Effect of Currency Fluctuations on US Dividend Investors?

As you may or may not know, currency fluctuations significantly affect US dividend investors.  In fact, in a recent survey conducted by the Pennsylvania-based AvantGard Company, it was discovered that fifty-nine percent of the 275 people that participated in the poll stated that currency fluctuations resulted in a  loss or gain of at least five percent in the past year ending in March 31, 2010.  These numbers are up forty percent when they are compared with the previous year’s survey.


“The majority of corporations are in the business of doing business, producing and manufacturing, not hedging currencies,” said Paul Bramwell, a senior vice president of Treasury solutions at the AvantGard unit of SunGard in Connecticut. “A lot of companies were caught unawares by volatility.” continue reading rest of the article….

Johnson and Johnson – Opportunity to Buy

Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments viz., (1) Consumer; (2) Pharmaceutical; and (3) Medical Devices and Diagnostics. The company was founded in 1886 and is based in New Brunswick, New Jersey.


JNJ is a part of the dividend aristocrats, S&P500 index, and DJIA index. It has been raising its dividend for last 48 years. The latest increase in dividend was 9.3% in May 2010. My objective here is to analyze JNJ to determine fair price range for buying and adding to existing positions.


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 are shown in image below. continue reading rest of the article….

Dividend Growth Investing Is About Total Returns

growthIt 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….

Kimberly-Clark: High Risk Dividend Growth Stock

kc_logo_newKimberly-Clark is a global health and hygiene company with operations in 37 countries. It’s products are sold in more than 150 countries. It has a well-known family care and personal care brands such as Kleenex, Scott, Andrex, Huggies, Pull-Ups, Kotex, Poise, and Depend.

KMB is a dividend aristocrat and member of Mergent’s Broad Dividend Achievers index. I last reviewed KMB in February 2009 (without its 2008 results). At that point in time, it was high risk to dividend stocks. I have made an observation that its dividends would be under pressure. This 2009 dividend growth rate was only 3.4%, which is lower than its historical average of 9.4%. I am reviewing this again for risk to dividends.


Trend Analysis
This section measures the trends for past 10 years of corporation’s revenue and profitability. The parameters should show consistent growth trends. The chart below shows these trends.

continue reading rest of the article….

Kelloggs Company– Stock Analysis for Dividend Portfolio

logo_kelloggsKellogg’s Company (K) is a leading producer of ready-to-eat cereal, and also sells convenience foods such as cookies, crackers, cereal bars, fruit snacks, and frozen waffles.

For starter, K is neither a Dividend Aristocrat nor member of Broad Dividend Achiever. This is primarily because it had flat dividends between 2001 and 2004. However, it has paid consistent and stable dividends (without cutting) since 1985. The most recent dividend increase was in August 2009. My objective here is to analyze if how it rates on my scale of risk-to-dividends.

continue reading rest of the article….

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