A recent article by SA contributor Mr. Nelson Smith caught our attention and perhaps the attention of a lot of Dividend Growth Investors [DGI] on Seeking Alpha. The comments section in that article is an evidence of it. Mr. Smith's main argument is that investors might be over paying for dividend growth giants like Coca-Cola (KO), McDonald's (MCD), Johnson & Johnson (JNJ) and that dividend growth investors should look beyond these well known names. Sure, there is nothing wrong with diversification but why would so many investors stick with these companies through good times and bad? We present a few reasons below, with all due respect to Mr. Smith and his article. Let us get into the details.
Portfolio Volatility: One of the main reasons dividend growth investors tend to stick with a few well known companies is the steadiness that these companies offer. Sure, one can always look back at periods like 2009 and say no company is safe. But you need to have your money invested somewhere (unless you want to play the riskier game of timing the market each time). Reliability: Hang on a minute before you dismiss this as being the same as the last point about volatility. This reliability factor is about these companies and their dividend growth streaks. Staples: Mr. Smith also pointed that Staples like Coke, McDonald's and Altria (MO) are heavily favored by dividend growth investors. Diversification: Who says there cannot be a diversified portfolio of dividend growth stocks? Dangers of High Yield: Buying the highest yielding stock might look like a no brainer.
Source: Seeking Alpha
Related Articles:
- International Diversification May Be Closer than You Think
- 10 Dividend Stocks With A 10% Yield In 10 Years
- Free Cash Flow Payout vs. Dividend Payout
- 9 Dividend Stocks Trading at a Double-Digit Discount
- 6 High-Dividend, Low P/E Value Stocks
Dividend Growth Investors Are Perhaps Doing It All Right
Posted by D4L | Monday, December 30, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.