When it's 100 degrees outside and the sun is beating down, an ice-cold beverage might be just what you need to cool you off. On the other hand, a dividend-paying beverage stock might be exactly the thing to heat up your portfolio. Whether you prefer to quaff soda or “pop,” there are choices among income-generating companies that are sure to suit.
I’ve been writing about dividend-paying companies for more »
If you've been paying any attention to the investing world lately, you surely know that dividend stocks have been an extremely popular choice for a couple of years now.
The reasons for this are fairly simple: 1) income investors have been faced with incredibly low yields on bonds and CDs, and have been forced to look to stocks for cash flow, and 2) research has shown that certain stocks more »
It looks like the dividend-stock juggernaut may be starting to slow down, as yields on income vehicles begin to edge up again. After staying abnormally low for the last few years, the yield on the 10-year Treasury bond has increased by 80 basis points since April, to its current rate of 2.57%. Income investors are starting to exit the lower-yielding stocks in favor of “safe” investment grade bonds, so more »
According to the financial website InvestorPlace, 50 blue-chip companies raised their dividends during the second quarter of 2013. This despite stock market declines, which were reportedly because of the Federal Reserve’s hints that it may begin easing back on stimulus by as early as September.
Investors are still flocking to dividend companies, even though bond interest rates are starting to increase. Dividend companies can offer a steady income stream more »
So it’s time for the second quarter update for my Perfect Dividend Portfolio, which I began to put together back in December and completed in April. I must take a moment to brag a bit; my portfolio is doing exactly what I wanted, and I am totally happy.
In this article, I'll talk about how my three favorite companies are doing: Cracker Barrel Old Country Store, Meredith Publishing more »
Dividend stocks have finally been recognized as the superstars that they are. While in the past many investors focused on growth stocks for share price appreciation, the masses have come to see that a great dividend combined with good growth prospects can provide a safe, reliable way to grow your investment.
If you’ve read any of my articles, you know that I am a huge dividend fan. I’ve more »
Even with the recent uptick in long-term bond prices, yields are still puny, and income investors are hard-pressed to find quality companies that are even keeping up with the rate of inflation, let alone generating income above that level.
The S&P 500 has generated a dividend yield of around 2% over the last decade, and it doesn’t look like that will be increasing any time soon.
However, it more »
If you have read any of my previous dividend-focused articles, you know that not only do I consider absolute yield as a factor for my selection of a company, but I also consider the number of years that the company has been paying and raising its dividend, and its five-year Dividend Growth Rate (DGR). Thus, I look at the company’s commitment to growing its dividend as well as its more »
In Part One of this article, I described the new WisdomTree US Dividend Growth Fund and its managers' effort to distinguish their methodology in a very crowded Dividend ETF market.
The fund's management says that they will be looking at forward earnings projections and trailing 3-year returns on equity and assets in order to determine which companies are good candidates for future dividend increases. They eschew the traditional metrics more »
Please be sure to read Part One before you read this part. In it, I discuss the very real possibility that a retiree, if his money is invested in a tax-deferred account such as a traditional IRA or a 401(k), may be forced to withdraw more from his account than the recommended 4%.
So you find yourself in the somewhat enviable position of being required to withdraw more annually more »
OK, I’ve seen several dividend websites write about the importance of yield on cost, and why it is more important than a company’s current yield. And I’ve read these articles, and tried to understand their arguments. But I have to admit, I am completely baffled.
The argument that you should hold onto a company with a high yield on cost, rather than selling it and buying something more »
There’s been plenty of discussion over the years about the best amount to withdraw from a retirement account. It’s a tricky calculation, especially if your retirement account is fairly modest. You want to make sure your money lasts as long as you do, but you also don’t want to live more frugally than necessary.
The consequences of getting the calculation wrong can be quite dire. Take too more »
Dividend companies continue to be popular, both among people investing for income and among people looking for superior returns with the added bonus of a steady income stream. Investors are finally recognizing that over time, dividend-payers have historically outperformed other classes, and that much of the stock market’s overall performance can actually be attributed to the contribution of dividends.
Important dates for dividend stocks
If you're going to more »
Two weeks ago, when commenting on both the newest Powerball millionaire ($590 million, still unclaimed as of this writing) and David Karp’s sale of Tumblr to Yahoo!, Jim Cramer noted that when one has that kind of money, investment goals can be substantially different than those for ordinary people.
People who are that rich don’t need to invest for growth – merely for preservation. They don’t need to more »
The problem with most investors is that they do not have a portfolio strategy at all.
They may pick up a stock here or there, because they read a great write-up about it on CNBC.com, or they heard Jim Cramer really recommended it, or their brother-in-law gave them a hot tip.
They probably have a mish-mash of individual stocks and mutual funds, some that they are now carrying at more »
If you’re investing for income, you probably want that income to hit your bank account as smoothly and as frequently as possible so that you can plan your expenditures with a relative degree of confidence. A roller-coaster ride of highs and lows in your bank balance would make it more difficult to pay bills on time, unless you are extremely good at sticking to a rigid budget.
To that more »
The latest word I’ve been hearing in regards to the popularity of dividend companies is “bubble.” People are arguing that many dividend stocks are being bid up in a frenzy of income hunting, and that eventually the frenzy will hit a saturation point and the bubble will burst.
I argue that dividend companies, by their very nature, are incapable of sustaining bubble-like price increases. Because the dividend yield is more »
Today, I’m examining the three MLPs (Master Limited Partnerships) that were listed in a recent article on InvestorPlace.com. The author, Jeff Reeves, likes these three for what he calls their “triple threat” of high yield, good share appreciation, and stability as a company.
An MLP is great for an income portfolio because it pays out a large part of its income as distributions to its partners, i.e more »
About a year ago, I examined the pairing of Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) to determine which I thought was the better investment. Today I am revisiting them to evaluate how well my prediction worked out, and whether or not I will change my opinion at this time.
A year ago, I suggested that both companies held opportunity for investment, but Coca-Cola offered the greater potential gain. At more »
TheStreet.com recently ran an article outlining five companies that Warren Buffett holds in his portfolio that yield 3% or better. I decided to take a look at these five companies, since I love dividend companies, and to some degree I love Warren Buffett. (I like to read what he is doing, but I don’t own any of Berkshire Hathaway’s stock.)
I’ve been writing about dividend stocks more »
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