Monday, July 29, 2013

Building A Quality Income Portfolio - Part 1: At The Portfolio Level | Mentions: BHP Billiton plc (ADR) (BBL), Caterpillar Inc. (CAT), Deere & Company (DE), The Coca-Cola Company (KO), Ross Stores, Inc. (ROST), Silver Wheaton Corp. (USA) (SLW) - Seeking Alpha

Building A Quality Income Portfolio - Part 1: At The Portfolio Level | Mentions: BHP Billiton plc (ADR) (BBL), Caterpillar Inc. (CAT), Deere & Company (DE), The Coca-Cola Company (KO), Ross Stores, Inc. (ROST), Silver Wheaton Corp. (USA) (SLW) - Seeking Alpha: Lately, I see the word "quality" being thrown around on SA dividend income related articles. I see "quality" as having 2 facets. One, we want a quality income portfolio. Two, this portfolio is made up of a group of high quality dividend payers. In the first article of this 2 article series (Part 2 is here), I'm going to explore quality at the portfolio level. At the portfolio level, we look at the bigger picture to see whether the portfolio as a whole is continuing on its track in building a growing income stream from dividends.

Building A Quality Income Portfolio - Part 2:

Building A Quality Income Portfolio - Part 2: At The Stock Level | Mentions: Chevron Corporation (CVX), Johnson & Johnson (JNJ), McDonald's Corporation (MCD), Ross Stores, Inc. (ROST), The TJX Companies, Inc. (TJX) - Seeking Alpha: In the first article of this series, I wrote about quality at the income portfolio level. This article continues with the discussion with a focus on choosing quality companies to add to our income portfolio. Amongst other things, the factors that affect the quality of a company include the company's earnings consistency, its financial strength, its yield, and its dividend growth rate.

Friday, July 26, 2013

Amgen, Inc. (AMGN): For A Healthier Portfolio - Look Here - Seeking Alpha

Amgen, Inc. (AMGN): For A Healthier Portfolio - Look Here - Seeking Alpha: The Healthcare sector is comprised of many diverse companies, as can be seen from the list of subsectors provided below. Historically the Healthcare sector has been comprised of a significant number of companies with above-average growth rates of earnings. Consequently, a majority of the companies comprising the Healthcare sector could be thought of as growth stocks over dividend growth stocks.

Wednesday, July 24, 2013

Dividend Growth Investors: Focus On Valuation Rather Than Price - Seeking Alpha

Dividend Growth Investors: Focus On Valuation Rather Than Price - Seeking Alpha: This article is inspired by a series of comments on Bob Wells' recent excellent article about retirement investing strategies.

A comment thread developed around the idea of stock prices, specifically about the difficulties an investor can experience buying more of a stock that he or she purchased for a lower price in the past. The point I made in the comments, and that I want to expand on here, is that if you shift your focus from price to valuation, the decision becomes clearer and less emotional.

Frequently Asked Questions (FAQ) About Dividend Investing - Dividend Growth Investor

Frequently Asked Questions (FAQ) About Dividend Investing - Dividend Growth Investor: Frequently Asked Questions (FAQ) About Dividend Investing
I have highlighted below several frequently asked questions about dividend investing. This is not an all inclusive list, but more of a running total of questions I am usually asked about dividend investing, dividend growth stocks and my strategy. The answers pertain to my investing, strategy and experience, and I have tried to respond to the best of my knowledge and intentions. As I get new recurring questions asked, I would add them to this list.

Saturday, July 20, 2013

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. I have modified the Expected Increase series to reflect a more SA-friendly format by separating the Champions (25 or more years of higher dividends), Contenders (10-24 years), and Challengers (5-9 years) into distinct groupings, so please look for the other articles, which I hope will be published about the same time.

Wednesday, July 10, 2013

Beware The Valuations On The Best Consumer Discretionary Dividend Growth Stocks - Seeking Alpha

Beware The Valuations On The Best Consumer Discretionary Dividend Growth Stocks - Seeking Alpha: The Consumer Discretionary sector consists of businesses that sell nonessential, and therefore, discretionary goods and services. Companies in this sector include retailers, media companies, consumer services companies, consumer durables and apparel companies, automobiles and components companies. Since so much of what this sector offers is discretionary items, companies in the sector tend to do best when the economy is strongest. Unfortunately, as we will soon see, so do the prices of their stocks tend to perform best when the market is performing best.

Monday, July 8, 2013

Dividend Challengers Smackdown XL - Seeking Alpha

Dividend Challengers Smackdown XL - Seeking Alpha: Dividend Challengers Smackdown XL

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 ) by high Dividend Growth and Estimated 5-year Earnings per Share Growth (using a 6% threshold for both) and, last month, by the Past 5 Years of Earnings per Share Growth and the 5-year Dividend Growth Rate.

(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. "CCC" refers to the combination of all three groups. I use the same Roman numeral for all three articles.)

Dividend Contenders Smackdown XL - Seeking Alpha

Dividend Contenders Smackdown XL - Seeking Alpha: Dividend Contenders Smackdown XL

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 ) by high Dividend Growth and Estimated 5-year Earnings per Share Growth (using a 6% threshold for both) and, last month, by the Past 5 Years of Earnings per Share Growth and the 5-year Dividend Growth Rate.

(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. "CCC" refers to the combination of all three groups. I use the same Roman numeral for all three articles.)

Dividend Champions Smackdown XL - Seeking Alpha

Dividend Champions Smackdown XL - Seeking Alpha: In the most recent installments of the Smackdown series, I screened the Dividend Champions (which can be found here) by high Dividend Growth and Estimated 5-year Earnings per Share Growth (using a 6% threshold for both) and, last month, by the Past 5 Years of Earnings per Share Growth and the 5-year Dividend Growth Rate.

(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. "CCC" refers to the combination of all three groups. I use the same Roman numeral for all three articles.)

Friday, July 5, 2013

The Industrial Sector Offers A Lot Of Value, Dividend Growth And Income - Seeking Alpha

The Industrial Sector Offers A Lot Of Value, Dividend Growth And Income - Seeking Alpha: Editors' Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.

Introduction to the Industrial Sector

The Industrial sector is primarily comprised of companies that produce goods used in construction and manufacturing. Some of the key subsectors include aerospace and defense, construction and engineering, building products and industrial conglomerates. For the most part, these are capital-intensive industries that often operate on low or even razor thin net margins. Consequently, profitability can be very erratic from one year to the next. Therefore, although there are exceptions, finding quality buy-and-hold dividend growth stocks in this sector is tricky.

Wednesday, July 3, 2013

Buffett On Berkshire's Dividend Policy - Seeking Alpha

Buffett On Berkshire's Dividend Policy - Seeking Alpha: In Berkshire Hathaway's (BRK.A) (BRK.B) most recent letter to shareholders, Warren Buffett gives perhaps his most complete explanation for BRK's zero-dividend policy. (See pp. 19-21.)

I am a dividend growth investor, so I do not own shares in BRK. However, I have tried to learn as much as I can about how Buffett invests, because he loves to purchase shares of dividend-paying companies. He has expressed his enjoyment of dividends numerous times. And BRK's wholly owned companies, of course, forward dividends to headquarters like clockwork. Indeed, the managers of those companies earn bonuses based on the cash that they send to Omaha.

Tuesday, July 2, 2013

Beating Back Fear For Income Investors - Seeking Alpha

Beating Back Fear For Income Investors - Seeking Alpha: Whenever there is market volatility -- especially downward volatility -- certain kinds of articles spring up on Seeking Alpha and other sites like crabgrass in the summer. You know the kinds I mean. They have titles like "Buy And Hold Fails Again," or "What To Do About The Coming Crash," or "Market Downturn Is Inevitable; Time To Go To Cash?"

The common theme is fear. Fear of losing money as prices slide downward for who knows how long. Fear of giving up in just a few weeks or days the gains that it took several years to achieve. Fear of falling behind a benchmark and never catching up. Fear of underperforming your neighbor.