Long considered the domain for “widows and orphans”, utilities have developed a somewhat stodgy reputation. Why are utilities considered good for widows and orphans?
Here a few reasons: 1. They are generally less volatile than the market as a whole (low beta). 2. Their products are something that people continue to need and use no matter what the economy is doing, thus, 3. Their dividends tend to be more stable and secure.
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Thursday, June 30, 2011
Wednesday, June 29, 2011
3 Powerful Concepts for Compounding Wealth with Dividend Stocks
It is the goal of many people to build enough wealth to put their kids through college, payoff their mortgage, be in a position to help their family and enjoy a financially worry-free retirement. Most people simply don't earn enough to accomplish all these goals without a little help.
If you don't have a generous relative or wealthy parents, you will need to devise a plan to help you reach your goals. Here's how I plan to do it with three very powerful concepts...
If you don't have a generous relative or wealthy parents, you will need to devise a plan to help you reach your goals. Here's how I plan to do it with three very powerful concepts...
Tuesday, June 28, 2011
This Industrial Is Yielding 3.8% and is Screaming 'Buy Me!'
In determining my asset allocation, I use Morningstar's sectors. Recently Morningstar changed their sectors and reduced the number of them producing a net decrease of 3 sectors. As a result of this, I raised the maximum I will allow in a sector from 10% to 15%. I now have room to add positions in all the sectors including Industrials.
Monday, June 27, 2011
Cincinnati Financial Corp. (CINF) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 20, 2011.
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 26, 2011
Weekly Links: June 26, 2011
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. Below are the carnivals that I participated in this week, along with a link to my article:
Friday, June 24, 2011
10 Stocks Using Real Cash To Pay Higher Dividends
You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.
Thursday, June 23, 2011
11 Dividend Stocks Trading at a Double-Digit Discount
Getting a discount of 10%, 20% or even more is awesome. When it is on a big ticket item like a automobile, there are a lot of dollars to be saved and people have been known to drive great distances to receive the discount. Everyone loves a sale!
Well, maybe not everyone. When stocks go on sale it seems to depress a large number of market participants. However, for those of us that like buying stocks at a discount, the recent market pullback has finally provided a little relief.
Well, maybe not everyone. When stocks go on sale it seems to depress a large number of market participants. However, for those of us that like buying stocks at a discount, the recent market pullback has finally provided a little relief.
Wednesday, June 22, 2011
11 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
As a society we have grown accustom to wanting it all, including our investments. Specifically, many income investors want both high yield and low risk. A dividend stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. So can an investor find both higher yields and lower risks?
Monday, June 20, 2011
UGI Corporation (UGI) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 13, 2011.
UGI Corporation (UGI). Below are some highlights from the above linked analysis:
Company Description: UGI Corp. operates propane distribution, gas and electric utility, energy marketing and related businesses through subsidiaries.
UGI Corporation (UGI). Below are some highlights from the above linked analysis:
Company Description: UGI Corp. operates propane distribution, gas and electric utility, energy marketing and related businesses through subsidiaries.
Sunday, June 19, 2011
Weekly Links: June 19, 2011
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. Below are the carnivals that I participated in this week, along with a link to my article:
Saturday, June 18, 2011
May 2011 Pocket Change Portfolio Performance Update
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 17, 2011
4 Dividend Stocks Turbo-Charging Returns With Increasing Dividends
It is a well-documented fact that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends.
Thursday, June 16, 2011
10 Dividend Growth Stocks With A Single Digit P/E
We all want to find the best value when we buy a stock. There are many ways people value a stock. Ultimately, true value is defined by future cash flows. The catch is no one knows exactly what the future cash flows will be. As a result, some go to great lengths to estimate future cash flows, while others use historical metrics to estimate cash flows or to compare stocks.
Wednesday, June 15, 2011
4 Secrets To Finding The Best Dividend Stocks
Dividend stocks come in all shapes and sizes. Some are high-yield and low-growth, while others are high-growth and low-yield. There is an endless spectrum of stocks in between those two extremes.
Monday, June 13, 2011
The Procter & Gamble Company (PG) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 6, 2011.
Linked here is a detailed quantitative analysis of The Procter & Gamble Company (PG). Below are some highlights from the above linked analysis:
Company Description: The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries.
Linked here is a detailed quantitative analysis of The Procter & Gamble Company (PG). Below are some highlights from the above linked analysis:
Company Description: The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries.
Sunday, June 12, 2011
Weekly Links: June 12, 2011
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. Below are the carnivals that I participated in this week, along with a link to my article:
Saturday, June 11, 2011
Dividend Income Progress Update - May 2011
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in May, extending the streak to 11 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 40 of the last 42 months.
My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.
My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.
Friday, June 10, 2011
4 Stocks Growing Their Dividends
Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough - the dividend growth investor also expects substantial and consistent growth.
Thursday, June 9, 2011
8 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
Looking for a stock that will grow its dividend in the future and pay you handsomely now? The yield is not the only thing you need to focus on. You will also need to check the stock's Free Cash Flow Payout. This tells you how much cash the stock has left over after paying the normal operating expenses. This is the cash used to pay for acquisitions, debt obligations and dividends!
Wednesday, June 8, 2011
7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
The concept of fair value is really quite simple. Given a few select inputs such as dividends, dividend growth, holding period, discount rate and few others, one can easily calculate the fair value of a stock. As with most simple things, the devil is in the details – the inputs must be correct to calculate a reasonable fair value, otherwise, garbage in, garbage out.
Tuesday, June 7, 2011
We'll Do The Heavy Lifting For You
Dividend Growth Stocks are used by many investors interested in building an ever-increasing income. This strategy is not difficult to implement, but it can be time consuming if you try to track all the Dividend Aristocrats, Dividend Achievers, Dividend Champions and other stocks with a long history of increasing their dividends. So what's an investor to do?
Monday, June 6, 2011
The Clorox Company (CLX) Dividend Stock Analysis
This article originally appeared on The DIV-Net May 30, 2011.
Linked here is a detailed quantitative analysis of The Clorox Company (CLX). Below are some highlights from the above linked analysis:
Company Description: The Clorox Company is a diversified producer of household cleaning, grocery, and specialty food products is also a leading producer of natural personal care products.
Linked here is a detailed quantitative analysis of The Clorox Company (CLX). Below are some highlights from the above linked analysis:
Company Description: The Clorox Company is a diversified producer of household cleaning, grocery, and specialty food products is also a leading producer of natural personal care products.
Sunday, June 5, 2011
Weekly Links: June 5, 2011
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. Below are the carnivals that I participated in this week, along with a link to my article:
Friday, June 3, 2011
8 Stocks Providing Positive Feedback With Higher Dividends
It seems that every investing article ends with the same conclusion - you should be buying dividend stocks. Beyond the simple concepts, some of the writers are making really bad recommendations and cross-breeding dividend investing with their preferred form of investing.
Thursday, June 2, 2011
13 Dividend Growth Stocks With Very Little Debt
The goal of dividend investing is to find and buy dividend growth stocks that will continue to raise their dividends. To pay and raise its dividend a company must generate sufficient free cash flow. However, it is not enough to just generate the cash, it has to be available for dividend payments. Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt obligations.
Wednesday, June 1, 2011
5 Dividend Stocks In Need Of A Market Correction
We have all heard that trees don't grow to the sky, but that seems to be what is happening in this bull market that started back in early 2009. When investors see their portfolio dramatically increase in value, it leaves them with a sense of accomplishment. However, if you are an investor in dividend growth stocks, a higher portfolio may not be in your best interest. Consider the following...