February 2009
February 28, 2009 –
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RELATED TICKERS: TEG
Utilities may not be the perfect dividend stock, but they should be one of the more predictible ones. This is not always the case. On Wednesday February 25th, Inegrys Energy Group (TEG) issued their earnings release after the market closed. In the release they forecast 2009 operating earnings of $2.51 to $2.66 a share, which unfavorably compared to the street estimate of $3.77/share. For the fourth quarter, TEG’s earnings of $0.30/share fell well short of the street’s estimate of $1.38/share. The market was not pleased. Yesterday (Feb. 26th), TEG’s shares fell $9.77/share or 26.68%. Why? [more]
February 26, 2009 –
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RELATED TICKERS: ED
, TEG
, BKH
A well-rounded dividend investment portfolio just doesn’t happen by accident. As noted in Charlie Munger’s 10 Rules for Investment Success, “Allocate assets wisely: Proper allocation of capital is an investor’s No. 1 job.” It is human nature to want to jump on the what’s hot bandwagon and ignore what is considered boring, like utilities. [more]
February 25, 2009 –
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RELATED TICKERS: BAC
, C
, GS
So, the company you work for is starting to lose money and the layoffs have begun. You hold your breath as the names are read. Then suddenly it dawns on you - it just the working stiffs that are being affected. Is there something wrong with this picture? Where’s the equity in this? Not to fear, after careful research I have determined this financial downturn is so bad, that even the well-to-do are suffering - at least in their own way. Consider the following: [more]
February 24, 2009 –
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RELATED TICKERS: MMM
, PAYX
, BP
Linked here is a detailed quantitative analysis of 3M Co. (MMM). Below are some highlights from the above linked analysis:
Company Description: 3M Co. is a diversified technology company with a presence in various businesses, including industrial & transportation, healthcare, display & graphics, consumer & office, safety, security & protection services, and electro and communications. [more]
February 21, 2009 –
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RELATED TICKERS: KO
, TEG
, SHW
Coca-Cola (KO) is the real thing in more than one way. KO was the King of Pop, long before Michael Jackson was born and after raising its quarterly dividend 8% to $0.41 per common share KO can wear its aristocrat crown another year. The dividend is payable April 1, 2009, to shareowners of record as of March 15, 2009. After the announcement, shares of KO were yielding over 3.5%. This is the 47th consecutive year KO has raised its dividend. Linked here is my most recent analysis of KO. [more]
February 18, 2009 –
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RELATED TICKERS: DBD
, MMM
, PG
In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. Not surprisingly, I went to the Dividend Champions list to find these ten dividend stocks that stand alone with 50+ years of consecutive dividend increases. They are presented here in descending rank: [more]
February 17, 2009 –
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RELATED TICKERS: BAC
, C
, WFC
I thought Bank of America (BAC) was strong enough to survive without cutting its dividend. It was better managed than Citigroup (C) and wasn’t in near the dire straits that C was in when it was forced to cut its dividend. This all changed with the announced acquisition of Merrill Lynch. When a company such as Merrill is sold at a fire sale, there usually is a reason. BAC is now learning why Merrill was so favorably priced - they got what they paid for. Is this same situation playing out with Wells Fargo’s (WFC) acquisition of Wachovia? [more]
February 16, 2009 –
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RELATED TICKERS: PAYX
Linked here is a detailed quantitative analysis of Paychex Inc (PAYX). Below are some highlights from the above linked analysis: [more]
February 13, 2009 –
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RELATED TICKERS: MMM
, MFC
, DOW
When the world appears to be collapsing in around you and things look their darkest, it is then when character is determined and leaders rise to the top. On Tuesday, U.S. Treasury Secretary Timothy Geithner called for a new program that combines public and private capital to be used in a fund that will buy troubled assets of up to $1 trillion, aimed at unfreezing credit markets. The the markets were underwhelmed. Many companies, such as Harley-Davidson (HOG) and Dow Chemical (DOW), used this smoke screen to slash dividends, but in the midst of the turmoil, an American Aristrocrat and a Canadian Achievier stood tall. [more]
February 11, 2009 –
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RELATED TICKERS: KO
, JNJ
, MCD
I couldn’t begin to estimate how many different stocks are traded around the world on the various exchanges. Like everything else, there are many participants, but few players. Though the population of stocks may be large, there are only a precious few that are worthy dividend stocks. When spending my time looking for worthy investments, there are four primary places I look: [more]
February 10, 2009 –
Detective: All right Madoff! Where did you get the idea of paying early investors with money from late investors?
Madoff: From the Social Security System.
The above editorial cartoon’s humor is based on its underlying truth. It seems everyone has high ideals as to how others should behave, but somehow we (individually and collectively) always seem to be the exception. (click here to see cartoon) [more]
February 09, 2009 –
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RELATED TICKERS: BP
Company Description: This supermajor integrated oil company (formerly BP Amoco p.l.c.) is based in London and is the world’s second largest publicly owned oil company and the fourth largest U.S. refiner. [more]
February 07, 2009 –
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RELATED TICKERS: HCP
, ADM
, AVP
What if you don’t want to spend your retirement managing and worrying about your portfolio? Put it on Auto Pilot, specifically on a Dividend Investing Auto Pilot. Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive. You don’t have to do anything, they just show up in your brokerage account each quarter. Inflation? Not to worry, the good companies routinely raise their dividends well in excess of the inflation rate. [more]
February 04, 2009 –
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RELATED TICKERS: CTL
, LLY
, PFE
The renewing of life. There is nothing more natural than the live birth of a child. In this birth there is life, hope, unlimited potential, and yes, eventually death. Though we don’t like to focus on it, death is just as natural as birth. In much the same way, it is natural for a percentage of dividend stocks to fail each year, either in not raising their dividend or literally ceasing to exist. As we plan for out own death by buying life insurance and making final arrangements, we must have a plan in place for when inevitable happens and we must sell an under-performing dividend investment. [more]
February 02, 2009 –
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RELATED TICKERS: LOW
Linked here is a detailed quantitative analysis of Lowe’s Companies, Inc. (LOW). Below are some highlights from the above linked analysis: [more]