THE "DIVIDEND REPORTING DEBATE" EDITION
06 AUGUST 2010
"TAKE STOCK" OF YOUR CLUB'S PORTFOLIO . . .
AND SAVE BIG!
StockCentral Offers Group Discount
If you don't yet have a copy of the newly revised, third edition of Take Stock, what's stopping you? If it's a matter of parting with some of the green stuff, your savvy reporter has news you can use! Investment clubs that purchase five or more copies save 40 percent off the single-copy price!
The hot-off-the-presses edition is the perfect companion to the Take Stock tool on StockCentral.com. Take Stock starts with the basics — everything from learning financial terminology to basic price evaluation. You'll learn how to make your own growth and value projections and how to screen for stocks that are right for your portfolio.
But even more-experienced investors can benefit from reading Take Stock. Learn how to evaluate company quality through "technamental" interpretation. Take Stock even explains in simple, no-nonsense language the proper way to manage and diversify your portfolio. Check out Take Stock on StockCentral, where you can:
On to this week's headlines . . .
Speaking of Dividends . . .
SC Member Sounds Warning on Reporting Rules
If you have not yet stopped by The Exchange, you are missing out on one super-hot forum where members are chiming in with thought-provoking news and insights every day, and on everything stock market.
"Beware of the MLP's (Master Limited Partnerships) and LP's (Limited Partnerships) as they have more complex dividend reporting rules," warns SC Member Danny Matthews in a forum post this past weekend. "I've read clubs definitely don't want these and I as an individual don't want to be re-filing because of late or recharacterization of reported dividends."
Check out the resources Danny and other SC members have posted on this topic and post your own thoughts on The Exchange.
ANATOMY OF A STOCK PURCHASE:
How Much Weight Should Upside-Downside Ratio Carry?
Speaking of dividends, many of the companies in the situation Danny Matthews points to are utilities or in related industries. That just so happens to dovetail with a related discussion in The Classroom.
"I was looking for a utility to round out my portfolio and looked at YORW (The York Water Company) and WTR (Aqua America, Inc.)," posts SC member Joseph McCarthy.
"They're both cyclical. Both pay regular dividends (recently $0.128 for YORW and $0.145 for WTR)."
How did he make his final decision?
"Although both were buys according to my SSGs, I ended up choosing YORW because it gave me a better upside-downside ratio and I could buy more shares with the funds I had available at the time."
What's your take on the matter? Should a better upside-downside ratio be a determining factor? Log your thoughts in The Classroom — and no need to raise your hand!
REAL ANSWERS IN REAL TIME
Webinar Series Focuses on Club Operations
Have a question about club accounting, running a meeting, tax preparation, coping with problem members or any other aspect of club operations? Club Guru Doug Gerlach has real-time answers at the monthly Investment Club Orientation Webinar.
The series continues Aug. 17. Whether you're just starting a club or are an experienced club aficionado, check out the Current Webinar Schedule and Sign-up Today! The workshops are held on the third Tuesday of each month at 9 p.m. Eastern time. There's no cost to participate, but space is limited!
TODAY'S ENTIRELY RELEVANT QUOTATION
"Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
— Warren Buffett