Category: Dividends
The analysis published under this category are as follows.Friday, December 04, 2009
Stock Market Sectors and Bonds for Higher Investment Income Yields / Stock-Markets / Dividends
The Federal Reserve’s policy of pegging interest rates to the floor is having a slew of consequences. It’s driving down the dollar. It’s helping fuel new asset bubbles. It’s leading to the misallocation of economic resources.
And perhaps most importantly for you, it’s punishing savers. By cutting the federal funds rate to a range of zero percent to 0.25 percent, the Fed has forced rates on short-term Treasuries, short-term certificates of deposit, and money market accounts into the gutter. You can’t earn squat on these safe, cash-like investments.
Read full article... Read full article...
Tuesday, December 01, 2009
Thanksgiving for Bargain Dividend Stocks / Companies / Dividends
Nilus Mattive writes: My wife and I hosted a big Thanksgiving dinner last Thursday, and as you might expect, the subject of investing came up before we even sat down to eat.
Everyone from current retirees to a recently-minted lawyer and an MBA student were in attendance. So the thoughts, experiences and opinions were truly diverse.
Read full article... Read full article...
Sunday, November 29, 2009
Stock Market Dynamic Dividends Investing / Companies / Dividends
Dividend stocks have the potential to grow both in stock price and with their dividend payout.Market Commentary: For a shortened, light volume post holiday trade, Friday was anything but unexciting. Seasonally, our bullish period ends on Monday for about 1-2 weeks and then resumes for the rest of the year. Something to consider for your yearend trading.. Read full article... Read full article...
Wednesday, July 15, 2009
Trolling for High Quality Equity Dividend Income / Companies / Dividends
Equity income has the potential to grow. Bond income does not. Investors with an income orientation should have at least some level of equity income to supplement fixed income from bonds to keep up with the cost of living. Inflation is the inevitable long-term outcome of monetary and fiscal policy (current deflation notwithstanding).
Read full article... Read full article...
Wednesday, July 01, 2009
Yields in Stocks Versus Treasuries are Abnormally High / Stock-Markets / Dividends
The “yield” from stocks is simply the amount earned by the stock divided by the price that the stock trades at. So the “yield” on the S&P500 is the inverse of the P/E ratio, in percent.
Read full article... Read full article...
Tuesday, June 02, 2009
The One Thing You Need to Know About Dividend Investing Today / InvestorEducation / Dividends
Dividend investing may be dead… at least for now.
For a company to pay out dividends, it has to make money (the one exception to this is the financial sector which now resorts to using government money or simply issuing more shares in order to maintain dividend payments).
Read full article... Read full article...
Monday, June 01, 2009
70% of ALL Stock Market Gains Come From This... / InvestorEducation / Dividends
Are you getting paid?
For much of the 20th century, investors bought stocks for one reason: dividends. In fact, before the SEC act of 1934 was passed, dividends were THE ONLY reason you’d buy a stock.
Read full article... Read full article...
Thursday, April 16, 2009
Now Is a Once-in-a-Lifetime Opportunity for Dividend Income Investors / Companies / Dividends
Dan Ferris writes: Not one investor in a hundred realizes this, but now is a once-in-a-lifetime opportunity for income investors. Most people will never recognize this opportunity because they don't know what a truly great income investment is. Most income seekers like to buy things like commercial real estate stocks (REITs) to collect rents.
Read full article... Read full article...
Wednesday, April 08, 2009
Difficult Times for Dividend Stock Investors / Companies / Dividends
In theory, equity income investing creates a reasonably steady and growing income stream from stock investments — a good chance of maintaining real purchasing power of the stream. That contrasts with bonds which create a more reliable, but constant income stream that has no chance of maintaining real purchasing power (inflation protected Treasuries and perhaps some variable rate bonds excepted).Read full article... Read full article...
Thursday, January 15, 2009
Bailed Out Banking Stocks Dividend's Dilemma / Companies / Dividends
Obama said he will order the Treasury Department to limit dividends paid by commercial banks and investment banks that receive “exceptional assistance” from the government to “de minimis amounts”.
That order will not likely receive any material resistance in Congress. Both Barney Franks and Chris Dodd have expressed similar views in the last several weeks.
Read full article... Read full article...
Monday, January 05, 2009
Stock Market Investment Screening for Top Yielding Dividend Stocks / Companies / Dividends
Some of our readers have asked for a list of top yielding stocks by sector. We built a screen for that and present the five stocks with the highest trailing dividend yield in each sector plotted with the related S&P 500 sector fund.
This does not constitute a recommendation of any kind. It is a screen that produces food for thought only. There are probably some stinkers in the list and maybe some good opportunities.
Read full article... Read full article...
Wednesday, December 10, 2008
The Stock Market As Time Machine / Stock-Markets / Dividends
I am sure very few people look at it this way but, in reality, the stock market is actually used by most investors as a means of “cheating time” rather than simply as a means of making money. Please read on and allow me to explain.Read full article... Read full article...
Friday, December 05, 2008
Using Traded Options to Gauge the Safety of Dividend Payments / InvestorEducation / Dividends
Nilus Mattive writes: Over the past few weeks, I've told you about some dividend bright spots — companies and sectors where payments continue to rise despite the weakening economy.
But I've also told you that many dividends have been cut or suspended. And many more are likely in jeopardy right now, especially as the “now-official” recession deepens.
Read full article... Read full article...
Wednesday, November 12, 2008
Investment Opportunities in High Dividend Paying Tech Stocks / Companies / Dividends
Nilus Mattive writes: Last week, I told you that McDonald's is a great example of a company with strong fundamentals and continued dividend strength. Yesterday, we saw more proof: The company said global same-store sales gained 8.2%. And even as most other restaurants posted weak U.S. results, McDonald's watched same-store sales gain 5.3% here in the States.Read full article... Read full article...
Tuesday, November 04, 2008
Stock Market Investing Dividend Yields Vs Bond Yields Analysis / Stock-Markets / Dividends
This week I have a very special Outside the Box for you. Peter Bernstein is recognized as one of the more brilliant and insightful analysts of our times. At 89, he has been writing prescient material longer than most of us "young guys" (I am 59, and hope I am still writing at 89, or even able to write!) have been even marginally in the markets. His Economics and Portfolio Strategy Letter is read by the true cognoscenti of the investment world.Read full article... Read full article...
Friday, July 25, 2008
Stock Market Returns – The Wonder of Compounding Dividends / InvestorEducation / Dividends
Albert Einstein described compound growth as the eighth wonder of the world. Although he may have passed away in 1955 – coincidentally the year when yours truly saw daylight for the first time – the concept of compounding remains the single most important principle governing investment.
Back to basics: Compounding simply means that you can earn interest on your principal investment amount, as well as earn interest on top of interest. The power of compounding can make an investment grow much faster than would otherwise have been the case, and is obviously based on the assumption that interest or dividends are reinvested in the same asset.
Read full article... Read full article...
Thursday, July 24, 2008
Beware the Stocks Bear Market Dividend Trap / Companies / Dividends
Alexander Green writes: For years, investors have bemoaned the low dividend yield on stocks. But with the market down roughly 20%, the yield on the S&P 500 Index is up to 2.25%. That doesn't sound terribly rich, I know, but it is only slightly less than the average money market is paying right now.
In the short term, you may sleep a lot better with a big chunk of money tucked safely away in cash. But in the long run, you may lose sleep. After all, your biggest risk as an investor is not market risk - the inevitable rise and fall of your stock portfolio from week to week - but shortfall risk, the possibility that good health and steady inflation may cause you to outlive your investment portfolio.
Read full article... Read full article...
Friday, June 13, 2008
Dividend Reinvestment Is One of the Most Powerful Wealth-Building Strategies Out There! / InvestorEducation / Dividends
Nilus Mattive writes: I recently got a question on my blog asking whether it's better to cash in dividend checks or reinvest them.
It's a great topic, and I have a very definitive answer: If you're an income investor who could really use the dividends to live right now, by all means cash those checks.
Read full article... Read full article...
Sunday, December 30, 2007
Lessons for High Yield Stock Market Investments 2008 / Stock-Markets / Dividends
There's still one trading day left in 2007. But for income investors, the key lessons from what was quite a tumultuous year are already in focus, as is how we can use them for a prosperous 2008.Once again, diversification paid off in spades. Some dividend-paying investments such as utility stocks were huge winners. More economy-sensitive fare like financial's and most real estate investment trusts were losers. But a balanced portfolio of a wide range of high-quality income-payers held its own, generating steady income with low overall volatility of principal.
Read full article... Read full article...
Sunday, December 16, 2007
Pick-up Cheap MLP Dividend Stocks at Bargain Basement Prices / Companies / Dividends
Master Limited Partnerships (MLP) have long been my favorite income-oriented group. The stocks offer an unbeatable combination of high tax-advantaged yields, steady cash flow profiles and the potential for significant income growth over time.
Even better, I see a rare opportunity developing in this space: The recent pullback in the group looks like an outstanding opportunity to buy at bargain-basement prices and lock in some highly attractive yields. We've seen a handful of pullbacks in the MLPs over the past decade, and each has proven to be an outstanding opportunity for investors with the foresight to jump in. And this latest short-term selloff will prove to be no different.
Read full article... Read full article...