National Grid plc (NGG) is a London-based utility company. It owns and operates of regulated electricity and gas infrastructure networks in United Kingdom (Wales and Scotland) and North Eastern United States (upstate New York, NYC, Long Island, Massachusetts, New Hampshire, and Rhode Island). It serves approximately 20 million consumers in the United Kingdom and the United States.
NGG is part of Mergent’s International Dividend Achiever Index and has been paying growing dividends since last 12 years. My objective here is to analyze if NGG continues to be a good dividend growth stock and how it will rate on my scale of risk-to-dividends.
Here I am looking at trends for past 9 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The image below shows the trend charts. continue reading rest of the article….
This is one question that almost all long term investors ask themselves. Most of the well known value investors that we read about in public domain, usually, are concentrated in teens. If that’s the case, then what about diversification? The concept of risk is very subjective because every person will have a different risk profile. These well known value investors have proficiency to balance risk vs. returns. They have resources to be able to manage that risk of concentration. As individual investors, we do not have such resources at our disposal, and hence risk level changes for us. In addition, we cannot generalize that a fixed “number of stocks” provides diversification.
Being a dividend investors, I am looking for companies that have potential to grow their dividends over time. I have observed that companies that grow their dividends, with good quality of earnings, the market value (or share price) also grows. This not only provides dividend cash flow, but also the capital appreciation over time. continue reading rest of the article….
As you may or may not know, currency fluctuations significantly affect US dividend investors. In fact, in a recent survey conducted by the Pennsylvania-based AvantGard Company, it was discovered that fifty-nine percent of the 275 people that participated in the poll stated that currency fluctuations resulted in a loss or gain of at least five percent in the past year ending in March 31, 2010. These numbers are up forty percent when they are compared with the previous year’s survey.
“The majority of corporations are in the business of doing business, producing and manufacturing, not hedging currencies,” said Paul Bramwell, a senior vice president of Treasury solutions at the AvantGard unit of SunGard in Connecticut. “A lot of companies were caught unawares by volatility.” continue reading rest of the article….
Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments viz., (1) Consumer; (2) Pharmaceutical; and (3) Medical Devices and Diagnostics. The company was founded in 1886 and is based in New Brunswick, New Jersey.
JNJ is a part of the dividend aristocrats, S&P500 index, and DJIA index. It has been raising its dividend for last 48 years. The latest increase in dividend was 9.3% in May 2010. My objective here is to analyze JNJ to determine fair price range for buying and adding to existing positions.
Here I am looking at trends for past 10 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The trend charts are shown in image below. continue reading rest of the article….
We investors know BRIC stands for Brazil, Russia, India, and China. This BRIC label clubs all four distinct but emerging markets into a single entity. Based on this acronym there are many different mutual funds, closed-end funds, and ETFs. Each of these countries are different in many ways such as different governance structure, different governance policies, different types of economies, different strengths, different financial markets, different values, etc., Even with these differences they are clubbed together and viewed as single entity for investing in emerging markets.
To me, it does not make sense to club BRIC together for investing purposes. Each country should be looked at individual entity. China continues to receive most attention in the press, however, I believe its India that provides a much better option for small individual investors. Following are three reasons I believe India has relatively more fundamental strength than other countries. continue reading rest of the article….