The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

The Dividend Guy

High Dividend Payout Ratio = High Earnings Growth Rate

Dividend Growth

I have always been under the impression that a dividend payout ratio must not be too high because it can limit the ability of the company to grow. In fact, in my weekly dividend stock analysis posts, I look for a dividend payout ratios that are at least below 60%, preferably even lower. I have selected this target because I have believed that the lower payout ratio will provide the company with a sizable chunk of earnings to grow the business and with a lower than 60% dividend payout ratio a …

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Returns of Growth Versus Value Stocks

Asset Allocation, Stock Selection

In a recent post I did on my updated asset allocation, I showed that I added some value asset targets. I currently have both growth and value stocks in my dividend portfolio, however I felt that I needed to have a target that would provide the best diversification and something that I could track. In particular, I wanted to ensure I had a value target because value has been a very strong performer in the equity markets since very early days. In a report prepared by Al Frank Asset …

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Enhancing My Asset Allocation

Asset Allocation

I have been doing a lot of thinking recently about asset allocation and subsequently a great deal of research and investigation into what makes up a good asset allocation model for a portfolio. During this research, I consistently kept a couple of things in the back of mind with respect to my own personal portfolio and what I want to achieve with it. The consistent themes included the following: 1. I have 20+ years before I will use the portfolio for retirement purposes - for those of …

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Dividend Stock Wednesday: Target Corp (TGT:NYSE)

Stock Analysis

This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis. As a shareowner of Wal-Mart, I am not looking to add another general merchandise and food discount store to my portfolio. However, as a stock that has a place on the Dividend Aristocrat list I wanted to have a look at it. 25 years of dividend increases is nothing to sneeze at and the people …

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The Yale Endowment Fund Asset Allocation

Asset Allocation

I find that I am talking a lot about asset allocations these days - the reason is simple. Asset allocation is how investors can manage risk, reduce the volatility in their portfolios, and above all else, is what drives the majority of the returns in a portfolio. Consider the following statement from the folks over at Merriman Berkman Next (Sound Investing Podcast): Dimensional Fund Advisors studied the returns of 44 institutional pension funds with about $450 billion in assets over various …

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Dual Class Shares Suck

Stock Selection

If you hold any companies that have a dual-class share structure, prepare yourself for mediocracy. In the Winter 2007 edition of the Canadian Investment Review, which is periodical aimed at fund managers and pension plan administrators, they highlight just how bad these stocks typically performs. Before I get into the specifics, let's talk about what a dual-class share is. Dual-class shares mean simply that a company has two versions of its stock available to the market. One is typically …

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