Dividend Report Card: Intel
In this series, we analyze financial metrics to begin answering the following questions about a company's dividend: Over time, has this company steadily increased its payouts? How sustainable is the dividend? Does the company have room to further increase the dividend? The Dividend Report Card wasn't designed as a buy or sell signal but rather as a tool to gauge the health of a company's dividend. For a full explanation of each category, click here for a tutorial.... more
Dividend Report Card: Procter & Gamble
In this series, we analyze financial metrics to begin answering the following questions about a company's dividend: Over time, has this company steadily increased its payouts? How sustainable is the dividend? Does the company have room to further increase the dividend? The Dividend Report Card wasn't designed as a buy or sell signal but rather as a tool to gauge the health of a company's dividend. For a full explanation of each category, click here for a tutorial.... more
13 Dividend Stocks With Important Directional Metrics in Their Favor
A photograph captures a moment in time. Seconds after the flash dims a tree could have fallen on the object of the photo or the sad looking man in the photo could have been told he just won a million dollars. In much the same way a dividend stock analysis is a snapshot in time, but the real question for the savvy dividend investor is ‘where is the stock headed?’ Here are four important directional metrics that I look for when updating my stock database… 1. Declining Shares Many companies sell stock to raise cash. The important question is what is the company going to do with the cash? Is it for an acquisition or “general corporate purposes?” The latter is code for the business is not generating enough cash to stay afloat on its own. I am wary of a company that consistently... more
The Most Promising Dividends in Investment Management
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 investment management 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
Dividend ETFs: Looking for a Little More Income?
Dividend exchange traded funds (ETFs) may have taken a hit and put off investors during the downturn. But dividends are still a safe and stable way to earn a little extra money. Looking back at the dividend landscape of the last few years, Todd Wenning for The Motley Fool says that we can glean five key lessons as we move forward. Not a guarantee. It ultimately comes down to a company’s board of directors to dictate whether or not we get a cash dividends. Although, dividends do help attract income investors and also shows financial strength. But in volatile times.... more
13 Dividend Stocks Headed In The Right Direction
A photograph captures a moment in time. Seconds after the flash dims a tree could have fallen on the object of the photo or the sad looking man in the photo could have been told he just won a million dollars. In much the same way a dividend stock analysis is a snapshot in time, but the real question for the savvy dividend investor is ”˜where is the stock headed?' Here are four important directional metrics that I look for when updating my stock database… 1. Declining Shares Many companies sell stock to raise cash. The important question is what is the company going to do with the cash? Is it for an acquisition or "general corporate purposes?" The latter is code for the business is not generating enough cash to stay afloat on its own. I am wary of a company that consistently has... more
Road Map for Managing a Dividend Growth Portfolio
The article on my real-world Dividend Growth Portfolio earlier this month generated more interest than I expected. So I decided to write about an important part of the portfolio’s construction and maintenance: portfolio management. I divide stock investing into three phases: stock selection, stock valuation, and portfolio management. I do this whether I am investing for dividends or for capital gains. Portfolio management includes everything that takes place after you have stocks in a portfolio. It covers important areas such as how much of the portfolio is allowed to be in any one stock; when and why to sell; when and how to reinvest dividends; and the like. Portfolio management is best done, I feel, according to rules that you create before you create the portfolio itself. The rules... more
7 Tech Companies That Pay Substantial Dividends
Finding decent dividends can be difficult in the tech industry. The management culture has not been particularly conducive to dividends, and the cyclical and unpredictable trends often... more
Dividend Growth Investing Doesn't Get Enough Respect
Dividend Growth investing is one of the most misunderstood investment strategies out there. Yet various studies have proven that quality dividend growth stocks tend to outperform the broad market indices over time. The main obstacle to understanding dividend investing in general is that dividend stocks are equities and not a separate asset class. Companies exist for the benefit of shareholders, which means that they have to generate some return either in the form of dividends or in the form of capital gains. Paying a dividend instills discipline on management to be careful with the cash position and not take excessive risks such as ill-timed acquisitions or investing in projects which might not generate sufficient returns for the company. Investing should be... more
Solid Dividends, Exceptional Profitability and Revenue Growth? Only 3 Stocks Make the Cut
The goal: Find stocks that have solid dividends, exceptional growth in revenue and profitability, and are undervalued. Out of more than 17,000 stocks, only three stocks passed a rigorous series of tests. Think of these stocks as the navy seals of stocks. No matter what I threw at them they keep coming up win... more