A New Take On The 4% Rule - Seeking Alpha

A New Take On The 4% Rule - Seeking Alpha: For about a year, I have been fascinated by the symmetry of dividend growth investing's typical 4 percent current yield with the familiar retirement strategy of withdrawing 4 percent of your assets in Year 1 of retirement.

They are the same number! In other words, if you have saved $X for retirement, then withdrawing 4 percent of it in Year 1 produces the same amount of "income" as a 4 percent yield. If you've saved $1,000,000, then a 4 percent withdrawal is $40,000. If your assets consist of income generators, a 4 percent current yield (which is typical) also generates $40,000. The equality of amounts holds true no matter how much X is.

35 'Overdue' Dividend Increases: Streaks In Doubt - Seeking Alpha

35 'Overdue' Dividend Increases: Streaks In Doubt - Seeking Alpha: In compiling the Dividend Champions list (found here), I get to see which companies are nearing the anniversaries of their previous dividend increases. Most of these firms raise their payout about the same time every year, but some companies go longer before boosting their dividends. This can raise concerns about their streaks of increases.

Dividends in Doubt Series

This monthly series lists companies whose latest dividend increases might be considered "overdue" because it has been more than a year since the previous increase; a possible sign that their streaks of increases are in danger. Some firms regularly go more than a year between increases, so this is only an "early warning" sign that some of them may warrant concern.

Dividends Provide A Return Bonus - Seeking Alpha

c Provide A Return Bonus - Seeking Alpha: With all things being equal, dividend paying common stocks provide their shareholders a return bonus, or what some might like to call a kicker, over an equivalent common stock that pays no dividend. Many investors do not see it this way, as they tend to think of the dividend providing them their return. However, the stock market capitalizes earnings whether a company pays a dividend or not. Moreover, we contend that the market will value a given company's earnings based on their past and future prospects for growth, again, regardless of whether a dividend is paid or not.

Yield On Cost's Role In A Selling Decision - Seeking Alpha

Yield On Cost's Role In A Selling Decision - Seeking Alpha: I recently received an email question, as follows:

On the list of stocks that have been dropped [from the annual 'Top 40 Dividend Growth Stocks,' some of them have been dropped for having a yield that is too low. So let's say I already own [a stock], and two years later the current yield drops below 3%, but my yield on cost is still above 3%. I'm guessing you would drop [that stock] from the top 40 list, but would you sell it as well? Would I be correct in saying it depends on what the yield on cost is at that time?

Dividend Challengers: 17 Increases Expected In The Next 11 Weeks - Seeking Alpha

Dividend Challengers: 17 Increases Expected In The Next 11 Weeks - Seeking Alpha: In compiling the Dividend Champions list (found here), I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again.

Dividend Contenders: 10 Increases Expected By October 31 - Seeking Alpha

Dividend Contenders: 10 Increases Expected By October 31 - Seeking Alpha: In compiling the Dividend Champions list (found here) I get to see which companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again.

Open Letter To ETF Industry: Create A Better Dividend Growth Product - Seeking Alpha

Open Letter To ETF Industry: Create A Better Dividend Growth Product - Seeking Alpha:

Dear ETF Industry,

There is a vibrant market for an ETF or mutual fund that implements a sensible dividend growth strategy. With all due respect, the myriad "dividend" products that you have created until now don't cut it. I spent some time this past spring looking for good dividend growth ETFs (I, II, III), but I finally gave up in frustration.

I am happy enough being an individual dividend growth investor myself, and I don't personally need a good dividend growth ETF at the moment. But many other investors could use such a product. And some day I will die. I would like to be able to tell my wife, who is not very interested in investing, to "just put it into XXX." But a suitable XXX does not exist.

Investing In Central Utility Stocks - Do Today's Valuations Make Sense? Part 3 - Seeking Alpha

Investing In Central Utility Stocks - Do Today's Valuations Make Sense? Part 3 - Seeking Alpha: This is the third in my series on investing in utility stocks based on the sector's current valuation levels. The series was initially inspired by concerns that utility stocks may be overvalued because they had recently performed very well. When the series first started with Part 1, utility ETFs were showing the best one-year performance of any sector. By the second installment Part 2, the utility sector had fallen into second place (Utility Sector Performance July 31, 2012). Since that time, utilities have fallen into fifth place with year-to-date performance of only 3.8% (see Utility Sector Performance August 3, 2012 below), this could be an indication that utilities are reaching full value.

Dividend Champions Smackdown XXIX - Seeking Alpha

Dividend Champions Smackdown XXIX - Seeking Alpha: Dividend Champions Smackdown XXIX

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here) starting with stocks' Estimated Earnings Per Share Growth for the Next 5 Years and, last month, with stocks' Premium ( ) or Discount (-) to the Graham Number.

(Note that I have separated the Champions, Contenders, and Challengers into different articles to fit more closely into the format preferred by Seeking Alpha. Champions are companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. I use the same Roman numeral for all three articles.)

Dividend Contenders Smackdown XXIX - Seeking Alpha

Dividend Contenders Smackdown XXIX - Seeking Alpha: Dividend Contenders Smackdown XXIX

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here) starting with stocks' Estimated Earnings Per Share Growth for the Next 5 Years and, last month, with stocks' Premium ( ) or Discount (-) to the Graham Number.

(Note that I have separated the Champions, Contenders, and Challengers into different articles to fit more closely into the format preferred by Seeking Alpha. Champions are companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. I use the same Roman numeral for all three articles.)

Dividend Challengers Smackdown XXIX - Seeking Alpha

Dividend Challengers Smackdown XXIX - Seeking Alpha: Dividend Challengers Smackdown XXIX

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here) starting with stocks' Estimated Earnings Per Share Growth for the Next 5 Years and, last month, with stocks' Premium ( ) or Discount (-) to the Graham Number.

(Note that I have separated the Champions, Contenders, and Challengers into different articles to fit more closely into the format preferred by Seeking Alpha. Champions are companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. I use the same Roman numeral for all three articles.)

Aflac Stock Research And Dividend Analysis Spells Compelling Value - Seeking Alpha

Aflac Stock Research And Dividend Analysis Spells Compelling Value - Seeking Alpha: We believe that Aflac Inc. (AFL) represents compelling value at its current quotation. This above-average earnings generator that has grown earnings at a rate of 16.2% per annum since 1998 can be purchased at a blended PE ratio under 8 and offers a dividend yield of 3%. When you compare this to the average company as represented by the Standard & Poor's 500, you can only scratch your head in bewilderment. The S&P 500 has grown earnings at 5.7% per annum since 1998, only offers a 2% dividend yield and yet commands a blended PE ratio of 13.7.

105 Dividend Champions For August - Seeking Alpha

105 Dividend Champions For August - Seeking Alpha: The Dividend Champions spreadsheet and PDF have been updated through 7/31/12 and are available here. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. "CCC" refers to the universe of Champions, Contenders, and Challengers.