Dividend Tree Potpourri – January 24, 2010

You may have notice a bit of slow down on my blog in last couple of months. I am still here and I hope get back to writing 12 to 15 post per month. However, I have continued to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.


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.

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Dividend Growth beats Dividend Yield in the long run
Ten Dividend Kings raising dividends for over 50 years
Read more on Dividends, How To Invest, Dividend aristocrats at Wikinvest

Emerson Electric Company – Priced for Long Term Buy

logo_emersonThis article was originally published on The DIV-Net on September 17, 2009.

Emerson Electric Company (EMR) is a diversified global manufacturing and technology company. It offers wide range of products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation. It is recognized for engineering capabilities and management excellence, Emerson has more than 140,000 employees and approximately 255 manufacturing locations worldwide.

EMR is a Dividend Aristocrat and member of Broad Dividend Achiever and has been raising dividends for last 52 years. The most recent dividend increase was in November 2008. It remains to be seen if it will increase dividends later this year. My objective here is to analyze if EMR still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends.

continue reading rest of the article….

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Dover Corporation – Stock Analysis Shows Industrial Strength

logo DOVDover Corporation (DOV) is a diversified manufacturer of a broad range of specialized industrial products and manufacturing equipment. The company has evolved largely through acquisitions, with 79 acquisitions costing approximately $4.1 billion completed between January 2000 and December 2008. It has four operating segments: Industrial Products (33% revenue 2008), Engineered Systems (26%), Fluid Management (24%), and Electronic Technologies (17%).

DOV’s growth strategy is based on initiatives such as driving organic growth (new products, pricing initiatives, gaining market share, customer service), acquisition strategy (acquire and develop platform businesses, growth, innovation, higher-than-average profit margins), expanding globally, and improving operating efficiency.


DOV is a Dividend Aristocrat and member of Broad Dividend Achiever and has been raising dividends for last 55 years. The most recent dividend increase was in August 2009. My objective here is to analyze if DOV still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends.

continue reading rest of the article….

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Dover Corp. (DOV) Dividend Stock Analysis
9 Dividend Stocks in the news
Industrial Strength Dividends
Read more on Dover, Industrial Equipment & Components at Wikinvest

What is your preference – Aristocrats or Achievers?

In general, for any dividend growth investor, the list of dividend aristocrats is favorite hunting ground. This list includes companies from S&P500 index that have been raising dividends consecutively for last 25 years. These are mature companies that have time and again shown they can perform in all economic cycles. Their management’s have consistently shown that they care about common shareholders dividends and believe in increasing at least to little more than inflation.

  • I view dividend aristocrats as the grand old daddy’s of the dividend companies. As they age, it becomes harder to sustain with their dividend growth momentum. The likelihood of their ability to grow dividend will continue to diminish.
  • We need to put past dividend growth in the context of US economy. The growth for majority of the existing dividend aristocrats came along with the growth in US economy. As the US economy flattered for whatever reason, the sustainability of the dividends became harder.

continue reading rest of the article….

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Lowering Qualification Standards for Dividend Aristocrat Status

The one most critical aspect about dividend aristocrat (that I have been fan of) is increasing the annual dividend consistently for 25 years consecutively. This has been a cornerstone for any company to be known as dividend aristocrat. In last one year or so, the global economic environment is driving most of these aristocrat companies to slash/cut/freeze their dividends. Suffice to say the total number of dividend aristocrats is shrinking. This has resulted in business media and blog-o-sphere debating about the need to change the standard that defines dividend aristocrat index. The S&P index committee has also indicated that it may consider relaxing certain standards required to qualify for aristocrat index. One school of thought says S&P should reduce the number of years of continued dividend increases.

In its recent update, S&P reported that dividends paid by companies in S&P500 index reduced by approximately 15% (for first quarter of this fiscal year). This actually captures the whole gamut of companies that are above average, average, and below average. While I do agree that there has been reduction in dividends payments, I do not believe this is right parameter to demonstrate strain on dividends. One cannot compare a bunch of the good, the bad, and the ugly (index), with the bunch of the exemplary (aristocrat). Division I teams do not play with Division III in the league. League is among equals. continue reading rest of the article….

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More on this topic (What's this?)
The New Dividend Aristocrats
Dividend Aristocrats List for 2010
Dividend Aristocrats Underperforming Broader Market
Read more on Dividend aristocrats, S&P 500 (SPX) at Wikinvest
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