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.)
10 Dividend Stocks With Above Target Returns
Seven Stocks Expected to Grow Their Dividends in 2010
In this space we normally look at companies that have recently raised their dividends. However, as the year draws to a close there were very few companies of note increasing their dividends this week. With that, I thought it would be interesting to see who might be the big dividend raisers in 2010. Here are seven companies for your consideration:
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.
3 Styles Of Sucessful Dividend Investing
There are certainly many ways to categorize the different styles of investing in dividend stocks, including yield, risk, growth, etc. An investment strategy based on any of these could be successful, if implemented within the framework well-crafted plan. Over the years, I have found that most dividend investing styles fall into one of the three major categories listed below:
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Aflac Incorporated (AFL) Dividend Stock Analysis
This article originally appeared on The DIV-Net November 23, 2009.
Linked here is a detailed quantitative analysis of Aflac Incorporated (AFL). Below are some highlights from the above linked analysis:
Company Description: Aflac Incorporated engages in the marketing and sale of supplemental health and life insurance plans in the United States and Japan.
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A Winning Investment Strategy
We all want to succeed in everything that we do, including investing in the stock market. Though I have no analytical data to back it up, I am convinced that most people will lose money in the stock market over their lifetime. So why do so few people succeed at investing? Could it be that an individual’s desire to succeed be a significant reason for their failure.
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.
Seeding A Forest Of Dividend Stocks
In the southern U.S. where I live, there has been some controversy over harvesting forests of hardwoods and reseeding them with pines. Valuable hardwood trees such as white and red oaks, cherry, ash, yellow poplar and black walnut require decades to reach financial maturity. The southern pine reaches financial maturity in a fraction of the time, but will not yield the same price as hardwoods. Growing hardwoods is very similar to investing in dividend stocks.









38 Dividend Securities For A Well-Rounded Asset Allocation
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