On this blog, and other dividend investing blogs, we talk a lot about the dividend growth rate of the various companies we track. As part of good dividend analysis determining what the dividend growth rate has been is important, primarily because we need to see if the growth rate is accelerating or slowing. I have some suggestions for you to help determine these growth rates - the first one more difficult than the second but depends on the data available for the stock you are examining. …
Can You Predict Dividend Payments into the Future?
I believe you can take a stab at it, but it is not something you should do to make your investment decision on. If you do it, it should only be for interest sake and because you are the kind of person who likes to mess around with analyzing your investment holdings (like me!). That being said, one thing about companies that consistently raise their dividends is that it becomes relatively easy to make a prediction of the future dividend payments an investor can hope for in the future. …
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A Review of My Yearly Dividend Income
Investing in stocks that continually increase their dividends has the dramatic effect of consistently giving investors a raise each and every year. I have kept track of my own personal dividend income since really focusing on dividend growth as a strategy in 2005. Shooting forward almost 3 years and my dividend income has gone from $727 per year to its current $1320 per year. The growth in this dividend income has come from two sources. The first and most obvious is that I have continued …
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Top 5 Ways to Lose Money in Stocks
In a recent series of articles, I challenged a number of other investing and personal finance bloggers to present us with their choice for the top 3 investing mistakes an investor can make. I did some additional thinking of the items on these lists and determined what I believe to be the top 5 ways an investor can lose money in the stocks. By not understanding and structuring your portfolio so that you avoid all 5 of these, you can limit your ability to be a successful investor. Number 1 …
Dividend Yield or Dividend Growth?
I have been getting a whole bunch of emails recently asking me for my picks of the highest dividend yielding stocks that I would recommend buying. I think this really speaks to two factors at play here. First, I do not make recommendations on what stocks to buy. I am not a financial advisor nor am I licensed to offer investment advice. Second, when trying to build a dividend portfolio it is not the dividend yield that is important - it is the dividend growth! Dividend yield is simply …
Dividend Increases are Down and Dividend Cuts Are Up
The universe of divdend increasing stocks took a cut in Q1 of 2008 which, can impact how dividend investors manage their portfolios. If you are an investor who looks to build up a stable contingent of 20 - 30 companies that consistently increase their dividends then the universe of stocks got smaller. In an article published by IndexUniverse, the data from the folks at Standard and Poor's is very telling. Have a look at the chart below: Click to Enlarge As you can see, compared to 2007 …
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