The S&P 500 Dividend Aristocrats is the most recognized list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. [more]
Deferred gratification is a principle where one or more people choose to postpone near-term benefits in order to enhance their chances of greater benefits in the future. In our microwave society marked by the ‘I want it now’ attitude, it is unusual to find someone willing to wait. However, deferred gratification is essential for anyone wanting to build wealth and is a key ingredient in a successful dividend investing strategy. [more]
After each quarter-end, I review my asset allocation and year-to-date total returns by category. The attached PDF contains my actual asset allocation as of 2013-Q2. Below is a high-level summary of the information contained in the PDF... [more]
Linked here is a detailed quantitative analysis of Nucor Corporation (NUE). Below are some highlights from the above linked analysis:
Company Description: Nucor Corporation is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. [more]
Linked here is a detailed quantitative analysis of The Clorox Company (CLX). Below are some highlights from the above linked analysis:
Company Description: The Clorox Company is a diversified producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products. [more]
To ensure a retirement that is free from financial concerns, there are certain things that must be done today. For many people this is not a desirable task. However, building a secure future by investing in quality dividend stocks is neither complicated nor overly burdensome. Below are three simple keys that will help you become a better investor:
I. Understand Your GoalsIf you don't know where you are going, how do you know when you get there? A large number of investors fail because they have no goals or investing convictions. Instead, they jump from one investing method to whatever is hot today.
Before investing, you should clearly define what you are tying to accomplish, then determine your goals and desires. It is my goal to create an ever-increasing income from dividend stocks, while it is my desire to beat the S&P 500 index over the long-term.
II. Select the Right StocksIt is our nature to want it now. In dividend investing this means high yields. Depending on the the direction you chose in I. above, a portfolio of high yield stocks may not be the best means to help you accomplish your goals. Historically, high-yield stocks have been more likely to cut their dividends, so for me, they don't align well with my goal of "ever-increasing income."
That is not to say I don't hold some high-yield, high-risk income stocks, but they are not my core income holdings. Instead, I prefer to focus on stocks with a reasonable yield and a long history of consistently raising their dividends. Companies in this category include:
Genuine Parts Co. (GPC) is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products.
Yield: 2.5% | Dividend Growth: 6.15% | Consecutive Years of Increases: 57
Exxon Mobil Corp. (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company.
Yield: 2.7% | Dividend Growth: 9.26% | Consecutive Years of Increases: 31
PepsiCo, Inc. (PEP) is a major international producer of branded beverage and snack food products.
Yield: 2.7% | Dividend Growth: 5.17% | Consecutive Years of Increases: 41
The Coca-Cola Company (KO) is the world's largest soft drink company, KO also has a sizable fruit juice business.
Yield: 2.7% | Dividend Growth: 8.02% | Consecutive Years of Increases: 51
The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries.
Yield: 3.0% | Dividend Growth: 7.04% | Consecutive Years of Increases: 55
Johnson & Johnson (JNJ) is a leader in the pharmaceutical, medical device and consumer products industries.
Yield: 2.9% | Dividend Growth: 7.29% | Consecutive Years of Increases: 51
McDonald's Corporation (MCD) is the largest fast-food restaurant company in the world, with nearly 34,500 restaurants in 119 countries.
Yield: 3.0% | Dividend Growth: 7.32% | Consecutive Years of Increases: 37
Chevron Corporation (CVX) is a global integrated oil company (formerly ChevronTexaco) with interests in exploration, production, refining and marketing, and petrochemicals.
Yield: 3.2% | Dividend Growth: 9.11% | Consecutive Years of Increases: 26
Kimberly Clark Corp. (KMB) is a global consumer products company's producing tissue, personal care and health care products. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex and Scott.
Yield: 3.2% | Dividend Growth: 7.07% | Consecutive Years of Increases: 41
The Clorox Company (CLX) is a diversified producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products.
Yield: 3.2% | Dividend Growth: 8.78% | Consecutive Years of Increases: 38
III. PatienceThe stock market does not travel in a straight line. There will be times it consistently goes down leaving you wondering if it will ever hit bottom. These are the times that many investors' patience is tried. But for those with clear goals and confidence in their chosen strategy, they will find that these are the times that present the greatest opportunities.
Full Disclosure: Long GPC, XOM, PEP, KO, PG, JNJ, MCD, CVX, KMB in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk [more]
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. [more]
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and dividends earned. Total dividends received during the month were $1,305.15, consisting of... [more]
Linked here is a detailed quantitative analysis of Community Trust Bank Corp. (CTBI). Below are some highlights from the above linked analysis:
Company Description: Community Trust Bank Corp. owns and operates Community Trust Bank, Inc. of Pikeville, KY, which provides commercial banking services in Kentucky and West Virginia; and a trust company. [more]
Linked here is a detailed quantitative analysis of Colgate-Palmolive (CL). Below are some highlights from the above linked analysis:
Company Description: Colgate-Palmolive Company (Colgate) is a major consumer products company markets oral, personal and household care and pet nutrition products in more than 200 countries and territories. [more]
Payback is the amount of time needed for an investment to earn its cost, undiscounted. For example, if you buy a dividend stock for $100 that pays a $5 annual dividend, the payback is 20 years (100/5). Though not very sophisticated, payback can still help you screen for good, solid dividend growth stocks. [more]
Growing up in the late 60’s early 70’s, I spent a fair amount of time reading comic books. I don’t remember much about them, but I do remember several of classic ads. Of course, there was the Charles Atlas ad where the beach bully kicked sand on the skinny boy and his girlfriend. But the ad that I remember the best was the “Magnificent Marvelous Money Machine“. It was a wooden block with some rollers in which you would put a one dollar bill in one side and a five dollar bill would come out the other. [more]
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in June, extending the streak to 36 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 65 of the last 67 months... [more]
Linked here is a detailed quantitative analysis of Darden Restaurant Inc. (DRI). Below are some highlights from the above linked analysis:
Company Description: Darden Restaurant Inc. operates the Red Lobster, Olive Garden, Bahama Breeze, Seasons 52, LongHorn Steakhouse and Capital Grille chains. [more]
Linked here is a detailed quantitative analysis of Sysco Corporation (SYY). Below are some highlights from the above linked analysis:
Company Description: Sysco Corporation is a large distributor of food and related products, primarily to the foodservice or food-away-from-home industry. [more]
Numerous research projects have shown, a conservative dividend growth based investment strategy has consistently outperformed the market over time. 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. [more]
Linked here is a detailed quantitative analysis of Meredith Corp. (MDP). Below are some highlights from the above linked analysis:
Company Description: Meredith Corp. publishes a suite of magazines and websites focused on food, parents and women (Better Homes and Gardens) and operates 12 local TV stations. [more]
Linked here is a detailed quantitative analysis of Procter & Gamble (PG). Below are some highlights from the above linked analysis:
Company Description: The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries. [more]
Long considered the domain of “widows and orphans”, utilities have developed a somewhat stodgy reputation. Why are utilities considered good for widows and orphans? [more]
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. [more]