The difference between an income investor and a dividend growth investor is time and the understanding of how compound growth works. If you are 67 years old and need income today, you will likely select a different group of stocks than an enlightened 27 year old that doesn’t necessarily need the income today. The 27 year old has the the luxury of time to grow a superior yield, while the 67 year old may be forced to assume additional risk to buy a higher current yield. Here are some of the reasons an investor might forgo current yield in hopes of future gain…
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Wed. Apr. 6, 2011
classics, commentary
10 Dividend Stocks With With A 10%+ Dividend Growth Rate *
Wed. Mar. 30, 2011
classics, commentary
Why Dividend Stocks Are Evil *
I can’t carry on anymore. The secret has become too much of a burden and it must be shared with the masses. This will shock some and enrage others, but it must be said, and I should be the one to say it. Dividend stocks are evil and they will eventually lead to the collapse of western civilization as we know it. There, I said it and here is why I believe it…
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Wed. Mar. 9, 2011
classics, commentary
List of 195 Dividend Stocks Every Income Investor Should Know About *
In 2009, 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 is some information on each of the constituent lists and some highlights on this year’s changes:
Fri. Feb. 18, 2011
commentary
25 Dividend Stocks Raising Their Yield On Cost *
There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Income investors are investing for maximum current income, while dividend growth investors are looking to maximize income over an extended period of time — usually sacrificing current income for potential greater future earnings. Unlike fixed income investments, a growing dividend means a growing yield on cost.
Wed. Jan. 12, 2011
classics, commentary
Who Owns The Top Dividend Stocks? *
The internet provides investors with so much useful and interesting information. I could not imagine going back a decade or so and trying to analyze stocks without the internet – waiting for quarterly reports to be mailed for owned companies and calling the investor relations contacts for information on unowned companies. One of my job responsibilities is the statutory reporting for the corporation I work for. Filing 10-Ks, 10-Qs and other such required reports is often tedious, but it gives me a great appreciation of what information is available, including who owns some of the top dividend stocks…
Wed. Dec. 22, 2010
classics, commentary
Best Stocks for 2011 *
It is a great time of year! The Christmas music, decorations, family gatherings, holiday plays and stock picks. Stock picks? Yes, ’tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind the picks. As a long-term buy and hold investor, generally most aren’t useful for me; nevertheless, I find them entertaining and sometimes there is a gem to be found. Here are some picks for 2011…
Wed. Jun. 16, 2010
classics, commentary
What Determines A Dividend Stock’s Yield *
If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. Below are several important factors that influence a stock’s yield, along with some illustrative examples:
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Fri. Mar. 26, 2010
commentary
8 Dividend Stocks Avoiding the Cash Trap *
In their efforts to balance short-term investor expectations with long-term strategic goals, The Boston Consulting Group (BCG) warns companies to avoid cash traps that can negatively impact near-term shareholder returns. One of which is the The Stock-Buyback Trap. BCG doesn’t discount the role that stock buybacks can play in boosting near-term returns for some companies. But the firm’s research indicates that buybacks do not change investors’ estimates for long-term earnings-per-share growth, or induce them to accord a company a higher valuation multiple. By contrast, it says, dividend growth has a far more positive long-term impact.
Fri. Oct. 9, 2009
commentary
3 Big Names, 3 Big Dividend Increases *
Much has been written in the media about the “record numbers” of companies cutting or failing to raise their dividends. Even with a large number of companies not increasing their dividends this year, there is still an abundance of companies that have. For those companies that fail to increase their dividends, it is one less stock dividend investors have to track and analyze.
15 Dividend Stocks With A 15% Yield In 15 Years *
- Wayne Gretzky
I know very little about hockey, but I have always loved this quote. It can be applied to so many things in life, including investing. Just as Gretzky has a vision as to where the puck is going, investors need to have a similar vision, and not get caught up on short-sighted distractions. Investing in dividend growth stocks requires a long-term vision. It is easy to run a screen and find stocks that are paying a 15% yield today; but how long will they be able to sustain it? Instead you may want to skate to where the future 15% yielders are going to be. To do that, here are some things you need to know…
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