In December 2007, I began looking at the Alpine Total Dynamic Dividend Fund (AOD). This is a closed-end fund with an investment objective to invest in equity securities that provide high current dividend income. The fund attempts to optimize both dividend income and long-term growth of capital. This is a very diverse and flexible fund. It employs a global, multi-cap, multi-sector, and multi-style investment approach. The fund combines four research-driven investment strategies – Growth, Value, Special Dividends, and Dividend Capture Rotation. [more]
Earlier we looked at the RQ (Risk/Quality) ratings of individual stocks. This was a good start to help us understand the risk profile of a stock, and our dividend stock portfolio, but it didn't quite go far enough. Since then I have continued to measure, calculate and calibrate a more comprehensive measure of risk. I sill use the RQ rating as 50% of the new measure, but I have added these two important indicators of risk: [more]
Linked here is a PDF copy of my detailed analysis of Kraft Foods Inc (KFT) (alt.1, alt.2). Below are some highlights from the above linked analysis: [more]
By far, my most used and most downloaded model is the D4L-PreScreen.xls model. I have just completed an update on it. This update includes the normal year-end changes, plus some rework on the Projected Information section. The changes are described below: [more]
Christmas is a time of giving. Families and loved-ones give gifts to each other. Many people give money to the needy and charities, while others give their time to help those that are not quite as fortunate. It seems that everyone is involved in giving this time of year, even corporations. Some companies are giving the gift of nothing, others are giving something much more tangible!
Here are several companies sharing their holiday spirit by giving their shareholders a gift of increased dividends by raising their cash distributions to shareholders:
MAXIMUS, Inc.(MMS) Boosts Dividend by 20% $0.12/Share (1.40%)
This company provides consulting services and operations program management focused in the areas of health and human services primarily to government.
PreScreen: MMS has only paid dividends since 2005. Not a viable dividend investment at this time.
MOCON (MOCO) Increases Dividend 6%to $0.09/Share (4.59%)
This company makes equipment to test packages and packaging material, and performs consulting and analytical services.
PreScreen: MOCO had a NPV of MMA Differential of $4,175. Well below the $10,000 I require for a company that has only increased its dividend since 2005. Not a viable dividend investment at this time.
Dominion (D) Announces 11% Dividend Increase (5.05%)
This energy holding company's principal subsidiaries are Virginia Electric & Power Co. and Consolidated Natural Gas.
PreScreen: Since 1998 D has had a poor dividend record. Through 2003 its dividend was flat. Then after 2 years of increases its dividend was slashed 74% in 2006. After a dramatic increase in 2007, the dividend was cut again in 2008. D does not provide the consistency that dividend investors are looking for.
It doesn't appear there were any hidden jewels in these gifts, but as we were told as kids, 'It is the thought that counts.' The NPV of MMA Differential was calculated using my D4L-PreScreen.xls model.
Disclosure: No position in the aforementioned securities.
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One tactic to help manage the risk of a dividend cut is to limit your allocation in any single investment to a maximum of 5%. However, if the allocation is measured by market value, our portfolio may still be at significant risk of a dividend cut. Consider the following: [more]
I always enjoy this time of year. The Christmas music, decorations, family gatherings, holiday plays and stock picks. Stock picks? Yes, 'tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind them. As a long-term buy and hold investor, generally most aren't useful for me; nevertheless, I enjoy reading them. Here are some excerpts and picks from several of the experts: [more]