The Extraordinary Power of Dividends: Dow Chemical Edition

"Dividends?" he asked. "I'm trying to make my clients wealthy. You don't do that waiting for tiny checks in the mailbox every quarter." Even then, I had enough horse sense to know he was wrong. Paying attention to dividends is exactly how you become wealthy over time.
Wharton professor Jeremy Siegel made a wonderful discovery in his book The Future for Investors. The greatest long-term returns typically don't come from the most innovative companies, or even companies with the highest earnings growth. They come from companies that happen to crank out dividends year after year. Simply put, since the 1950s, "the portfolios with higher dividend yields offered investors higher returns."... more

The Extraordinary Power of Dividends: American Express Edition

"Dividends?" he asked. "I'm trying to make my clients wealthy. You don't do that waiting for tiny checks in the mailbox every quarter." Even then, I had enough horse sense to know he was wrong. Paying attention to dividends is exactly how you become wealthy over time.
Wharton professor Jeremy Siegel made a wonderful discovery in his book The Future for Investors. The greatest long-term returns typically don't come from the most innovative companies, or even companies with the highest earnings growth. They come from companies that happen to crank out dividends year after year. Simply put, since the 1950s, "the portfolios with higher dividend yields offered investors higher returns."... more

What You Need to Know About Chimera

Mortgage REITs issue shares to investors to raise capital, which they use to buy mortgage-backed securities. They also use short-term financing to boost their returns. They repay lenders out of the mortgage payments they collect, and most of the rest is returned to shareholders in dividends.
Let's take a quick look at four things investors in Chimera need to know. After that, we'll see how Chimera stacks up next to its competitors.

1. Interest rate spread
A REIT's interest rate spread is the difference between a REIT's financing costs and its interest income. It's a decent measure of investing profitability -- and portfolio risk.

2. Debt-to-equity ratio... more

PDL BioPharma: Dividend Dynamo or Blowup?

Let's examine how PDL BioPharma (Nasdaq: PDLI) stacks up in four critical areas to determine whether it's a dividend dynamo or a disaster in the making. 1. YieldFirst and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.... more

5 Highly Undervalued Dividend Stocks

After months of debt concerns coming from Greece, Portugal, Spain, Italy, etc., there are some real bargains in European stocks. Many European companies pay higher dividends than their American counterparts, so it makes sense to invest globally for yield. The dividends look solid with these companies because their earnings easily cover the dividend payout. Also, earnings are continuing to grow at most of these companies, so it's possible these stocks could see significant share price appreciation and dividend hikes as well. Since the headlines coming from Europe could continue to be negative for the foreseeable future, it makes sense to buy these stocks on dips and only buy in stages, so you can take advantage of any declines. Here are the European dividend stocks to consider: ... more

Coke Consolidated Announces Third Quarter Dividend

Coca-Cola Bottling Co. Consolidated (Nasdaq: COKE) today announced that the Board of Directors has declared a dividend for the Third Quarter of 2011 of $.25 per share on shares of the Company's Common Stock and Class B Common Stock payable on August 19, 2011 to shareholders of record as of the close of business on August 5, 2011.... more

GATX Corporation Announces Quarterly Dividend

The board of directors of GATX Corporation (NYSE: GATX) today declared a quarterly dividend of $0.29 per common share, payable September 30, 2011, to shareholders of record on September 15, 2011. This quarterly dividend is unchanged from the prior quarter.... more

Commerce Bancshares, Inc. Declares Dividend

Commerce Bancshares, Inc. (Nasdaq: CBSH) announced that its board of directors has approved a regular quarterly dividend of $0.23 per share on the company's common stock payable on September 26, 2011 to stockholders of record at the close of business on September 9, 2011.... more

Periodic Table of Dividend Contenders (10-24 Year Streaks)

My first two Periodic Tables of Dividend Champions proved popular with readers, several of whom suggested extending the idea to Challengers and Contenders. So this article covers Dividend Contenders, which are stocks that have raised their dividends between 10 and 24 years in a row. As of the end of June, there are 148 Contenders (compared to 100 Champions, those with 25+ year streaks). As in the two previous Periodic Tables (available here and here), the X and Y axes are yield and dividend growth rate (DGR). Shading is used to identify stocks that don’t “make the grade” on either yield or DGR. My choices of what “make the grade” are explained below. I continue to tinker with the format to make these tables useful to the highest number of readers. Please note: DGR Timeframe. I... more

Aflac (AFL) Dividend Stock Analysis

Aflac Incorporated (AFL), through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), provides supplemental health and life insurance. Aflac is a Dividend Aristocrat which has paid uninterrupted dividends on its common stock since 1973 and increased payments to common shareholders every year for 28 years. The most recent dividend increase was in 2010, when the Board of Directors approved a 7.10% increase to 30 cents/share. Over the past decade this dividend growth stock has delivered an annualized total return of 5.20% to its loyal shareholders. The company has managed to deliver an increase in EPS of 16.20% per year since 2001. Analysts expect Aflac to earn $6.21 per share in 2011 and $6.45 per share in 2012. In comparison Aflac earned $4.95 /share the... more