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Fri. Dec. 17, 2010

22 Dividend Stocks Building Long-Term Returns *

Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company’s increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time. Holding only first-rate businesses protects your dividend streams and helps ensure you’ll also get steady price appreciation.


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Wed. Feb. 24, 2010

The 2010 Dividend Stock Ideas List *

Last year 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 are some highlights on this year’s changes:


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Fri. Dec. 18, 2009

8 Stocks Compounding Their Dividends *

Compound interest is what occurs when interest previously earned is added to the principle and is considered when calculating future interest – i.e. earning interest on interest. So, what’s more powerful than compound interest? Compound dividends! Compound dividends are like compound interest on steroids – you are not only earning on reinvested dividends, but the dividend rate is increasing.


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Wed. Dec. 16, 2009

The 2010 Dividend Aristocrats *

The S&P 500 Dividend Aristocrats is the most prestigious list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This index is a member of the S&P Dividend Aristocrats index series.


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Wed. Mar. 25, 2009

Early Warning Signs of a Dividend Cut *

It seems each week another dividend Aristocrat, Achiever or Champion cuts its dividend after increasing it for 10 or more years. In most cases the companies’ investors were not surprised because they saw the early warning signs that indicated a dividend cut was imminent.  Here are three signs that a company is heading toward a dividend cut:
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Wed. Mar. 11, 2009

Should You Sell A Dividend Stock After A Dividend Freeze? *

When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. However, sometimes selling a stock is the right thing to do. In determining when to sell a dividend stock, I have one hard and fast sell rule: When an individual stock held as a dividend investment lowers its dividend, immediately sell it. This rule has served me well. Since I have begun chronicling by investments online, there have been several stocks I sold immediately after a dividend cut. Here is a list of those stocks with my exit price and a recent price:
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Sat. Feb. 7, 2009

Progress Update – January 2009 *

Once again it is time for a goals/progress update. I am pleased to say that my annualized dividend income increased for the month, keeping alive the string of 14 consecutive months of increases dating back to December 2007 when I began tracking it. As noted in December, 2009 will be a challenge to keep the string going. January saw Pfsier (PFE) cutting its dividend. With each cut and subsequent sale, my dividend portfolio becomes stronger. In January, I continued to lower my exposure to funds that appear headed to toward a dividend cut.


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Wed. Feb. 4, 2009

The Dividend Stock Life Cycle *

The renewing of life. There is nothing more natural than the live birth of a child. In this birth there is life, hope, unlimited potential, and yes, eventually death. Though we don’t like to focus on it, death is just as natural as birth. In much the same way, it is natural for a percentage of dividend stocks to fail each year, either in not raising their dividend or literally ceasing to exist. As we plan for out own death by buying life insurance and making final arrangements, we must have a plan in place for when inevitable happens and we must sell an under-performing dividend investment.


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Fri. Jan. 30, 2009

Big Names and Dividend Cuts Make The News *

Dividend cuts, such as Pfizer’s (PFE) 50% slash earlier this week, along with big name companies such as General Electric (GE) and Dow Chemical (DOW) trying to convince their shareholders they won’t cut their dividends still dominate the business news. What is being overlooked is the steady stream of companies stepping up to the plate and raising their dividends, as good companies do – even during recessions.


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Wed. Jan. 28, 2009

Dividend Stocks: The Good, The Bad and The Ugly *

Like virtually everything else in this world Dividend Stocks can be placed into a few categories based on their historic performance and expectations for the future. Here are three broad categories and some representative selections from each:
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