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Dividends4Life (37.30)

April 2015

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Illinois Tool Works Inc. (ITW) Dividend Stock Analysis

April 30, 2015 – Comments (0) | RELATED TICKERS: ITW , MTW , TKR

Linked here is a detailed quantitative analysis of Illinois Tool Works Inc. (ITW). Below are some highlights from the above linked analysis:

Company Description: Illinois Tool Works Inc. is a diversified manufacturer that operates a portfolio of 60 business units that serve industrial and consumer markets globally.  [more]

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8 Dividend Stocks With The Right Stuff

April 29, 2015 – Comments (0) | RELATED TICKERS: PG , KO , JNJ

What makes a good dividend growth stock? Every dividend growth investor is looking for a stock that will increase its dividend each and every year at a rate that makes the stock a better investment than fixed income alternatives. I have found that stocks that are able to do this share some common characteristics. Brand Recognition/Low PriceDuring an economic downturn consumers may flee many popular brands if their cost is high and generic alternatives are substantially cheaper. Procter & Gamble Co. (PG) has seen this occur in some of their premium brands like Pampers and Tide. However, most people aren't willing to save a few pennies on a generic soda of unknown quality when a Coca Cola Co. (KO) or Pepsico Inc. (PEP) is available.

Value-Priced ConvenienceIn addition to Brand Recognition/Low Price some companies also provide convenience. If you have been out shopping all day and are tired, you are likely to stop on the way home and pick up something that is quick and inexpensive. There seems to be a McDonald's (MCD) on every corner. A stop there provides the guest with a known commodity - clean restrooms, quick service and an inexpensive meal.

A Superior Operating ModelHow do you compete with a company like Wal-Mart (WMT)? As most of their competitors have learned, you can't beat WMT at providing brand name, quality merchandise at rock bottom prices. During the good times, some people don't mind paying premium prices at an upscale store, but there are plenty of us value conscious people that keeps WMT humming. Where WMT really shines is during an economic downturn. When losing your job is a real option, $120 sneakers just don't quite seem as important as they once were.

A Pseudo MonopolyIf you are the only company in the world that is allowed to sell a product that people's lives depend on, you will likely have a robust profit margin. This is the world that pharmaceutical companies operate in. Granted companies like Abbott Laboratories (ABT) and Eli Lilly and Co. (LLY) have to keep coming up with new products as old patents expire, and have to deal with government regulation, but the good ones not only survive, they thrive.

Sell What People Want and NeedSounds simple, but so few companies have mastered it. Consumer staples seem to be the best at it. When you consider the longevity of Johnson & Johnson's (JNJ) products such as Band-Aid, Johnson Baby Products, Listerine, Rolaids, Tylenol, Motrin, Benadryl and many others, it is easy to conclude that the company has identified what people want/need and are providing it at a reasonable cost. Although some of Procter & Gamble Co.'s (PG) premium products are struggling, management has taken action to focus on the company's bargain-priced alternatives and those are seeing some success.

They Got a Name for the Winners in the WorldJust as in life, companies that are winners separate themselves from the others. They won't settle for second best, instead they continue to look for advantages that will them keep a few steps ahead of the competition. Warren Buffet would describe many of the above advantages as wide moats. If you want to buy and hold a stock forever, make sure it has a competitive advantage that is not easily duplicated.

Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

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International Business Machines Corp. (IBM) Dividend Stock Analysis

April 28, 2015 – Comments (0) | RELATED TICKERS: IBM , HPQ , MSFT

Linked here is a detailed quantitative analysis of International Business Machines Corp. (IBM). Below are some highlights from the above linked analysis:

Company Description: IBM's global offerings include information technology services, software, computer hardware equipment, fundamental research, and related financing.  [more]

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6 Stocks Pumping Up Their Yield With Increased Dividends

April 27, 2015 – Comments (0) | RELATED TICKERS: JNJ , SO , PG

There are income investors and Dividend Growth investors. While the distinction is rather simple, it slips past many casual observers. Income investors are investing for maximum current income, while dividend growth investors are looking to maximize income over an extended period of time — usually sacrificing current income for potential greater future earnings. Unlike fixed income investments, a growing dividend means a growing yield on cost.

This week several companies pumped up their shareholders' yield by increasing their cash dividends:

Continue Reading »  [more]

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Emerson Electric Co. (EMR) Dividend Stock Analysis

April 23, 2015 – Comments (0) | RELATED TICKERS: EMR , ESP , ABB

Linked here is a detailed quantitative analysis of Emerson Electric Co. (EMR). Below are some highlights from the above linked analysis:

Company Description: Emerson Electric Co. designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial and consumer markets around the world.  [more]

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6 Dividend Stocks Trading at a Double-Digit Discount

April 22, 2015 – Comments (0) | RELATED TICKERS: TROW , TXN , CVS

Getting a discount of 10%, 20% or even more is awesome. When it is on a big ticket item like a automobile, there are a lot of dollars to be saved and people have been known to drive great distances to receive the discount. Everyone loves a sale!

Well, maybe not everyone. When stocks go on sale it seems to depress a large number of market participants. However, for those of us that like buying stocks at a discount, a market pullback provides us a little relief.  [more]

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Lockheed Martin Corp. (LMT) Dividend Stock Analysis

April 21, 2015 – Comments (0) | RELATED TICKERS: LMT , BA , NOC

Linked here is a detailed quantitative analysis of Lockheed Martin Corp. (LMT). Below are some highlights from the above linked analysis:

Company Description: Lockheed Martin Corp., the world's largest military weapons manufacturer, is also a significant supplier to NASA and other non-defense government agencies. LMT receives about 93% of its revenues from global defense sales.  [more]

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9 Dividend Stocks Building Shareholder Returns With Higher Dividends

April 20, 2015 – Comments (0) | RELATED TICKERS: BX , KMI , CSX

Over time, a conservative dividend growth based investment strategy usually does quite well versus the market as a whole. My goal as a dividend growth stocks investor is to build a steadily increasing income and not necessarily to outperform the market via capital gains. But given the choice, I certainty don't mind having both.

Below are several dividend stocks building shareholder returns with higher cash dividends:

Continue Reading »  [more]

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Cincinnati Financial Corp. (CINF) Dividend Stock Analysis

April 16, 2015 – Comments (0) | RELATED TICKERS: CINF , AXS , ALL

Linked here is a detailed quantitative analysis of Cincinnati Financial Corp. (CINF). Below are some highlights from the above linked analysis:

Company Description: Cincinnati Financial Corp. is an insurance holding company that primarily markets property and casualty coverage. It also conducts life insurance and asset management operations.  [more]

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5 Best U.S. Dividend Growth Stocks

April 15, 2015 – Comments (0) | RELATED TICKERS: JNJ , MMM , KO

In everything we do, we always want to be the best or be associated with the best. You never hear fans yelling, 'We're number 2, we're number 2', while holding two fingers in the air. The same is true when selecting dividend growth stocks.

This is an article that I started to write several times, but would always stop after getting mired in the details. My natural tendency is make every question an analytical exercise and solve it by modeling and crunching numbers.  [more]

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Yum! Brands, Inc. (YUM) Dividend Stock Analysis

April 14, 2015 – Comments (0) | RELATED TICKERS: YUM , MCD , SBUX

Linked here is a detailed quantitative analysis of Yum! Brands, Inc. (YUM). Below are some highlights from the above linked analysis:

Company Description: Yum! Brands, Inc. operates, franchises, or licenses the largest number of fast food restaurants in the world, with more than 40,000 units in over 125 countries, including the KFC, Pizza Hut and Taco Bell chains.  [more]

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6 Stocks Raising The Dividend Growth Bar

April 13, 2015 – Comments (0) | RELATED TICKERS: ARG.DL , GEL , QCOM

A stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk. One measure of dividend sustainability is the ability of management to consistently raise their dividends each year.

Below are several companies raising the dividend growth bar one year by increasing cash dividends paid to their shareholders:

Continue Reading »  [more]

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March 2015 Progress Report

April 10, 2015 – Comments (0) | RELATED TICKERS: MMM , ED , OMI

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in March, extending the streak to 57 consecutive months of increases after June 2010's decline.

Since I began publicly tracking my progress in November 2007, annualized dividend income has increased in 86 of the last 88 months.

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United Technologies Corp. (UTX) Dividend Stock Analysis

April 09, 2015 – Comments (0) | RELATED TICKERS: UTX , BA , GE

Linked here is a detailed quantitative analysis of United Technologies Corp. (UTX). Below are some highlights from the above linked analysis:

Company Description: United Technologies Corp. is an aerospace-industrial conglomerate with a portfolio includes Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators, and Carrier air conditioners, among other products. In July 2012, UTX purchased aerospace competitor Goodrich.  [more]

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5 Low P/E Value-Stocks, Yielding 2% Or Higher

April 08, 2015 – Comments (0) | RELATED TICKERS: AXS , AFL , PSX

Before the internet and even before computers, critical financial information was printed daily in newspapers. Though many newspapers still print this information, most people find it easier (and faster) to get information on their stocks from financial websites. So back when financial information was a tedious and manual process what was considered relevant enough to warrant inclusion?

Obviously the reader would want basic information like the stock's ticker symbol, volume, closing price and possibly high and low price for the day or last 52 weeks. Dividend yield was another piece of useful information often presented. One of the more interesting pieces of information presented was the Price Earnings (P/E) Ratio.

The P/E Ratio is one of the oldest valuation metrics used. It is calculated as the market value per share divided by earnings per share (EPS). A high P/E ratio infers that investors expect strong future earnings growth, or the stock is over-valued. Conversely, a low P/E suggests limited future growth, or the stock is under-valued. Companies with limited growth projects to consume resources have historically been in a position to return large sums of cash to their shareholders as dividends and share buybacks.

This week, I screened my dividend growth stocks database for stocks with a single digit P/E/ Ratio and with a dividend yield above 2%. The results are presented below:

AXIS Capital Holdings Limited (AXS) provides various insurance and reinsurance products to insureds and reinsureds. It operates in two segments, Insurance and Reinsurance. The company has paid a cash dividend to shareholders every year since 2003 and has increased its dividend payments for 12 consecutive years.
Yield: 2.3% | P/E: 7.1

Aflac Incorporated (AFL) provides supplemental health and life insurance in Japan (78% of pretax operating profits) and the U.S. Products are marketed at work sites and help fill gaps in primary coverage. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 33 consecutive years.
Yield: 2.5% | P/E: 9.9

Phillips 66 (PSX), spun off from ConocoPhillips in 2012, is one of the largest independent refiners and marketers of petroleum products in the U.S., with significant interests in the NGL gathering and processing and petrochemicals businesses. The company has paid a cash dividend to shareholders every year since 1934 and has increased its dividend payments for 14 consecutive years.
Yield: 2.0% | P/E: 9.5

Murphy Oil Corp. (MUR) is an international oil and gas company, with exploration and production interests worldwide, spun off its U.S. downstream operations in 2013. The company has paid a cash dividend to shareholders every year since 1961 and has increased its dividend payments for 20 consecutive years.
Yield: 2.9% | P/E: 9.9

Alliance Resource Partners LP (ARLP) produces and markets coal primarily to utilities and industrial users in the United States. It offers low-sulfur coal, medium-sulfur coal, and high-sulfur coal. The company has paid a cash dividend to shareholders every year since 1999 and has increased its dividend payments for 12 consecutive years.
Yield: 7.9% | P/E: 7.0

As with past screens, the data presented above is in its raw form. Some of the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 250+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long AFL in my Dividend growth Portfolio. See a list of all my dividend growth holdings here.

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CVS Health Corporation (CVS) Dividend Stock Analysis

April 07, 2015 – Comments (0) | RELATED TICKERS: CVS , RAD

Linked here is a detailed quantitative analysis of CVS Health Corporation (CVS). Below are some highlights from the above linked analysis:

Company Description: CVS Health Corporation is the largest pharmacy health care provider in the U.S.  [more]

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4 Companies Showing Confidence With Increased Dividends

April 06, 2015 – Comments (0) | RELATED TICKERS: PNC , SKT , MOS

A person’s character is determined by how they behave when no one else is looking and during difficult times. In much the same way, we can learn a lot about a company’s management when they face adversity. One metric I look at closely during a downturn is cash generation relative to earnings. The ability of a company to grow its dividend throughout the economic cycle is highly dependent on the management’s ability to generate cash in a downturn.

Below are several select companies with a management confident enough to increase their cash dividends:

Continue Reading »  [more]

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Kimberly-Clark Co. (KMB) Dividend Stock Analysis

April 01, 2015 – Comments (0) | RELATED TICKERS: KMB , PG , CL

Linked here is a detailed quantitative analysis of Kimberly-Clark Co. (KMB). Below are some highlights from the above linked analysis:

Company Description: Kimberly Clark Corp. is a global consumer products company producing tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Scott.  [more]

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