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Dividends4Life (22.34)

November 2015

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6 Dividend Stocks Working Hard During The Holidays

November 30, 2015 – Comments (0) | RELATED TICKERS: MRK , BDX , SFL

As we officially head into the holiday season, many of us in the U.S. will get a few days off this week in observance of the Thanksgiving holiday. Though not much is happening at the office, there are still many working for me today. Not people, but my Dividend Stocks. It is great to know while I am relaxing with family and watching the big game, those stocks are hard at work providing me an additional income stream.

Several companies this week provided their shareholders a Thanksgiving bonus in the form of higher cash dividends... Continue Reading »  [more]

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Genuine Parts Company (GPC) Dividend Stock Analysis

November 27, 2015 – Comments (0) | RELATED TICKERS: GPC , AAP , AZO

Linked here is a detailed quantitative analysis of Genuine Parts Company (GPC). Below are some highlights from the above linked analysis:

Company Description: Genuine Parts Co. is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:

1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number

GPC is trading at a premium to all four valuations above. When also considering the NPV MMA Differential, the stock is trading at a 6.8% discount to its calculated fair value of $96.8. GPC earned a Star in this section since it is trading at a fair value.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%

GPC earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. GPC earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 59 consecutive years.

Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

1. NPV MMA Diff.
2. Years to > MMA

GPC earned a Star in this section for its NPV MMA Diff. of the $855. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as GPC has. The stock's current yield of 2.73% exceeds the 2.51% estimated 20-year average MMA rate.

Peers: The company's peer group includes: Advance Auto Parts Inc. (AAP) with a 0.2% yield, AutoZone Inc. (AZO) with a 0.0% yield and W.W. Grainger, Inc. (GWW) with a 2.4% yield.

Conclusion: GPC earned one Star in the Fair Value section, earned three Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of five Stars. This quantitatively ranks GPC as a 5-Star Very Strong stock.

Using my D4L-PreScreen.xls model, I determined the share price would need to increase to $110.98 before GPC's NPV MMA Differential decreased to the $500 minimum that I look for in a stock with 59 years of consecutive dividend increases. At that price the stock would yield 2.2%.

Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the target $500 NPV MMA Differential, the calculated rate is 4.8%. This dividend growth rate is slightly below the 6.8% used in this analysis, thus providing a margin of safety. GPC has a risk rating of 1.00 which classifies it as a Low risk stock.

GPC’s long string of dividend increases are supported by its strong underlying fundamentals of sales, earnings and free cash flow. From an operating standpoint, GPC has an extensive distribution network and it has built a loyal customer following over the years. The company maintains wide-ranging inventories and efficiently delivers products in minimal time. Long-term prospects for the company's auto parts segment should improve with the rising number and increasing complexity of vehicles, along with a higher medium vehicle age.

The company has strong financials, stable earnings and an above-average dividend yield for its industry. GPC is one of my larger holdings, with much of its value coming through capital appreciation. With a low Free Cash Flow Payout of 38% and a low Debt to Total Capital of 17% its dividend is not only sustainable, but has room to significantly to grow. It is currently trading at a 6.8% discount to my calculated fair value of $96.80. As such, I will continue to look for opportunities to moderately add to my position, as my allocation allows.

Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.

Full Disclosure: At the time of this writing, I was long in GPC (3.5% of my Dividend Growth Portfolio). See a list of all my dividend growth holdings here.

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- Abbott Laboratories (ABT) Dividend Stock Analysis
- Realty Income Corp (O) Dividend Stock Analysis
- Duke Energy (DUK) Dividend Stock Analysis
- Occidental Petroleum Corporation (OXY) Dividend Stock Analysis
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10 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends

November 25, 2015 – Comments (0) | RELATED TICKERS: MCD , TGT , KO

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. Continue Reading »   [more]

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Chevron Corporation (CVX) Dividend Stock Analysis

November 24, 2015 – Comments (0) | RELATED TICKERS: CVX , BP , XOM

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

Company Description: Chevron Corporation is a global integrated oil company (formerly ChevronTexaco) has interests in exploration, production, refining and marketing, and petrochemicals. Continue Reading »   [more]

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7 Companies Sending Shareholders More Cash With Increased Dividends

November 23, 2015 – Comments (0) | RELATED TICKERS: A , JCI , SYY

In the U.S. and Canada, most companies pay dividends quarterly. In other parts of the world, it is not uncommon for companies to pay an annual or a semi-annual dividend. That is not to say that North American companies sometimes choose not to pay quarterly dividends.   [more]

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Abbott Laboratories (ABT) Dividend Stock Analysis

November 19, 2015 – Comments (0) | RELATED TICKERS: ABT , BMY , JNJ

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 health care products company that is now focused on nutritionals, diagnostics, generic drugs, and medical devices, following the spinoff of its R&D-based prescription pharmaceuticals business at the beginning of 2013. Continue Reading »   [more]

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5 Exceptional Dividend Growth Stocks With Quality Financials

November 18, 2015 – Comments (0) | RELATED TICKERS: UTX , AFL , MSFT

Any master architect will tell you the key to a quality structure is its foundation. Solid buildings have firm foundations. The more solid the foundation, the less likely the building will suffer damage from storms, earthquakes, or settling of the earth. In much the same way, the foundation of solid Dividend Growth Stocks are their financials. Here's what to look for when evaluating a dividend stock's financials...  [more]

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Realty Income Corp (O) Dividend Stock Analysis

November 17, 2015 – Comments (0) | RELATED TICKERS: O , DDR , NNN

Linked here is a detailed quantitative analysis of Realty Income Corp. (O). Below are some highlights from the above linked analysis:

Company Description: Realty Income Corporation is an equity real estate investment trust that owns commercial retail real estate properties in the United States. Continue Reading »   [more]

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8 Stocks Providing An Inflation Hedge With Increasing Dividends

November 16, 2015 – Comments (0) | RELATED TICKERS: MCD , PRU , ADP

With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, et. al. But for me the most important reason is the inflation hedge that a growing income will provide in my retirement years.

Below are several companies building an inflation hedge for their shareholders by increasing their cash dividends... Continue Reading »  [more]

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October 2015 Progress Report

November 13, 2015 – Comments (0) | RELATED TICKERS: ITW , LEG , O

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in September, extending the streak to 38 consecutive months of increases. As noted in the June 19, 2015 post, in July 2015 I changed to reporting on total dividend income instead of just income from my Dividend Growth Portfolio.

Since I began tracking my total income progress in September 2012, annualized dividend income has increased in 38 of the last 38 months. Continue Reading »   [more]

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Consolidated Edison, Inc. (ED) Dividend Stock Analysis

November 12, 2015 – Comments (0) | RELATED TICKERS: ED , AEP , PCG

Linked here is a detailed quantitative analysis of Consolidated Edison, Inc. (ED). Below are some highlights from the above linked analysis:

Company Description: Consolidated Edison, Inc. is an electric and gas utility holding company serves parts of New York, New Jersey and Pennsylvania. Continue Reading »   [more]

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Three Keys For Successful Dividend Growth Investing

November 11, 2015 – Comments (0) | RELATED TICKERS: XOM , MMM , GPC

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:  [more]

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Walgreens Boots Alliance, Inc. (WBA) Dividend Stock Analysis

November 10, 2015 – Comments (0) | RELATED TICKERS: WBA , CVS , RAD

Linked here is a detailed quantitative analysis of Walgreens Boots Alliance, Inc. (WBA). Below are some highlights from the above linked analysis:

Company Description: Walgreens Boots Alliance, Inc. is the largest U.S. retail drug chain in terms of revenues, this company operates more than 8,000 drug stores throughout the U.S. and Puerto Rico. Continue Reading »   [more]

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12 Stocks Raising Expectations and Dividends

November 09, 2015 – Comments (0) | RELATED TICKERS: WFM , KHC , HON

Have you ever pondered the concept of forever or infinity? It is truly mind boggling! What is even more astonishing is that when I buy a stock, my target holding period is forever. For most people, myself included, that is hard to grasp and to carry out. When things start going bad, our primal instinct of flight kicks in and we want to sell. In many cases, that is the time we should be buying. Holding a stock through an economic downturn is much easier when it pays a rising dividend.

Below are several companies giving their shareholders a reason not to sell by increasing their cash dividends... Continue Reading »  [more]

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United Technologies Corp. (UTX) Dividend Stock Analysis

November 05, 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, Otis elevators, and Carrier air conditioners, among other products. In July 2012, UTX purchased aerospace competitor Goodrich. Continue Reading »   [more]

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United Technologies Corp. (UTX) Dividend Stock Analysis

November 05, 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, Otis elevators, and Carrier air conditioners, among other products. In July 2012, UTX purchased aerospace competitor Goodrich.

Continue Reading »
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Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait

November 04, 2015 – Comments (0) | RELATED TICKERS: MMM , GPC , JNJ

For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity and 2. Time. Unfortunately, very few people are able to take advantage of the situation enough to even build a secure retirement. Here are some of the reasons people fail, and what you can do to not fall into that group...

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Exxon Mobil Corporation (XOM) Dividend Stock Analysis

November 03, 2015 – Comments (0) | RELATED TICKERS: XOM , BP , CVX

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

Company Description: Exxon Mobil Corp., formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company.  [more]

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10 Stocks Building Superior Long-Term Returns With Increased Dividends

November 02, 2015 – Comments (0) | RELATED TICKERS: VLO , ETP , AFL

Ned Davis Research examined the relative performances of stocks between 1972 and 2006 and established a link between rising dividends and superior long-term returns. The study found S&P 500 stocks that consistently increased their dividends returned 10.4% total return (dividends + share price appreciation), while those that did not increase their dividends returned only 8.2%. The 2.2% advantage of the dividend raisers would equate to an additional $1,802 per $100 invested in 1972.

Below are several companies looking to follow the path of superior long-term returns by increasing their cash dividends:  [more]

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