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Dividends4Life (43.50)

November 2010

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6 Dividend Stocks That Will Make You Smile

November 30, 2010 – Comments (2) | RELATED TICKERS: ABT , MCD , PG

At the end of each month I do an evaluation to determine which dividend stocks I will purchase in the following month. There is always a warm feeling of joy that comes over me when when I buy one of my “favorite” dividend growth stocks. These are stocks that have earned a special place in my heart as a result of performing well over the decades and they are generally considered among the best managed companies in the world. Here are the six stocks that make me smile when it is time to buy…

Abbott Laboratiores (ABT) unlike many big pharmaceutical companies ABT is highly diversified. Its products include pharmaceuticals, medical devices, nutritional products and an emerging vascular group. This diversity provides ABT with a very wide customer base mitigating the company’s dependence on the pharmaceutical pipeline. The company has increased its dividend for 38 consecutive years, with a 10% increase last February. The company ended 2009 with $9.9 billion dollars of cash on its balance sheet and $3.9 billion at the end of Q3/2010, both more than enough to cover its annual $2.5 billion (TTM) dividend. ABT is a cash machine generating $7.3 billion dollars of free cash flow over the last 12 months. At 48%, its debt to total capital is slightly higher than the 45% I look for, but with the company’s ability to generate cash, this does not cause me concern. ABT is currently yielding 3.5%.  [more]

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12 Stocks Not Missing Their Opportunity To Increase Dividends

November 29, 2010 – Comments (0) | RELATED TICKERS: BDX , DCI , MKC

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 stocks. One attribute of the very best dividend stocks is a long history of consecutive dividend increases.

Below are several dividend stocks that did not miss their opportunity increase cash dividends:  [more]

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The Procter & Gamble Company (PG) Dividend Stock Analysis

November 26, 2010 – Comments (0) | RELATED TICKERS: CL , KMB , PG

Linked here is a detailed quantitative analysis of The Procter & Gamble Company (PG). Below are some highlights from the above linked analysis:  [more]

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Dividend Stocks vs. Dividend ETFs

November 23, 2010 – Comments (5) | RELATED TICKERS: JNJ , KO , MCD

In 1993, State Street Global Advisors launched the first exchange-traded fund (ETF). Now there are literally hundreds of ETFs out there covering sectors, countries, popular indexes and various strategies, including income investing. A frequent question that I get is ‘Why do you invest in individual dividend stocks instead of income-based ETFs?’ On the surface this seems like a reasonable question since most ETFs are indexed, tax efficient, easily traded, passive and have low expense ratios. However, as we look beyond the ETFs luster, there are several significant reasons why many dividend investors prefer owning individual stocks… I Tax Efficiency

ETFs tax efficiency is only in comparison to traditional mutual funds. Consider, when you redeem your mutual fund shares and the fund does not have cash on hand, it must sell some of the underlying securities for cash to pay you. The sale will generate a taxable event (positive of negative) for all shareholders, even if you didn’t redeem any shares. Since an ETF’s can be sold on the open market its liquidity is not tied to selling the underlying investments; thus, not creating a taxable event to those that own the fund, but didn’t sell. Individual dividend stocks are exactly the same – no taxable event until you sell your shares.  [more]

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23 Dividend Stocks Paying More Cash

November 22, 2010 – Comments (0) | RELATED TICKERS: INTC , NKE , WEN

When selecting income investments, the three most important questions to answer are : 1.) Is the investment increasing its dividend each year, 2.) Is the increase likely to continue into the future and 3.) Are you being compensated for the risk you are taking? When you answer yes to all three of the questions, you just might have found an excellent income investment.  [more]

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Kimberly-Clark Co. (KMB) Dividend Stock Analysis

November 18, 2010 – Comments (0) | RELATED TICKERS: CL , KMB , PG

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 produces tissue, personal care and health care. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott and Kimberly-Clark.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:  [more]

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If Only I Had Known About These Dividend Stocks…

November 16, 2010 – Comments (6) | RELATED TICKERS: ABT , CL , KMB

At one time or another, we all have thought, ‘If only knew this when I was younger.’ I purchased my first dividend stock for income in 2003. Like many newly converted income investors, I was chasing yield. I quickly built a portfolio consisting of Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs) and high yield, high risk stocks. My portfolio’s yield was consistently in the low to mid-teens. Eventually, after some unnecessary losses, I learned there was a better way to invest in dividend stocks. Here is what I learned… Dividend Investing is About Future Yield, Not Current Yield

I was fortunate enough to accidentally buy some good dividend stocks and hold them long enough to figure out the “secret” of dividend investing. It is not necessarily starting with a high-yield investment, but ending up with a high-yield investment. This usually occurs by buying investments with a moderate yield, a history of growing dividends and letting time do its job.  [more]

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13 Dividend Stocks Providing A Growing Income

November 15, 2010 – Comments (0) | RELATED TICKERS: ADP , BAX , PRU

How much money will you need for retirement? This a very difficult question to answer. There are many factors and assumptions that go into estimating the income that will be needed in retirement. However, one certainty is that if you only invest in fixed income instruments, you will need more than if your investments provide you a growing income.  [more]

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Abbott Laboratories (ABT) Dividend Stock Analysis

November 11, 2010 – Comments (0) | RELATED TICKERS: ABT , JNJ , LLY

Linked here is a detailed quantitative analysis of Abbott Laboratories (ABT). Below are some highlights from the above linked analysis:

Company Description: Abbott Laboratories is a diversified life science company and is a leading maker of drugs, nutritional products, diabetes monitoring devices, and diagnostics.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:  [more]

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13 Dividend Stocks and 3 ETFs To Balance Your Asset Allocation

November 09, 2010 – Comments (1) | RELATED TICKERS: ABT , JNJ , KO

If you want to lower the risk of your income portfolio and position yourself to increase returns, you can not ignore asset allocation.  Many dividend investors loaded up on banks and other high-yield financials, only to see their portfolios collapse along with the financial markets. So what can you do to protect your portfolio from stock and sector specific declines? Here are some of the steps I take to help protect my portfolio: The Allocation Dilemma

If your entire portfolio consists of income-based dividend stocks it would be very easy to end up over allocated in certain sectors.  Of the nearly 200 companies that I track, 15% of them are in the Consumer Goods sector. Furthermore, some of most well-known and very best dividend growth stocks are in this sector, including: Colgate-Palmolive (CL), Coca-Cola Company (KO), Pepsico, Inc. (PEP), Procter & Gamble (PG) and Kimberly-Clark Co. (KMB).  [more]

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16 Dividend Stocks Delivering What’s Important

November 08, 2010 – Comments (0) | RELATED TICKERS: EMR , MCY , UVV

For many investors, there is no clear conviction as to how they should invest. Today’s investments are guided by what was read yesterday, and the popular media is constantly churning out new and different ideas. Granted, it makes for some “interesting” reads, but it certainty is no way to run a portfolio. Time has proven the positive correlation between consistently raising dividends and stock performance.

Below are some companies that understand the importance of growing their cash dividends:  [more]

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Colgate-Palmolive Co. (CL) Dividend Stock Analysis

November 04, 2010 – Comments (0) | RELATED TICKERS: CL , KMB , PG

Linked here is a detailed quantitative analysis of Colgate-Palmolive Co. (CL). Below are some highlights from the above linked analysis:

Company Description: Colgate-Palmolive Company (Colgate) is a major consumer products company that markets oral, personal and household care, and pet nutrition products in more than 200 countries and territories.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:  [more]

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17 Stocks With Room To Grow Their Dividend

November 02, 2010 – Comments (0) | RELATED TICKERS: ABT , INTC , PG

Dividend sustainability is paramount for the high-yield investor.  Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough – the dividend growth investor also expects substantial and consistent growth.

This expectation does not change even when the economy turns down and earnings decline; dividend growth investors still require annual dividend growth. The companies that are able to accomplish this are those with a operating model that generates strong free cash flows with room to pay out a higher percentage as dividends. Below are several companies with a low free cash flow payout (below 40%):  [more]

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16 Dividend Stocks Growing Future Yield

November 01, 2010 – Comments (2) | RELATED TICKERS: CTAS , NS , PH

In the southern U.S. where I live, there has been some controversy over harvesting forests of hardwoods and reseeding them with pines. Growing hardwoods is very similar to investing in dividend stocks. What you plant or invest in today will not yield much for years to come. That is not to say progress is not seen. It is just slow and deliberate. To grow hardwoods it takes great foresight and commitment to the process. The small investments we make in quality dividend stocks each month won’t yield large payments in the near-term. It will take time for the payments to grow and compound, but they will.

Below are several companies planting the seeds for future yield by increasing their cash dividends:  [more]

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