Dividend Tree Potpourri – April 19, 2009

19 April 2009 Dividend Tree Potpourri 2 Comments

During the week I read articles from fellow bloggers. Once a week in my Potpourri Post, I highlight some of the articles that I enjoyed reading. Here are some of them that I enjoying reading.

Economy, Finance, Investing, and.…..

If you’re going to ride a bull watch out for the kick
Everybody wants to target something, here is Inflation Targeting
My favorite topic, International Dividends
Discussion on which company’s income. Why not both?
More Graham’s stock ideas

Everyday Finance digs up Healthcare Services Group
Asset class that I am currently looking into is MLPs
REIT Asset class that I am currently reviewing to increase allocation. But articles like this one make me wonder do I really want to?

Code Blue on asset allocation
Example of what to ignore
Discussion worth spending 2 minutes

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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Read more on Swire Pacific -a- at Wikinvest

QCOM – Stock Analysis for Dividend Growth Portfolio

14 April 2009 Dividend Tree Analysis No Comments

This article originally appeared on The DIV-Net, April 4, 2009.

Qualcomm manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other wireless communication technologies. QCOM is neither a dividend aristocrat nor a dividend achiever. QCOM has started showing some dividend growth trends in last five years. My objective here is to understand if QCOM has any potential to be a dividend investment.

Trend Analysis

This section looks at trends for past 10 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The trend charts and data summary are shown in images below.

Revenue: In general, after 2001, QCOM has stable and consistent growth in revenue. The average revenue growth for last 5 years is 24.3% (with 6.62% standard deviation).
Cash Flows: Relatively increasing trend for operating cash flow. In the last five years, the corporation’s operating cash flows are consistently higher than net income. The concern I have is the free cash flow is more or less similar to net income. There is very little room for flexibility in allocating cash for dividends.
EPS from continuing operation: In general, the EPS also has an increasing trend since year 2003 with average growth rate as 50%. Most of that growth is coming in 2003 and 2004. Since 2005, the EPS growth rate has been approximately 20%.
Dividends per share: Dividends per share are consistently growing for the last 5 years. continue reading rest of the article….

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Good Performers in My Dividend Portfolio

11 April 2009 Dividend Tree Commentary 4 Comments

It has been close to three years since I started dividend focused investing. If I look at this from a 30year+ investing cycle for individuals, then these three years may look like nothing. However, the continued anxiety and slide in ones portfolio value will turn our hair gray. I am learning that there will be winners and losers in our investment portfolios. All we have to do is minimize the losers.

Sysco Corporation (SYY): SYY was one of the most non-glamorous stocks when I had initiated my position. My current dividend yield on cost is 5.35%. As of March 2009, my total return has been 13.1% including dividends.

Johnson & Johnson (JNJ): I had waited for close to one year to initiate a starter position in this company. It was worth a wait, and as the saying goes, every company will come down at some point in time. Its price has again come down and I am tempted to add some more, even though it has reached by allocation level. My current dividend yield-on-cost is 3.4%. As of March 2009, my total return has been 6% including dividends.

Consolidated Edison (ED): My objective was to just get a utility stock in my portfolio, and hence this was a no brainer purchase. I bought it during the market boom when slow growers like utility stocks were out of favor. I had read a lot about utility stock being less volatile and slow grower, well this was a real example for me. My current dividend yield-on-cost is 6.9%. As of March 2009, my total return has been 12.9% including dividends. continue reading rest of the article….

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Read more on Sysco, How To Invest at Wikinvest

Comparing Dividend Yields in Three Different Markets

10 April 2009 Dividend Tree Analysis 2 Comments

Individual investors know that dividends are paid to common shareholders by corporations across the world, in different economies, different markets, and variety of industry segments. It is also a common knowledge that the characteristics of such dividends such as yield, frequency, how dividends are perceived, quality, and growth are very different. In addition, as a US-based investor, there are additional risk factors, some of which I had discussed earlier.

I am of the view that a look at individual index and their yield should provide general birds’ eye view of trends in any given market. While there may be varied arguments about quality and validity of such comparison, I still believe it is a good start to understand any given market and its policies vis-à-vis common shareholder dividends. continue reading rest of the article….