Costamare: Time to Lock in a 9% Dividend Yield
IPO Valuation In my previous article here, I establish a fair market price of $19 for Costamare (CMRE) using certain input assumptions in my discounted cash flow model container ship chartering companies. The main point of that article was to discourage people from participating in the IPO as there were more attractive opportunities in the market relative to the IPO target price range.Costamare has since then traded down to $10.55 at its lowest and closed Friday at $11.21 after a late day run up.... more
Why Procter & Gamble Is One of the Premier Dividend Growth Stocks
Linked here is a detailed quantitative analysis of The Procter & Gamble Company (PG). Below are some highlights from the above linked analysis: Company Description: The Procter & Gamble Company is a leading consumer products company markets household and personal care products in more than 180 countries. Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:... more
Dividend Capture Explained
The lure of dividends is always there. Even the novice stock trader notices that certain stocks move down suddenly on their ex-dividend date, and realizes that holders of that stock just received a tidy cash payment. It is no surprise that every trader, perhaps tired of fighting win-one lose-one battles in the volatile high-beta stocks, is eventually tempted to try the slower moving dividend stocks with their predictable payments. But to the trader, a strategy of simply buying and holding is not interesting enough. The trader wants to trade.Last time in Part 1 I wrote about the general behavior of dividend stocks, and looked at the strategy of simple buy-and-hold. Look at what happens to a company which pays a 10% dividend like clockwork -- and has no fluctuation in stock price due to... more
Buckle: The Best Dividend Aristocrat by Far
Who should get the crown of Dividend Aristocrats? PG? MO? MCD? KMB? I'm going to vote for an outsider that no one considers: the Buckle (BKE), the teen retailer. It just announced its third special dividend in as many years. BKE will hand out $2.50 to shareholders this December, an amount in total of $115 million. In 2008, it passed out $2.00. In 2009, the company gave out $1.80. In addition, BKE pays out 20 cent a quarter dividend, which in itself represents a 2.1% yield.... more
Higher Tax Rates Could Mean Special Dividends for Investors
As the end of 2010 is fast approaching, it appears Congress is having difficulty deciding how to handle the expiration of the Bush era tax cuts. If the Bush era tax structure expires, a whole host of tax increases will be thrust upon nearly all taxpayers. One tax that will be impacted is the tax rate on dividends, which will increase.From a performance perspective, higher taxes on dividends does not necessarily translate into the stocks of dividend payers underperforming the non payers. A recent Reuters article, Tax Changes Won't Kill Dividend Trend, highlights where Allianz reviewed tax rates from 1972 to the present, identified nine distinct time 'regimes', and found dividend-paying stocks outperformed nondividend-paying stocks in all but one period: 1987 (see below chart.)... more
Top Five Dividend Stocks for the Coming Week
Watch List SummaryThis week's list contains 21 companies that are among some of the biggest blue-chip institutions out there. The complete list can be found here.... more
12 Morningstar Dividend Stocks; 3 Investment Ideas
I was recently reading the latest (November) edition of Morningstar’s Dividend Investor newsletter, which gave me a number of investment ideas to add to my list of stock reviews to perform. The 12 stocks I put down from the “Builder portfolio”, as well as some other stocks in the newsletter, are:... more
Screening for Equity Income Persistence and Minimum Yield
Investing for equity income as an alternative to bonds requires more than just looking at yield, including among other things persistence and consistency of dividend payments. Bonds typically have the positive feature of persistent and consistent coupon payments, but the negative feature of no growth in payments. Some dividend stocks have a proven record of persistence and consistency (while many do not), and also a tendency to increase payments over time.... more
Yum! Brands (YUM) Declares $0.25 Quarterly Dividend; 2% Yield
Yum! Brands Inc. (NYSE: YUM) Board of Directors declared a dividend of $0.25 per share, $1.00 annualized. The dividend will be distributed February 4, 2011, to shareholders of record at the close of business on January 14, 2011. The ex-dividend date is January 12, 2010. Yield on the dividend is 2.0%.... more
American Woodmark (AMWD) Declares $0.09 Quarterly Dividend; 1.8% Yield
American Woodmark Corporation (Nasdaq: AMWD) today announced a quarterly cash dividend of $0.09 per common share, $0.36 annualized. The dividend is to be paid on December 20, 2010, to shareholders of record on December 6, 2010. The ex-dividend date is December 2, 2010. Yield on the dividend is 1.8%.... more