I AGREE WITH OBAMA

Finally I've heard President Obama say something about health care that I can agree with wholeheartedly.  In a recent news interview talking about health care reform, he said he didn't think a person should "have to go bankrupt to pay for health care" in this country.  I definitely agree with him there.  We do live in the richest nation in the world and there is no good reason why anyone in this country should have to be destroyed financially because they get sick.

However, what the President and Judge Vinson (Florida judge who declared it unconstitutional for the federal government to require individuals to purchase insurance coverage) may or may not be missing here is, individuals who would be required to purchase health insurance under the health care reform bill are not necessarily people who stubbornly refuse to buy coverage, but most likely are ones who simply can't afford to do so.  I certainly would love to have insurance coverage again, especially after having a couple of heart attacks and heart surgery, but there is simply no way possible for me to stretch my income to pay for it.  As it turned out, I was able to negotiate with health care providers and settle my debts for much less than originally billed.  So in my case it all worked out and I avoided going broke. 

Perhaps what we really need is to make sure people are aware of programs already in place to help those who cannot afford health insurance coverage. 

MY TOP TEN HOLDINGS!

My Top 10 Holdings For 2010:

1. CPFL Energia SA-ADR (CPL)--Brazilian Utility Company

2. Legacy Reserves LP (LGCY)--Energy Limited Partnership

3. AT&T (T)--Telecom

4. Universal Insurance Holdings (UVE)--Insurance

5. Encore Energy Partners (ENP)--Energy Limited Partnership

6. Merck & Co. Inc (MRK)--Pharmaceutical

7. EV Energy Partners (EVEP)--Energy Limited Partnership

8. Philip Morris Intl. Inc. (PM)--Tobacco

9. Calumet Specialty Products (CLMT)--Limited Partnership

10. AstraZeneca CA PLC (AZN)--Pharmaceutical


This is a list of my top 10 investments for 2010. I'm not trying to endorse these particular investments, I only list them for informational purposes.

Upping My Investment in UVE

Over the weekend I reviewed my portfolio and decided to up my stake in Universal Insurance Holdings (UVE-AMEX). The Group's principal activity is to provide property and casualty insurance. It performs various aspects of insurance underwriting, distribution and claims. It markets and distributes its products and services, primarily in Florida.

I've written about UVE before and have been a long time shareholder for quite some time. Not long ago I had sold some of my shares for the capital gains, but now that I've reviewed the stock, I've decided to buy more. I've always liked their dividend payout and currently it is running at 12.94% on the recent share price of $6.19. Not too many places right now you can get a 12% plus rate of return.

Another factor in my decision was an article I read recently which argued that one of the most important metrics for stock picking, is insider ownership. I thought the author made a very good argument for investing in stocks with high insider ownership. That being said, UVE, which has been a great investment for me so far, has inside ownership of over 50% on top of their high dividend payouts. They have also expanded operations outside the state of Florida, which could indicate prospects for future capital gains.

Bottom line, if the insiders are willing to tie up so much of their money in the company, then I'm thinking it probably wouldn't hurt for me to keep some money working with them.

AFLAC and Evaluating Dividend Sustainability

If you've read some of my previous posts, you'll know I like investing in insurance companies. Currently I am invested in AFLAC (AFL) in my IRA account and my regular stock portfolio. Although my own research had convinced me of the value of owning shares of AFLAC, it's always nice to get a second opinion.

Dividends Value.com has a great analysis of AFLAC stock, which you can read at:


http://dividendsvalue.com/3205/aflac-inc-afl-dividend-stock-analysis/


I just recently discovered this site. What a great resource for building a solid dividend portfolio of stocks! Looking forward to reading more. Also found a great table of factors to consider, when evaluating a stocks dividend sustainability, at Disciplined Approach to Investing:

http://disciplinedinvesting.blogspot.com/2009/06/evaluating-dividend-sustainability.html


One of the very first things I do, before investing in a stock, is check the sustainability of dividend payouts. It doesn't do any good to invest, only to have the dividend cut or eliminated all together.