Recently Dividend Growth Investor wrote a post about three different dividend strategies. To quickly summarize, they are: 1. High yield stocks with low to no dividend growth 2. Low yielding stocks with a high dividend growth rate 3. Average yield and an average dividend growth The question that any investor would obviously ask right at the outset is which one is the best strategy for most people. High yield stocks can be very enticing to investors looking for income due to the high …
A Dividend Increase is Not a Reason to Buy a Stock
There are many common misconceptions about dividend investing. For example, all dividend paying stocks are stable companies. Or, a dividend from a stock will more than offset any losses you receive in share price over the long term. However, there is one that I find most persistent in both new and experienced dividend investors. It is often viewed as a reason to buy a stock, yet it should never be the only reason. I know I have been guilty of basing a buy decision on this misconception in …
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All Dividend Stocks Have Their Limitations – Do You Know What They Are?
Each and every one of the dividend stocks in your portfolio can reek havoc on your portfolio. The trick is figuring out what the limitations are and how to overcome them. Three Limitations 1. All of a sudden they can stop paying dividends Even a stock with an extremely long history of paying, and even increasing dividends, can one day run into extreme trouble and either stop the dividend growth or worse, stop the dividend payment all together.? Take Bank of America (BAC) for …
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7 Warning Signs You Need to Repair Your Portfolio
Does this sound familiar? The stock market has been going up significantly since the beginning of the year but your portfolio is down. That is one clear warning sign that it is time to do some work on your portfolio before things get even worse. There are a number of additional warnings signs that an investor should look for when analysing their portfolio. Each one of these warnings signs signal that it is time to do something. In other words, you need to take action and you need to do it …
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The Good, The Bad and The Ugly of Dividend Stocks
“After a meal there's nothing like a good cigar” - Blondie from The Good, the Bad and the Ugly - Wikiquote Ok, so that quote has nothing to do with investing, but you can just picture Eastwood saying it. Like everything in life, there are good things, bad things, and ugly things. The same can be said about dividend investing and dividend in general. Here is how dividends break down when I thought of them as the good, the bad, and the ugly.[ad#tdg-embedded] The Good: Dividends …
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A Dividend Yield Screen with High Growth
I like to use my copy of the Stock Investor Pro from AAII to identify potential dividend investments. Recently I was using the software to screen for dividend stocks with a relatively high yield while providing strong growth at the same time. This can often be an investment-oxymoron as higher dividend stocks tend not to be the ones providing the stellar growth that can provide nice stock-price returns. That being said, here is a screen I recently put together that has a good dividend yield, …
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