High-yield investing is popular especially in times of low interest rates. A big problem with this strategy is that high-yield stocks often have strange valuations and it is hard to get real bargains. One way to find bargains is to scout for stocks with a market capitalizations below book value. This means if you purchase a part of the company for a dollar, you get more than one dollar in company’s equity. Investors who use this strategy should take a closer look at the accounted values of the company in order to identify asset bubbles. With this thesis in mind, let’s look at the S&P 500 index.
I screened the S&P 500 by stocks with a dividend yield of more than 5%. In addition to the high dividend yield, the market capitalization should be less than the accounted book value of the company. Here are the results sorted by dividend yield:
1. CenturyLink (CTL)
2. Cincinnati Financial (CINF)
3. Hudson City Bancorp (HCBK)
4. People's United Financial (PBCT)
5. Ameren Corporation (AEE) i
Source: Guru Focus
Related Articles:
- Has The Insurance Industry Finally Turned The Corner?
- Are REITs and Utilities Good Dividend Investments?
- Market Timing vs. Buy And Hold
- Should You Still Buy-And-Hold Stocks?
- Bonds: The Next Bubble to Burst?
________________________________________________________________
As a dividend investor, it pays to follow how much of a company's money goes toward funding its dividend. A nice yield now won't matter much if the company can't keep making those payments going forward. Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools.
With an interest coverage of 29.5, Yamana Gold covers every $1 in interest expenses with almost $30 in operating earnings. Given that its EPS payout ratio and FCF payout ratio are below 50%, you shouldn't have to worry that Yamana Gold will need to cut its dividend anytime soon. Most investors don't keep tabs on their companies. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early.
Source: Motley Fool
Related Articles:
- How Much Money Will You Need For Retirement?
- Finding Dividend Stock Gems In An Overbought Market
- Dividend Stocks Are My Conviction
- The Dividend Freeze
- Seeding A Forest Of Dividend Stocks
________________________________________________________________
Last week Abbott Laboratories (ABT) announced that it plans to separate into two publicly traded companies around the end of 2012. One, retaining the Abbott name, will focus on diversified medical products. The other, “New Pharmaceutical Company,” will focus on research-based drugs. Both companies will be global leaders in their respective industries on the day they begin. As a dividend growth investor with a large position in Abbott, my first reaction was, “Rats!”
Abbott has been a dividend-growth stalwart since I have been following the strategy. The company has offered terrific dividend characteristics, yet it seemed to be perpetually undervalued, thus always being prominent as a potential purchase candidate. In public and private portfolios, I have made 10 separate purchases of Abbott since 2008 and never sold a share. This is a classically beautiful dividend-growth stock. But dividend-growth investing is buy-and-monitor, and you can’t ignore a strategic left-turn like this when it apears on your radar screen.
Source: Seeking Alpha
Related Articles:
- Never Confuse Desires With Goals
- Retirement Planning With A Defined-Benefit Pension
- 12 Dividend Stocks With A 5-Star Strong Buy Rating
- Optimizing Your Asset Allocation
- Four Stocks With Strong Dividend Growth Metrics
________________________________________________________________
The phrase of the moment is that the dividend trade is becoming ‘too crowded.’ To which I say, “who cares?” This is one time when it does pay to go with the crowd. Other times to follow the crowd are when low P/E stocks are in vogue, or when too many savvy investors start buying after a big decline or a decade of flat or lousy stock returns. The reason these are all smart investing moves is that no matter how many people may fret that they are crowded trades you are buying quality at a discount. By focusing on dividends you are largely looking at the universe of lower P/E and value stocks and ignoring dangerous high-multiple growth stocks, plus you are getting an immediate return on your investment.
Investors are more likely to hold onto a stock when they know that a stable or rising dividend is going to be paid every few months and they see either the cash flow or additional shares of the security (if they dividend reinvest) in their accounts. While most Americans are used to quarterly dividends, many overseas countries pay their dividends only semi-annually which makes holding them harder. A growing trend in the U.S. is to pay monthly dividends, a trend that we owe to our Canadian neighbors who have many income-related securities and remnants of royalty trusts that pay monthly.
Source: Market News Video
Related Articles:
- Warren Buffett's Dividend Stocks
- Are Defense Stocks Good Defensive Stocks?
- All Investing Involves Risk
- Is Now The Right Time To Start Investing?
- News of the U.S.'s Demise May Be Premature
________________________________________________________________
While some investors are ready to pull out there hair due to the antics of the market others are leaning back in their seats with a big smile. That’s because the latter investors have put their capital and faith in firms that are not only paying them dividends to take on market risk but also performing well in a choppy economy by maximizing their asset base. This may sound too simple for some but there is a reason the old adage “keep it simple” is still being used in today’s complex world and the proof is in the pudding.
Return on Assets (ROA) is a profitability ratio that lets investors know exactly how much earnings are being generated solely off of a firm’s asset base. In addition, it helps investors judge management’s effectiveness relative to maximizing a firm’s assets. Remember, any management team can make some level of return by throwing money at a situation but only a few can make large returns on small investments.
Source: Seeking Alpha
Related Articles:
- Buy-And-Hold Under Attack
- A Two Step Process To Follow After A Dividend Freeze
- Who is Irving Kahn and Why Should We Listen to Him?
- International Income Investing
- Nucor Corp. (NUE): Forging A Different Path
________________________________________________________________
If you are looking for something with similar (but not identical) risk, you've basically got two choices. First, you can shop harder for the best CD offers. Some institutions will offer higher-than-average yields when they need new money to fund a particular investment. You can do that shopping on websites such as www.bankrate.com.
The easiest, relatively low-risk way to do this is to buy shares of an exchange-traded fund that specializes in quality dividend stocks. The SPDR S&P Dividend ETF (ticker: SDY), for instance, has a current yield of 3.38 percent and an expense ratio of 0.35 percent. It invests in an index of the 60 highest-dividend-yield stocks in the S&P 1500 index that have increased their dividends every year for at least 25 years.
Source: My San Antonio
Related Articles:
- The Dividend Stock Life Cycle
- Stock Analysis: Lowe's Companies, Inc. (LOW)
- Dividend Stocks: The Good, The Bad and The Ugly
- Dividend Stocks Role In The Future Recovery
- Refining Risk Measurement Of Dividend Stocks
________________________________________________________________
The protesters occupying Wall Street and locations in many other cities have strong cases to make against the privileged people in power. It's easy to find fault with the rich and wealthy institutions, and in many ways it's reasonable to feel that the deck is stacked against us. But sometimes we individuals can do better than the rich. The folks at Morningstar recently offered evidence of that, via a study of real estate investment trusts.
In a study commissioned by NAREIT that looked at 20 years of data, Morningstar found that publicly traded stock REITs performed considerably better than private equity real estate funds. They also tend to sport lower fees and use less leverage. Other studies find all kinds of fancy investments to be delivering underwhelming performances. A 2008 report from the Maryland Tax Education Foundation found that "leveraged buyout funds and venture capital funds provide less investment return than a portfolio of public stocks duplicating the S&P 500 index."
Source: Motley Fool
Related Articles:
- Financial Crisis: Can You Spare A Dime For My Wealthy Friend?
- Ten Dividend Stocks With 50+ Years of Consecutive Increases
- Wells Fargo: Things May Not Be Well at Wells
- The Best Dividend Stocks In The World
- Do As I Say, Not As I Do
________________________________________________________________
This monthly series lists companies whose latest dividend increases might be considered “overdue” because it has been more than a year since the previous increase, a possible sign that their streaks of increases are in danger. Some firms regularly go more than a year between increases, so this is only an “early warning” sign that some of them may warrant concern.
As we near year-end, some of the listing will act as a dividend streak “death watch,” since it will include companies that will be deleted if they fail to announce an increase in 2011. This month, I'm again breaking the listing into two groups, which I've labeled “Red Flag” and “Yellow Flag.” The first are companies that face deletion if they do not increased their dividend this year, since their 2011 total dividends paid will equal the amount paid in 2010. The second group last increased their dividend late enough in 2010 to ensure that this year's payout will be higher (barring an actual decrease).
Source: Seeking Alpha
Related Articles:
- Managing The Risk Of A Dividend Cut With Allocations
- American Safari: Stalking Three Great Dividend Stocks
- Five Stocks For Any Economic Situation
- Dividend Investing vs. S&P Index Fund
- Five Dividend Stocks To Watch
________________________________________________________________
GE continues to make progress in fixing up GE Capital and restoring it to a positive contributor to the corporation. The company has continued to pare down the balance sheet at GE Capital. While provisions ticked up a bit, it does not seem so long now, before GE Capital can contribute meaningful dividends back to the company again.
Even in resetting expectations for lower margins, GE stock still looks relatively attractive. It pays a decent dividend and is cheaper, on a cash flow basis, than a simple look at the P/E or EV/EBITDA ratios would suggest. General Electric is not going to make anyone rich quickly, but patient investors can still play an attractive turnaround story that should gradually morph into a solid dividend growth name.
Read more: http://stocks.investopedia.com/stock-analysis/2011/GE-Still-On-A-Road-To-Recovery-GE-BRK-A-SI-EMR-DHR-DOV-HON-SPW-PHG1026.aspx?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+stockinvesting+%28Investopedia%3A+Headlines%29#ixzz1c4pUB400
Source: Investopedia
Related Articles:
- Six Great Dividend Stocks, But...
- Focus On Stocks, Not The Market
- 7 Investor Traits to Achieve Success
- Dividend Stocks Secret Ingredient
- Five Dividend Stocks With Different Reasons Not To Buy
________________________________________________________________
Every working day of our lives we get questions. Questions about the stock and bond markets. Questions about how natural disasters, politics, or economic and business crises will play out in the market place. In this weekly blog we try to keep our comments narrowly focused on our dividend investment strategy. As we were composing our most recent quarterly letter we admitted to our readers that at times we sound like a one trick pony: our solution for every challenge and every opportunity is always -- buy and hold quality rising dividend stocks. In the long run we know that will work.
Yet the matters we discuss and decide at our weekly investment policy meetings cover the waterfront of issues. In this regard, heaven help us, we are like politicians because we have to have a basic understanding and a few talking points on just about everything that is going on in the world. It is our plan to periodically offer an update to what we are calling 12 Random Ramblings from the Investment Policy Committee. 1. Stocks are undervalued by about 25%. Energy, Industrial, and Consumer Cyclical stocks are very cheap.
Source: Rising Dividend Investing
Related Articles:
- Does This Market Have A Bottom?
- Is The Financial Crisis Getting the Best of Warren Buffett?
- Stock Screen For Improving Dividends
- Measuring Dividend Stocks Investment Risk Profile
- Searching the World For The Best Dividend Stocks
________________________________________________________________
Analyst ratings are a great guide to what the market is thinking about a company's outlook, but finding groups of analysts that have a history of predicting stock performance is even better. When those analysts become more optimistic about a company, it's a signal to take a second look.
Although past performance is no guarantee of future results, the recent accuracy of these analyst ratings suggests their opinions may be a helpful starting point for your own analysis. Do you think these analysts will continue to accurately predict these stocks' movements? List sorted by dividend yield. (Click here to access free, interactive tools to analyze these ideas.)
1. Arcelor Mittal (NYSE: MT)
2. KLA-Tencor (Nasdaq: KLAC)
3. Carnival (NYSE: CCL)
4. PPG Industries (NYSE: PPG)
5. Eastman Chemical (NYSE: EMN)
Source: Motley Fool
Related Articles:
- How Is Your Portfolio Doing This Year?
- Dividend Stocks in Today's Market
- What To Do With A Dividend Freeze?
- Don't Fall Into A Dividend Trap
- Change, the Only Constant
________________________________________________________________
Usually, dividend stocks are a safe-haven for investors going into recessions, and a number of commentators thank recession is exactly where we're going. And even when it's not a recession, as Jeremy Siegel said in his The Future for Investors, "Dividends matter a lot. Reinvesting dividends is the critical factor giving the edge to most winning stocks in the long run."
All of a sudden, the picture becomes much clearer. Though they still have high PEG ratios, Nokia and Frontier are clearly dividend contenders. WWE and Otter Tail, on the other hand, look more like pretenders than anything else given their high FCF payout ratios. And Altria (which had an enormous change in settlement-related liabilities during the second quarter), as well as New Zealand Telecom and Teekay Tankers, exist somewhere in between the two groups for now.
Source: Motley Fool
Related Articles:
- Dividend Stocks: Confident and Secure
- Will ETFs Be The End Of Traditional Mutual Funds?
- Low-Debt Dividend Stocks
- Who is Raul Alvarez and Why Should We Listen to Him?
- Early Warning Signs of a Dividend Cut
________________________________________________________________
Dividends are front-and-center again this week, grabbing the spotlight as earnings releases flood Wall Street. The slew of new dividend data that accompanies earnings is significant, particularly now. That's because uncertainty remains incredibly high in the market right now; coupled with a record low-rate environment, investors are clamoring for a share of corporations' record cash reserves right now. Dividends do that. And the Wall Street consensus is that they'll continue to do so for the foreseeable future.
With few low-risk ways to deploy cash right now, companies are opting to return it to shareholders through dividends and distributions rather than invest it in risks assets. As a result, investors are expecting Dow component stocks to have hiked their year-to-date payouts by almost 12% after earnings season is completed.
Source: The Street
Related Articles:
- 7 High-Yield Dividend Achievers With 25 Years of Increases
- Never Look a Gift Dividend in the Mouth
- 7 Stocks Priced For Buying
- The Next Great Company
- Inverted Yield On Cost Curve
________________________________________________________________
In the Guide to Dividend Investing, we dedicate a whole chapter to the benefits of pound-cost averaging. In general, I believe averaging-down is an important tool when building up a share portfolio if (regular) cash is available. Let’s say you’ve decided to invest in a specific company. Rather than purchasing the shares at any one time using the entire amount, you decide to regularly purchase shares on a certain day, each month, for a number of months.
You may ask yourself what the benefit is of such a strategy. For one, it very much removes much of the emotion from the whole investing process. Once set up, it happens automatically. Remember human nature is often the worst enemy when investing. Over any period of time a company’s share price is likely to vary substantially. Suppose you set up your own monthly purchasing program. You will buy fewer shares when the share price is high, but when the share price is lower, you will buy more shares.
Source: Stockopedia
Related Articles:
- 15 Dividend Stocks Trading Below Their Calculated Fair Value
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- 11 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 4 Secrets To Finding The Best Dividend Stocks
________________________________________________________________
Billionaire investor Nicolas Berggruen is worried about global economic turmoil just like the rest of us. But that’s not stopping him from buying undervalued stocks, including those that pay dividends. Europe’s debt crisis and slowing economic growth worldwide are obviously having an impact on financial markets. “I’m not optimistic in the short term,” Berggruen tells The New York Times.
“I just think that if some businesses are going to survive, it’s worth investing now as long as it’s a real business, and as long as you don’t have to sell the stock to make a mortgage payment or eat next week.” And Berggruen likes dividend stocks — “something I’d recommend to my mother.” In particular, he cites Nestlé and Anheuser-Busch InBev, “If I had to put all of my money away and come back in five years, this is what I would do,” Berggruen says.
Source: newsmax.com
Related Articles:
- What Would Warren Buffett Do?
- Should You Sell A Dividend Stock After A Dividend Cut?
- How To Be a Better Investor During These Difficult Times
- Seize The Opportunity: Four Value Priced Stocks
- October Has The Bad Reputation, But September Has The Resume
________________________________________________________________
Q: Why don't companies pay out all their profits to shareholders? It belongs to them after all.
A: When you own stock in a company, you own part of that company. When the company earns money, part of that profit is supposed to belong to you, the investors. But you're right. Investors usually get back just a fraction of the money companies make in a form of dividends, or periodic cash payments made from the company's coffers. And some highly profitable companies, like Apple (AAPL), don't pay a dividend at all. Why is this happening?
You see that currently, companies are paying 7.6 cents for every $1 in stock price, or an earnings yield of 7.6%. Meanwhile, the S&P 500 is paying much less than that to investors. Stocks have a dividend yield of just 2%, which is the percentage of cash paid back to shareholders. There are several reasons. First of all, companies are not required to pay profits back to investors. They may, and do, retain earnings. Part of that is prudent. After all, just a few years ago, companies found themselves unable to borrow and even giant companies like General Electric (GE) had to borrow money from investors at less-than-flattering terms.
Source: USA Today
Related Articles:
- 12 Industrial Strength Dividend Stocks
- 10 Financial Services Dividend Stocks To Boost Your Yield
- Building Yield: 15 Consumer Goods Dividend Stocks
- 10 Higher Yield Dividend Stocks
- Who Owns The Top Dividend Stocks?
________________________________________________________________
This past weekend, a column in Barron’s quoted a research note by Alliance Bernstein’s chief market strategist, Vadim Zlotnikov, which asserted that dividend-paying stocks had become the “most crowded trade in the world.” The research report, available here, doesn’t say that the high-dividend universe is necessarily a sell. Instead, it recommends periodic rebalancing into less crowded trades such as higher-beta, cyclical stocks.
It’s difficult to argue with that kind of measured, contrarian thinking. Rebalancing from outperformers to laggards is a wiser move from a longer-term standpoint. However, it seems unlikely that high-beta names will start outperforming their high-dividend counterparts anytime soon. In short, as long as the “relative yield” trade remains in vogue, so should dividend-paying stocks. The event that would bring a reversal of this trend would be a sudden upside surprise in the global economy, which would drive Treasury yields substantially higher and fuel an extended “risk-on” trade. It’s difficult to envision this type of sea change occurring in the immediate future, even if Europe’s policymakers manage to make meaningful progress in containing the debt crisis.
Source: InvestorPlace
Related Articles:
- Who Owns The Top Dividend Stocks?
- Top 10 Articles For 2010
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
________________________________________________________________
Over the last three months, the S&P 500 has fallen roughly 9.6%, yet some stocks have managed to buck the trend and move higher. We wanted to analyze these stocks by running DuPont analysis on their sources of profitability, as measured by return on equity. Analyzing the sources of returns for a company, we can focus on companies with the following characteristics:
Increasing ROE along with, Decreasing leverage, i.e. decreasing Asset/Equity ratio and Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio). Companies passing all requirements are thus experiencing increasing profits due to operations and not to increased use of leverage.
Source: Seeking Alpha
Related Articles:
- There's Gold In Them Thar Dividend Stocks
- 6 Tech Stocks With A History of Growing Their Dividends
- Buy And Hold Is Not Buy And Forget
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 9 Dividend Stocks With A Low P/B Ratio
________________________________________________________________
If you can separate the individual companies and their performance from the overall economy, there are plenty of good opportunities for long-term investors, regardless of the near-term market fluctuations. But how can you find quality companies?
Luckily, Goldman Sachs' equity strategy team, led by David Kostin, has devised a "High Quality Stock Basket" which he recommends his clients buy into. He argues that the basket of 50 stocks ranks highly when it comes to balance sheets, sales growth stability, earnings growth reliability, and ROE. Furthermore, these names do not often experience high short-term sell-offs. They majority of the stocks also have "high dividend yields, significant foreign sales, and premium valuations."
Source: Motley Fool
Related Articles:
- 13 Dividend Stocks and 3 ETFs To Balance Your Asset Allocation
- 17 Stocks With Room To Grow Their Dividend
- We Were Dividends, Before Dividends Were Cool
- 12 Dividend Stocks Delivering The Secret To Success
- 12 Dividend Stocks For A Rainy Day
________________________________________________________________
In a world of low interest rates, many investors face a huge challenge producing enough income to survive on. Those who used to rely on bonds and bank CDs now find that those products no longer give them the returns they did several years ago. As a result, dividend stocks have become a popular income-producing alternative.
But few would deny that investing in stocks is a risky proposition. Especially if you're a conservative investor and aren't accustomed to the risks involved in stocks, you want at least some assurance that the companies you invest in are going to treat you right. That's why I set out in search of some stocks that give you an edge -- and while they aren't crash-proof, they will give you something many stocks don't: a friend in your corner.
Source: Related Articles:
- 9 High-Yield Managed Distribution Policy Funds
- The Elite Dividend Stocks List
- Dividend Stocks Poised To Beat Inflation
- Is It Time To Sell Long-Bonds?
- Stocks That Pay Monthly Dividends
________________________________________________________________
A couple of months ago, I wrote a column about the Dow's two best dividend-paying stocks. It was so popular that I decided to expand the list to 10 and apply it to the S&P 500. In the present column, I've accordingly selected and ranked what are arguably the S&P's 10 best dividend-paying stocks.
Frontier Communications (NYSE: FTR) 12.61%
CenturyLink (NYSE: CTL) 8.42%
Windstream (Nasdaq: WIN) 8.34%
Pitney Bowes (NYSE: PBI) 7.37%
R.R. Donnelley & Sons (Nasdaq: RRD) 6.76%
Cincinnati Financial 6.17%
Health Care REIT (NYSE: HCN) 6.01%
Altria Group (NYSE: MO) 5.94%
AT&T 5.89%
Pepco Holdings 5.62%
Source: CNBC
Related Articles:
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 5 Dividend Stocks In Need Of A Market Correction
- My Top And Bottom Performing Dividend Growth Stocks
- How To Build A Sustainable High Yield Portfolio
- 10 Stocks That Have Paid Dividends Since The 1800s
________________________________________________________________
We like high-dividend stocks because they tend to outperform the market when everything else is going down. In addition, we consider high-dividend stocks as alternatives to 10-year Treasury bonds in this current low-interest environment. We believe the recent downturn in the stock market has given defensive investors a great opportunity to add such high-yielding stocks in their portfolios.
We provide a list of 15 mega-cap U.S stocks with high dividend yields and low price-to-book ratios. The market data are sourced from Fidelity. All companies in this list have market capitalizations above $10 billion, an annualized dividend yield of at least 3%, a current P/E ratio lower than 15 and a price-to-book ratio of less than 1.5. Since the beginning of this year, these stocks returned -5.16 % vs. -3.52 % for the SPY.
Source: The Street
Related Articles:
- When To Sell A Dividend Stock
- My Top 6 Performing Dividend Stocks Just Might Surprise You
- 10 Stocks With Sustainable Dividend Growth
- Income Annuities vs. Dividend Stocks
- 10 Dividend Stocks Delivering A Quick Payback
________________________________________________________________
The market's been tottering for weeks now, caught between the ongoing euro malaise and lackluster growth and unemployment numbers in the United States. But some of the best companies around are still generating substantial wealth for investors and they're too discounted to let go. It's been long demonstrated that value stocks outperform over time. The career of superinvestor Warren Buffett and other investors from the Graham school should prove as much.
Part of Buffett's success is also due to his unwillingness to sell dominant companies that are consistently profitable and that spin cash back to him in the form of dividends. If you want to follow in his footsteps, it means holding onto strong businesses even in the face of stock market weakness and not letting the media fearmongers scare you out of your positions when the market's down.
Source: Motley Fool
Related Articles:
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
- 11 Low Beta, High Quality Dividend Stocks
- Five Dividend Stocks To Buy On A Dip
________________________________________________________________
As income investors, we can get caught up in yields almost to a fault. But there is something else you should be studying that could make just as big a difference to your long-term returns: dividend growth. Dividend growth can make even lower-yielding stocks into big income producers over time. Take a look below at the income streams from a stock yielding 7% but not growing dividends, versus a 5% yielder that hikes payments an average of 10% a year in seven years.
In just five years, that 5% yield would actually be worth more than the 7% yield. And just two years later, your income stream would grow to be 27% more than the stock yielding 7%. Keep in mind, this doesn't take into account rising share prices. Buying stocks that increase dividends allows you to take advantage of one of the most powerful tools in the investors' arsenal -- the wealth-building effect of compounding. And consistent dividend growth is like jet fuel for the compounding engine.
Source: The Street
Related Articles:
- The Secret To Finding The Best Dividend Stocks
- 20 Dividend Stocks With A 20% Yield In 20 Years
- Seven Dividend Stocks Trading Below Fair Value
- How To Buy Dividend Stocks At The Bottom
- Four Dividend Stocks Stepping Up In The Downturn
________________________________________________________________
Dividend stocks are a portfolio anchor in turbulent investing times, as 2011 has surely been. These stocks provide steady income returns, many at rates much higher than Treasury bonds, with the added bonuses of capital appreciation potential and the ability to raise their dividend payments over the years.
Joel Greenblatt's Magic Formula Investing strategy can be used to target attractive dividend stocks. It simply ranks the entire stock universe by two simple metrics: earnings yield to find companies selling at low multiples to their profits, and return on capital to find companies that earn those profits efficiently. The resulting list of stocks are high quality and selling cheaply in the market. Who can argue against buying those characteristics?
Source: The Street
Related Articles:
- 10 Dividend Stocks With Above Target Returns
- 5 Dividend Stocks Trading Below Fair Value
- 8 Dividend Stocks Covering Their Dividend
- 7 Low-Debt High-Rated Dividend Stocks
- 3 Styles Of Sucessful Dividend Investing
- 9 Small/Mid-Cap Dividend Stocks Answering The Call
________________________________________________________________
The furious search for an income stream in this low-rate environment is leading retirees down an uncertain path. For most of this year, advisers have been talking up blue chip dividend-paying stocks as a substitute for CDs, annuities and bonds. Many of their clients have taken the advise, and so far it’s not working out all that well. On the surface, swapping low-yield fixed income products for big-company stock dividends seems like a wise move.
Yet stocks and bonds are on opposite ends of the risk spectrum. You have to ask: Is the extra yield worth the wrenching ups and downs of the stock market? Be careful. Your answer today might not be your answer tomorrow. In the real world, retirees with no ability to replenish their assets have a difficult time accepting any hit to their principal even if it may prove fleeting and the dividends keep rolling in.
Source: Time Moneyland
Related Articles:
- 7 Dividend Stocks To Take The Emotion Out Of Investing
- A Winning Investment Strategy
- 7 Dividend Stocks To Slay The Wall Street Giants
- Dividend Stocks: A Disciplined Approach
- 3 High-Yield Telecom Dividend Stocks
________________________________________________________________
The start of earnings season this week is typically a major positive for dividend investors. That's because companies tend to group their dividend announcements around their earnings releases. It's a logical combination; after all, those earnings are supposed to be paying for those dividend checks. A good quarter for dividends hikes will help bolster investor confidence at a fairly crucial time.
Of course, it's worth noting that dividends and capital gains aren't mutually exclusive. Over the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to data compiled by Ned Davis Research. The numbers are even more compelling when looking at companies that consistently increase their payouts.
Source: The Street
Related Articles:
- 8 Dividend Stocks With The Right Stuff
- International Diversification Begins At Home
- Dividend Payout vs. Free Cash Flow Payout
- High-Yield Dividend Stocks: A Safer Approach
- 10 Best U.S. Dividend Stocks
________________________________________________________________
Dividend investing is one of the oldest and most popular strategies amongst retail and institutional equity investors on Wall Street. Legends like Warren Buffet and Benjamin Graham are well known advocates of this value investing approach, and their success in the financial markets speaks volumes about this timeless strategy. Research conducted by Standard & Poor’s revealed that dividend components were responsible for 44% of the total return in the last 80 years of the S&P 500′s history.
The ETF boom of the last several years has provided investors with options for accessing new asset classes and pursuing various investment strategies previously inaccessible to smaller retail investors. There are dozens of funds available that offer exposure to dividend paying companies, including both explicit dividend-weighted products and others that focus on sectors that have a tendency to make hefty payouts. Many of the popular dividend ETFs are linked to indexes that consider cash distributions paid in the process of selecting benchmark components and assigning weightings. This strategy may appeal to investors who wish to stray away from traditional cap-weighted products, while also focusing on securities that make meaningful cash payouts.
Source: ETFdb
Related Articles:
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
- 6 Dividend Stocks That Will Make You Smile
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
________________________________________________________________
Right now, the Fed Funds Rate is targeted at between 0% and 0.25%. For savers, this means dismal yields on their cash products. Whether you are looking at online savings accounts or 5-year CDs, the result can be disheartening. Even though government figures insist that inflation is not a problem, the reality is that food and energy prices – which are more likely to impact you day to day – are rising and the low savings yields can’t keep pace.
Now might be the time look for solid stocks that can provide decent returns and weather the current situation. Stocks certainly have the potential to provide greater yields than cash. Plus, if you choose value stocks, or choose dividend stocks, you are choosing stocks considered to be less risky. Dividend stocks can even provide you with regular income that can more than make up for the low yields being paid on cash.
Source: Bargaineering
Related Articles:
- Are REITs and Utilities Good Dividend Investments?
- Market Timing vs. Buy And Hold
- Should You Still Buy-And-Hold Stocks?
- Bonds: The Next Bubble to Burst?
- Never Confuse Desires With Goals
________________________________________________________________
Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the steel and iron industry offer the most promising dividends.
As I see it, Companhia Siderurgica Nacional and Steel Dynamics offer the best combination of dividend traits, sporting some solid income now and a good chance of strong dividend growth in the future. Nucor is also worth looking into, as it has a strong reputation. Of course, as with all stocks, you'll want to look into more than just a company's dividend situation before making a purchase decision. Still, these stocks' compelling dividends make them great places to start your search, particularly if you're excited by the prospects for this industry.
Source: Motley Fool
Related Articles:
- Retirement Planning With A Defined-Benefit Pension
- 12 Dividend Stocks With A 5-Star Strong Buy Rating
- Optimizing Your Asset Allocation
- Four Stocks With Strong Dividend Growth Metrics
- Warren Buffett's Dividend Stocks
________________________________________________________________
The 30 stocks making up the Dow Jones Industrial Average are expected to increase their annual dividend payouts by an average of 11.8% over the third quarter of 2010 and by 1.1% over the second quarter of this year. According to the results of a third-quarter survey by Dow Jones Indexes, the component companies' $102.7 billion in expected distributions for the 12-month period beginning Oct. 1, 2011, represents 38% of all indicated annual dividends by American public companies.
David Krein, senior director of product development and analytics at Dow Jones Indexes, described the most recent report as “meaningful insight into the strategic outlook of bellwether U.S. corporations.” Nine of the 10 largest dividend distributions in the U.S. market — by total estimated payout — are Dow component companies.
Source: Investment News
Related Articles:
- Where To Find Great Dividend Stocks
- 8 Dividend Stocks With Above Market Performance
- 7 Dividend Stocks For The Ultimate In Deferred Gratification
- Finding Low Risk Dividend Stocks
- Why We Are Dividend Growth Investors
________________________________________________________________
Probably one of the smartest investment decisions I made several years ago was opening a Roth IRA. Sadly, this wasn't my first Roth IRA I had opened. I previously opened one with a different online broker than I use now. Armed with a valuable learning experience and a focused dividend re-investment (DRIP) strategy, my 2nd go around with a Roth IRA has been (and will be) much more successful.
Some people will argue that a problem with the DRIP strategy in a regular account is paying taxes on income that they don't have since that income was used to buy more shares. A great way to avoid this tax problem is taking advantage of a Roth IRA. When you hold dividend paying stocks in your Roth IRA you NEVER have to pay taxes on those reinvested dividends.
Source: Seeking Alpha
Related Articles:
- Are Defense Stocks Good Defensive Stocks?
- All Investing Involves Risk
- Is Now The Right Time To Start Investing?
- News of the U.S.'s Demise May Be Premature
- Dividend Investing in a Bear Market
________________________________________________________________
In dividend investing, one key factor investors should consider is the safety of the dividends. That is, whether the company can continue to pay the dividends. We have published plenty of articles about dividend stocks. We also developed a page of dividend stocks which is devoted to the high-dividend stocks in Gurus’ portfolios. These articles and pages can help you to find ideas for dividend stocks.
Another place to look for dividend stocks is to check into each Guru’s portfolio directly. The stocks that have the highest dividend yield in Arnold van den Berg’s latest portfolio are home builder MDC Holdings (MDC), CDI Corp. (CDI), Paychex (PAYX), Penn Virginia (PVA), etc. Since it is extremely important in income investing to make sure the companies can continue to pay dividends, a simple way to filter out risky companies is to invest only in companies that have at least two-star predictability rank.
Source: Guru Focus
Related Articles:
- A Two Step Process To Follow After A Dividend Freeze
- Who is Irving Kahn and Why Should We Listen to Him?
- International Income Investing
- Nucor Corp. (NUE): Forging A Different Path
- Dividend Stocks: Confident and Secure
________________________________________________________________
Recently, we have been adding to our NEE holdings because we believe the stock has a very bright future and our Dividend Valuation Model (above) indicates the stock is approximately 20% undervalued. Even with President Obama's pullback on more stringent EPA emissions standards, existing clean air regulations are forcing more and more electric utilities to close old, less efficient coal-fired generating plants and abandon new coal-fired plants. The bottom line is that many Midwestern power companies are scrambling to gain access to clean and renewable energy sources, and NEE has it for sale.
Here is a short list of other reasons why we like NEE:
1. Current dividend yield is near 4%.
2. 5-year dividend annual growth of just under 8%.
3. Projected 3-5 year dividend growth of near 6%.
4. Current dividend payout ratio is near 50%, much lower than industry average of 70%.
5. Paid a dividend since 1990
6. Increased its dividend for 15 consecutive years.
7. Stock is currently selling at a PE of 12, much lower than the industry average of 15.
8. Company operates in 26 states mainly in the growing southern region of the US.
9. One of the most forward thinking management teams in the industry.
Source: Rising Dividend Investing
Related Articles:
- Increasing Dividend Yield Part VI: Time
- Increasing Dividend Yield Part V: MLPs
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock
- Increasing Dividend Yield Part II: REITs
________________________________________________________________
According to the latest data, there are 10.9 million homeowners just like the Epples who now owe more than their home is worth. For three out of four of these troubled homeowners, that means being chained to a mortgage that is likely considerably higher than the current market rate. While that's certainly bad news for millions of families, there is a flip side. For the holders of these notes, they are nothing but money in the bank. Here's why...
When big pools of borrowers are unable to refinance, the cash flows thrown off by those mortgage bonds are extended, giving them a much longer life cycle. That's the other side of the trade — and one of the reasons select Mortgage REITs (MREITs) have been able to maintain their unbelievably high cash payouts, with some dividend yields actually reaching as high as 21%.
Source: Wealth Daily
Related Articles:
- 6 Tech Stocks With A History of Growing Their Dividends
- Buy And Hold Is Not Buy And Forget
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 9 Dividend Stocks With A Low P/B Ratio
- 7 Small-Cap Dividend Stocks For Yield And Growth
________________________________________________________________
In this article I'll discuss 7 dividend stocks with yields between 9 and 12%. I own some of these names and am trying to accumulate positions at attractive entry points in the ones I don't ow. These names all have inherent risks in order to offer these high yields. I do plan to buy below current closing prices, via limit orders, and hedge accordingly. If the price doesn't come down to my levels, then I'll move on to other ideas.
I keep my position sizes to a 1.5% - 3.5% level. I don't want one stock taking my entire portfolio down. My goal in setting good-til-cancelled orders on the below stocks, is to take advantage of the high-frequency trading programs. By some accounts, high-frequency trading accounts for 60-75% of all trading activity. The swings in price valuations can be volatile and without warning.
Source: Seeking Alpha
Related Articles:
- 10 Dividend Stocks Beating the S&P With Positive Returns
- 5 Higher-Yielding Healthcare Stocks With Increasing Dividends
- 7 High Quality, Low Beta Dividend Stocks
- 5 Dividend Stocks With Yields In The Sweet Spot
- How To Manage Your Dividend Portfolio In A Downturn
________________________________________________________________
Mr. Market's recent wild mood swings have a lot of investors worried -- and confused. Should you sell your stocks and move your money to something safer like a CD, or should you double-down while prices are low? It's true that bonds, CDs, and money market funds tend to get very popular during times of intense volatility, but they come with disadvantages of their own. One of the biggest of those disadvantages is that over time, you probably won't make nearly as much money in bonds or CDs as you would have in the stock market.
Fortunately, there's a way to invest that can spare you from much of the volatility -- and can even turn it to your advantage. The secret? Steady stocks that pay dividends. There is a place for higher-risk, higher-growth-potential of stocks in your portfolio. But I'd argue that the cornerstone of your stock portfolio should be made up of slower-movers: Big-name, well-run businesses with a long history of solid dividends that can be reinvested. In times like this, moving assets toward those kinds of stocks can help shield you from the worst of the volatility -- while still giving you some growth.
Source: Motley Fool
Related Articles:
- Three Dividend Stocks With A Perfect Risk Score
- Protecting Your Dollars With Foreign Currency
- How To Maximize Your Dividend Stocks' Earnings
- High Yield, High Risk Dividend Stocks
- How Much Money Will You Need For Retirement?
________________________________________________________________
The stock market volatility of the past several months looks like it could stick around for a while, forcing investors to be ever more vigilant about how to position their portfolios. "Stay defensive, be in low beta stocks, and achieve returns through dividends," counsels Mark Tepper, a financial advisor with Strategic Wealth Partners in Seven Hills, Ohio.
Dividend-paying stocks are one of the more popular recipes for coping with uncertainty. U.S. companies are hoarding cash, making quarterly dividend payments to shareholders currently a much more reliable source of returns than capital appreciation.
Source: USA Today
Related Articles:
- The Current Financial Situation Should Concern Us All
- Finding The Perfect Dividend Stock
- The Greatest Asset For Building Wealth
- 10 Stocks With A Strong Cash To Dividend Coverage
- 15 Dividend Stocks Trading Below Their Calculated Fair Value
________________________________________________________________
There was a time not so long ago that investors looking for a sure thing would have T-bills and certificates of deposit (CDs) as their dominant investment tools for a safe, usually healthy return. But that's not the case anymore. Gone are the days that a retiree can rely on Social Security, Medicare, or a pension to pay for their retirement.
Dividend paying stocks have become an increasingly attractive option due to low interest rates. The stronger companies in the S&P 500 offer an annual dividend in the 3 to 7 percent range. Not only will you have the usually consistent income from the cash dividends, but also you'll be an equity stakeholder. Usually it's the better-performing companies that pay dividends, so it's likely that you'll enjoy capital gains with dividend paying stocks as well.
Source: SmallCapInvestor.com
Related Articles:
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- 11 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 4 Secrets To Finding The Best Dividend Stocks
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
________________________________________________________________
The biggest problem facing the U.S. economy is weak consumer spending. Households have high levels of debt they're still trying to pay off, and people are feeling insecure about their jobs or have already been laid off. Under these circumstances, it's easy to see why they're not spending. And when no one's buying goods and services, companies have more capacity to produce than demand for their products, so they have no reason to hire people. It's a vicious cycle -- one that probably won't be cured for a long time unless we experience a new technology boom, a surge in exports, or additional stimulus spending to boost demand.
Dividend stocks have been shown to outperform non-dividend-payers, especially in bear markets. And there are particular reasons to think these categories of stocks will do well, too: Utilities provide a necessity product and tend to do well in periods of low inflation; mortgage REITs are enjoying strong profit spreads in the current interest-rate environment; luxury-goods makers should do well as the wealthy continue to accumulate a greater and greater proportion of our nation's wealth; and multinationals can support domestic revenue with sales from emerging markets.
Source: Motley Fool
Related Articles:
- High-Quality Low-Risk Dividend Stocks
- Are ETFs and CEFs Good Income Investments?
- Underfunded Pension Plans: The Next Shoe To Drop?
- Elite Dividend Stocks
- Buy-And-Hold Under Attack
________________________________________________________________
The extreme volatility in the equity markets in the past few weeks is making many investors nervous. Some are making the wrong moves based on emotions. Yesterday’s Wall Street Journal had an article discussing how some people are liquidating their equity holdings and moving into cash.
Making investment decisions based on emotions rarely helps investors. As markets are unpredictable, one cannot move in and out of the market without losing gains. This is especially true for retail investors who do not have the time and resources required to analyze market activity on a daily basis. Last month many foreign markets entered bear market territory with stocks falling 20% or more. This has created excellent opportunities for long-term investors. Some of the high-quality European stocks are particularly attractive at current levels.
Source: Seeking Alpha
Related Articles:
- 3 Dividend Stocks That I Will NEVER Lose Money On
- List of 195 Dividend Stocks Every Income Investor Should Know About
- These 11 Dividend Stocks Could Make You Wealthy
- 13 Dividend Stocks Headed In The Right Direction
- 12 Industrial Strength Dividend Stocks
________________________________________________________________
Dividends are en vogue these days, and with good reason. After a decade in which investors have seen little in the way of capital gains, cash dividends ensure that they see a return that is not entirely dependent on the whims of the market. Moreover, the companies that pay dividends tend to be less volatile than those that do not. And given the paltry yields on offer in the bond market, investors can hardly be blamed for running to high-dividend stocks instead.
WisdomTree’s explicit focus on the absence of financial stocks in DTN is telling. The 2008 meltdown was first and foremost a banking crisis, as is the festering European sovereign debt crisis. Investors want to know that the dividends they depend on are safe. Virtually all banks slashed their dividends during the 2008 crisis, and investors fear it will happen again. Alas, I fear that this is another case of closing the barn door after the horse has already bolted.
Source: Guru Focus
Related Articles:
- 10 Financial Services Dividend Stocks To Boost Your Yield
- Building Yield: 15 Consumer Goods Dividend Stocks
- 10 Higher Yield Dividend Stocks
- Who Owns The Top Dividend Stocks?
- Who Owns The Top Dividend Stocks?
________________________________________________________________
Have you taken a look at the Dow Jones Industrial Average (INDEX: ^DJI) lately? If so, you've probably noticed the neck-breaking up-and-down motion it's taken over the past few months. And if you're like many investors, you're probably wondering whether there are any "safe" bets out there. Well, read on, Fool, because here are two stocks that are almost guaranteed to beat the market in the long run.
Even soda giant Coca-Cola (NYSE: KO) took a hit on Aug. 10, its stock traded as low as $63.96 a share. However, Coke is one stable company, as its quarterly results prove. Wondering what technology company dominates core processors? Look no further than Intel (Nasdaq: INTC).
Source: Motley Fool
Related Articles:
- Top 10 Articles For 2010
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
- 13 Dividend Stocks With A Good Yield/Growth Mix
________________________________________________________________
In 2010 Chuck Carlson of The DRIP Investor newsletter wrote a book for Wiley called “The Little Book of Big Dividends.” The idea of the book was to catch the wave of yield hungry investors looking for relatively safe stocks that would provide steadydividends. Chuck came up with his own formula for finding what he calls Big Safe Dividend (BSD) stocks. These are stocks with strong fundamentals and a history of paying dividends. It’s a good formula but nothing earth shattering about his methodology.
In the most recent issue of the American Association of Individual Investor’s Computerized Investing, they take Chuck’s BSD formula a step further to find a turbo-charged version of these stocks. These are big safe dividend payers that are likely to raise their dividends. This will not only improve investors yield, but could help in the capital gains department as well.
Source: Forbes
Related Articles:
- 17 Stocks With Room To Grow Their Dividend
- We Were Dividends, Before Dividends Were Cool
- 12 Dividend Stocks Delivering The Secret To Success
- 12 Dividend Stocks For A Rainy Day
- 9 High-Yield Managed Distribution Policy Funds
________________________________________________________________
Tweedy, Browne is an investment partnership owned by its four managing directors, William H. Browne, John D. Spears, Thomas H. Shrager, and Robert Q. Wyckoff, Jr. The operations of Tweedy, Browne are managed by its management committee consisting of Christopher H. Browne, William H. Browne and John D. Spears. This investment partnership has been recognized by Warren Buffett as Graham-Doddsville Superinvestors.
Browne has more than $655.9 million in portfolios combined with or similar to client portfolios, including approximately $96.8 million in the Global Value Fund and $55.7 million in the Value Fund, $4.8 million in the Worldwide High Dividend Yield Value Fund and $3.1 million in the Global Value Fund II. All of the funds are managed in accordance to the principles of value investing as popularized by Benjamin Graham. Their research seeks to appraise the worth of a company, what Graham called "intrinsic value," by determining its acquisition value, or by estimating the collateral value of its assets and/or cash flow. Investments are made at a significant discount to intrinsic value, normally 40% to 50%, which Graham called an investor's "margin of safety."
Source: Guru Focus
Related Articles:
- The Elite Dividend Stocks List
- Dividend Stocks Poised To Beat Inflation
- Is It Time To Sell Long-Bonds?
- Stocks That Pay Monthly Dividends
- When To Sell A Dividend Stock
________________________________________________________________
Roderick Munsters, chief executive officer of Robeco Groep NV, talks about investment strategy. He speaks with Francine Lacqua on Bloomberg Television's "Countdown."
Source: Washington Post
Related Articles:
- 20 Dividend Stocks With A 20% Yield In 20 Years
- Seven Dividend Stocks Trading Below Fair Value
- How To Buy Dividend Stocks At The Bottom
- Four Dividend Stocks Stepping Up In The Downturn
- Increasing Dividend Yield Part VI: Time
________________________________________________________________
Back in July and September I highlighted dividend stocks with safe payouts and the potential for capital appreciation. This month, I'm highlighting three more dividend stocks, focusing on more speculative opportunities with which the average investor is likely unfamiliar. Bear in mind that these companies are rather small, having a combined market capitalization under $1 billion. The size of these firms will likely provide for increased equity volatility relative to traditionally popular income stocks such as Procter & Gamble (PG), Johnson & Johnson (JNJ), or PepsiCo (PEP).
In addition, the business models of these companies likely provide more risk than the stable "blue chips" traditionally touted for income investors. However, strong balance sheets and/or turnaround possibilities may provide for capital appreciation in addition to income generation. Long-term income-focused investors may find some unknown gems on this list, with the opportunity to increase yield and diversify portfolios.
Source: Seeking Alpha
Related Articles:
- Will ETFs Be The End Of Traditional Mutual Funds?
- Low-Debt Dividend Stocks
- Who is Raul Alvarez and Why Should We Listen to Him?
- Early Warning Signs of a Dividend Cut
- Will Housing Lead Us Out Of The Recession?
________________________________________________________________
In the short run, the market is often called a voting machine. In the long run, it should function more like a weighing machine. Votes may count in the short term, but a weighing machine looks at a company’s intrinsic value and long-term earnings potential. Especially in the current, volatile market climate, it’s important to correctly price stocks, which is something entirely different than trying to predict their course of action during the next month or next year. Valuing is not the same as predicting. Warren Buffett only wants companies that are already succeeding, companies that have been tested in the real world. Good balance sheets and an attractive entry price. He likes what he considers to be a sure thing.
We have all heard the line: “Never fix a problem that doesn’t need fixing.” Warren Buffett doesn’t trade in the typical sense; he looks for opportunities, and when he finally pulls the trigger, he always gives his investments time to work out. The key is always to try to get the initial investment right. If you don’t get the initial investment right, you always have a problem down the road. If you can get it right, and Buffett and Munger are very good at that, then time will give you the expected profits.
Source: Seeking Alpha
Related Articles:
- Increasing Dividend Yield Part V: MLPs
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock
- Increasing Dividend Yield Part II: REITs
- 11 Dividend Stocks Providing Positive Feedback
________________________________________________________________
Fan Cheuk Wan, head of Asia-Pacific research at Credit Suisse Private Banking, talks about the outlook for the global economy, financial markets and her investment strategy. Fan speaks with Susan Li, Rishaad Salamat and John Dawson on Bloomberg Television's "Asia Edge."
Source: Washington Post
Related Articles:
- 38 Dividend Securities For A Well-Rounded Asset Allocation
- Five High-Yield Positive Return Investments
- Dividend Stocks: Three Keys For Successful Investing
- 10 Stocks With 100+ Years of Dividend Payments
- 10 Dividend Stocks With Above Target Returns
________________________________________________________________
Amid the gloom, you might think that no stock could emerge unscathed. But many did. Why did these stocks do well when the rest of the market was down sharply? It's not because they don't face challenges. Kimberly-Clark still sees commodity inflation hurting its earnings, and General Mills has the same headwind facing it. Altria will have to post even bigger warning labels on its cigarettes starting next year. And none of these companies wants to see economic growth stall out.
But in general, what holds these stocks up even during tough times is the fact that their customers keep buying what these companies sell. Unlike more cyclical stocks whose revenue patterns are much more closely tied to the condition of the overall economy, these companies can expect to retain a strong foundation of loyal customers who will give some stability to their financial results -- and by extension, their stocks.
Source: Motley Fool
Related Articles:
- 5 Dividend Stocks In Need Of A Market Correction
- My Top And Bottom Performing Dividend Growth Stocks
- How To Build A Sustainable High Yield Portfolio
- 10 Stocks That Have Paid Dividends Since The 1800s
- 7 Exceptional Dividend Growth Stocks With Quality Financials
________________________________________________________________
With an aging population, advisors are frequently asked what the secret is to building a retirement portfolio that can provide higher current income and inflation protection while sustaining capital. While there is no sure-fire answer, investors should consider embracing capital-efficient strategies designed to protect capital in an effort to avoid large losses during negative market cycles.
Today, more than ever, advisors need to pay attention to recent evidence that indicates dividend-paying stocks, not growth stocks, should be the foundation on which portfolios are built.
Source: On Wall Street
Related Articles:
- 8 Dividend Stocks With The Right Stuff
- International Diversification Begins At Home
- Dividend Payout vs. Free Cash Flow Payout
- High-Yield Dividend Stocks: A Safer Approach
- 10 Best U.S. Dividend Stocks
________________________________________________________________
