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Wed. Sep. 22, 2010

The 2010 Elite Dividend Stocks List *

As dividend growth investors, we want to limit our purchases to only the very best stocks. Our first step is to look at published lists of dividend companies such as S&P 500 Dividend Aristocrats, US Broad Dividend Achievers™ Index and The U.S. Dividend Champions. These lists are used to narrow the population of all publically traded companies down to the very best dividend stocks. When these lists are combined, as I did with the Stock Ideas list, it is still a large and daunting collection of 218 unique companies. So, how do we find the Elite companies on this list?


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Fri. May. 7, 2010

14 Stocks Building Wealth Through Higher Dividends *

Some traditionalist would say your home is your greatest wealth building asset. I would argue it is not. Others would say your income is your greatest wealth building asset. Though there is a lot of truth to the statement, it is still not your greatest wealth building asset. So, what is your greatest wealth building asset? Everyone is born with it. Few realize its importance until they lose most of it. The asset is so priceless it can’t be bought. Your most valuable wealth building asset is time.


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Wed. Jan. 20, 2010

10 Dividend Stocks With Above Target Returns *

Last week I noted that most dividend stocks are now trading in excess of their calculated fair value. However, capital appreciation is not the primary reason for investing in dividend stocks. Dividend fundamentals are what drive my purchase decision, and if I could only look at one metric it would be the Net Present Value of the Money Market Differential (NPV MMA Diff.)


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Tue. Dec. 29, 2009

7 Low-Debt High-Rated Dividend Stocks *

When selecting a dividend growth stock there is really only one factor that is important – sustainability.  As we evaluate many aspects of a company, what we are really trying to determine is if the company can continue to raise its dividend indefinitely into the future. To pay and raise its dividend a company must generate sufficient free cash flow. However, it is not enough to just generate the cash, it has to be available for dividend payments.


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Wed. Dec. 2, 2009

9 Small/Mid-Cap Dividend Stocks Answering The Call *

I have set aside 15% in my asset allocation for small and mid-cap equities. Generally, smaller cap securities are more volatile, but often offer a higher rate of return over the long-term. Most of this allocation is covered by small cap mutual funds in my 401(k).


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Wed. Oct. 14, 2009

Dividend Payout vs. Free Cash Flow Payout *

I am a firm believer in keeping things simple. However, you can simplify things to the point they no longer have value. In my opinion, a lot of the commonly used financial metrics can be very misleading unless you understand what is behind them. I would put EBIT, EBITDA and Dividend Payout in this category. As an investor in dividend stocks, I see Dividend Payout used a lot, so let’s take a closer look at it.


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Mon. Aug. 10, 2009

RLI Corp. (RLI) Dividend Stock Analysis

This article originally appeared on The DIV-Net August 3, 2009.

Linked here is a detailed quantitative analysis of RLI Corp. (RLI). Below are some highlights from the above linked analysis:

Company Description: RLI Corp, based in Peoria, IL, provides selected property, casualty and surety insurance.

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Fri. May. 8, 2009

PepsiCo Sustains Its String Of Dividend Increases *

Dividend investors love companies that can sustain consistent dividend growth through the good times and the bad. For three years in a row PepsiCo (PEP) has been named to the Dow Jones Sustainability Index in recognition of the company’s economic, environmental and social performance.


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Wed. Nov. 26, 2008

Stock Analysis: RLI Corp (RLI) *

Linked here is a PDF copy of my detailed analysis of RLI Corp (RLI). Below are some highlights from the above linked analysis:

Company Description: RLI Corp, based in Peoria, IL, provides selected property, casualty and surety insurance.

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Fri. Nov. 21, 2008

Sysco (SYY) Raises Qtr. Dividend by 9% and Others *

I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. However, I have one hard and fast rule about selling stocks: When an individual stock held as a dividend investment lowers its dividend, immediately sell it.


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