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.

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Where is the Growth Coming From?

Majority of the S&P500 companies have declared their third quarter earnings. There is a general observation that earnings are rebounding (i.e. going into positives instead of negative). Most of the companies are showing signs of stability. I have included two charts below taken from Business Week magazine.

Chart 1 shows the overall operating earnings of the S&P index companies. It shows the operating earnings were negative in last quarter of 2008. Since then, the operating earnings are slowing coming back and increasing quarter over quarter. continue reading rest of the article….

SYSCO Corporation Stock Analysis – Priced to Buy

logoSysco Corporation (SYS), through its subsidiaries, markets and distributes a range of food and related products primarily for food service industry. It distributes frozen foods, non-food items, restaurant equipment and cleaning supplies. It serves restaurants, hospitals and nursing homes, schools and colleges, and hotels and motels.


SYS is a member of Broad Dividend Achievers and has been raising dividends for last 38 years. The most recent dividend increase was in December 2008. It remains to be seen if it will increase dividends later this year. I had reviewed this stock in February 2008 which at that time was a medium risk to dividend. My objective here is to analyze if SYY still continues to be a good dividend growth stock.


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 image below shows the trend chart.

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