Back in March I wrote "MMA Rates are Falling, What are You Going to Do?" Then my best money market earner was AmTrust Direct at what I described as a "measly 3.75%". In less than three months, AmTrust Direct is now at 2.75% and is no longer my best earner. That honor now goes to ING at 3.00%. This somewhat surprised me since ING has traditionally been my lowest account.
When I last discussed money market rates, I begun to accelerated the pace of moving funds from my money market account (MMA) to my stock investments. Since my annual bonus came in late March, I am now actually sitting on more cash than before. It is a delicate balance between finding good investments vs. effectively giving the bank an interest-free loan. My wife is doing her part - she found a mini-van to help lower the MMA balance.
On the positive side, each month as interest rates fall, my dividend income increases. Not only from additional investments, but from companies raising their dividend rate. It is comforting to know that even in these financially difficult times, there are still good companies out there succeeding in there business and rewarding their shareholders. I just need to get more money out of the MMAs and into these good companies - at the right price, of coarse.
Related Articles:
_____________________________________________________________________
Each Friday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al. Articles I enjoyed reading included (in no particular order): Dividend Articles
Below are the carnivals that I participated in this week, along with a link to my article:
The Wealth, Money & Life Network Featured Articles
Other Articles
There are some really good articles there, please take time and read a few of them.
_____________________________________________________________________
There once were twin boys that were very different. One had a positive outlook on life while the other was negative about anything he encountered. At age 5 the parents took the boys to see a psychologist to try and understand how twins could be so different. After several sessions the psychologist tried to "cure" both boys. He placed the negative boy in a well-lit room full of candy, pastries, toys and anything else a 5 year old boy could ever want. The positive boy was placed in a dark room full of rancid horse manure.
After about 4 hours the psychologist told the parents he was certain the boys had been cured and they all went to check on them. Not having touched anything in the room, the negative boy was was still sitting where he was left crying and unhappy. Disappointed the psychologist led the parents toward the room where the positive boy was. As they approached the room, they heard a flop, flop, flop sound. They peered through the window in the door and saw horse manure on the walls and on the ceiling. The boy was in the midst of the manure digging as fast as he could. The parents opened the door and asked what he was doing? The boy replied, "With this much poop, I just know there must be a pony in this room and I'm going to find it!"
The increasing costs of transportation has affected all of our lives to one degree or another. Individually, there is nothing we can do about the price of fuel. But like the positive boy above is there something we can do to make the best of a bad situation? I will leave the conservation tips to those more qualified to speak on them.
For several years I have been trying to add an energy stock to my income portfolio. I have some value friends that bought Exxon Mobil (XOM) and Chevron (CVX) about three years ago. They have done well. CVX is up about 80% while XOM is up about 60%. From an income perspective, I couldn't make the numbers work then and the stocks have only become more expensive. Energy stocks can be emotional which leads to volatility.
From mid to late March energy stocks pulled back some. I ran my analysis on XOM and CVX, but still couldn't make the numbers work. On a whim I ran the analysis on BP, and to my surprise they worked. I purchased BP on April 2nd at $62.19/share. At the time of purchase it had a 5.17% yield.
Granted BP is not quite as blue-chip as XOM and CVX, but it gave me the entry into the energy sector that I was looking for at an astounding yield. Since that time BP share price has risen about 15-20% as oil prices have escalated and has out-performed both CVX and XOM. Granted, I got to the party late, but I was able to come on my own terms without having to compromise my standards.
What now? I am sure there is another pony in the rancid fuel crisis, and I am going to find it!
At the time of this writing, I owned shares of BP (1.6% of my income portfolio).
Related Articles:
_____________________________________________________________________
Last Saturday in my article "You Can't Beat the Herd by Following the Herd", I promised to share a MSN Stock Screen that helped me identify some exceptional stocks, and got me into some trouble.
The D4L High Yield Stocks is a screen that I have used in the past to find some real jewels Note: You will likely not be able to view this screen unless you are using Internet Explorer. Here are the criteria used in this screen:
As you can see this screen is geared toward finding stocks with a yield higher than its historical yield. In other words, a distressed stock. It is then our job dig deeper and understand why the stock is distressed and try to answer the tough questions.
Is this a temporary situation? Is the stock being unfairly penalized? Is the dividend at risk of being cut? If you can get to the right and desirable answers to these questions, then you have found a jewel in the rough. Some past jewels I have found with this screen include American Capital Strategies, Ltd. (ACAS), Commercial Net Lease Realty, Inc. (NNN) and Health Care Property Investors Inc. (HCP).
As indicated in the title to this article, this sword has two edges and can just as easily cut you if extreme caution is not exercised. It is easy to convince yourself that you are smarter than you actually are when things are going right. If you get sloppy or just make a bad decision stocks from this screen can go south very fast. Some of my past failures from this screen include Newcastle Investment Corp. (NCT), NovaStar Financial Inc. (NFI), and American Mortgage Acceptance Company (AMC).
Though the above failed purchases are long-gone, I look them each time I open my portfolio. As described in "How To Increase Your Portfolio's Return", keeping the sales/losses in my portfolio is a reality check for me and is really the only correct way of calculating a portfolios total return. You should have definite limits on the amount of risky stock in your portfolio. Greed and a downturn can hit you quickly. I learned my lesson the hard way, hopefully you won't have to.
It is important to note: This screen is NOT a buy list. It provides a list of stocks to evaluate further. It is not unusual for most, if not all, stocks on from this screen to be rejected for one reason or another.
At the time of this writing, I owned the following stocks ACAS, NNN and HCP.
Related Articles:
_____________________________________________________________________
After the market closed on May 22, 2008 Home Depot (HD) announced that its board of directors declared a first quarter cash dividend of 22.5 cents per share. The dividend is payable on June 19 to shareholders of record on the close of business on June 5.
This extends the string of flat dividends to seven dating back to the November 2006 dividend. Since 2004, HD has raised its dividend in the month of November (except November 2007). The flat dividend this quarter did not surprise me. I also expect the August 2008 dividend to remain flat at 22.5 cents. This is where it get interesting.
The way HD has timed their dividend increases, they showed a year-over-year (YOY) increase for calendar year 2007. Even after eight flat dividends, HD can still end up with a YOY increase from 2007 to 2008 with an increase in November 2008. Management knows this.
Though not as bad as a dividend cut, a flat dividend is a close second. From a perception standpoint, a YOY flat dividend will not bode well with the dividend investing contingent of HD's shareholders. HD's 3.34% yield is good, but not good enough for most dividend investors to swallow a flat YOY dividend. The 3.34% yield is misleading since a large portion of it came through HD's share price decline. For example, my yield-on-cost (annual dividend $/cost basis) is 2.49%, significantly lower than the current yield.
Beyond the broader problem of declining residential construction, HD continues to battle with customer service issues. Home Depot Chief Executive Frank Blake was grilled by several shareholders at the company's annual meeting about substandard customer service experiences in HD stores.
As noted in my "State of the Dividend Address", I currently have HD "On The Shelf". This means I am taking a wait and see approach and not adding to my position. If HD does not increase its dividend over the next two quarters, I will reevaluate to determine if it belongs in my dividend income portfolio.
At the time of this writing, I owned shares of HD (2.0% of my income portfolio).
Related Articles:
_____________________________________________________________________
Linked here is a PDF copy of my detailed analysis of PepsiCo, Inc. (PEP) (alt.1, alt.2). Below are some highlights from the above linked analysis:
Company Description: PepsiCo, Inc. (PEP) is a global snack and beverage company. The Company manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods.
Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1.) Avg. High Yield Price, 2.) 20-Year DCF Price, 3.) Avg. P/E Price and 4.) Graham Number. PEP is trading at a discount 1.) and 3.) above. If I exclude the high and low valuation, and average the remaining two valuations, PEP is trading at a slight premium (4.0%). A Star is added since PEP is trading at a fair value.
Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description: 1.) Rolling 4-yr Div. > 15%, 2.) Dividend Growth Rate, 3.) Years of Div. Growth, 4.) 1-Yr. > 5-Yr Growth and 5.) Payout 15% of avg. PEP earned one Star in this section for 3.) above. PEP has grown dividends for at least 10 years (20+ years).
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1.) NPV MMA Diff. and 2.) Years to >MMA. PEP earned no Stars in this section. PEP's NPV MMA Diff. is $5,403, which is below the $10,000 I generally look for. Assuming PEP can grow its dividend at 13% annually, it will take 10 years before dividend earnings exceed the earnings from a hypothetical similar investment in a money market account earning 4.61%.
Other: PEP is a member of the S&P 500, an Aristocrat and an Achiever. I believe PEP has excellent growth opportunities both domestically and abroad. I view PEP as the trend-setter and the industry standard for product innovation. Revenues should grow in 2008 driven my international growth.
Conclusion: PEP earned a Star in the Fair Value section, picked up one Star in the Dividend Analytical Data section and earned no Stars in the Dividend Income vs. MMA section for a net total of 2 Stars. This rates PEP as a 2-Star Weak stock.
The above quantitative analysis may not fully capture PEP's future prospects. Like a sleeping giant that awoke in 2004, PEP has made its presence known. Its average dividend growth from 2004-2007 was a powerful 23% compared to a meager 4.3% from 1998 to 2003. In 2007, PEP's Board raised the target payout from 45% to 50%, so I anticipate double digit dividend increases into the foreseeable future. I calculate 2008's increase to be 15% ($1.43/share to $1.65/share). PEP is a stock that I would add to my portfolio as my allocation and its valuation allows.
Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.
Full Disclosure: At the time of this writing, I do not owned shares of PEP (0.0% of my Income Portfolio).
What are your thoughts on PEP?
Recent Stock Analyses:
_____________________________________________________________________
Some say it is a fake; it is not genuine; it is not the real thing. Well, it may not be the Hope diamond, but it is certainly not cubic zirconium. The Hope diamond is old and dusty, and it may have seen its best days. The new guy is not the new kid on the block. He is a sleeping giant and is proving to be a formidable adversary. The question is not can blue take red, but can blue find a way in my dividend portfolio? Stay tuned...
You can't TiVo this story, or any of the others on the D4L Channel. There is only one way to ensure you don't miss a one of them, and that's by clicking here and claiming your free subscription. Thanks for watching the D4L Channel!
While waiting for this week's feature presentations, you may want to tune in to a few of these classic episodes:
_____________________________________________________________________
"You can't beat the herd by following the herd." If you have read this blog for any period of time you have likely seen me use the above statement.
As noted in "Fishing in the Bathtub", the S&P 500 Dividend Aristocrats and Mergent's Broad Dividend Achievers are two places I frequent when looking for potential dividend investments, as do most all dividend investors. But for my more risky higher-return dividend investments, I have to look elsewhere. One of these places is the MSN Stock Screener.
This allows me to define the minimum parameters that I am looking for and let the stock screener search the entire universe of available stocks for a match. I have found MSN Tools to be the most robust and capable on the Internet. Here are some of the items you can consider when running a MSN Stock Screen:
Company Basics: Includes Industry Name, Market Capitalization, Total Shares Outstanding, Number of Employees, Dow Jones Membership, S&P Index Membership, Exchange and State
Investment Return: Includes Return on Equity, Industry Average Return on Equity, Return on Invested Capital, Return on Assets, ROE: 5-Year Avg., ROI: 5-Year Avg. and ROA: 5-Year Avg.
Price Ratios: Includes Price/Book Value, Industry Average Price/Book Value, Revenue/Share, Book Value/Share, P/E Ratio: Current, +12 others
Mgmt. Efficiency: Includes Revenue Per Employee, Income Per Employee, Receivable Turnover, Inventory Turnover, +3 more
Financial Condition: Includes Debt To Equity Ratio, Current Ratio, Quick Ratio, Interest Coverage, +4 More
Dividends: Includes Latest Dividend Rate, Current Dividend Yield, Div. Yield: 5-Year Avg., +3 more
Trading & Volume: Includes Last Volume, Net Insider Transactions, 3-Month Relative Strength, +14 more
Growth Rates: Includes Annual EPS Growth Rate, 5-Year Dividend Growth, EPS Growth Year vs Year, +7 more
Stock Price History: Includes Previous Day's Closing Price, Last Price, % Change Today, +12 more
Profit Margins: Includes Net Profit Margin, Gross Margin, Pre-Tax Margin, +7 more
Current Financials: Includes 12-Month Revenue, 12-Month Income: Cont. Ops., Latest Fiscal EPS, +3 more
Analysts Projections: Includes Current QTR Earnings Est, Current Yr Earnings Est, Mean Recommendation, +7 more
Advisor FYI: Includes 59 events in which an Advisor is issued such as a Stock Split, Receivables Up, Inventory Turn Increased, etc.
StockScouter Rating: Includes Rating, Size, Sector, Rick Expectation, Return Expectation, +8 more
As you can see this is a powerful tool. Next week I will share with you a stock screen that helped me identify some exceptional stocks, and got me into some trouble.
Related Articles:
_____________________________________________________________________
Each Friday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al. Articles I enjoyed reading included (in no particular order): There are some really good articles there, please take time and read a few of them.
Below are the carnivals that I participated in this week, along with a link to my article:
Dividend Articles
The Wealth, Money & Life Network Featured Articles
Other Articles
_____________________________________________________________________
I am reminded of the old story about a farmer that said to his wife, "I told you 'I love you' when we got married and if anything changes, I'll let you know." Most of us require a little more frequent feedback than once-in-a-lifetime. The same is true with my dividend investments.
In the U.S. and Canada, most companies pay dividends quarterly. In other parts of the world, it is not uncommon for companies to pay an annual or a simi-annual dividend. Looking at some ADRs for non-U.S. companies Barclays PLC (BCS), ING Groep NV (ING), Toyota Motor Corp. (TM) all pay semi-annual dividends.
That is not to say that North American companies sometimes choose not to pay quarterly dividends. For many years McDonald's (MCD) paid an annual dividend. Since 2000, Walt Disney Co. (DIS) has paid an annual dividend and Ruby Tuesday, Inc. (RT) has paid a semi-annual dividend. Going in the other direction, there are some companies and ETFs that pay monthly dividends. These include Realty Income Corp (O) and Alpine Total Dynamic Dividend Fund (AOD).
Ironically, in a June 19, 2000 BusinessWeek article, Harry M.J. Kraemer Jr., chairman and chief executive of Baxter International Inc (BAX) stated he would be very surprised if a "majority of companies did not move to an annual dividend within four or five years". There has not been much movement in that direction. To the contrary, MCD has moved back to paying quarterly dividends. Around the year 2000, several other companies such as AT&T (T), Wal-Mart Stores Inc. (WMT), Coca Cola Co. (KO), 3M (MMM) and Home Depot (HD) considered moving to annual dividends, but ultimately rejected the change. So why would a company risk annoying its shareholders' and moving to an annual dividend?
Reasons For an Annual Dividend
Reasons Against an Annual Dividend
For me, quarterly dividends provide a perfect balance between to much administrative work (for me and the company) associated with monthly dividends and too little financial feedback from the company associated with annual dividends. How do you feel about annual dividends?
At the time of this writing, I owned shares of AOD, HD, MCD, O and WMT.
Related Articles:
_____________________________________________________________________
I am not a licensed professional and I don't know your specific situation, so I can't tell you how to invest. However, you can listen in on the advice I will give my kids when they go out on their own. Now go out and make your Dad proud! At the time of this writing, I owned shares of VFINX, SLASX and HOTFX.
Kids, there are no guarantees in life and what happened in the past probably will not happen the same way in the future. What I have presented to you above, has worked for me over the years. If you follow this advice, it will likely work for you going forward.
Related Articles:
_____________________________________________________________________
As a kid I loved math. Unlike classic literature where I had to correctly interpret symbolism that I rarely ever noticed, math was one of the few subjects that had a definitive answer - it was either right or wrong. I took great comfort in that. Dividend investing takes advantage of certain undeniable math principles. At the time of this writing I owned shares in RY, PAYX, MCD, SYY and AFL.
If you have examined one of my stock analyses, you may have noticed the metric "Rolling 4-yr Div. > 15%". This calculation determines if a company's dividends grew on average in excess of 15% for each consecutive 4-year period, within the last 10 years of history. For example, if on average dividends grew 15% or more for the periods 2005-2008 and 2004-2007 and 2003-2006 and so on to 1997-2000, then this test is true. The reason I like this metric is it identifies companies that consistently increase dividends. Another way of stating this is that if you held this company for any 4-year period over the last 10 years, you would have averaged a 15% dividend growth rate during the time you held the stock.
Contrast the above example with a company that grew its dividends at 1% per year for nine years, then sold some land in year 10 and paid a special dividend that resulted in a 140% year-over-year dividend increase. This company's average 10-year dividend growth rate is 15% [(140 + 9)/10]. Both companies would have a 15% 10-year average dividend growth rate. However, based on history the first company is more likely to raise its dividend by 15% in the future.
Ok, so why is 15% relevant? The power of 5/15, of coarse! Dividends will double every 5 years if they grow by 15% per year. Taking this undeniable math principle into consideration, it often makes sense to purchase a stock with a lower yield but with a higher growth rate. Here are few companies that I own that have the power of 5/15 working for them: Royal Bank of Canada (RY), Paychex Inc (PAYX), McDonald's (MCD), Sysco Corp (SYY) and AFLAC Inc (AFL).
Do you have the power of 5/15 working for you?
Related Articles:
_____________________________________________________________________
Linked here is a PDF copy of my detailed analysis of Sysco Corp (SYY) (alt.1, alt.2). Below are some highlights from the above linked analysis:
Company Description: SYSCO Corporation, through its subsidiaries, engages in the marketing and distribution of a range of food and related products primarily for foodservice industry in the United States and Canada.
Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1.) Avg. High Yield Price, 2.) 20-Year DCF Price, 3.) Avg. P/E Price and 4.) Graham Number. SYY is trading at a discount 1.) and 3.) above. If I exclude the high and low valuation, and average the remaining two valuations, SYY is trading at a slight premium (2.1%). A Star is added since SYY is trading at a fair value.
Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description: 1.) Rolling 4-yr Div. > 15%, 2.) Dividend Growth Rate, 3.) Years of Div. Growth, 4.) 1-Yr. > 5-Yr Growth and 5.) Payout 15% of avg. SYY earned all available Stars in this section. SYY's rolling 4-yr dividend growth averaged over 15%, it has grown dividends for at least 10 years (20+ years) and its 1-year growth rate is greater than its 5-year growth rate.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1.) NPV MMA Diff. and 2.) Years to >MMA. SYY earned one Star in this section. SYY's NPV MMA Diff. is $18,568, which is in excess of the $10,000 I look for.
Other: SYY is a member of the S&P 500, is not an Aristocrat, but is an Achiever. SYY is the largest U.S. marketer and distributor of foodservice products. It should continue to grow internally and via acquisitions. Even amidst of the difficult consumer discretionary environment, it is believed that SYY is gaining market share.
Conclusion: SYY earned a Star in the Fair Value section, picked up four Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a net total of six Stars. However, my scale tops out at five Stars, which rates SYY as a 5-Star BUY.
SYY is a good, stable performer. Over the last 10 years it has averaged 18.1% dividend growth, with double-digit growth in every year except 2001, when it grew at only 4.5%. I will continue to add to my position as my allocation and SYY's valuation allows.
Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.
Full Disclosure: At the time of this writing, I owned shares of SYY (2.7% of my Income Portfolio).
What are your thoughts on SYY?
Recent Stock Analyses:
_____________________________________________________________________
With approximately 50,000 employees and 400,000 customers they are big. The biggest in North America. They have one mission that is to satisfy one of our basic needs, and they are very good at what they do. But are they good enough to win a spot in my dividend portfolio?
It's been an exciting week! Next week is going to be another exciting one. Don't risk missing a minute of it. You can have it all packaged and delivered directly to you free by clicking here and subscribing to the D4L Channel.
While waiting for this week's feature presentations, you may want to tune in to a few of these classic episodes:
_____________________________________________________________________
Jeremy James Siegel, known as Wizard of Wharton, was born on November 14, 1945 in Chicago, IL. He has undergraduate degrees in Mathematics and Economics from Columbia University, and has a Ph.D from MIT. Currently Mr. Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of Business at the University of Pennsylvania. Considered an expert on the economy and financial markets, he frequently appears on CNN, CNBC, NPR and is a regular columnist for Kiplinger's. With WisdomTree, Mr. Siegel will now have the opportunity to put in practice what he has been teaching, while the whole world watches. I've added DTN to my watch list.
For many, he may be better known for what was said about him by a very influential person. In a Q&A session at the 2006 Berkshire Hathaway annual meeting, Charlie Munger, Berkshire's Vice Chairman was asked to comment on Siegel's theories. Munger replied, "I think Jeremy Siegel is demented." Warren Buffett, clearly a little embarrassed, added "Well he’s a very nice guy." Munger continued, "He may well be a very nice guy, but he’s comparing apples to elephants in trying to make accurate projections about the future."
More recently, Mr. Siegel has worked as a consultant and board member at WisdomTree, a money management firm specializing in exchange-traded funds (ETFs). In his book, The Future for Investors, Mr. Siegel points out that the 100 highest-yielding stocks of the S&P 500 outperformed the broader index by more than three percentage points annually from 1957 to 2003. Leveraging his research, The WisdomTree Dividend Top 100 Fund (DTN) consist of the 100 highest-yielding members of the 300 largest companies by market cap in WisdomTree's Dividend Index. Unlike conventional indexes that are weighted by market cap, the WisdomTree fund is weighted by yield. The theory here is that market cap weighting will cause the fund to buy high and sell low, while weighting by yield will do just the opposite since as the yield rises the share price drops.
Related Articles:
_____________________________________________________________________
With all the other investment strategies out there, why should investors consider dividend or income investing? Based on articles that I have previously written, presented here are seven important reasons for dividend investing:
Maybe I am just biased but, I firmly believe that dividend stocks and ETFs should have a spot in everyone's portfolio.
Related Articles:
_____________________________________________________________________
My kids are now 13 and 11, and Disney is no longer cool. What a shame. I miss the movies like Toy Story and the quips aimed at the adults. One of my favorites was Buzz Lightyear’s line “To Infinity and Beyond!” My kids were toddlers when we first watched Toy Story and they had no clue what that line meant and the impossibility of achieving it. Experiment with the above and I am sure you will find ways to curb those desires for daily portfolio monitoring and management. If you'll excuse me, I need to go for a run so I'll quit thinking about that pizza in the fridge.
Have you ever pondered the concept of forever or infinity? It is truly mind boggling! What is even more astonishing is that when I buy a stock, my target holding period is forever. For most people, myself included, that is hard to grasp and to carry out. When things start going bad, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying.
How do you lose weight? Exercise and eat less. If it were that easy everyone would do it. In the same manner, the experts will tell you, don't watch your long-term portfolio every day. Again, if it were that easy everyone would do it. So what's person to do. Counter-balance the urge to watch and manage your portfolio on a daily basis. In my life I have found the following two techniques to be quite effective:
Related Articles: 
MoneyExchange is like PayPal, but FREE of fees. Free to signup, send money, receive money, transfer money to and from your bank account. Use this link to signup today up and get a FREE $25.
_____________________________________________________________________
Each Friday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. However, this week I have moved it to Wednesday since I will be out of pocket for the next few days. I do have articles scheduled to post while I am out, so hopefully Dividends4Life won't miss a beat. Next week, the Weekly Carnival and Article Review will move back to its normal Friday slot. Articles I enjoyed reading included (in no particular order): Dividend Articles
For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al.
Below are the carnivals that I participated in this week, along with a link to my article:
The Wealth, Money & Life Network Featured Articles
Other Articles
There are some really good articles there, please take time and read a few of them.