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Dividend Growth Investor

 
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  • Genuine Parts Company: A Consistent Dividend King
    Thu, May. 29 GPC 9 Comments

    Summary

    • Genuine Parts Company is a dividend king that has paid dividends since 1948 and has managed to increase them for 58 years in a row.
    • If we check the dividend history, going as far back as 1983, we could see that Genuine Parts Company has actually managed to double dividends every ten years on average.
    • Depending on valuation and other opportunities available, I might consider initiating a position in the business.
  • ConocoPhillips: A High-Yield Dividend Paying Stock
    Wed, May. 28 COP 39 Comments

    Summary

    • ConocoPhillips is a dividend achiever has paid dividends since 1934 and has managed to increase them for 13 years in a row.
    • ConocoPhillips has a record of consistent share repurchases. Between 2007 and 2014, the number of shares decreased from 1.646 billion to 1.24 billion.
    • Currently, the stock is attractively valued, as it trades at a forward P/E of 12.40 and yields 3.50%.
  • Generate A Retirement Paycheck With These Dividend Paying Stocks
    Mon, May. 26 AFL, CVX, GIS 37 Comments

    Summary

    • Selling off assets to pay for expenses in retirement is akin to cutting off apple trees for lumber, instead of harvesting the fruit and living off the income from it.
    • Instead, dividend investors focus on generating income from their capital in the form of dividend or rent income that lasts in perpetuity.
    • In order to ensure that income lasts in perpetuity however, income investors need to consider several factors, when creating their dividend portfolios.
  • Should I Buy More High-Yielding Stocks In Order To Retire Early?
    Thu, May. 22 ARCP, KMP, KO 138 Comments

    Summary

    • Companies where average yield is somewhere in the 3%-4% range typically have sustainable dividends, and dependable dividend growth rates, that are very likely to exceed 6%/year.
    • I equate higher yielding companies with higher risk. In a competitive marketplace for stock securities, a reasonable investor cannot expect to find higher yielding stocks, without incurring higher risks.
    • I believe that I only need to get rich once. Therefore, my goal is to be patient, and build my dividend foundation slowly rather than take excessive risks.
  • Clorox Delivers A Disappointing Dividend Increase
    Tue, May. 20 CLX 23 Comments

    Summary

    • Last week Clorox increased quarterly dividends by 4.20% to 74 cents/share, the lowest rate of increase since 2006.
    • This marked the 37 consecutive annual dividend increase for this dividend champion.
    • It was a disappointing increase however, which is much lower than what I was expecting.
  • Is Family Dollar Stores A Buy For Dividend Investors Today?
    Mon, May. 19 FDO 12 Comments

    Summary

    • This dividend champion has paid dividends since 1976 and has managed to increase them for 38 years in a row.
    • Future earnings per share growth will come from new store openings, same store sales growth, streamlining costs and reducing the number of shares outstanding.
    • Depending on opportunities available, I might consider adding to the stock on dips.
  • Dollar Cost Averaging Versus Lump Sum Investing
    Thu, May. 15 K, KO, PG 34 Comments

    Summary

    • Dollar cost averaging is a process, where the same amount of funds is allocated to preset investment/s at regular intervals of time.
    • In this article I compare results of investing a lump sum at once versus dollar cost averaging.
    • In reality, few investors have a lump sum to put to work at once. Hence dollar cost averaging works best in real life.
  • Does Chubb Corporation Offer A Good Dividend Value Right Now?
    Wed, May. 14 CB 8 Comments

    Summary

    • Chubb has paid dividends since 1902 and has managed to increase them for 32 years in a row.
    • The company has managed to deliver a 9.40% average increase in annual EPS since 2004, while dividends have gone up by 9.20%/year.
    • I am analyzing the company because I believe it is quality dividend growth stock, which will be a very good addition to my portfolio on dips.
  • Personal Dividend Objectives Versus The Market Environment
    Tue, May. 13 ACAS, CTL, KO 31 Comments

    Summary

    • Investors who have incorporated unrealistic objectives when they set up their strategy, might end up setting themselves up for failure.
    • Investors should not tell the market what they want from it, but rather what market can offer them at the moment.
    • Imposing your will on market will likely lead to disappointment down the road.
  • Dividend Investing During The Financial Crisis
    Tue, May. 13 GE, JNJ, USB 14 Comments

    Summary

    • The financial crisis of 2007–2009 was one of the darkest periods in US economic history.
    • Learning from the lessons of the financial crisis will prevent investors from losing money, sleep and sanity during the next economic correction.
    • I learned some of the best lessons because of the mistakes I made.
  • Are Dividend ETFs Appropriate For Dividend Investors?
    Thu, May. 8 VIG, SDY, NOBL 19 Comments

    Summary

    • The ETF industry has ballooned since 1993, when the first ETF tracking the S&P 500 was introduced.
    • In this article, I list a few positive factors behind Dividend ETFs, coupled with a few negatives of Dividend ETFs.
    • For an individual dividend investor, dividend ETFs might not be the best solution.
  • Why Yield On Cost Is Important
    Wed, May. 7 COP, GIS, HYF 91 Comments

    Summary

    • Yield on cost is a very controversial metric, that attracts a lot of positive and negative arguments.
    • I view yield on cost as a forward looking metric, which combines my yield and growth expectations into a single indicator that translates into tangible future dividend income.
    • In this article I discuss indicator, as well as a few ideas that could generate high yield on cost in the future.
  • Don't Be An Arrogant Dividend Growth Investor
    Tue, May. 6 BP, RDS.A, RDS.B 122 Comments

    Summary

    • Some of the major risks that could ruin a portfolio’s chances of generating adequate dividends are purely psychological.
    • Being cocky might work in certain areas of life, but not in investing on the financial markets.
    • In this article, I discuss risks associated with overconfident dividend investors.
  • 12 Dividend Machines Raising Distributions For Investors
    Mon, May. 5 XOM 26 Comments

    Summary

    • Company management only approves increasing dividends if they expect earnings to improve over the next several years.
    • That is why dividend increases are typically a bullish sign for investors who hold dividend growth investments.
    • In the past week, twelve dividend growth companies extended their streak of consecutive dividend increases.
  • 2 Dividend Kings Extending Their Dividend Growth Streaks In April
    Mon, Apr. 28 JNJ, PG 13 Comments

    Summary

    • Company management only approves increasing dividends if they expect earnings to improve over the next several years.
    • That is why dividend increases are typically a bullish sign for investors who hold dividend growth investments.
    • In the past month, two dividend kings, Procter & Gamble and Johnson & Johnson extended their streak of consecutive dividend increases.
  • When To Sell Your Dividend Stocks?
    Mon, Apr. 28 BAC, HSY, GIS 41 Comments

    Summary

    • The holding period for quality dividend paying stocks should be forever, unless something materially changes within the company.
    • A long-term investor should let the company work its problems out, as long as dividends are at least unchanged.
    • An impatient investor who sells prematurely might increase portfolio turnover dramatically, increase their investment costs, and sell securities which have experienced temporary turbulence.
  • How To Monitor Your Dividend Investments
    Thu, Apr. 24 WMT, KO 20 Comments

    Summary

    • Once an investment is purchased, it has to be monitored frequently. While monitoring is important, it is also important to avoid too much action with your investments.
    • The way I monitor investments is by focusing on annual reports and maybe quarterly reports and press releases. I update my stock analysis about once every 12 – 18 months.
    • In the analysis, I look for rising earnings per share, dividend per share, sustainability of distributions and how the business is doing.
  • 7 'Sleep Well At Night' Dividend Stocks
    Wed, Apr. 23 IBM, KMP, KO 22 Comments

    Summary

    • I regularly screen the dividend champions list using my screening criteria for valuation, dividend streak, growth and earnings.
    • I analyze results from that screen one at a time in order to understand business and whether it can produce more earnings in the future.
    • I focus on quality dividend stocks, and I discuss seven of them in this article.
  • How To Manage Your Dividend Portfolio
    Tue, Apr. 22 KO, MCD, WMT 36 Comments

    Summary

    • The hardest part about investing is being patient, and not doing anything.
    • Your edge against Wall Street lies in the fact that you would hold the stock for as long as it maintains and raises its dividend.
    • What I am trying to show with those examples above is that your portfolio management should be very passive in nature.
  • When To Buy Dividend-Paying Stocks?
    Thu, Apr. 17 IBM 17 Comments

    Summary

    • Dividend investors should view each stock purchased as a share in a business.
    • Once an investor has a list of quality businesses, he needs to be able to decide at what prices to purchase them.
    • The intelligent dividend investor should know that even the best company in the world is not worth purchasing at any price.
  • How To Identify Your Dividend Investment Goals
    Wed, Apr. 16 KMI, PM, UL 24 Comments

    Summary

    • For most investors who want a strategy that would help them in accumulating a certain level of target monthly income, dividend investing might be the best solution.
    • For many investors, the goal is to generate a sustainable level of dividend income, which maintains its purchasing power over time, at the minimum.
    • Your goals should take into account things like amount invested every month, the time until you retire, plus make assumptions about yield, dividend and earnings growth.
  • These Companies Have Paid Dividends For Over 100 Years
    Thu, Mar. 27 BNS, EIX, IT 13 Comments

    Summary

    • I keep focusing my efforts on companies which have managed to keep their status quo for years, and have a high chance of maintaining their competitive advantages.
    • These companies have managed to pay distributions through two world wars, the cold war, several oil price shocks and countless recessions.
    • Investors should study each of these companies, in order to identify the characteristics that have enabled them to pay dividends every year for over one century.
  • Should Dividend Investors Invest In Index Funds?
    Tue, Mar. 25 37 Comments

    Summary

    • Index funds are great for 80%-90% of the population, particularly if coupled with the tax advantages of 401(k)s, Roth and Regular IRAs, etc.
    • If your goal is to generate a positive stream of income that is not dependent on market fluctuations and grows faster than inflation, index funds might not be for you.
    • You are the one whose retirement is at stake, and the only one who cares about succeeding. You should be personally involved to educate yourself and determine the best strategy.
  • 3 Attractive Dividend-Paying Companies To Consider
    Tue, Mar. 25 RTN, WPC, APD 3 Comments

    Summary

    • I reviewed the three companies that raised dividends last week, and met my minimum yield and streak of dividend increases.
    • Those companies are ideas for further research, both qualitative and quantitative.
    • Investors should purchase quality at appropriate valuations, and avoid overpaying for securities.
  • Diageo: The Cheapest Spirits Maker For Dividend Investors
    Mon, Mar. 24 DEO 1 Comment

    Summary

    • Diageo plc produces, distills, brews, bottles, packages, and distributes spirits, beer, wine, and ready-to-drink beverages. Diageo has increased dividends for 15 years in a row.
    • Future growth could be driven by organic growth of its premium brands as well as through strategic acquisitions.
    • Currently, the stock is attractively valued, as it trades at a P/E of 18.20 and yields 2.60%. I currently find Diageo to be a much better value than Brown-Forman.
  • Target: Why Did I Purchase This Dividend-Paying Company For A Third Month In A Row?
    Wed, Mar. 19 TGT 59 Comments

    Summary

    • Everyone is familiar with issues in Canada and the credit card breaches, which have reduced the price of Target shares. I believe now is the time to buy.
    • I believe those problems are temporary in nature and would be resolved over time. Hence I am dollar cost averaging into Target this year.
    • The major question I ask myself is "do I see Target around in 20 years?" For me the answer is yes, and thus I would keep buying.
  • Clorox: A Quality Dividend-Paying Machine To Consider
    Tue, Mar. 18 CLX 13 Comments

    Summary

    • Clorox has a portfolio of products with strong brand names that are number one or two in their respective product lines, which helps in having pricing power.
    • Future earnings growth for this quality dividend champion could be driven by innovation, new product launches and cost containment initiatives as well as international expansion.
    • The stock is fairly valued at 19.50 times forward earnings and yield of 3.30%. It is a quality dividend growth stock I will add to on dips.
  • Colgate-Palmolive Delivers A Disappointing Dividend Increase
    Tue, Mar. 18 CL 18 Comments

    Summary

    • Colgate-Palmolive raised dividends by less than 6% last week, marking 51st consecutive annual dividend increase.
    • This was the slowest dividend increase since 1980. The stock is also overvalued today, but I expect dividend growth to pick up.
    • I do not plan on adding more in the near future but will just hold on to my position waiting for better entry prices...
  • General Mills Delivers Consistent Dividend Increases To Shareholders
    Mon, Mar. 17 GIS 5 Comments

    Summary

    • General Mills has increased dividends for 11 years in a row, and never cut them in the past 115 years.
    • I view dividend increases as an indication by management that they expect positive developments in the business in the coming year or two.
    • This dividend achiever is attractively priced at 18.50 times earnings and yields 3.30%.
  • Altria Group: A Smoking-Hot Dividend Champion
    Tue, Mar. 11 MO 20 Comments

    Summary

    • Altria is a dividend champion which has managed to increase dividends to shareholders for 44 years in a row.
    • Currently, this dividend champion is attractive at 16.30 times earnings, yields 5.20%, and has a high but sustainable payout ratio. Constant threats to tobacco result in low valuation.
    • The low valuation, coupled with high yields and consistent earnings and dividend increases could result in compounding miracles for long-term investors.
  • Do Not Become A Victim Of Fear In Your Dividend Investing
    Thu, Mar. 6 KMI, KMP 56 Comments

    Summary

    • Investors should stick to a strategy through thick and thin and stay the course.
    • Investors should ignore noise, such as the recent biased Barron's article against Kinder Morgan.
    • On paper, everyone is a contrarian and wants to buy cheap and sell dear, when things are really difficult, it is tough to buy psychologically.
  • 4 Practical Dividend Ideas For My SEP IRA
    Wed, Mar. 5 COP, DEO, GIS 8 Comments