their shareholders.<span style="mso-spacerun: yes;"> </span>This metric is called the “Payout Ratio”, and it describes the percentage of earnings that are paid out in a dividend.<span style="mso-spacerun: yes;"> </span>The funds that are left are used for other purposes as the company funds its ongoing endeavors such as expansions, new market entries, etc.<span style="mso-spacerun: yes;"> </span>Blackrock Kelso is a private equity firm that works with middle market companies.<span style="mso-spacerun: yes;"> </span>This is somewhat riskier than they typical <span style="mso-spacerun: yes;"> </span>investment I make in corporations that manufacture and distribute goods or that provide services, such as utilities.<span style="mso-spacerun: yes;"> </span>The daily volume of shares traded is also somewhat lower than I normally look for when choosing a short term dividend play stock, but this had other attributes that I felt made the risk / reward worth it, and it worked out well, so I will keep BKCC on my list for another possible purchase next quarter.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Verizon announced their plans to market the Apple iPhone as was widely expected.<span style="mso-spacerun: yes;"> </span>The entire telecommunications sector was not in favor this week, as concerns about price wars in mobile phones and the effect on margins for these companies continued.<span style="mso-spacerun: yes;"> </span>Both AT&T and Verizon continued to trade in a narrow range, basically going neither up nor down significantly.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Selling Verizon would actually be a profitable trade at this point, but AT&T would not, and since I bought twice as many AT&T shares as Verizon, I will continue to hold both into next week, until I am at least at a breakeven position on the weighted average for the combined position.<span style="mso-spacerun: yes;"> </span>I have no hesitation in continuing to hold both if necessary, as they each have a very nice annual yield.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Most of the other stocks owned moved very little this past week, with the exception of the Royal Bank of <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> (RY).<span style="mso-spacerun: yes;"> </span>It has increased by more than $2 from the time I purchased it.<span style="mso-spacerun: yes;"> </span>The ex-dividend date is 1/24.<span style="mso-spacerun: yes;"> </span>I’d expect to see a decline of about $0.50 to account for the cash that will be committed to be paid to shareholders on 2/23, which is the dividend payment date.<span style="mso-spacerun: yes;"> </span>Having the stock move up is the best of both worlds – price appreciation and a dividend!<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Southern Company stock also moved up slightly and is now above the point where I purchased it.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I didn’t make any new purchases this week in the dividend strategy portion of my account, but with the funds from the sale of BKCC now available, I will continue to watch the market closely, to capitalize on short term selloffs of the companies I am watching that are approaching their ex-dividend dates.<span style="mso-spacerun: yes;"> </span>It is sometimes better to wait and do nothing than to buy too soon, and wish that you had waited.<span style="mso-spacerun: yes;"> </span>Patience is indeed a virtue when it comes to investment strategy.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Current Holdings<o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Below is the updated list of dividend stocks I am currently holding.<span style="mso-spacerun: yes;"> </span>The only change from last week is the Blackrock is no longer there, since it was sold this past week.<span style="mso-spacerun: yes;"> </span>Note that going forward I will show the Current Price in <span style="color: red;">red</span> if it is below where I purchased it, and in <span style="color: green;">green</span> if it is above the purchase price.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: 18.75pt;"><br />
</div><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Breakeven Share Price</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Current Share Price (01/15)</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Captured</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">HNZ</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Heinz</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$50.36</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$48.63</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4500</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PCG</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Pacific Gas & Elec.</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$48.22</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$47.33</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">SO</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Southern Company</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$37.97</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$38.50</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: green; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4550*</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 4;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">T</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">AT&T</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$29.24</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: red; font-family: Tahoma;">$28.43</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: red; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4300 *</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 5;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">VZ</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Verizon</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$34.84</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$35.46</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: green; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.4875 *</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 73.4pt;" valign="top" width="98"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">RY</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 115.6pt;" valign="top" width="154"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Royal Bank of</span></b></span><span class="apple-converted-space"><b><span style="font-family: Tahoma;"> </span></b></span><st1:country-region w:st="on"><st1:place w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Canada</span></b></span></st1:place></st1:country-region><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 83.7pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$52.17</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 80.7pt;" valign="top" width="108"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="color: green; font-family: Tahoma;">$54.40</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="color: green; font-family: Tahoma;"><o:p></o:p></span></b></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 84.0pt;" valign="top" width="112"> <div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.5000 *</span></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p> * Ex-dividend date has not passed yet.</o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p><br />
</o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;"><o:p><br />
</o:p></span></b></div><div class="MsoNormal" style="mso-line-height-alt: 13.5pt;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma; font-size: 14.0pt;">On the Horizon</span></b></span><span style="color: #222222; font-family: Arial; font-size: 14.0pt;"><u1:p></u1:p><o:p></o:p></span></div><div class="MsoNormal" style="line-height: 13.5pt;"><span class="apple-style-span"><b><span style="color: #222222; font-family: Tahoma;">There are a few companies that I will continue to watch over the next few weeks.<span style="mso-spacerun: yes;"> </span>The first 3 were listed last week, and have each moved up slightly in the past 5 trading sessions.<span style="mso-spacerun: yes;"> </span>There have not been dips in the price that were compelling enough to jump in, and there is still time between now and the ex-dividend date to make a purchase.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></span></div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
</div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
</div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
</div><div class="MsoNormal" style="line-height: 13.5pt;"><br />
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</div><u1:p></u1:p><u1:p></u1:p><u1:p></u1:p><table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border-color: initial; border-width: initial; margin-left: 5.4pt; mso-padding-alt: 0in 0in 0in 0in;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.05pt;" valign="top" width="111"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Stock Symbol<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Company Name<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Closing Price 01/15</span></b></span><o:p></o:p></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Dividend Expected<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-left-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Ex- Dividend Date<u1:p></u1:p></span></b></span><o:p></o:p></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.05pt;" valign="top" width="111"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">DUK<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Duke Energy<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$17.92</span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.25<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="09" ls="trans" month="2" u2:st="on" year="11"><st1:date day="09" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/09/11</span></b></span></st1:date></st1:date><o:p></o:p></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.05pt;" valign="top" width="111"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">LLY<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Eli Lilly<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$34.91</span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: left;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.48<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left-color: initial; border-left-width: initial; border-left: none; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border-top: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: left;"><st1:date day="11" ls="trans" month="2" u2:st="on" year="11"><st1:date day="11" ls="trans" month="2" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">02/11/11</span></b></span></st1:date></st1:date><o:p></o:p></div></td> </tr>
<tr style="mso-yfti-irow: 3;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.05pt;" valign="top" width="111"> <div class="MsoNormal" style="text-align: left;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">PAYX<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left-color: initial; border-left-width: initial; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: left;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Paychex<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left-color: initial; border-left-width: initial; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$32.35</span></b></span><o:p></o:p></div></td> <td style="border-left-color: initial; border-left-width: initial; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.31<u1:p></u1:p></span></b></span><o:p></o:p></div></td> <td style="border-left-color: initial; border-left-width: initial; border-right: solid windowtext 1.0pt; border-top-color: initial; border-top-width: initial; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="28" ls="trans" month="01" u2:st="on" year="11"><st1:date day="28" ls="trans" month="01" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">01/28/11</span></b></span></st1:date></st1:date><o:p></o:p></div></td> </tr>
<tr style="mso-yfti-irow: 4; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; width: 83.05pt;" valign="top" width="111"> <div class="MsoNormal"><span class="apple-style-span"></span><b><span style="font-family: Tahoma;">BCE<o:p></o:p></span></b></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"> <div class="MsoNormal"><st1:city w:st="on"><span class="apple-style-span"><b><span style="font-family: Tahoma;">Bell</span></b></span></st1:city><span class="apple-style-span"><b><span style="font-family: Tahoma;"> <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region> Enterprises<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$35.76<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.5pt;" valign="top" width="118"> <div class="MsoNormal"><span class="apple-style-span"><b><span style="font-family: Tahoma;">$0.455<o:p></o:p></span></b></span></div></td> <td style="border-right: solid windowtext 1.0pt; border: none; padding: 0in 5.4pt 0in 5.4pt; width: 88.8pt;" valign="top" width="118"> <div class="MsoNormal"><st1:date day="13" ls="trans" month="03" w:st="on" year="11"><span class="apple-style-span"><b><span style="font-family: Tahoma;">03/13/11</span></b></span></st1:date><span class="apple-style-span"><b><span style="font-family: Tahoma;">est<o:p></o:p></span></b></span></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Duke Energy had a significant announcement early in the week.<span style="mso-spacerun: yes;"> </span>They are merging with another utility company, Progress Energy (PGN).<span style="mso-spacerun: yes;"> </span>PGN <span style="mso-spacerun: yes;"> </span>was one of the stocks I have followed for this strategy, but have not purchased in the past.<span style="mso-spacerun: yes;"> </span>It has provided an annual dividend yield of over 5% itself.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I am not an expert on mergers and acquisitions, but from what I have read, the financial transaction to accomplish the merger appears to be reasonable for the shareholders of both companies.<span style="mso-spacerun: yes;"> </span>Shareholders of PGN will receive 2.6125 shares of DUK, which represents slightly more than a 6% premium over the average recent price for PGN shares.<span style="mso-spacerun: yes;"> </span>The combined company will serve over 7 million electric customers spread across 6 states.<span style="mso-spacerun: yes;"> </span>The merger is expected to make a positive contribution to earnings in the first year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">In situations like this, I think it is often good to “wait and see” what transpires.<span style="mso-spacerun: yes;"> </span>I have seen well intended mergers and acquisitions fail miserably over the years, but in this case, I am comfortable with keeping DUK on my list of potential purchases, since both companies are in the same industry, and one of the primary benefits will be the ability to consolidate administrative operations between the 2 firms, squeeze out duplicate costs, and improve profitability.<span style="mso-spacerun: yes;"> </span>Both firms were already profitable and well managed going into the merger, and my belief is that this will be good for the long term value of the combined entity, which, by the way, will retain the “Duke Energy” name.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Bell Canada Enterprises (BCE) earns a spot once again on my watch list, as I am looking out to mid-March at this point.<span style="mso-spacerun: yes;"> </span>I did very well with BCE last quarter.<span style="mso-spacerun: yes;"> </span>The price of the stock has moved up slightly since I sold it after last quarter’s dividend, and there don’t appear to be any dramatic changes that are likely to impact the company in the next couple of months, so will watch and wait, and hope to make an initial purchase if there is an opportunity with temporary weakness in the price per share.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">My only possible hesitation in purchasing BCE again is that I already own both AT&T and Verizon, and adding BCE would put a lot of my dividend strategy investment dollars in one vertical – telecommunications.<span style="mso-spacerun: yes;"> </span>I’ve discussed the wisdom of diversifying in a past blog, and this is something to consider.<span style="mso-spacerun: yes;"> </span>Hopefully I will be able to exit T and VZ with a net profit before purchasing BCE.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma; font-size: 14.0pt;">Closing <o:p></o:p></span></b></div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Again, I appreciate seeing the statistics as the viewership of this blog continues to grow.<span style="mso-spacerun: yes;"> </span>I’ve now had over 125 visits, and I noticed that <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> is now included – Hello to my former colleague , Nitin in Mumbai! (I think)<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">I am open to providing my thoughts on stocks that you might want me to evaluate for potential dividend captures.<span style="mso-spacerun: yes;"> Post a question on the blog, or s</span>end me an email (<a href="mailto:ken.hannan@gmail.com">ken.hannan@gmail.com</a>) if you’d like – I can include it with or without posting the source of the question.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Next week I will also try to include a discussion of some high dividend yielding companies that DON’T make it to my watch list, and why.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Have a great week.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Tahoma;">Ken<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-40124307991118753862011-01-08T14:26:00.000-08:002011-01-09T07:56:04.932-08:00Weekly Update 01/08/11<div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><st1:date day="08" ls="trans" month="01" w:st="on" year="11"><span style="font-family: Tahoma;">01/08/11</span></st1:date><span style="font-family: Tahoma;"><o:p></o:p></span></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">This past week was relatively quiet when it came to trading activity with the stocks I have been trading and following.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">A few things happened:<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">1. The expected dividend on Blackrock Kelso (BKCC) was paid at $.32 per share. This company went “ex-dividend” on 01/02. I have held it since early December, and although it moved up to as high as $11.56, it did not hit my breakeven point of $11.62, so I will continue to hold it and wait.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">2. Both Verizon and AT&T passed their ex-dividend dates this week. AT&T will pay $.43 per share, and Verizon $.4875 per share on 1/31.<o:p></o:p></span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">The price of both companies were holding up well, but coincident with the ex-dividend date came news that AT&T had reduced the price of the older version of the iPhone to $49. As you may know, AT&T had negotiated exclusive rights to the iPhone with Apple. In other words, if you just “had to have” an iPhone, the only network you could use was AT&T’s. Initially I think this was noteworthy, but over the past couple of years, competing phones from HTC and Research in Motion (i.e. “Blackberry”) have been introduced in the market that can do everything (and more) than the iPhone can do. Still, Apple has wonderful marketing and continues to have a cult like following for its products, so this exclusive arrangement has some value. Cutting the price on the older model just as Verizon is about to introduce the availability of the iPhone on their network made analysts who cover the telecommunications industry on Wall Street nervous. They were concerned that this might be a bad omen for the gross margins of both companies if it signals the initial shot of a price war, so the price per share of both stocks fell, and this happened on the day after the ex-dividend date, when a reduction in price per share is expected anyway. <o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">To net it out, AT&T is currently slightly below the price where I bought it (it closed at $28.85 per share, and my average purchase price is $29.24). Verizon closed at $35.93, which is above my average purchase price of $34.84. My personal opinion is that the reaction to the news of a potential price war on the iPhone was overblown and the negative effects on the price per share of both companies will be short lived. I expect to sell Verizon early this coming week, and will also sell AT&T, assuming it trades above my average price. I could sell both at their current levels, and declare victory on the average share price between the 2, along with having captured the dividend, but I am going to wait a day or two as I think they both might recover from the effects of the analysts pessimism.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">3. Last week’s “Watch List”<o:p></o:p></span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">One of the companies I noted that was worth watching in last week’s blogs was Clorox. Unfortunately, the company issued a press release early this week that they were revising their 2011 sales forecast downward, and also planning to take a charge against goodwill associated with their acquisition of the “Burt’s Bees” product line. Some analysts believe that Clorox overpaid for this business, but Clorox defended their decision based on the current and future expected contribution of the Burt's Bees product line. The stock fell from its year end closing price of $63.28 to a low of $60.56 on Monday when this news came out. The volume of shares traded that day exceeded 6.9 million shares, which was about 3 times higher than its normal volume. The stock continued to trade very heavily for the remainder of the week, and recovered some of the loss on Monday. It closed the week at $62.05.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">For this strategy, I look for companies that have revenues that are at least stable, and hopefully growing Year over Year, along with stable or improving gross margins and profits. On one hand, you could view the drop in share price as having created a temporary bargain, and an increase in the dividend yield. I, however, opted to cross this one off my list for this quarter, as I don’t like unexpected bad news. Don’t get me wrong - I still think Clorox is a great brand and well run company – there are simply other opportunities out there that are more attractive, and are a better fit for my criteria with this strategy. I’ll keep Clorox on the list and see how they are doing in April, as the next ex-dividend date approaches. By the way, I think it is important to point out that the company did not mention any possibility of reducing its dividend, and from what I can see, they don’t need to, as their free cash flow can continue to support the current payment.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><span style="font-family: Tahoma;">As a complete aside, if you are amused by how litigious our society has become, click on the link at the bottom of this paragraph. One of the consumer products marketed by Clorox is “Fresh Scoop” cat litter, and you may have seen the ads on TV that demonstrate their claim that cats prefer to “do their business” in litter boxes filled with this brand compared to other brands, such as Arm & Hammer’s “Super Scoop”. Church & Dwight, the maker of the competing product marketed by Arm & Hammer is taking exception to these claims, and has filed suit against Clorox. Only in <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region> could something like this occur. <o:p></o:p></span></span></b></div><div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><span style="font-family: Tahoma;"><br />
</span></span></b></div><div class="MsoNormal"><a href="http://www.bloomberg.com/news/2011-01-05/church-dwight-sues-clorox-over-ads-showing-cats-rejecting-its-litter.html?cmpid=yhoo"><b><span class="Apple-style-span" style="color: black; font-size: large;">http://www.bloomberg.com/news/2011-01-05/church-dwight-sues-clorox-over-ads-showing-cats-rejecting-its-litter.html?cmpid=yhoo</span></b></a></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">OK, back to reality. . . I did purchase initial positions in shares in 2 of the other companies mentioned last week. I bought shares in the Royal Bank of Canada (RY) at $52.17, and may to add more if it goes below $51.50 between now and its ex-dividend date on 1/24.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">I also purchased an initial position in Southern Company (SO), at $37.96. SO has traded in a narrow range for a long time, with a slow, steady appreciation in price over the long term, and was trading at a point that was below its recent high of $38.54, which motivated me to make the purchase. I may add more if the price falls to $37.50 or below over the next week to reduce my average cost, as the ex-dividend date approaches. Southern Company will pay a dividend of $.455 per share to shareholders as of 1/28.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: x-large;">Current Holdings</span><span class="Apple-style-span" style="font-size: large;"><o:p></o:p></span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Here is an update of the stocks I am holding, and my breakeven point for each one, as well as the dividend that has been captured, or that will be captured.</span></b></span><br />
<span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: large;"><b></b></span></span><br />
<div class="MsoNormal"><br />
</div><span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: large;"><b> <table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480;"><tbody>
<tr> <td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Stock Symbol<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Company Name<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Breakeven Share Price<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Current Share Price (01/07)<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Dividend Captured<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">BKCC<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Blackrock Kelso<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$11.62<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$11.43<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.3200<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">HNZ<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Heinz<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$50.36<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$48.47<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.4500<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">PCG<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Pacific Gas & Elec.<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$48.22<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$47.02<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.4550<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">SO<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Southern Company<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$37.97<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$38.08<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.4550*<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">T<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">AT&T<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$29.24<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$28.85<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.4300 *<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">VZ<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Verizon<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$34.84<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$35.93<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.4875 *<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 59.4pt;" valign="top" width="79"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">RY<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 131.6pt;" valign="top" width="175"> <div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Royal Bank of <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region><o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 75.4pt;" valign="top" width="101"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$52.17<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 87.8pt;" valign="top" width="117"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$52.39<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"> <div align="center" class="MsoNormal" style="text-align: center;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.5000 *<o:p></o:p></span></b></span></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div></b></span></span></div><div class="MsoNormal" style="text-indent: .5in;"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">* Indicates ex-dividend date has not passed yet<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: large;">Recently Closed Positions<o:p></o:p></span></span></b></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">No positions were closed since last week’s posting. <o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: x-large;">On the Horizon</span><span class="Apple-style-span" style="font-size: large;"><o:p></o:p></span></span></b></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">There are a few companies that I will be watching over the next few weeks, as they are good fits for most of the parameters I have established for capturing dividends as they are paid.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480;"><tbody>
<tr> <td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Stock Symbol<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Company Name<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Closing Price 01/07<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Dividend Expected<o:p></o:p></span></b></span></div></td> <td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Ex- Dividend Date<o:p></o:p></span></b></span></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">DUK<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Duke Energy<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">17.79<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.25<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><st1:date day="09" ls="trans" month="2" w:st="on" year="11"><span style="font-family: Tahoma;">02/09/11</span></st1:date><span style="font-family: Tahoma;"><o:p></o:p></span></span></b></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">LLY<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Eli Lilly<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$34.90<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.48<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><st1:date day="11" ls="trans" month="2" w:st="on" year="11"><span style="font-family: Tahoma;">02/11/11</span></st1:date><span style="font-family: Tahoma;"><o:p></o:p></span></span></b></div></td> </tr>
<tr> <td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">PAYX<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Paychex<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$31.87<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.55pt;" valign="top" width="118"><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">$0.31<o:p></o:p></span></b></span></div></td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 88.6pt;" valign="top" width="118"><div class="MsoNormal"><b><span class="Apple-style-span" style="font-size: large;"><st1:date day="28" ls="trans" month="01" w:st="on" year="11"><span style="font-family: Tahoma;">01/28/11</span></st1:date><span style="font-family: Tahoma;"><o:p></o:p></span></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="margin-left: 3.0in; text-indent: .5in;"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Duke Energy is a conservatively managed power generation and distribution company, operating in several states, including North and <st1:state w:st="on">South Carolina</st1:state>, <st1:state w:st="on">Ohio</st1:state>, <st1:state w:st="on">Indiana</st1:state> and <st1:state w:st="on"><st1:place w:st="on">Kentucky</st1:place></st1:state>. Year over year revenues and profits have been fairly stable for at least the past 3 years, and although the company is currently paying out slightly more cash in its dividend than it is generating, I don’t expect this to be an issue that will affect the price per share, or the payout this quarter. At the current price per share, the annualized return is well over 5%. I will consider buying a position to capture the dividend if the price per share declines to under $17.40 over the next few weeks.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Eli Lilly is, of course, a well known and large pharmaceutical firm. Lilly has relatively stable, but slowly growing revenues, and manages its costs well, producing a predictable profit. The price of the stock has remained in a range of a low that is just over $32.00 per share, to a high of just under $38.00 per share. The closing price on Friday was $34.90. I will be watching this stock, and possibly opening a position if the price declines to a point that is below $34.40. The dividend payment will be $0.48 per share, which translates to another annual yield of well over 5%.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Paychex is one of the leading providers of outsourcing for the payroll function for small to mid-sized companies. The company grew rapidly in the 1990’s, and has experienced a flattening of revenue over the past few years as this market has matured and attracted a variety of competitors. As they continue to seek new customers to grow market share, Paychex is also expanding into new areas with its existing base of customers, to provide value added services, such as 401k plan management. <o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Since August of 2010, the price of the stock has been steadily increasing as Paychex has managed its costs well. The company’s business model is one of a recurring revenue stream from it’s contracted subscriber base, so its revenues and profits are fairly predictable, and an uptick in the economy can only help a service company such as Paychex. I don’t expect any surprises in either direction over the next few weeks, and will look at the possibility of opening a position if the price of the stock declines below $30.75.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: x-large;">Closing</span><span class="Apple-style-span" style="font-size: large;"><o:p></o:p></span></span></b></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">I’ve received some encouraging feedback privately about this blog, and some questions that I have responded to privately as well. There have been over 100 visitors to the site, from the <st1:country-region w:st="on">US</st1:country-region>, <st1:country-region w:st="on">Canada</st1:country-region> (Hi Vince!) and <st1:place w:st="on">Asia</st1:place> (Samir, is that you??) Feel free to post comments or questions here on the blog, or, if you want to correspond privately, email me at <a href="mailto:ken.hannan@gmail.com">ken.hannan@gmail.com</a> The blog is intended to generate discussion and ideas. I am not a professionally licensed trader, and don’t pretend to know everything. As always, you should do your own research before making any decisions on investing. What is right for one person is not always good for another.<o:p></o:p></span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-family: Tahoma;"><span class="Apple-style-span" style="font-size: large;"><b>Most of the ideas I get are based on screening tools that I run, followed by reading about the company, and reviewing summary financial statements and key indicators about the performance of each company. Other ideas originate as a result of many years of business experience and natural curiosity about a variety of businesses. A few are from discussions I have had with people I have grown to respect, like my father-in-law, who first introduced me to the dividend opportunity with The Southern Company.<o:p></o:p></b></span></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;"><br />
</span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Until next week, </span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;"><br />
</span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><span class="Apple-style-span" style="font-size: large;">Ken</span></b></span></div><div class="MsoNormal"><span style="font-family: Tahoma;"><b><br />
</b></span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-56427588693639557192011-01-01T11:54:00.000-08:002011-01-02T07:09:10.366-08:00Happy New Year! 01/01/11<div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;"></span><span style="font-family: Tahoma;"></span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Let me begin by wishing everyone reading this blog a very happy and prosperous New Year!</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I’ve been very pleased with the initial interest and response to this blog. In the first week, there have been nearly 50 individual visits to this site. I hope you find it interesting, and that as I move forward, it will stimulate some discussion about dividend investing. Feel free to post comments, critiques and questions. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Please keep in mind that I am not a licensed professional for investments, and that the strategy I am employing, and the trades in the stocks that I discuss is based on my own research. They are not intended to be recommendations for anyone else. Each person should do their own “due diligence” when it comes to making investment decisions, since each person’s needs and risk tolerance levels are unique. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I thought I should start each week’s entry with a recap of what I am holding, an update of what has happened since the last posting, and then a forward looking view of the stocks that I am watching and may plan to purchase over the next few weeks that have approaching ex-dividend dates.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Background</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I embarked upon this strategy a few months ago, as I am attempting to shift to a more conservative posture as retirement is no longer a long term objective for me. I recently turned 57, and with the prospect of retirement looming on the horizon, I have made a conscious effort to scale back on higher risk investments, simply because the timeframe to make up for mistakes is decreasing. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">For the past few months I have traded in and out of several stocks that have consistently paid a dividend that is significantly greater than the interest rates that are currently available at banks and credit unions on savings accounts and certificates of deposit. For now, I am setting the threshold of an annual yield above 3%. This may change over time, and if I raise or lower it, I will post it here. For the time being, the US Government is keeping interest rates very low, so the yields of some stocks are attractive when compared to the alternatives available by placing money in banks, in my opinion.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Methodology and Approach</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">The selections that I make are based on a variety of attributes about the companies. As I mentioned above, the 3% annual yield is the first test. Other attributes I examine include each company’s annual sales and earnings growth rates, the price / earnings ratios, free cash flow, 52 week range for the stock price, average daily volume of shares traded, etc. Admittedly, it is “part art and part science”, but I am attempting to make the selection process more quantitative and “rules based” as I proceed to remove as much emotion from the buying decision process as possible. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I start buying a stock up to 4 weeks ahead of the approaching ex-dividend date, and continue to purchase shares based on several factors, depending on the amount of cash that I have available in my retirement account, and by examining the list of other companies that are also approaching their ex-dividend dates over the next 4 to 8 weeks. I limit the total amount of investment for these stocks to a predefined percentage of the total amount that I have allocated to this strategy, so that no single stock can cause a long term effect on the strategy. The reason for this is simple – diversification. If there is one thing I have learned over the course of my life is that the “unthinkable” can happen when it comes to the economy, financial markets, and individual companies. I could dedicate an entire discussion to the events that I have witnessed and been affected by in my lifetime that I never imagined could have occurred. The lesson learned is that diversification helps to mitigate these risks.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">After the ex-dividend date has passed, my goal is to sell the stock as soon as possible, once the price of the stock (minus commissions and fees) provides a profit. Brokerage firms have greatly reduced the price associated with commissions and fees in my lifetime, and you can now trade in and out of a stock without much thought to these expenses. The brokerage firm I am using charges a flat fee of $7.95 per trade, and also offers a number of value added services and research tools that are worthwhile for me. I know that there are other firms that charge less, but the marginal savings are not worth it to me at this time, when I consider the need to learn a new platform for research and other services.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Current Holdings</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">As I mentioned, I started this strategy a few months ago. Some of the stocks that I have purchased since then have not crossed above the price where I purchased them, so I continue to hold them. Below are the stocks I am holding, and my breakeven point for each one, as well as the dividend that has been captured.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="margin-left: 2in; text-indent: 0.5in;"><span style="font-size: small;"><span style="font-family: Tahoma;"> </span> <b><span style="font-family: Tahoma;"></span></b></span></div><div class="MsoNormal" style="margin-left: 2in; text-indent: 0.5in;"><span style="font-size: small;"><b><span style="font-family: Tahoma;"><br />
</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;"> Avg Current</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Stock Company Purchase Share Dividend</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Symbol Name Price Price (12/31) Captured / share</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">BKCC Blackrock Kelso $11.62 $11.18 $0.32</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">HNZ Heinz $50.36 $49.42 $0.45</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">PCG PG&E $48.22 $47.75 $0.455</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">As I have mentioned, part of this strategy is being comfortable with holding any stock that is purchased until it is profitable to sell it. All of the companies listed above are trading within what I consider a “normal” range. None has had any news or announcements that would lead me to believe that the decline in price is abnormal, or a reversal in the long term upward trend that each has exhibited. I will continue to hold them, if necessary, until the next ex-dividend date, since, in my opinion, they are all solid companies and well run enterprises, with good to excellent long term business prospects.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Many people “buy and hold” stocks like these for years, as they are comfortable collecting the long term dividend each quarter. My approach is slightly different – I simply rotate among stocks each quarter with the exclusive goal of capturing the dividend, but will hold the stock if the price declines. I believe that by doing this, the result will be a better return than the “buy and hold” strategy. Only time will tell if I am successful. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Recently Closed Positions</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I successfully closed (sold) 3 positions that I had opened (purchased) after capturing the dividends in December. They were:</span></span></div><div class="MsoNormal" style="margin-left: 2in; text-indent: 0.5in;"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;"> Profit </span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Stock Company Per Days Dividend</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Symbol Name Share Held Captured / share </span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;"></span></b><span style="font-family: Tahoma;">BCE Bell Canada Enterp. $0.67 10 $0.455</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">CINF Cincinnati Financial $0.18 8 $0.400</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">RAI Reynolds & Reynolds $0.06 14 $0.490</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">The price for each of these 3 stocks held up well shortly after their respective ex-dividend dates. The sale of these stocks provided funds to purchase shares of the next companies on my list that are approaching their ex-dividend dates. As previously discussed, I normally expect a drop in the per share price when a stock goes ex-dividend, because in theory, the cash that is obligated to be paid reduces the value of the company as the funds that are returned to the shareholders decreases the value of the company. </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">There have been other situations where I had to wait much longer for the stock price to regain its price following the payment of the dividend. In one instance, I had to wait about a month to sell shares in DuPont as it remained below the price where I purchased it. Patience is frequently required with this strategy, but as long as the companies that are selected are sound, and there is no compelling news that would cause a change in the long term outlook for the company, I “stay the course” and wait it out. </span></span></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Recent Purchases</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Below is the list of current holdings, which have approaching ex-dividend dates</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;"> <b>Share Per Share</b></span></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Stock Company Breakeven Current Dividend</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Symbol Name Point Price Expected</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">(Ex-Date) (12/31)</span></b></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">T (1/6/11) AT&T $29.24 $29.38 $0.42 </span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;"></span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">VZ (1/6/11) Verizon $34.84 $35.78 $0.4875 </span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;"></span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">BMY (1/5/11) Bristol Meyers $26.49 $26.48 $0.33 </span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">I was hoping to add some shares to each of these over the past week, but they all remained above the purchase point that I had established for additional shares. The good news is that they all held up well over the past week. The bad news is that there weren’t bargains to be had on any of these to capture additional dividends that are about to be paid.</span></span></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">On the Horizon</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Looking forward, there are many companies that will be going “Ex-Dividend” over the next 4 weeks. I have narrowed down the list based on my criteria. Many high yielding stocks are typically eliminated in this process, as they don’t fit within my established parameters, which includes an examination of a number of factors. If you are attempting to buy stocks for their dividend yield, you should do your own research and make your own decisions. </span></span></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;"> </span></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Stock Company Current Dividend Ex-Dividend</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Symbol Name Price Expected Date</span></b></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">BMO BMO Financial Grp. $57.00 $0.69 01/28/11</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">CLX Clorox $63.28 $0.55 01/25/11</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">RY Royal Bank of Canada $52.27 $0.4925 01/24/11</span></span></div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">SO Southern Company $38.21 $0.455 01/28/11</span></span></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Each of the above companies are relatively stable, but growing. The Canadian Banks were not involved in the risky mortgage backed securities investments that precipitated the financial meltdown that was experienced in the US. Both BMO and RY provide dividends that exceed my threshold level, and their stock prices are relatively stable over the past year. I will be watching them closely in early January, and buying shares on any short term dips in price, although both are already below recent highs.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Clorox is one of the most recognized consumer brands in the world, and provides cleaning products as well as other utility items in the consumer market. Sales have increased slowly but steadily over the past couple of years, and the stock price has traded in a fairly narrow range. CLX is currently below a recent high price, and looks attractive to me for this strategy. Similar to all other companies, I would not object to holding shares in Clorox if necessary if the price declined below where I purchase it.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">Southern Company is an electric utility company headquartered in Atlanta, GA, serving the needs of business and residential customers in the southeastern US. Due to the growth of the population in this part of the US, Southern Company has generally done very well over the past several years in revenue growth, and profitability, and has paid a dividend consistently. The share price has been steadily increasing in 2010, following a decline in 2009. My feeling on this stock is that it is likely to benefit from an economic recovery, and is very capable of continuing to pay the dividend. I will be watching it for a possible purchase over the next couple of weeks.</span></span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: small;"><span style="font-family: Tahoma;">There are other stocks that are also approaching ex-dividend dates that were excluded by my screen. If there are stocks you want to bring to my attention, please send me an email, or make a post on this blog and I will try to respond in my next weekly post.</span></span></div><div class="MsoNormal"><br />
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</div><div class="MsoNormal"><span style="font-size: small;"><b><span style="font-family: Tahoma;">Other Resources</span></b></span></div><span style="font-family: Tahoma; font-size: 12pt;"><span style="font-size: small;">If you are interested in learning more about dividend yielding stocks, there are a variety of resources available. Some of them have placed ads on this blog, and I encourage you to click on them and see the variety of discussions and ideas about this facet of investing strategy.</span><span style="font-size: small;"> </span> </span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-28234787448275739672010-12-24T12:27:00.000-08:002010-12-24T21:24:09.419-08:003 Companies with approaching ex-dividend dates<div class="MsoNormal"><b><span style="font-family: Tahoma;">There are 3 companies that I have begun to accumulate that are, in my opinion, reasonably priced, and have ex-dividend dates approaching in early January.</span></b></div><div class="MsoNormal"><br />
</div><div align="center" class="MsoNormal" style="text-align: center;"><span style="font-size: large;"><b><span style="font-family: Tahoma;">AT&T (NYSE – Symbol T)</span></b></span></div><div class="MsoNormal"><b><span style="font-family: Tahoma;">This is a company that is financially conservative, and fairly predictable in terms of revenue and earnings per share. It is well managed, and there are very few surprises that cause the stock to move precipitously in either direction.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">Recently, there has been speculation about the effect on revenues and profits as a result of its main competitor in the wireless market, Verizon, when the exclusive arrangement with Apple expires, and Verizon begins selling the iPhone. Personally, I think the concerns are exaggerated, and any negative effect on the price per share will be due to emotions, and not facts.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">AT&T recently announced that it was increasing its dividend, and buying back shares of its own stock. Both of these are indications of confidence by management of the future growth prospects for the company, and the sustainability of paying the dividend.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">AT&T will pay a dividend of $.43 per share, which translates to an annual yield of about 5.9%. </span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">I began to buy shares last week, and hold them at an average price of $29.24, which is slightly above where the stock closed on 12/23, at $29.20. I plan to add more shares this week, hopefully below $29.15.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">Usually when a company goes ex-dividend, you can expect the share price to decline slightly. This is logical, since the value of the company is decreased as a result of the cash to be paid being reduced from its balance sheet. In the case of AT&T, I expect that the price may fall below $29.00 in the days following the ex-dividend date of January 6, but I expect it will recover shortly thereafter. Even if it doesn’t, AT&T fits in my criteria as a stock I would not mind holding as long as necessary until I can sell it at a profit. The dividend will be paid on 01/31/11.</span></b></div><div class="MsoNormal"><br />
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</div><div align="center" class="MsoNormal" style="text-align: center;"><span style="font-size: large;"><b><span style="font-family: Tahoma;">Verizon (NYSE – Symbol VZ)</span></b></span></div><div class="MsoNormal"><b><span style="font-family: Tahoma;">This, of course, is another telecommunications giant, and is very similar to AT&T in terms of having fiscally responsible management, despite the fact that part of its business is comprised of the former WorldCom organization. As you probably know, WorldCom perpetrated the largest fraud in the history of business in the US, and its leader, Bernie Ebbers, is in jail and will probably spend his remaining days there. Verizon acquired what was left of WorldCom, and integrated it into its own organization, which was primarily a combination of ”Baby Bell” companies that evolved following the breakup of AT&T in the early 1980’s. It is a company that is managed conservatively, and is also providing about a 5.6% annual yield. The stock has increased recently due, I think, to speculation about the company’s overall prospects and fueled by the notion of taking share from AT&T as a result of the potential sales of wireless services to existing and future owners of Apple’s iPhone.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">I was fortunate enough to start to pick up shares on 12/20 when the stock was at $34.84. I plan to add more if it falls back anywhere under $35.00 over the next week or so.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">Verizon goes ex-dividend on 01/06/11, at $0.4875 per share, payable on 01/31/11.</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">One final note: Since AT&T and Verizon compete vigorously, and each has its strengths and weaknesses, it is difficult to say which one will do better than the other in terms of shareholder value. My approach is to “buy them both”, and treat the overall investment as one when deciding to sell the shares. As long as I am profitable overall on the share price, and have successfully captured the dividend on both, I will be able to declare victory and move on to the next set of stocks that are approaching their ex-dividend dates.</span></b></div><div class="MsoNormal"><br />
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</div><div align="center" class="MsoNormal" style="text-align: center;"><span style="font-size: large;"><b><span style="font-family: Tahoma;">Bristol</span></b><b><span style="font-family: Tahoma;"> Meyers Squibb (NYSE – Symbol BMY)</span></b></span></div><div class="MsoNormal"><b><span style="font-family: Tahoma;">This pharmaceutical company is a slow growth, well managed organization that steadily churns out a very nice dividend each quarter. In my opinion, it is not growing fast enough to warrant making it as a long term hold in my retirement fund portfolio, but I am happy to buy it and sell it as long as it continues to trade in a narrow range. I’ve been successful in the past by watching it closely and buying on slight dips in per share price, such as when the overall market experiences a short term selloff. Then I wait for the ex-dividend date to pass, and sell the shares as soon as the share price recovers. Boring? Perhaps. . .but with a 5% annual yield, over 9 million shares traded daily, and over 70% of the stock owned by institutions, I can definitely live with boring. </span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-family: Tahoma;">The share price presently (12/23/10 close of $26.32) is actually slightly lower than where it was at this point just before the last quarterly dividend (9/23/10 close of $27.68), but above the lowest point between then and now (11/30/10 close of $25.24). The stock has a beta of 0.58, and since the quarterly sales and earnings are flat, I don’t expect much volatility over the next few weeks, barring any unforeseen news that could result in a short term move. I will start to purchase shares in my account if the stock falls below $26.25, and will buy more if it falls further. I’d love to own this going into the ex-dividend date of 01/05/11 at an average price of less than $26.15. Again, even if it doesn’t recover immediately, I have no problem holding this stock.</span></b></div><div class="MsoNormal"><br />
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</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7911868134813697481.post-31340914274356535212010-12-22T13:51:00.000-08:002010-12-22T13:51:20.620-08:00Welcome!<div style="font-family: Verdana,sans-serif;"><span style="font-size: small;">This is my first post in this blog. I'd like to start by thanking you for visiting.</span></div><div style="font-family: Verdana,sans-serif;"><br />
</div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;">I intend to make this forum a resource for information sharing on strategies to capture short term dividend income while minimizing the risk of capital.</span></div><div style="font-family: Verdana,sans-serif;"><br />
</div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;">I do my own research to make my own selections every few days, scanning the markets to find opportunities for making short term investments that are intended to provide better than average returns. The majority of my trades are made in my self directed IRA, so that the tax consequences of any dividend income and / or capital gains are deferred until the money is withdrawn, several years from now, when I retire.</span></div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;"><br />
</span></div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;">I hope that you enjoy the blog, and that it has value for you. If so, please visit the companies and organizations that choose to advertise here.</span></div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;"> </span></div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;">Ken</span></div><div style="font-family: Verdana,sans-serif;"><span style="font-size: small;"><br />
</span></div>Unknownnoreply@blogger.com2