Merry Christmas and Happy Holidays to readers of my blog. I hope you enjoy and have a good time with your family and friends.
Like you all, I will also be looking forward for a joyful and fun filled new year.
Merry Christmas and Happy Holidays
Dividend Growth Investing Is About Total Returns
It is close of five year now that I have been a long term buy and hold, and dividend growth focused investor. When I meet friends, acquaintances, or colleagues, on many occasions the discussion starts from what’s market doing today and steers towards trading/investing is nothing but a poker game. I get a sense that many of these folks think that buying (and selling) stocks is just a gamble of some kind. Irrespective of this, I believe both, trading and investing, have their own set of pros and cons depending upon what context an individual is looking at it. In the end, both trading and investing is done to make money. Some use approach of capital appreciation, some use dividend income, some do trades to generate income. The key is to have a plan and execute it with consistent results.
When it comes to dividend investing, many individuals think of high yields (perhaps Cramerica syndrome!). It shows lack of patience and tendency to read too much into the business media. They do not understand dividend growth and sustainability.
continue reading rest of the article….
More on this topic
(What's this?)
Five Dividend Stocks for long-term dividend growth
(Dividend Growth Investor, 10/27/09)
Twelve Dividend Stocks Increasing Dividends
(Dividend Growth Investor, 2/1/10)
18 Dividend Stocks Raising Their Yield On Cost
(Dividends Value, 2/26/10)
Case of Dividend Growth in Emerging Economies
The list of dividend aristocrats, dividend achievers, or dividend champion is favorite hunting ground most of the dividend focused investors. This list includes companies from S&P500 index or S&P1500 index that have been continuously raising dividends last 25 years or 10 years or more. In general, these are companies that are listed on US markets. The list of companies (and dividend opportunities) will keep churning. It is really difficult to predict which ones will continue to survive for another 10 years or more. As they age, it will be harder for them to sustain their dividend growth momentum. The likelihood of their ability to grow dividend will continue to diminish.
We need to understand dividend growth in the context of growth in US economy. Dividend growth is only possible on the back of growth in corporate earnings. Keeping with the growth of US economy, many of these companies also continued to grow and hence dividends kept increasing. However, investors cannot ignore the current US economy vis-à-vis emerging market economies.
continue reading rest of the article….
More on this topic
(What's this?)
Is now the time to sell your dividend stocks?
(Dividend Growth Investor, 10/23/09)
Seven Dividend Increases in the news
(Dividend Growth Investor, 3/8/10)
18 Dividend Stocks Raising Their Yield On Cost
(Dividends Value, 2/26/10)
Dividend Tree Potpourri – October 18, 2009
During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.
Economy, Finance, Investing.…..
- Dividend vs. Growth ETFs? Why dividends have outperformed
- Are high dividends sustainable?
- Is now time to sell your dividends stocks
- Apparent risk vs. actual risk
- How to invest in emerging market
- Double Dip Recession: Why Dow 10000 may not last?
- Dividend payout vs. free cash flow payout
- The lost decade of stock investing
- Festival of Stocks
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.
More on this topic
(What's this?)
Five Dividend Stocks for long-term dividend growth
(Dividend Growth Investor, 10/27/09)
18 Dividend Stocks Raising Their Yield On Cost
(Dividends Value, 2/26/10)
Ten Dividend Kings raising dividends for over 50 years
(Dividend Growth Investor, 2/17/10)
Dividend Stocks for Hedging against Dollar’s Long Term Fluctuations
In general, ability of the companies to pay dividends depends upon its profitability, cash flows, earnings, prudent money management (think debt!). With the ongoing recession many have started expressing concerns about long term prospects of US economy. Among many issues, one aspect that has been gaining momentum is the strength of dollar and its status as world currency. It is widely discussed (probably rightly so) that the continued infusion of printed dollar will dilute its value. Further the US government’s debt will cause a credibility issue in longer term. All this will reduce the value of the dollar. In one of his recent interviews, even Buffett acknowledged the concern. However, there is not much analysis on how the master investor plans on addressing this issue in BRKs portfolio.
continue reading rest of the article….
~
