Dividend Growth Portfolio Core Holdings Performance For 2011
On July 26, 2011, Seeking Alpha published my article "Constructing the Core of Your Dividend Growth Portfolio." That was my most popular article in 2011. It described my methodology in selecting stocks for a dividend growth portfolio and presented the 21 stocks in my portfolio including the selection of core holdings. These are six key stocks in which I have taken a larger position. Together they total 50% of the value of the portfolio, equal to the value of the 15 other stocks. This article examines performance of the core holdings and of the entire dividend growth portfolio for the year ending December 31, 2011. It seeks to examine, especially, if heavier weighting of several key stocks designated “core holdings” increased the return of the portfolio or provided other benefits. A... more
Strategy For Reducing Impact Of Taxes On Dividend Stocks
I am a do-it-yourself novice investor. I focus on dividend yield and dividend growth stocks. Over the last couple of years, I have realized that not all stocks are born equal. There are different tax implications of holding the same stock in different accounts. The aim of this article is to start a meaningful constructive discussion amongst fellow investors. I want to hear about your investment strategies - which stock do you hold in which account. Allocating money to accounts I wanted to grow our money tax-free or at least tax deferred. However, my wife and I are high-income earners (as per IRS) and we do not qualify for various income tax benefits. Last year, I realized that there is some hope for us. The IRS allows us to contribute $5000 to a Traditional IRA every year though we... more
Yield, Total Return And Volatility Of The Top 10 Dividend ETFs Ranked By Assets
Dividend income is increasingly popular in a yield starved world. Dividend ETFs are the choice for many to access dividend stocks. Here are the 10 most popular dividend ETFs as ranked by total assets. The tables in this article compare the assets, yield, expense ratio, rolling short-term total return, and total return for recent calendar years for the 10 most popular U.S. domestic stock dividend ETFs. The next chart presents yield in four gold shaded columns, highlighting one of the dilemmas faced by equity investors - determining the actual yield. The first challenge is to ascertain which form of yield the reporting source is using. That sounds easy, but they do not all report on the same basis, and database sources often have conflicting numbers. Three common forms are 12-month trailing... more
11 High-Dividend Stocks That Can Afford To Double Dividend Payments
High-dividend stocks are very popular among defensive investors. These stocks are considered as viable options especially in inflationary environments. In order to achieve sustainable returns, defensive investors also select companies that are able to consistently pay fat dividends. We are concerned that the Fed's inflationary monetary policy will lead to inflation in the near future, and therefore we recommend investors play defensively by purchasing high-quality dividend stocks. Below we compiled a list of high-dividend U.S. stocks that can afford to double dividend payments. All companies have at least a $10 billion market cap, a dividend yield higher than 3% and a payout ratio lower than 40%. Market data sourced from Finviz. Ticker Company Dividend Yield 52-week... more
Dividend Aristocrats For 2012
Dividend stocks are going to be a focus for the coming few years and we continue to look for ideas that can help provide income and mitigate against the worst of the continuing financial turbulence. Brendan Byrnes of the Motley Fool gives his view on where to invest for dividends in 2012 and we will follow what he has to say and measure it against our ETF benchmark. 3M (MMM) produces more than 50,000 products. Even in 2009, one of the "worst economic times in memory," according to CEO George Buckley, the company still released more than 1,000 new products.This is a double edged sword with diversified products to minimize the impact of any one business going south against not being a dominant player in one large market. It has also increased its dividend for 53 consecutive years. ... more
Dividend Stocks That Combine Growth And Income
Growth and dividend yield are not mutually exclusive. On the contrary, many companies with attractive growth prospects also provide investors with income in excess of treasury bonds. A screen was performed to find stocks that bridge growth and income. Each of the following companies has a minimum average analyst forecast of 15% earnings growth while paying a dividend yield in excess of the 10-year treasury yield. Moreover, each of these stocks had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than treasuries and has a long-term trend of earnings and dividend growth, which is better than the static interest payments on fixed-rate treasuries. Price multiples, dividend histories, and return of equity histories are... more
14 Dividend Aristocrats With Highest Expected Growth And Attractive Valuation
Dividend Aristocrats are stocks from the S&P 500 Dividend Aristocrats Index. The index is created by Standard & Poor’s, a subsidiary of McGraw-Hill Companies, and measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. 51 stocks belong to the index. Dividend Aristocrats normally have a lower volatility and offer a higher degree of safeness - an ideal source for safe heaven investors. I analyzed the index by cheap growth stocks. As criteria, I decided to select stocks with the highest expected earnings per share growth for the next 5 years (over 10 percent yearly). In addition, the current valuation should not be too high. That’s why the forward price to earnings... more
7 Stocks With Yields As High As 65%
Our favourite two plays on the list are Energy Transfer Partners, L.P. (ETP) and Boardwalk Pipeline Partners LP (BWP). Before we go further, investors should understand that buying a dividend stock based on yield alone is usually a recipe for a disaster. It is okay to roll the dice with small amounts of money (Las Vegas money) on some plays that sport incredibly high yields like CPI Corporation (CPY), but betting the house on them is asking for trouble. ETP has a quarterly revenue growth rate of 32.9%, a very large cash flow of $1.1 billion, a ROE of 13.4%, a five-year dividend growth rate of 7.56%, a total three-year... more
15 Rallying Dividend Stocks With Buy Ratings From Barclays Capital
Interested in stocks paying dividend income but don't know where to start looking? Here are some ideas to get you started. We ran a screen on stocks paying dividend yields above 1% and sustainable payout ratios below 50% for those currently rallying above their 20-day, 50-day, and 200-day moving averages. We then screened these stocks for those with "Buy" ratings from Barclays Capital (analysts at Barclays believe these stocks will soon outperform). ‪ Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬ We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the... more