Are you looking for companies that can sustain and grow their dividend? In making that determination, a company’s Statement of Earnings is one of the last places you should look. Cash is king for the dividend investor and the Statement of Cash Flows is where astute investors begin when they want to understand the viability of a company. To succeed as a dividend investor, you must find companies that can sustain and grow dividends by focusing on their ability to generate cash. You can fake earnings, but you can’t fake cash.
Fri. Jul. 30, 2010
commentary
19 Stocks Using Real Cash To Pay Higher Dividends *
Wed. Jun. 9, 2010
classics, commentary
Managing Risk With Dividend Stocks *
When you purchase individual stocks, risk is inherit. Sometimes bad things sometimes happen to good stocks such as the Chicago Tylenol murders of 1982. This shook Johnson & Johnson’s (JNJ) , but eventually it prevailed. Sometimes it is difficult when a strong leader leaves a company and creates a void that just can’t be filled. Consider the performance of General Electric’s (GE) after Jack Welch retired and Microsoft’s (MSFT) after bill Gates began relinquishing his responsibilities. So how do you guard against these situations and disasters similar to what BP (BP) and their shareholders are currently facing?
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Wed. Feb. 24, 2010
commentary
The 2010 Dividend Stock Ideas List *
Last year I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it. Here are some highlights on this year’s changes:
Wed. Dec. 16, 2009
classics, commentary
The 2010 Dividend Aristocrats *
The S&P 500 Dividend Aristocrats is the most prestigious list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This index is a member of the S&P Dividend Aristocrats index series.
Wed. Sep. 2, 2009
commentary
Never Fall In Love With A Stock *
Over time we tend grow fond of people we have a relationship with. Sometimes we grow to love them like a brother or sister; sometimes even more. In much the same way we can easily grow to love certain stocks, but this is not necessarily a good thing.
Tue. Aug. 11, 2009
commentary
Another Call For The Bottom *
The markets have seen some significant gains since their March lows. Each time this occurs there is a new round of experts calling the bottom. Time and time again the market throws them a cruel twist and heads lower. Will this time be different?
Tue. Jun. 9, 2009
classics, commentary
Warren Buffett’s Dividend Stocks *
Some of my fellow dividend investors have accused Warren Buffett of being a closet dividend investor. I won’t quite go that far, but there is significant common ground between dividend and value investors. With that said, let’s take a close look at Mr. Buffett’s most recent 13-F filing with the Securities and Exchange Commission.
Tue. Apr. 28, 2009
commentary
Buy-And-Hold Under Attack *
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how buy-and-hold works? They confuse a buy-and-hold strategy with day-trading with a longer duration.
Wed. Mar. 25, 2009
process
Early Warning Signs of a Dividend Cut *
It seems each week another dividend Aristocrat, Achiever or Champion cuts its dividend after increasing it for 10 or more years. In most cases the companies’ investors were not surprised because they saw the early warning signs that indicated a dividend cut was imminent. Here are three signs that a company is heading toward a dividend cut:
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22 Dividend Stocks Building Long-Term Returns *
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