Diversified Dividend Portfolios: Don't Forget About Quality

Diversification is a process that allows dividend investors to spread their risks between different sectors and asset classes. The goal of this exercise is to minimize the risk of ruin and ensure portfolio longevity, while minimizing fluctuations in income and principal. Many dividend investors perceive diversification as a dirty word, given the fact that not every sector of the stock market delivers consistent dividend payouts. As a result, the portfolios of many novice dividend investors tend to be concentrated in higher yielding sectors such as MLPs, Utilities, REITs and Financials. Even such sectors as consumer staples could pose risks to dividend investors, if they have a disproportionate allocation there. The risks of concentrated dividend portfolios could best be evidenced by the... more

The Top Dividend Aristocrats in Insurance

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top Dividend Aristocrats by yield in the insurance industry. For context, I've also included their five-year annualized dividend growth rate.... more

Don't Fret Over Hudson City's Impending Dividend Cut

In my previous look at the bank, I had discussed the probability that recent restructuring charges might end its 11 straight years of profitability. But I would like to reiterate that a charge due to a balance sheet overhaul is a one-time expense, unlikely to affect long-term operations. For investors sitting in the stock today, I think it's important to dig deeper when judging its capacity to pay dividends. A holistic viewIf you are bothered about Hudson's capacity for paying dividends, a glance at its payout history below may put things into perspective:... more

The Most Promising Dividends in Specialty Chemicals

Yields and growth rates and payout ratios, oh my!Before we get to those companies, though, you should understand just why you'd want to own dividend payers. These stocks can contribute a huge chunk of growth to your portfolio in good times, and bolster it during market downturns. As my colleague Matt Koppenheffer has noted: "Between 2000 and 2009, the average dividend-adjusted return on stocks with market caps above $5 billion and a trailing yield of 2.5% or better was a whopping 114%. Compare that to a 19% drop for the S&P 500."... more

Diversified Dividend Portfolios - Don’t Forget About Quality

Diversification is a process that allows dividend investors to spread their risks between different sectors and asset classes. The goal of this exercise is to minimize the risk of ruin and ensure portfolio longevity, while minimizing fluctuations in income and principal. Many dividend investors perceive diversification as a dirty word, given the fact that not every sector of the stock market delivers consistent dividend payouts. As a result the portfolios of many novice dividend investors tend to be concentrated in higher yielding sectors such as MLPs, Utilities, REITs and Financials. Even such sectors as consumer staples could pose risks to dividend investors, if they have a disproportionate allocation there. The risks of concentrated dividend portfolios could best be evidenced by... more

10 Dividend Stocks For Healthy And Wealthy Retirement

Americans are worried that they might not have enough money for retirement. Women who outlive their husbands are at special risk, with 40 percent of widows living almost exclusively on Social Security. There are a lot of worried retirees out there. According to WebMD excessive worrying can lead to suppression of the immune system, digestive disorders, muscle tension, short-term memory loss, premature coronary artery disease and heart attack. This isn't the way to spend our golden years. Here are some things we can do about it today for a healthy and wealthy retirement tomorrow... Have A Plan Many people are putting money into various retirement vehicles, but they haven't taken the time to envision how it is all going to come together and ultimately if it will be enough. We often... more

The Top Dividend Aristocrats in Materials

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top Dividend Aristocrats by yield in the materials industry. For context, I've also included their five-year annualized dividend growth rate.... more

The Top Dividend Aristocrats in Food and Beverage

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top Dividend Aristocrats by yield in the food and beverage industry. For context, I've also included their five-year annualized dividend growth rate.... more

The Top Dividend Aristocrats in Household and Personal Products

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top Dividend Aristocrats by yield in the household and personal products industry. For context, I've also included their five-year annualized dividend growth rate.... more

The Top Dividend Aristocrats in Capital Goods

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top Dividend Aristocrats by yield in the Capital Goods industry. For context, I've also included their five-year annualized dividend growth rate.... more