Dividend Tree Potpourri – May 31, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. Once a week in my Potpourri Post, I highlight some of the articles that I enjoyed reading.

My Article in Blogosphere

Economy, Finance, Investing.…..

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.

Technorati Profile

TROW – Stock Analysis for Dividend Growth Portfolio

logoThis article was originally published on The DIV-net on May 21, 2009

T. Rowe Price Group is a publicly owned corporation, a holding group, and an investment manager. The firm provides its services to corporations, corporate, public, and Taft-Hartley retirement plans, foundations, and endowments. It is modeled as an asset manager.

TROW is a dividend achiever and has been paying growing dividends for last 10 years. In one of my earlier post, I listed few companies that may have potential for dividend growth investments. TROW was one of them I had shortlisted for more analysis. Keeping with that, my objective here is to analyze if TROW is a good dividend growth stock and risk of dividends associated with it.

Trend Analysis

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 and data summary are shown in images below. continue reading rest of the article….

Hedging Against Various Economic Issues

As an investor this is my first downturn. What a recession it is turning out to be? In relative terms, I do not know how bad this recession is. Whoever I talk to, it seems everybody feels that this is the worst one and would perhaps be the most difficult one. Another aspect that I have observed is the folks in 20s and early 30s seem to be using this as an example to not believe in stock market, or scouting for safety, or losing their entrepreneurial spirit. Once again media seems to uphold its traditional values of sensationalism and harping on few themes. CNBC will make you feel that everything is fall apart the next day.

Some the media themes now-a-days are China’s domination, India’s rising potential, Dollar’s demise, US losing its steam, various type of flations, and few more gloom and dooms. Somehow the focus seems to be eased away (not gone completely) for banking system. continue reading rest of the article….

Sysco’s Adapting to New Realities – Will it Work?

Sysco, as we all know, is a food distribution company, with a major market share in hot food restaurant industry. In year 2008, it earned $1.1 billion on sales of $37 billion, a record in its history. Contrastingly, the first three quarters of this year seems to indicate that this will be down year of Sysco. This will be first down year for Sysco since its inception. Time will tell how the end market of Sysco evolves. At this point in time, I do not know whether it’s an inflection point for demand of its services, or peak of growth in restaurant industry, or it’s an indicator that North American restaurant industry will shrink. However, I am certain that Sysco is at a cross road.

I am long term dividend growth investor in Sysco. Therefore, I need to review to ensure that company is (and will be) capable of paying me growing dividends. continue reading rest of the article….

When to Initiate a New Position ?

If you are like any other do-it-yourself individual investor, you would have been through this dilemma. When should I initiate a position? As per our individual investing style, criteria and risk profile, we have done our due diligence and come up with price that we are ready to pay. Now if we are in bull market, we do not hesitate and take a plunge. However, if we are in the bear market (like these days), then we hesitate to initiate our position. We start contemplating, should we wait a little bit more? This dilemma is more in case of dividend investors because YOC is sensitive to initial yield.

I have been through this dilemma quite often. Let is think this through with some rational reasoning.

continue reading rest of the article….

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