sagitarius84

The companies that raised distributions over the past week include two which have raised distributions for over half a century. This includes several wars, oil price shocks, market crashes and inflation. While a long record of consistent dividend increases does not automatically translate into making these stocks great buys all the time, students of successful dividend investing should study the factors that led to the success of these enterprises. It takes a unique business model, coupled... Read Full Story

Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. This dividend aristocrat has paid uninterrupted dividends on its common stock since 1944 and increased payments to common shareholders every for 49 consecutive years. One of the largest shareholders is no other but Warren Buffett’s Berkshire Hathaway... Read Full Story

Investors spend a large portion of their working lives accumulating wealth. When a person is in the workforce, they tend to get accustomed to generating income on a consistent basis either every two weeks or once a month. The only investment vehicles which could provide investment income on a consistent basis without too much maintenance include dividend stocks and bonds. By focusing on dividend growth stocks, investors could not only generate a consistent stream of income, but also... Read Full Story

Last week, the icon of Social Media Facebook filed for its IPO. As a result, it was pretty hard to miss news articles proclaiming that it will have a $100 billion valuation. This is equivalent to 25 times revenues for 2011, and about 100 times earnings. In order to justify its valuation, the company needs to keep growing rapidly for the next few years. Facebook might indeed deserve a big valuation if it manages to rapidly increase revenues. However, this looks like a highly speculative... Read Full Story

The Procter & Gamble Company (PG) provides consumer packaged goods in the United States and internationally. This dividend aristocrat has paid uninterrupted dividends on its common stock since 1891 and increased payments to common shareholders every for 55 consecutive years. There are only eleven companies in the world which have managed to boost distributions over half a century. One of the largest shareholders is no other but Warren Buffett’s Berkshire Hathaway (BRK.B). The company’s last... Read Full Story

Most dividend stocks trading in the US pay dividends every quarter. A few pay dividends semi-annually, while a very small minority (mostly ADR’s) pay dividends once a year. From a dividend investment standpoint, I have always focused on strong fundamentals, strong competitive advantages , potential for earnings and dividend growth, and adequate valuation. You could read more about my entry criteria in this article . I never really focused on the timing of the dividend cashflows. As it stands... Read Full Story

Utilities, Pipeline Master Limited Partnerships and Real Estate Investment trusts typically distribute a large portion of their earnings and cash flows to their shareholders. As a result, most of them typically enjoy high dividend yields in comparison to the broader market. The main disadvantage is that dividend increases are not as high as those for other traditional dividend growth stocks such as PepsiCo (PEP) or Coca Cola (KO). Given the low interest rate environment over the past two... Read Full Story

Diageo plc (DEO) engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. This international dividend achiever has paid uninterrupted dividends on its common stock since 1988 and increased payments to common shareholders every year since 1998. Diageo’s largest competitors include Brown-Forman (BF-B), Constellation Brands (STZ) and SAB Miller (SBMRY). Over the past decade this dividend growth stock has... Read Full Story

My strategy relates to buying quality dividend stocks which fit my criteria , then sit back and hold on until one of these three events happens . However, there are other ways for investors to actively generate income from dividend paying stocks. Although they are mostly for sophisticated investors, everyone should be aware of them. One such strategy is active dividend investing. This relates to selling a stock when its current yield drops below a certain threshold. For example, back in 2009... Read Full Story

For my retirement strategy , I purchase dividend paying stocks with shareholder friendly managements, that can afford to raise dividends every year. I typically tend to focus on companies which have raised annual distributions every year for over one decade. I do however try to analyze the long-term dividend histories of companies I am researching, in order to determine if there are any past events which could forecast trouble for my income stream in the future. Utilities are notorious for... Read Full Story