A stock with a high yield doesn't mean much if the dividend is cut or eliminated, and the stock price declines significantly. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk. What can we do to help gauge the risk of an individual stock?
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Wednesday, June 30, 2010
Monday, June 28, 2010
* Cincinnati Financial Corp. (CINF) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 21, 2010.
Linked here is a detailed quantitative analysis of Cincinnati Financial Corp. (CINF). Below are some highlights from the above linked analysis:
Company Description: Cincinnati Financial Corp. markets primarily property and casualty coverage; it also conducts life insurance and asset management operations.
Linked here is a detailed quantitative analysis of Cincinnati Financial Corp. (CINF). Below are some highlights from the above linked analysis:
Company Description: Cincinnati Financial Corp. markets primarily property and casualty coverage; it also conducts life insurance and asset management operations.
Sunday, June 27, 2010
* Weekly Links: June 27, 2010
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al.
Friday, June 25, 2010
* Six Dividend Stocks Avoiding The June Freeze
For a dividend investor, there is not much worse than a stock that cuts or eliminates its dividend. Suddenly, the reason you purchased the stock no longer exists. Many dividend investors, myself included, have a hard and fast rule to immediately sell any stock held as income investment if it cuts its dividend. However, when a company freezes its dividend at the current rate, the decision is not as clear-cut. At this point you must look look at alternative investments, along with the company’s current yield and future outlook.
Wednesday, June 23, 2010
* Why We Are Dividend Growth Investors
We have all heard it... Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth investing. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. It seems everyone understands a traders mentality as evidenced by the numerous comments on capital appreciation - "Why would you buy that stock? It has been flat for 2 years." Most understand the income investors mentality as noted by comments like - "Why would you buy that stock when you can buy Amalgamated Risk and it pays a 9% dividend?" Both of these strategies can be successful, as can a dividend growth strategy. Periodically, it is good to remind ourselves why we are dividend growth investors.
Monday, June 21, 2010
* RPM International Inc. (RPM) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 14, 2010.
Linked here is a detailed quantitative analysis of RPM International Inc. (RPM). Below are some highlights from the above linked analysis:
Company Description: RPM International Inc. makes specialty coatings and products for the structural waterproofing and corrosion control markets, as well as products for the consumer, do-it-yourself and hobby markets.
Linked here is a detailed quantitative analysis of RPM International Inc. (RPM). Below are some highlights from the above linked analysis:
Company Description: RPM International Inc. makes specialty coatings and products for the structural waterproofing and corrosion control markets, as well as products for the consumer, do-it-yourself and hobby markets.
Sunday, June 20, 2010
* Weekly Links: June 20, 2010
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al.
Friday, June 18, 2010
* 6 Dividend Stocks Working Even When I'm Not
This past week I have been vacationing more than 1,500 miles from my home. As with most vacations, I have not done much work this week. However, a quick check of my brokerage account shows that my dividend stocks have been very busy this week. It is nice to know my income portfolio never takes a day off. What's even better is the portfolio is frequently getting a raise through higher cash dividend payments.
Wednesday, June 16, 2010
* What Determines A Dividend Stock's Yield
If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. Below are several important factors that influence a stock's yield, along with some illustrative examples:
Monday, June 14, 2010
* McDonald's Corporation (MCD) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 7, 2010.
Linked here is a detailed quantitative analysis of McDonald's Corporation (MCD). Below are some highlights from the above linked analysis:
Company Description: McDonald's Corporation is the largest fast-food restaurant company in the world. Its restaurants serve a varied, yet limited, value-priced menu in more than 100 countries around the world.
Linked here is a detailed quantitative analysis of McDonald's Corporation (MCD). Below are some highlights from the above linked analysis:
Company Description: McDonald's Corporation is the largest fast-food restaurant company in the world. Its restaurants serve a varied, yet limited, value-priced menu in more than 100 countries around the world.
Sunday, June 13, 2010
* Weekly Links: June 13, 2010
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al.
Saturday, June 12, 2010
* Progress Update - May 2010
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in May, extending the streak to 15 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 29 of the last 30 months.
My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2010 Investing Goals post. Below is an updated version of the table found in the original post.
* Pocket Change Portfolio - May 2010
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and update its holdings.
Friday, June 11, 2010
* 9 Stocks With A Vision Of Higher Dividends
A vision is taking the time to contemplate and anticipate, in detail, what the future will bring. A financial vision needs to consider future earnings, savings and economic issues such as inflation. Then based on your vision, you formulate an action plan to ensure the best possible outcome given your unique circumstances. You can’t have a retirement plan until you have a retirement vision. It would seem to me that there are a lot or retirement plans out there but very few retirement visions.
Wednesday, June 9, 2010
* Managing Risk With Dividend Stocks
When you purchase individual stocks, risk is inherit. Sometimes bad things sometimes happen to good stocks such as the Chicago Tylenol murders of 1982. This shook Johnson & Johnson's (JNJ) , but eventually it prevailed. Sometimes it is difficult when a strong leader leaves a company and creates a void that just can't be filled. Consider the performance of General Electric's (GE) after Jack Welch retired and Microsoft's (MSFT) after Bill Gates began relinquishing his responsibilities. So how do you guard against these situations and disasters similar to what BP (BP) and their shareholders are currently facing?
Monday, June 7, 2010
* T. Rowe Price Group Inc. (TROW) Dividend Stock Analysis
This article originally appeared on The DIV-Net May 31, 2010.
Linked here is a detailed quantitative analysis of T. Rowe Price Group Inc. (TROW). Below are some highlights from the above linked analysis:
Company Description: T. Rowe Price Group Inc. operates one of the largest no-load mutual fund complexes in the United States.
Linked here is a detailed quantitative analysis of T. Rowe Price Group Inc. (TROW). Below are some highlights from the above linked analysis:
Company Description: T. Rowe Price Group Inc. operates one of the largest no-load mutual fund complexes in the United States.
Sunday, June 6, 2010
* Weekly Links: June 6, 2010
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those readers not familiar with carnivals, it's where personal finance bloggers submit their best articles of the week with one blog serving as the host. The entries are separated into various categories such as Investing, Credit, Debt, Budgeting, Frugality, Wealth Building, Money Management, Financial Planning, Insurance, Taxes, The Economy, Real Estate, et. al.
Friday, June 4, 2010
* Four Stocks Raising Dividends and Expectations
I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. When stock prices start dropping, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying. However, sometimes selling a stock is the right thing to do. In determining when to sell a dividend stock, I have one hard and fast rule: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.
Wednesday, June 2, 2010
* 9 Stocks With a Sustainable Dividend
To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Put another way, targeted companies must be both capable and willing to grow their dividends. Obviously, we can not look into the future and see who will and will not perform. However, there are critical bits of information that we can evaluate today that often foreshadow the company's future behavior. Here are some of the more relevant ones: