Saturday, March 31, 2012

51 Dividend Challengers With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha

51 Dividend Challengers With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha: I have been combing through David Fish's Dividend Champions document looking for stocks that yield more - 50% more - than 10-year Treasuries. Since Treasuries are yielding 2.25%, the requirement for dividend-raising stocks has therefore been a minimum 3.375% yield.

It is a reflection of how low interest rates have gone that we are even having this discussion at all. It has been a fruitful search.

On Monday March 26, I published "18 Dividend Champions with Yields 50% Higher than 10-Year Treasuries." Dividend Champions are stocks that have increased their dividends for 25 or more consecutive years. There are 103 Champions at the moment, and 18 of them qualified.

Wikio

Wednesday, March 28, 2012

18 Dividend Champions With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha

18 Dividend Champions With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha: I've been writing lots of brain-busting theoretical articles lately. It's time to have a little fun, set theory aside for awhile, and just come up with some names.

As I write this, the yield on the 10-year Treasury is 2.25%. A yield 50% higher than that would be 3.375%. Assuming any of these stocks you might purchase does not cut its dividend, that initial yield on cost would be locked in for as long as you own the stock. With future dividend increases, it would get larger.

So the list below is of Dividend Champions with yields higher than 3.375%. As a measure of how low interest rates are, there are no fewer than 18 Champions (out of 103) that qualify.

Tuesday, March 27, 2012

Dividend Champs With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha

Dividend Champs With Yields 50% Higher Than 10-Year Treasuries - Seeking Alpha: I've been writing lots of brain-busting theoretical articles lately. It's time to have a little fun, set theory aside for awhile, and just come up with some names.

As I write this, the yield on the 10-year Treasury is 2.25%. A yield 50% higher than that would be 3.375%. Assuming any of these stocks you might purchase does not cut its dividend, that initial yield on cost would be locked in for as long as you own the stock. With future dividend increases, it would get larger.

So the list below is of Dividend Champions with yields higher than 3.375%. As a measure of how low interest rates are, there are no fewer than 18 Champions (out of 103) that qualify.

Wikio

Friday, March 23, 2012

Modern Dividend Theory Explained - Seeking Alpha

Modern Dividend Theory Explained - Seeking Alpha: According to Investopedia, Modern Portfolio Theory (MPT) is defined as follows:

A theory on how risk-averse investors can construct portfolios to optimize or maximize expected [total] return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

I've been thinking that it's time we developed a parallel Modern Income Theory. Part of that would be a Modern Dividend Theory (MDT). I am going to restrict myself to the latter, because it is my area of expertise.

I am going to try to start off developing this theory by comparing MPT concepts to analogous MDT concepts. The MDT concepts are hyptheses, but then again so are most MPT concepts.

As you read through the following, you will notice significant contrasts, starting right off with the underlying goals themselves. I think this is why MPT proponents have difficulty even talking to MDT proponents, because the goals and tenets are so different.

Wikio

Saturday, March 17, 2012

Dividend Challengers: 16 Increases Expected By May 31 - Seeking Alpha

Dividend Challengers: 16 Increases Expected By May 31 - Seeking Alpha: In compiling the Dividend Champions list (found here: http://dripinvesting.org/Tools/Tools.asp) 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.

Better Than Before

Over the past several months, I modified the schedule to aim for a three- to four-week frequency. Previous monthly articles had allowed some increases to "slip through the cracks" and publishing the listings twice each month seemed a tad too frequent, with too many companies carried over and not enough being "checked off." But the best solution has turned out to be a return to a monthly schedule, but extending the "forward look" to about 11 weeks, rather than the original six (later up to 10) weeks. So it's back to a monthly article, which will be timed to appear about 11 weeks from the end of a future month, in this case, May.

Dividend Champions: 13 Increases Expected By The End Of May - Seeking Alpha

Dividend Champions: 13 Increases Expected By The End Of May - Seeking Alpha: In compiling the Dividend Champions list (found here: http://dripinvesting.org/Tools/Tools.asp), 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.

Better Than Before

Over the past several months, I modified the schedule to aim for a three- to four-week frequency. Previous monthly articles had allowed some increases to "slip through the cracks" and publishing the listings twice each month seemed a tad too frequent, with too many companies carried over and not enough being "checked off." But the best solution has turned out to be a return to a monthly schedule, but extending the "forward look" to about 11 weeks, rather than the original six (later up to 10) weeks. So it's back to a monthly article, which will be timed to appear about 11 weeks from the end of a future month, in this case, May.

Dividend Challengers: 16 Increases Expected By May 31 - Seeking Alpha

Dividend Challengers: 16 Increases Expected By May 31 - Seeking Alpha: In compiling the Dividend Champions list (found here: http://dripinvesting.org/Tools/Tools.asp) 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.

Better Than Before

Over the past several months, I modified the schedule to aim for a three- to four-week frequency. Previous monthly articles had allowed some increases to "slip through the cracks" and publishing the listings twice each month seemed a tad too frequent, with too many companies carried over and not enough being "checked off." But the best solution has turned out to be a return to a monthly schedule, but extending the "forward look" to about 11 weeks, rather than the original six (later up to 10) weeks. So it's back to a monthly article, which will be timed to appear about 11 weeks from the end of a future month, in this case, May.

Sunday, March 11, 2012

5 Myths About Dividend Growth Investing - Seeking Alpha

5 Myths About Dividend Growth Investing - Seeking Alpha: A pretty cool community has emerged on SA over the past couple of years. It's the community of dividend growth investors. Through articles and comments, sharing ideas, and talking about "what's up," an active cohort of investors who use this strategy has formed. New participants are always welcomed. It's a friendly place, as no one seems to see dividend growth investing as a zero-sum game. Tips and suggestions are freely shared. There are no secret handshakes, no hazing.

With so many participants and contributions, it is inevitable that some misconceptions about dividend growth investing have sprung up. Here are five prominent "myths" about dividend growth investing, along with my point of view about each one.

Wikio

Friday, March 9, 2012

How To Transfer Shares To Your Kids ? The Passive Income Earner

How To Transfer Shares To Your Kids � The Passive Income Earner: For the longest time, I have been an income focused investor. I remember when I started working, I did not have much money to invest and I invested in mutual funds telling myself “if I can have more to invest one day, I would buy stocks” (at the time, trading was usually $30 – no $6.99 options back then). It turns out that you don’t need a lot of money and you don’t have to pay any fees!!! It was quite marvelous when I learned about buying shares with Computershare or Canadian Stock Transfer directly from the companies. It’s something I learned from The Lazy Investor by Derek Foster – strongly recommended if you are a beginner dividend investor.

The Rational Case For Dividend Growth Investing (Part 1) - Seeking Alpha

The Rational Case For Dividend Growth Investing (Part 1) - Seeking Alpha: David Van Knapp is anything but an entrenched financial professional. Starting in 2007, his affinity for value investing gradually gave way to developing his own unique approach to dividend growth investing. The author of five annual eBooks on the subject, Van Knapp has allowed individual investors approaching retirement to take their financial destinies into their own hands by carefully constructing and managing a portfolio of dividend growth stocks. Dave has been analyzing and writing about stocks since 2001, both on his own site SensibleStocks.com and here at Seeking Alpha.

Seeking Alpha’s Jonathan Liss recently caught up with Van Knapp to discuss the rapid growth in popularity of dividend growth investing. His most recent e-book, Top 40 Dividend Growth Stocks For 2012: How to Create and Maintain a Dividend Growth Portfolio provides the basis for the interview that follows.

The Rational Case For Dividend Growth Investing (Part 2) - Seeking Alpha

The Rational Case For Dividend Growth Investing (Part 2) - Seeking Alpha: Jonathan Liss (JL): Let’s drill down into some of the nitty gritty of what you are proposing. How much portfolio turnover can the typical Div. Growth investor expect?

David Van Knapp (DVK): Typically, the dividend growth investor purchases stocks with the intention of holding them for a long time. That’s because he or she selects companies that are expected to succeed for long periods of time, and then focuses on the increasing income stream generated by those companies. So stock price movements have less impact than they probably do on the average investor. In fact, contrary to some behavioral finance theories about investor panic, a price increase may be more likely to induce a sale than a price decrease, while a price decrease may be more likely to induce a purchase.

Thursday, March 8, 2012

Dividend Growth Stocks: 11 Dividend Aristocrats Giving Stability And Higher-Yields

Dividend Growth Stocks: 11 Dividend Aristocrats Giving Stability And Higher-Yields: 11 Dividend Aristocrats Giving Stability And Higher-Yields

How long have you gone without cheating on your diet? How long have you stuck to your budget? How long have you driven without speeding? How long have you gone since missing a day of work/school due to illness? Most of these would be measured in minutes, days, months, while some might be measured in a few years.

Imagine stringing together a 25 year series of the above items, or anything else for that matter. That would be something very special. The S&P 500 Dividend Aristocrats have done just that. Here is some more information on this special group of stocks...

Saturday, March 3, 2012

Dividend Champions Smackdown XXIV - Seeking Alpha

Dividend Champions Smackdown XXIV - Seeking Alpha: Dividend Champions Smackdown XXIV

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here: http://dripinvesting.org/Tools/Tools.asp ) starting with new columns that I titled Confidence Factor and the 5-year Estimated Payback Percentage.

(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 XXIV - Seeking Alpha

Dividend Contenders Smackdown XXIV - Seeking Alpha: Dividend Contenders Smackdown XXIV

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here: http://dripinvesting.org/Tools/Tools.asp ) starting with new columns that I titled Confidence Factor and the 5-year Estimated Payback Percentage.

(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 XXIV - Seeking Alpha

Dividend Challengers Smackdown XXIV - Seeking Alpha: Dividend Challengers Smackdown XXIV

In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here: http://dripinvesting.org/Tools/Tools.asp ) starting with new columns that I titled Confidence Factor and the 5-year Estimated Payback Percentage.

(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.)

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