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Now in the 6th year of Dividend Income Investor.
Before buying any investment, GO TO CORE PORTFOLIO for a listing of current positions.

October 17, 2018.  We are increasing the Buy Limit order for NSS to $25.20.  We want to buy this and it appears we will have to pay more than we anticipated….the price is still very acceptable.

Back in May we bought BSL……which has declined over the last week along with everything else.  It is ok to buy this now or add to your position.



We love reading the stories about the radical liberal out of control failing CNN freakshow.  Here is the best article yet (link below) which outlines how bad things really are at CNN.

If CNN had anything other than tragic ratings, if CNN were in second place or even close to second place, I could understand the shamelessness, the tabloid approach to covering politics. But CNN’s ratings are not only awful, they are miraculously awful. Not only is CNN in far-last place, The Least Trusted Name In News does not even have a breakout star or show. Throughout all of last quarter, and only in competition with two other networks (MSNBC and Fox), not a single CNN show — not even one — placed in the top 20.
Think about how awful CNN is to accomplish such a thing, to only have two other networks to compete with and still not place even one show in the top 20 throughout an entire quarter.


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Breaking:  Last night’s 60 Minutes interview with Trump was a real shit show  Biased fake news liberal 60 Minutes really dumped on the Donald but he fought back hard.  Good for him.

October 15, 2018,  Most of the Core Portfolio positions are ‘term’ meaning they mature at a future date, (barring bankruptcy) where you get your money back and in the meantime, dividends keep coming in.  The whole point of the Core Portfolio in INCOME.  We are holding all positions for now.  Yes you will experience paper losses or gains but that is the game we are playing.

If you owned a lot of stocks, experienced traders would have sold out last week at the 100 or 200 day moving averages.  Momentum is down and we anticipate further declines in stocks during this week…..just our opinion.  But Long Term we see further advances in stocks.  (We could see an additional 3-4% decline this week.)

Bottom Line:  Our crystal ball does not work, and nobody can see the future.  Everyone has their own investing style.  This blog simply outlines OUR approach which has been working for a long time.

PS.  Never buy annuities or whole life insurance or non-traded REITS.  Worst rip-offs in history. 


Is it over?  Not likely.  From realinvestmentadvice.com (one of our fave sites).

It is unlikely the current rout is over and we will very likely have a retest of recent lows before the next bottom is found. Having some cash on hand will both hedge portfolio risk and provide opportunity to reallocate to equity when the selling pressure is resolved.



‘Kiss of Death’: Democrats keep Hillary off campaign trail
According to multiple Democratic senators up for re-election in states, ranging from ruby red to deep blue, and those involved in 2018 strategy, Hillary Clinton has not been called upon and isn’t expected to be. In many cases, she is an afterthought.



If – and I emphasize the word “if” because I do not have a Dragonfly-style program covering Google HQ – Dragonfly is real, Google is in serious trouble. Collaborating with a dictatorship that is sliding into a cult of personality so complete Hitler would have salivated over the program violates every ethical and political norm of every political faction in the United States. Anything that puts Elizabeth Warren and Ted Cruz on the same side during Senate hearings should get everyone’s attention. And Google’s executives’ refusals to confirm or deny Dragonfly’s existence while under oath before Congress tends to shift my thinking that this is less bureaucratic bungling and more greed so all-consuming it constitutes treasonous behavior. It is exactly the sort of massive corporate miscalculation that has triggered catastrophic government crackdowns on major American firms in the past. The breakups of Standard Oil and Bell come to mind.


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BUY HYHG–updated

UPDATE FRIDAY:  It looks like we missed HYHG as the damn thing just keeps going up…..so it looks like other buyers were also interested in this position.  We made a mistake in not buying at lower prices.

Still trying to get NSS.  The momentum is still down, but the prices don’t budge.  We may buy at higher prices on Monday.

Despite SPY gains Friday, the momentum is still down.  This correction is not over in our opinion.

October 11, 2018.  Yesterday we expressed interest in buying HYHG.  A Buy Limit Order is now placed at $67.07.  This order may not get filled, but we are willing to increase the price if necessary:  we want to own this.  There is an ask right now at $67.21 which is actually ok to buy now if you do not want to wait for lower prices.

We hold UTF in the Core Portfolio which pays 8.44%.  There is a link below to a positive article on UTF.

Infrastructure spending is necessary to maintain the framework of society. Furthermore, this is a defensive sector by nature, and can outperform during periods of economic weakness.
UTF gives instant access to a wide array of infrastructure sectors and stocks while paying an attractive 8.4% dividend yield. This is a CEF that should be held as long-term investment. Income investors who buy and hold are set to be paid an attractive monthly dividend, in addition to getting exposure to one of the strongest business models out there. The next special dividend should be paid soon, in January 2019! Shares are an attractive buy for income and long-term capital gains. UTF has the potential to be a big winner in your high dividend portfolio.
The current pullback in the high-yield space offers a unique buying opportunity. We have been taking advantage to add new positions to our portfolio.



The Upcoming Bond Bull Market………..a discussion on LOWER rates



Wednesday, October 10, 2018

Republicans are madder about the Kavanaugh controversy than Democrats are and more determined to vote in the upcoming elections because of it.

A new Rasmussen Reports national telephone and online survey finds that 54% of all Likely U.S. Voters say they are more likely to vote in the upcoming midterm elections because of the controversy surrounding President Trump’s U.S. Supreme Court nominee. Only nine percent (9%) say they are less likely to vote. Thirty-four percent (34%) say the controversy will have no impact on their vote. (To see survey question wording, click here.)

Sixty-two percent (62%) of Republicans are more likely to vote because of the Kavanaugh controversy, compared to 54% of Democrats and 46% of voters not affiliated with either major political party.

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October 10, 2018.  The markets are in turmoil but so far we are only watching.  We are maintaining the buy limit on NSS.  The momentum is still down and we may get filled at $25.11.

Continue holding HAL as a trade.

We have been watching HYHG Interest Rate Hedged Bond ETF for months.  The price has been trending up and we have been hoping for a lower price to buy.  With the declines over the last week. HYHG may come into our buy price range.  Today it is at $67.61.  Yield is at 5.83%.  This position will be purchased at lower prices, but the momentum remains down today. 

ProShares High Yield—Interest Rate Hedged ETF
ProShares High Yield—Interest Rate Hedged ETF (HYHG) is a high yield corporate bond ETF with a built-in hedge that targets a duration of zero to eliminate interest rate risk. Many investors use high yield bonds as part of their fixed income portfolios. High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.
HYHG combines the return potential of high yield bonds with a built-in hedge that targets a duration of zero to eliminate interest rate risk.

Go here for a full description:



Sometimes we see articles that are exceptional in evaluating current markets.  We suggest you read this one-go to link below:

All of these signs suggest an economy, and a market, that is fully matured with investors behaving imprudently. In other words, things are as “good as they can get,” which happens at the end of a cycle rather than the beginning.
So, How Long Until This Cycle Ends?
Throughout history, interest rates are at the heart of every cyclical recovery and decline. As I discussed in “Did Something Just Break?”:
“With housing and auto sales already a casualty of higher rates, it won’t be long before it filters through the rest of the economy. The chart below shows nominal GDP versus the 24-month rate of change (ROC) of the 10-year Treasury yield. Not surprisingly, since 1959, every single spike in rates killed the economic growth narrative.”




The real unemployment rate (U-6) is a broader definition of unemployment than the official unemployment rate (U-3). In September 2018, it was 7.5 percent.
The U-3 is the rate most often reported in the media. In the U-3 rate, the Bureau of Labor Statistics only counts people without jobs who are in the labor force. To remain in the labor force, they must have looked for a job in the last four weeks.

The U-6, or real unemployment rate, includes the underemployed, the marginally attached, and discouraged workers. For that reason, it is almost double the U-3 report.
Underemployed people are part-time workers who would prefer full-time jobs. The BLS counts them as employed and in the labor force.
The marginally attached are those who have looked for work in the last year but not the previous four weeks. They are not included in the labor force participation rate.
Among the marginally attached are the discouraged workers. They have given up looking for work altogether. They could have gone back to school, gotten pregnant, or become disabled. They may or may not return to the labor force, depending on their circumstances. Once they haven’t looked for a job in 12 months, they’re no longer counted as marginally attached.
The BLS issues both the U-3 and the U-6 in each month’s jobs report. Surprisingly, there isn’t as much media attention paid to the real unemployment rate.

But even former Federal Reserve Chair Janet Yellen said it paints a clearer picture of actual U.S. unemployment.
Real Unemployment Rate Formula Using Current Statistics
In September 2018, the real unemployment rate (U-6) was 7.5 percent. It’s almost double the widely reported unemployment rate (U-3) of 3.9 percent.



Ignorant Hollywood failed stars and millennials want socialism:  visit Venezuela.


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October 8, 2018.  Investors are concerned about last week’s drop in the markets.

The Core Portfolio includes date specific bonds that we hold to maturity.  Yes you will see price fluctuation (up OR down), but you receive dividends in the meantime AND you get your money back at maturity.

We have had such positive results for so long that investors are selling at the slightest hint of trouble.  Right now, we are NOT selling.  We suggest you do the same.  Bonds are currently at very depressed price levels and we expect that to change–upward.

Obviously if markets collapse, we will get out.  We do NOT anticipate this happening-especially with the mid term elections upcoming.

The buy limit order on NSS is at $25.11 but it appears we may NOT get filled.  The price just refuses to drop.


As we expected the Amazon PR stunt for increasing wages is bull crap for their longer term workers.  Some will actually see declines in income. 

Amazon’s decision to raise workers’ minimum wage to $15 per hour was welcome news, even Sen. Bernie Sanders praised the move.

But for some Amazon employees, the excitement didn’t last very long as they learned that existing financial incentives and bonus programs, including stock and monthly bonuses, that usually boost paychecks will be eliminated starting November 1.

Several Amazon warehouse workers in the U.S., who spoke to Yahoo Finance on the condition of anonymity fearing reprisals, talked about how the change will negatively affect them. After the removal of these perks, some workers said they will be making less. Most of the workers who voiced concerns have been working for the company for more than two years, and have been earning close to $15 an hour before the raise.

While these workers’ hourly rates will rise modestly, they said they could lose thousands of dollars that they would have collected from the stock and monthly-bonus programs. Amazon said those who are already making $15 an hour will see an increase in pay but did not specify how much.

An employee earning $15.25 an hour who has worked for Amazon for more than three years in Arizona crunched the numbers. Although he is getting a $1 an hour raise, which would equate to as much as $2,080 in additional pay a year, he said he could have earned a few thousands of dollars more from the incentive programs. “Amazon isn’t giving its employees a raise, they’re taking money from us,” he told Yahoo Finance. “It only looks good if folks don’t know the truth.”

Full Article


What is the real reason for the rising rates….link to full article below.

…….. what caused Treasury yields to suddenly start rising on Wednesday and into Thursday?
The answer is very likely the same reason that Treasury yields rose so sharply at the end of 2016. And the answer is also very likely the same reason that Treasury yields were surging higher at the end of 2017 into the start of this year. The answer is the sale (or perhaps liquidation) by major foreign holders of U.S. Treasuries in general and countries like China and Japan in particular, both of which are by far the largest foreign holders of U.S. Treasuries at more than one-third of the total. It will take some time before the official data become available to verify this answer, but it has been the culprit so many times in the past when the mainstream financial media and its pundits are pointing elsewhere to possibilities like inflation.

Still bullish on bonds. Putting this all together, I remain still bullish on bonds with a particular focus on the long-term U.S. Treasury and taxable municipal bond markets.



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October 5, 2018.  Well…….Thursday was not fun.  The stock market tumbled as well as our Core Portfolio holdings.  As we mentioned yesterday morning, the financials are very weak and the chickens came home to roost during the day.

Our primary focus is dividend paying individual corporate bonds, and other fixed income investments like floating rate instruments.  Today we are buying something other than bonds for a change……we are buying a STOCK for a short term TRADE.  We studied trading for over nine years, but have always preferred to focus in the fixed income dividend paying arena. 

This is not a long term holding, simply a trade in a holding that looks positive and could produce some decent return rather quickly.

BUY HAL, Halliburton Company.  See a short description below.  The price this morning is $41.89

Halliburton Co.
Ticker Symbol: HAL CUSIP: 406216101 Exchange: NYSE

BUSINESS: Halliburton Co. is one of the world’s largest providers of products and services to the energy industry. The company serves the upstream oil and gas industry throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

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Thursday, October 04, 2018
The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 50% of Likely U.S. Voters approve of President Trump’s job performance. Forty-nine percent (49%) disapprove.

UPDATE:  A new poll indicates that Republicans have closed the Democrats’ formerly wide gap in voter enthusiasm, thanks to the ongoing crisis surrounding the confirmation of Judge Brett Kavanaugh to the U.S. Supreme Court.
A new NPR/PBS NewsHour/Marist poll released Wednesday found that 80% of Republicans now say the November elections are “very important,” compared with 82% of Democrats — a statistical tie, well within the poll‘s 4-point margin of error.

October 4, 2018.  More and more analysts are voicing concerns over a potential ‘crash’ in the markets.  The financials and many other segments have been weak recently with only a few stocks responsible for gains in the averages. (SPY, DOW)

BUT it is obvious they are NOT going to let this market decline leading up to the November elections.  At that point, we really have to watch closely, but even then we do not expect any severe decline.

Now in the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.


BUY NuStar Logistics NSS:  on sale.

Alert readers will note that NSS is due in 2043.  Normally we would never touch a maturity date this far out, BUT NSS is a fixed to floating rate issue which means we are protected against interest rate risk.  As of today, the yield is 8.57%.  The price is $25.19 and MAY GO LOWER.  We are placing a limit order at $25.15 but a buy anywhere in this area is fine…just watch it and adjust your buy limits accordingly.  Remember the dividends are huge.

Volume is very low so patience is required for this issue.

NuStar Energy L.P. is a MLP which transports petroleum and anhydrous ammonia,  storage, and marketing.

NuStar Logistics L.P., 7.625% Fixed-to-Floating Rate Subor Notes due 1/15/2043
Ticker Symbol: NSS CUSIP: 67059T204 Exchange: NYSE
Security Type: Exchange-Traded Debt Security

QUANTUMONLINE.COM SECURITY DESCRIPTION: NuStar Logistics, L.P., 7.625% Fixed-to-Floating Rate Subordinated Notes due 2043, issued in $25 denominations, redeemable at the issuer’s option on or after 1/15/2018 at $25 per note plus accrued and unpaid interest, and maturing 1/15/2043. The notes are guaranteed by NuStar Energy L.P. (NYSE: NS) and NuStar Pipeline Operating Partnership, L.P. (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee). The company may redeem the Notes prior to January 15, 2018 at a redemption price equal to the make-whole redemption price or after the occurrence of a Tax Event or a Rating Agency Event (see the prospectus for further information). Interest distributions at a fixed rate of 7.625% per annum ($1.90625 per annum or $0.4765625 per quarter) will be paid quarterly through 1/15/2018 on 1/15, 4/15, 7/15 & 10/15 to holders of record on the record date that will be 1/1, 4/1, 7/1 & 10/1 respectively (NOTE: the ex-dividend date is one business day prior to the record date). After 1/15/2018 distributions will be paid at the Three-Month LIBOR rate plus 673.4 basis points

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