Juice Your Returns With Dividends

In recent weeks I've been discussing how to estimate expected stock returns. So far I've looked at pinning down growth and dealing with valuation multiples. Today, we'll put the cherry on top by looking at dividends and share count. There's nothing wrong with strong earnings growth and the potential of selling your shares at a higher price in the future. However, particularly after the experience of the past decade, many investors are realizing that a company that actually pays them regularly is a company worth hanging onto. Not to mention the fact that historical experience has shown dividend payers to be very kind to a portfolio.... more

The Most Promising Dividends in Grocery Stores

Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the grocery store industry offer the most promising dividends. 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.... more

The 25 Highest-Yielding Dividend Champions

Yes, dividend investing is popular. Congress has extended legislation that maintains the low tax rate on corporate payouts through 2012. A great place to look for dividend stalwarts is among those companies that have successfully paid out cash for decades. The authoritative list of Dividend Champions is compiled by the DRiP Investing Resource Center annually and features those companies that have increased dividends for more than 25 years straight. The latest list details about 100 companies that have met the center's criteria, and these companies need not be part of the S&P 500 in order to qualify, unlike the Dividend Aristocrats index.... more

ConAgra: Attractive 4% Yield and a Well Managed Food Company

One of our favorite top US food producers ConAgra (CAG) will be reporting third quarter 2011 earnings on March 24th. We thought it might interest readers to show them what indicators and clues our dual cash flow and accrual model was telling us about CAG. Before we begin, investors should be aware that the biggest challenges facing packaged food makers in this environment are sky-rocketing commodity prices, intense competition and brand loyalty. Protecting market share in this business comes at a great cost, usually extracted in margin erosion or a hit to equity from write-downs or charges. Consumers enjoy the luxury of walking into a grocery store and finding at their fingertips a tremendous range of options, brands and prices to choose from. The grocery stores for their part,... more

4 Dividend Stocks Showing You the Money

Dividend checks continue to get fatter in Corporate America, as more companies jack up their distribution rates. Readers of the Income Investor newsletter can certainly appreciate that kind of thinking. Let's take a closer look at some of the companies that inched their payouts higher this past week.... more

Dividend Champions: Focus on Financials

The Dividend Champions spreadsheet and PDF have been updated through 2/28/11 both are available here. N ote that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. Together, all of these companies may be referred to using the abbreviation “CCC.” This is the fourth in a series of articles focusing on specific industries and isolating the CCC companies within those industries. The first covered Master Limited Partnerships (or MLPs) and can be found here; The second covered Real Estate Investment Trusts (or REITs) and can be found here; The third covered Utilities and can be... more

9 Dividend Stocks Showing Investors the Money

Investors realize return on investment in the form of dividends, capital gains or a mix of both. Stocks that pay dividends typically deliver on average total long term returns that are characteristic of equities in general. The main characteristic that differentiates dividend paying stocks is that the dividend payment provides some stability in the total returns that investors are expected to receive in a given year. This lowers volatility and ensures that investors generate a relatively predictable return that could be used to fund retirement needs. Investors relying on dividends for... more

Weyco Group: Dividend Champion With No Debt and Low Free Cash Flow Payout

This article originally appeared on The DIV-Net February 28, 2011. Linked here is a detailed quantitative analysis of Weyco Group, Inc. (WEYS). Below are some highlights from the above linked analysis:Company Description: Weyco Group, Inc. distributes, wholesale & retail, men’s branded footwear in the U.S., Canada, Europe; it offers casual footwear, dress shoes and accessories under Florsheim, other brands.Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham NumberWEYS is trading at a discount to only 1.) above. The stock is trading at a slight discount to its calculated... more

The Inner Workings of Dividend ETFs

Dividend ETFs can be a great way to add some stability and income to your portfolio. That aside, they still do need a little understanding before you jump in. An ETF that owns stocks will collect the dividends based on the number of shares of the underlying companies it owns over the course of time, explains Michael Rawson for Morningstar. These dividends are gathered and then get paid out to shareholders. But how are these amounts figured? Rawson sheds some light: Dividend yield is represented by the sum of all dividends paid by the fund over the past 12 months, divided by the previous month-end net asset value (NAV). When researching a dividend yield, there are two numbers that come up: an average dividend yield and a dividend yield. The difference between the fund’s dividend yield... more

5 Stock Bargains From France - Some With High Dividend Yields

With all the debt and euro concerns, stock markets in Europe have underperformed other markets for months now. This has created some potential long term buying opportunities.The French stocks below are trading at valuations that would appeal to most value investors. Some of these stocks have pulled back from their highs, while others look ready to make new highs soon. It could be time to start accumulating shares in these names. These share have low PE ratios, strong balance sheets and, in some cases, high dividend yields.Here are the five companies: France Telecom SA (FTE) is trading at $21.93. France Telecom is one of the leading telecommunications companies in France. These shares have traded in a range between $17.26 to $24.69 over the past 52 weeks. The 50 day moving average is... more