Payback is the amount of time needed for an investment to earn its cost, undiscounted. For example, if you buy a dividend stock for $100 that pays a $5 annual dividend, the payback is 20 years (100/5). Though not very sophisticated, payback can still help you screen for good, solid dividend growth stocks. I learned this lesson the hard way…
Wed. Jul. 28, 2010
classics, commentary
10 Dividend Stocks Delivering A Quick Payback *
Wed. May. 19, 2010
classics, commentary
Five Dividend Stocks To Buy On A Dip *
Did May 6th frighten or excite you? I received a few emails from frightened dividend investors letting me know they were getting out of the market, while others asked if this was the beginning of another significant downturn. The first group are destined to always lose money in the market (sell low/buy high) and my answer to the second group was, ‘I hope so!’ Let me explain.
Wed. May. 5, 2010
classics, commentary
20 Dividend Stocks With A 20% Yield In 20 Years *
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.
Fri. Apr. 30, 2010
commentary
How Often Should A Stock Pay And Raise Dividends? *
In the U.S. and Canada, most companies pay dividends quarterly. In other parts of the world, it is not uncommon for companies to pay an annual or a semi-annual dividend. That is not to say that North American companies sometimes choose not to pay quarterly dividends. For many years McDonald’s (MCD) paid an annual dividend. Since 2000, Walt Disney Co. (DIS) has paid an annual dividend and Ruby Tuesday, Inc. (RT) pays a semi-annual dividend. Going in the other direction, Realty Income Corp. (O) and Alpine Total Dynamic Dividend Fund (AOD) pay monthly dividends.
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.
Tue. Oct. 6, 2009
classics, commentary
Three Dividend Stocks With A Perfect Risk Score *
A good system continues to improve itself. 
I maintain an extensive database with a minimum of 10 years of information on each of the 110+ stocks that I track. This data is gathered from various sources deemed reliable. Most data is generic and can be pulled from various sites. That is except some S&P risk and quality information (RQ).
Fri. Jul. 3, 2009
commentary
Nine Stocks Giving Shareholders A Raise In The Second Quarter *
In 1985 I graduated from college and took my first job as a staff accountant with a $21,000 annual salary. Now I am over the same department that I was hired into and entry level staff accountants start with a base salary of $56,500 per year. That equates to a 4.2% annual increase. Just as employees expect an annual raise, so do dividend investors.
Fri. May. 1, 2009
commentary
IBM Assumes Familiar Leadership Role *
IBM (IBM), a name once synonymous with blue-chip technology, faced a near-death experience in the early 1990′s when it misjudged the importance of PCs at a time when demand for mainframes was waning and corporate downsizing was in full swing. IBM has never been able to regain it technology bellwether crown from Microsoft (MSFT) and Intel (INTC), but it has taken steps to regain its leadership role.
Wed. Nov. 12, 2008
analysis
Stock Analysis: International Business Machines Corp. (IBM) A Value Priced Stock *
Linked here is a PDF copy of my detailed analysis of International Business Machines Corp. (IBM). Below are some highlights from the above linked analysis:
Company Description: IBM, the world’s largest technology company, offers a diversified line of computer hardware equipment, application and system software, and related services.
Read more…
We Were Dividends, Before Dividends Were Cool *
Read more…