5 Myths About Dividend Growth Investing [View article]
Eugene Fama and Kenneth French expanded research on three risk factors: Beta, Value and Size, to explain stock returns. So basically they were saying that after you have made the decision to allocate funds to riskier stocks over bonds for greater anticipated returns you should also consider riskier value and small company stocks for even greater anticipated returns.
Their work generated discussion about what is generally referred to as Asset Allocation and how long-term investors should build portfolios with a pronounced equity bias. This was followed by discussion of diversification within the equity holdings and the importance of non-correlated assets. The final topic generally discussed is tax sensitivity and which assets should be held in taxed accounts versus tax-deferred and tax-exempt accounts.
These three basic investment principles form the basis for a well-constructed portfolio and investors would be well advised to understand and implement them. Risk tolerances, funding limitations and income needs all impact and personalize the portfolio for an individual. Perhaps the two biggest challenges facing investors are the ever changing tax laws and rates along with the effects of globalization and investment products on asset correlations.
5 Myths About Dividend Growth Investing [View article]
David - I completely agree. Heirs should also be instructed to take the stepped up cost basis as an opportunity to sell assets they don't think are suitable, but the original holder didn't want to sell because of the tax consequences, and use the proceeds for a more suitable investment.
Proposed Dividend Tax Is As Uninformed As It Is Naive [View article]
I respect that an African American becoming president was inspirational for many, and not only for other African Americans. Unfortunately he continues to represent the radical social and economic views held by secular-leftist political networks like Acorn and bigoted preachers like Jeremiah Wright and Michael Pfleger that he embraced. These far left-wing origins are still clearly apparent as continues to separate people, not bring people together. Something we all deserve from our president. No president will be perfect for all Americans, but we clearly need someone far closer to the center. Best wishes and thanks for your service to our country.
Proposed Dividend Tax Is As Uninformed As It Is Naive [View article]
It’s best that we agree that we disagree. I have two questions that hopefully inspire thought about the challenges our country faces. First, if you had a son or daughter that was addicted to heroin, would you increase their allowance? Secondly, Thomas Edison said: “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Has Obama inspired you to dream, learn, do or be more - or has he told you it would be fair to take more?
Accumulating Dividend Stocks Is A Long-Term Process [View article]
A similar axiom to: “The best thing about a democracy is that everyone gets to vote and the worst thing about a democracy is that everyone gets to vote.” can be said about DGI. The best thing about DGI is the steady, reliable, predictable, and rising income and the worst thing about DGI is what to invest the steady, reliable, predictable, and rising income in. All in all, not a bad problem to have! I prefer the active reinvestment approach to the DRIP approach but an investor just getting started may find DRIP superior because they are not yet receiving enough cash to make new cost effective investments. Keeping track of the cost basis in excel isn’t difficult. Good luck to you and welcome to DGI!
Coca-Cola, Pepsi, Procter & Gamble: Will These U.S. Multinationals Become Dividend Challenged? [View article]
The author’s statement that multinationals choose not to repatriate overseas earnings limits their ability to increase dividends is simply wrong. The huge global corporations that he references, along with many others, are cash cows that are in an excellent position to pay and increase their dividend. Generally, the payout ratio is declining. Corporations are in business to increase shareholder value and will invest where opportunities allow for this. If the US fixes its tax code, America could become an area of significant growth again. As long as the plan is to raise taxes, increase Government spending and impose unrealistic and ever-changing regulation on business it makes investment in the US a losing business strategy.
Are Dividend Stocks A Substitute For Bonds? [View article]
Come on - calm down, this is investing not religion or politics. Both sides of this discussion make valid points. I have been a DGI going on 30 years, but also invest in US, International and Emerging Market Index Funds, REITs, MLPs, Corporate Bonds and Emerging Market Bonds. If you limit your investments to only one investment vehicle you are likely making a mistake. If I am a zealot/maniac about investment strategies it would be: (1) diversify your investments with non-correlating assets; (2) utilize passive index investing over active management; (3) consider asset location (taxed or tax deferred) for your investments and (4) it is much easier to profit from dividend growth stocks than more speculative non-dividend stocks. Good luck to everyone!
Income Investors: Opportunity In AT&T [View article]
The failed merger with T-Mobile is already in the stock price. Neither T or VZ will have much growth going forward. They are primarily an income play, so why not choose T and get the extra 75 basis points. I personally own some of both.
IBM Lays An Egg On Failure To Convert Deals And Growth Market Weakness [View article]
At $190 the stock is over-sold and IBM will announce a dividend increase this coming week (last year declared on 4/26/12, 13.33%) which should lead to positive price appreciation. The "deals that weren't converted" may be closed in this quarter as IBM maintained their yearly guidance. The 8% drop in price may be a buying opportunity for long-term investors.
Dividend Champions Smackdown XXXVII [View article]
The screen produced an impressive list of stocks for potential investment. PG (4/13/12, 7.14%), CVX (4/25/12, 11.11%), XOM (4/25/12, 21.28%) and MDT (6/21/12, 7.22%) will be increasing their dividend soon making them somewhat more interesting to DGIs.
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
I, like you, advocate caution with investment into these technology titans of the past. Not all cheap stocks are a good value; sometimes they are cheap for a good reason. If you must put your toe into their moats I prefer INTC, then CSCO and then dead last MSFT.
The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
There are now 54 companies. Three companies were added to the 2013 Dividend Aristocrats list: Chevron (CVX), Cardinal Health (CAH), Pentair (PNR) and Pitney Bowes (PBI) was removed.
Buy The Unloved AeroSpace Sector On Its Pullback For Dividend Growth [View article]
When a company buys back stock, there are fewer shares available for investors to buy. All other things being equal, those remaining shares are worth more to investors. Of course all other things are rarely equal. Not every company that announces a buyback actually buys back stock. Some companies buy back stock because they have made options grants to executives and need stock on hand when those executives decide to exercise them and the shares go back into circulation when the executives sell them. Timing associated with buybacks is another issue as some companies buy back their stock at high prices. It is always prudent to verify whether a company has fewer shares outstanding today than it did a year ago.
The PowerShares Buyback Achievers Fund that invests in companies that have reduced their shares outstanding by 5% or more in the past 12 months has averaged 8.16% a year the past five years, according to Morningstar. In contrast, the PowerShares Dividend Achievers Fund, which invests in stocks that have consistently raised their dividend each year for a decade has gained 4.02% a year the past five years, again according to Morningstar.
The following 8 companies are in both funds: BMI, BDX, CB, COP, LOW, MHP, NSC and NUS. IMHO they are worthy of consideration for investment.
5 Myths About Dividend Growth Investing [View article]
Their work generated discussion about what is generally referred to as Asset Allocation and how long-term investors should build portfolios with a pronounced equity bias. This was followed by discussion of diversification within the equity holdings and the importance of non-correlated assets. The final topic generally discussed is tax sensitivity and which assets should be held in taxed accounts versus tax-deferred and tax-exempt accounts.
These three basic investment principles form the basis for a well-constructed portfolio and investors would be well advised to understand and implement them. Risk tolerances, funding limitations and income needs all impact and personalize the portfolio for an individual. Perhaps the two biggest challenges facing investors are the ever changing tax laws and rates along with the effects of globalization and investment products on asset correlations.
5 Myths About Dividend Growth Investing [View article]
Proposed Dividend Tax Is As Uninformed As It Is Naive [View article]
Proposed Dividend Tax Is As Uninformed As It Is Naive [View article]
Accumulating Dividend Stocks Is A Long-Term Process [View article]
Some 'Tips' For Dividend Growth Investors [View article]
Coca-Cola, Pepsi, Procter & Gamble: Will These U.S. Multinationals Become Dividend Challenged? [View article]
Are Dividend Stocks A Substitute For Bonds? [View article]
Income Investors: Opportunity In AT&T [View article]
IBM Lays An Egg On Failure To Convert Deals And Growth Market Weakness [View article]
Dividend Champions Smackdown XXXVII [View article]
Seeking Value, Growth And Income After The Recent Run Up? Check Out These Tech Titans [View article]
The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
ABBV $37.81 $1.60 4.23%
ABT $33.60 $0.56 1.67%
ADM $31.97 $0.76 2.38%
ADP $61.65 $1.74 2.82%
AFL $50.19 $1.40 2.79%
APD $86.34 $2.56 2.97%
BCR $98.80 $0.80 0.81%
BDX $88.75 $1.98 2.23%
BEN $140.83 $1.16 0.82%
BF-B $65.60 $1.02 1.55%
BMS $37.48 $1.04 2.77%
CAH $46.51 $1.10 2.37%
CB $84.68 $1.64 1.94%
CINF $45.16 $1.63 3.61%
CL $114.11 $2.48 2.17%
CLX $83.98 $2.56 3.05%
CTAS $43.80 $0.64 1.46%
CVX $116.90 $3.60 3.08%
DOV $72.96 $1.40 1.92%
ECL $76.77 $0.92 1.20%
ED $59.02 $2.46 4.17%
EMR $56.07 $1.64 2.92%
FDO $58.69 $0.84 1.43%
GPC $71.00 $2.15 3.03%
GWW $227.43 $3.20 1.41%
HCP $48.90 $2.10 4.29%
HRL $37.47 $0.68 1.81%
ITW $61.60 $1.52 2.47%
JNJ $76.70 $2.44 3.18%
KMB $94.30 $3.24 3.44%
KO $38.70 $1.12 2.89%
LEG $30.67 $1.16 3.78%
LOW $38.38 $0.64 1.67%
MCD $95.68 $3.08 3.22%
MDT $45.23 $1.04 2.30%
MHP $47.26 $1.12 2.37%
MKC $68.39 $1.36 1.99%
MMM $103.77 $2.54 2.45%
NUE $44.37 $1.47 3.31%
PEP $75.93 $2.27 2.99%
PG $76.49 $2.25 2.94%
PNR $52.23 $0.92 1.76%
PPG $134.81 $2.36 1.75%
SHW $162.48 $1.56 0.96%
SIAL $77.38 $0.80 1.03%
SWK $77.59 $1.96 2.53%
SYY $32.48 $1.12 3.45%
T $36.01 $1.80 5.00%
TGT $64.13 $1.44 2.25%
TROW $71.74 $1.36 1.90%
VFC $160.69 $3.48 2.17%
WAG $41.32 $1.10 2.66%
WMT $71.74 $1.88 2.62%
XOM $89.43 $2.28 2.55%
The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
Pentair (PNR) and Pitney Bowes (PBI) was removed.
Buy The Unloved AeroSpace Sector On Its Pullback For Dividend Growth [View article]
The PowerShares Buyback Achievers Fund that invests in companies that have reduced their shares outstanding by 5% or more in the past 12 months has averaged 8.16% a year the past five years, according to Morningstar. In contrast, the PowerShares Dividend Achievers Fund, which invests in stocks that have consistently raised their dividend each year for a decade has gained 4.02% a year the past five years, again according to Morningstar.
The following 8 companies are in both funds: BMI, BDX, CB, COP, LOW, MHP, NSC and NUS. IMHO they are worthy of consideration for investment.