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Wed. Dec. 9, 2009

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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More on this topic (What's this?)
Ten Dividend Kings raising dividends for over 50 years
The ten year dividend growth requirement
Read more on Dividend Investing, Dividends at Wikinvest
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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More on this topic (What's this?) Read more on Dividends at Wikinvest
Mon. Sep. 14, 2009

Lowe’s Companies, Inc. (LOW) Dividend Stock Analysis

This article originally appeared on The DIV-Net September 7, 2009.

Linked here is a detailed quantitative analysis of Lowe’s Companies, Inc. (LOW). Below are some highlights from the above linked analysis:

Company Description: Lowe’s Companies, Inc. and its subsidiaries operate as a home improvement retailer in the United States and Canada. The company offers a range of products and services for home decoration, maintenance, repair, remodeling, and property maintenance.

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Wed. Sep. 9, 2009

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.


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Tue. Aug. 18, 2009

Focus On Stocks, Not The Market

In one form or another, I get the question daily, “What do you think of the market? Where’s it headed?” Normally, I politely respond as expected, but occasionally I will startle the person with a reply like, “I don’t know. For me it really doesn’t matter much.” My investing goals are not defined by movements in the market.


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More on this topic (What's this?) Read more on S&P 500 (SPX) at Wikinvest
Tue. Jun. 30, 2009

Five Aristocrats That Have Been There Before

In  sports after a player or team scores there is a celebration. Sometimes the celebration is extreme and designed to focus attention on the individual. As a kid growing up in the 70’s and 80’s this behavior was not tolerated. The coaches would say, “Act like you been there before.” There is something to be said for those that consistently perform at the highest levels, like the Dividend Aristocrats.


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More on this topic (What's this?)
Dividend Aristocrats List for 2010
Comprehensive Review Of The Dividend Aristocrats
Read more on Dividend aristocrats at Wikinvest
Wed. Jun. 10, 2009

Five Stocks With A Low Dividend Payout Ratio

The main focus of dividend investing is finding and buying dividend stocks that will likely continue to raise their dividends in the future. In making this determination there are many factors to consider.  One of the more important metrics to consider is the Dividend Payout Ratio.


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Tue. Jun. 9, 2009

Warren Buffett’s Dividend Stocks

Some of my fellow dividend investors have accused Warren Buffett of being a closet dividend investor. I won’t quite go that far, but there is significant common ground between dividend and value investors. With that said, let’s take a close look at Mr. Buffett’s most recent 13-F filing with the Securities and Exchange Commission.


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Fri. Jun. 5, 2009

Equity Returns Are Driven By Reinvested Dividends

It is well-documented that a significant portion of the historical equity returns are a result of reinvested dividends. In Triumph of the Optimists: 101 Years of Global Investment Returns (2002), the authors looked at equity returns from capital gains and dividends from 1900 to 2000. They determined that performance in any given year was driven by capital appreciation, but long-term returns were largely the result of reinvested dividends. Looking at 101 years of data in the U.S. and U.K., they found that a market-oriented portfolio with dividends reinvested would have generated nearly 85 times the wealth of the same portfolio relying solely on capital gains.


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More on this topic (What's this?)
A HOUSING LOWE OR THE DEPOT’S LOSS?
Read more on Equity, Lowe's Companies at Wikinvest