What is value of Net Worth?

30 March 2009 Dividend Tree Commentary 8 Comments

In personal finance, Net Worth is referred to as an individual’s financial state at a given point in time. In a very simple form, it is the value of assets minus the value of liabilities.

When we individuals include all the assets in our financial planning, we tend to include value of our house, value of car, and other capital goods items. Here I am talking about assets that we use in our daily lives (not the ones we use as investments). The way I look at it is, instead of tying my financial resources in non-performing assets, what if I used it to generate more cash flow. If I have one million dollar, and I buy a house, then my capital is lost. It is not going to generate more money. Well yes, anticipating value appreciation and expecting to cash in 20+ years down the line is the different issue. Even after 20+ years, one will need a place to live! To buy a house 20 years down the line one will perhaps need more money (time value of money and inflation!), and if one does not down size, perhaps all the capital appreciation will go into a new place. continue reading rest of the article….

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Median Net Worth of Single Black Women in Prime Working Years: $5 (naked capitalism, 3/11/10)

Household net worth declines $11.2 trillion (The Mess That Greenspan Made, 3/12/09)

Investment Instrument Idea: Celebrity Net Worth ETF's (The Value at Risk, 6/26/09)

Dividend Tree Potpourri – March 29, 2009

29 March 2009 Dividend Tree Potpourri 2 Comments

During the week I read articles from fellow bloggers. Once a week I highlight some of the articles that I enjoyed reading. Below is last week’s potpourri…

Dividend4Life observes warning signs for dividend cuts
Old School Value sees value in ValueVision
Dividend Growth Investor says MacDonald in buy range
Triaging My Way To Financial Success reinforces The Importance of Business Fundamentals
The Dividend Guy’s 8 ways to Deal with Volatile Markets
Living Off Dividends & Passive Income points to 30 Year Mortgages At 4.85%!
Darwin Finance asks Is it Ethical to Re-Lock your Mortgage Deal when Rates Drop?. It’s all about business, and not ethics. So take it, if one can!
Planning to get Gold in your portfolio, first read this, second this, third this, and when you have decided here are three different ways to invest in Gold.
More Dividend Talk
A case to start betting on recovery. Recovery!!! On what basis? What is the diver for recovery?
Can’t grasp Credit Crisis? Go through this. If you still cannot understand then Join the Club.

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

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Ten Dividend Kings raising dividends for over 50 years (Dividend Growth Investor, 2/17/10)

Twelve Dividend Stocks Increasing Dividends (Dividend Growth Investor, 2/1/10)

Champion Dividend Stocks (Dividends Value, 3/27/09)

Read more on Dividends, Gold, Historical Volatility at Wikinvest

WMI – Stock Analysis for Dividend Growth Portfolio

25 March 2009 Dividend Tree Analysis No Comments

Waste Management, Inc. provides integrated waste management services in North America. The company is engaged in collection, transfer, recycling, disposal, and waste-to-energy services. WMI is neither a dividend aristocrat nor a dividend achiever. In fact, WMI has started showing some dividend growth trends in last five years. While I am presenting and showing data from last 10 years, I am only using last five years of data. My objective here is to understand if WMI has any potential to be a dividend champion.

Trend Analysis

This section I look at trends for past 10 years of corporation’s revenue and profitability. The parameters should show consistently growth trends. The trend charts and data summary are shows in images below. continue reading rest of the article….

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Ten Dividend Kings raising dividends for over 50 years (Dividend Growth Investor, 2/17/10)

The ten year dividend growth requirement (Dividend Growth Investor, 3/3/10)

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Read more on Waste Management, Dividends at Wikinvest

Demise of Dollar – Does it Affect Dividend Growth?

23 March 2009 Dividend Tree Commentary 4 Comments

A quick and simple answer is, no it does not affect dividend growth if dividend investors understand what it really means.

Corporations pay dividends from the combination of profitability, cash flow, income, prudent money management, etc. With the current state of economy in United States (and other parts of the world) majority of the corporations are facing negative growth. In such a scenario where will dividend growth come from? In these challenging environment dividend investors need to look at the macro economic scenario and understand how it will play out in long haul over a period of next 10 years, 20 years, or 30 years.

We read a lot about demise of US dollar. At a very fundamental level, which country’s currency becomes a global currency will depend upon political maturity and economic stronghold at global level. continue reading rest of the article….

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More on this topic (What's this?)

Ten Dividend Kings raising dividends for over 50 years (Dividend Growth Investor, 2/17/10)

The ten year dividend growth requirement (Dividend Growth Investor, 3/3/10)

Champion Dividend Stocks (Dividends Value, 3/27/09)

Read more on Currency, Dividends at Wikinvest

Financial Turmoil Explained

21 March 2009 Dividend Tree Commentary No Comments

For quite sometime now I have been trying to figure out how to explain the present global financial turmoil either through words and/or through simple schematics. I tried to put in words and paragraphs, here also, I ended confusing myself. Many times I have started to sketch it on a piece of paper but ended up in a chaotic diagram (not knowing where I started). In this process, I realized, it is probably damn confusing and chaotic. Therefore, nobody could figure out, or nobody could track it, or nobody could measure it, or nobody could quantify it, or nobody understood it from a systemic level. My personal opinion is folks in investment banking sector are among the smartest and brightest. It is just not possible that they did not see it coming. Folks just choose not to see it. Below is a very good informational piece in pictorial form. It is image which shows the schematic (much better than what I was doing) of the financial crisis. I hope you enjoy going over it. Great job by an unknown artist/educationist. I received it an email from my colleague.