16 Core Dividend Stocks for Your Income Portfolio

There are approximately 300 stocks which have managed to increase dividends for at least ten years in a row. As a dividend growth investor I have analyzed in some detail almost all of these stocks, even though most of them will probably never meet my entry criteria. One reason behind that is valuation. Another, more important reason is that few of these companies have sustainable competitive advantages. As a result, in my articles describing dividend growth investing I tend to focus on a narrow list of quality candidates.The reason behind this is because there are only a handful of quality dividend growth stocks which meet the above characteristics. These companies have a proven track record of dividend increases, fueled by earnings growth which was a direct result of having a strong... more

Insiders Are Buying Into These 6 Financial Stocks, Boosting Dividend Payments

If you're interested in tracking insider trades of dividend stocks, this list might offer an interesting starting point. To create the list, we started with a universe of about 150 stocks that are expected to boost dividend payments during the current year. To narrow down the list, we focused on insider buying and only kept those financial stocks that have seen significant insider buying over the last six months. To further control the quality of the list, we only focused on names that have dividend payout ratios below 35%.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.Your browser does not support iframes. Insiders seem to think there's more good... more

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, pay off 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:The Concept of Compounding Compound interest is what occurs when interest previously earned is added to the principle and is considered when calculating future interest – i.e. earning interest on interest. With a constant interest rate your earnings spiral up each and every year when you reinvest the interest. Consider a... more

6 Tobacco Stocks With Smoking Dividend Yields

Cigarette companies are among the top dividend payers in the consumer services industry. Many prominent investors garner safe and high returns from the tobacco business. Although their products are subject to a tremendous amount of different types of taxes, these companies keep on making profits. (You can buy a pack of Marlboro for $1 in Ukraine, whereas the same pack costs $11 in New York City.) Here, is a fundamental analysis of 6 tobacco companies that pay substantial dividends and sport a minimum market cap of $1 billion. I also estimated their fair value using the FED+ (Future Earnings Discounted + Equity) model. Data is derived from finviz: British American Tobacco (BTI) is one of the largest cigarette makers around the world. The company is best known for its Dunhill, Kent, Lucky... more

7 Monthly Dividend Payers to Help Brighten Income Portfolios

My initial hunt for dividends begins with the monthly dividend payers. Receiving 12-monthly dividend checks is a bit more appealing than the typical stock which pays quarterly dividends. Ideally the monthly income flow will, at a minimum, offset my monthly expenses. Alpine Total Dynamic Dividend Fund (AOD) Alpine Total Dividend Fund attempts to achieve a high current income, and -- as the annual report will show -- capital gains. The fund invests in global equity companies. Per its latest SEC N-Q filing, AOD was 42.3% invested in stocks based in the United States. The remaining holdings were outside of the U.S. AOD has changed course to focus more upon capital share appreciation versus a major focus on dividend stocks. On page 3 of AOD's 2010 annual report, dated 10.31.2010, management... more

5 MLPs Deriving Rich Yields From Coal

Approximately 50% of electrical production in the United States is produced from the energy released from burning coal. In addition, the United States has about 25% of the world's coal reserves. In order to burn the coal to produce electricity, it must be mined and delivered to the electric utilities. Many of those companies are MLPs (Master Limited Partnerships) that pass along great income payments to their investors.This article will examine five coal MLPs to consider for the readers investment possibilities. The yields and distributions range from as low as 4.8% to a high of nearly 8%.Alliance Resource Partners, L.P. (ARLP): The company is located in the three major U.S. Coal mining regions in the Illinois Basin, Central Appalachia, and Northern Appalachia. They have nine mining... more

Royal Bank of Canada: Dividend Dynamo or Blowup?

Let's examine how Royal Bank of Canada (NYSE: RY) 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

The Best Technology Dividend Stocks

Today, I'm going to dive into some popular technology stocks that are offering sizable dividends to see whether any of them are worth your money. How sustainable are my dividends?If you're buying a stock for its dividend, you want to be sure the stock will be around for years to come. Start by looking at the payout ratio, which tells you what portion of earnings a company uses to pay for its dividends. In their book Million Dollar Portfolio, David and Tom Gardner suggest that you should hold only stocks with a payout ratio of less than 65%.... more

The Wrong Way to Pay Dividends

In a preliminary prospectus filed with the Securities and Exchange Commission yesterday, Amgen says it plans to sell bonds, the proceeds of which could potentially be used for: Working capital and capital expenditures Debt service requirements and repayment of outstanding indebtedness Other business initiatives, including acquisitions and licensing activities Repurchases of shares Payment of quarterly dividends The first three make perfect sense. Grabbing cash while interest rates on corporate bonds are low to make major purchases is what smart companies do.... more

My Money Is On This International Dividend Stock

This is the third article in a series in which I'm writing about my retirement portfolio, which I'm dubbing "The Cheesehead Portfolio," in honor of my home state of Wisconsin. If you wish to see my first two selections for the portfolio, check them out: My Money Is On This Dividend Stock My Money Is On This Company's Management Three years from now, I fully expect today's pick, PriceSmart (Nasdaq: PSMT) , to handily trounce the market thanks in no small part to a growing, baby-boomer-inspired trend.... more