Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough – the dividend growth investor also expects substantial and consistent growth.
Wed. Oct. 27, 2010
classics, commentary
17 Stocks With Room To Grow Their Dividend *
Wed. Oct. 20, 2010
classics, commentary
We Were Dividends, Before Dividends Were Cool *
It seems nowadays that every investing article ends with the same conclusion – you should be buying dividend stocks. They are all quoting studies citing the performance edge that dividends have enjoyed over the long-term and the value of a semi-fixed return generated from periodic dividend payments. However, you should beware of some of the information provided. Beyond the simple concepts, some of the writers are making really bad recommendations and cross-breeding dividend investing with their preferred form of investing.
Wed. Sep. 22, 2010
classics, commentary
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?
Wed. Jun. 23, 2010
classics, commentary
Why We Are Dividend Growth Investors *
We have all heard it… Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth investing. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. It seems everyone understands a traders mentality as evidenced by the numerous comments on capital appreciation – “Why would you buy that stock? It has been flat for 2 years.” Most understand the income investors mentality as noted by comments like – “Why would you buy that stock when you can buy Amalgamated Risk and it pays a 9% dividend?” Both of these strategies can be successful, as can a dividend growth strategy. Periodically, it is good to remind ourselves why we are dividend growth investors.
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Wed. Jun. 2, 2010
classics, commentary
9 Stocks With a Sustainable Dividend *
To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Put another way, targeted companies must be both capable and willing to grow their dividends. Obviously, we can not look into the future and see who will and will not perform. However, there are critical bits of information that we can evaluate today that often foreshadow the company’s future behavior. Here are some of the more relevant ones:
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Wed. Feb. 17, 2010
commentary
38 Dividend Securities For A Well-Rounded Asset Allocation *
I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.
Fri. Feb. 12, 2010
commentary
20 Dividend Stocks Riding The Tsunami Of Dividend Increases *
What a difference a year makes. This time last year we were looking at big-name dividend cuts and very few increases. Last week’s 16 increases set the stage for this week’s flood of companies, large and small, raising cash dividends paid to their shareholders.
Wed. Oct. 14, 2009
classics, commentary
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.
Wed. Feb. 18, 2009
classics, commentary
Ten Dividend Stocks With 50+ Years of Consecutive Increases *
In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. Not surprisingly, I went to the Dividend Champions list to find these ten dividend stocks that stand alone with 50+ years of consecutive dividend increases. They are presented here in descending rank:
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20 CEO’s Showing Confidence With Increased Dividends *
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