The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

The Dividend Guy

Top 100 Investment Lessons I Have Learned – Part 1

Blog, Site Introduction

What I like the best about investing is that it is a never ending learning experience. Every time I turn around I have learned something new and will have become a better investor because of it. That being said, I just went through a bit of a process for the purposes of my blog to come up with the top 100 investment lessons I have learned to this point. I am going to break this up into 4 parts, with the first 25 in this post.[ad#tdg-embedded] 1. Asset allocation is more important than …

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How I Invest in Emerging Markets

Asset Allocation

A small (5%) part of my portfolio is the emerging market asset class. I admit, this is not a dividend stock but it does fit into my overall asset allocation strategy. I want diversification with the opportunity to achieve some strong portfolio returns. In effect, I take on extra risk for the hope of enhanced returns.[ad#tdg-embedded] As I browse around the web, I often come across questions to investment experts about investing in China or India or Brazil or a number of other countries …

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Do High Yield Stocks Mean Lower Returns?

Blog, Site Introduction

It is a common understanding among dividend investors that high yield stocks typically have meant lower capital gains than lower dividend yield stocks. The thinking is that very high yields signal trouble with a company that ultimately leads to lower stock returns. A recent American Association of Individual Investors (AAII) article from May 2009 (subscriber status required) provided some interesting research that show that is not always the case. In fact, they show in their research that …

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Manager vs. Index Funds: Who Wins

Blog, Investing Strategy

As a Kiplinger's Personal Finance - Subscription holder, I often find good snippets of information. If you weed through the advice to buy mutual funds then it can be very helpful. Recently there was an article about the actively managed mutual funds versus index funds and a discussion on who wins. Once again, index funds came out on top.[ad#tdg-embedded] In the following image, the results are pretty clear. Over all periods of time, a relatively small percentage of actively managed funds …

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Dividend Safety and Warnings

Dividend Growth

As dividend investors, we need to be constantly on the lookout for ways to reduce the risk in our portfolios. Even with relatively stable and fundamentally sound dividend stocks, there is work to do to determine how safe a that dividend growth company might be. In other words, we need to watch for certain warning signs that can tip us off to nasty things to come.[ad#tdg-embedded] There are a couple of things that investors can look for when trying to judge the safety of the dividend stocks …

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DRIPs Are a Means to An End, Not A Reason to Buy a Stock

Asset Allocation

As a dividend investor, it is usually assumed that I love dividend reinvestment plans (DRIPs). Truth is that I think they are a great thing to use to save investment costs. However, I have met a lot of investors who believe that the use of a DRIP is an investment strategy in itself as opposed to the means to an end that it is. Let me explain.[ad#tdg-embedded] What is a DRIP A DRIP is a plan offered by a company whereby a shareholder registers his/her share ownership directly with that …

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