When we developed Young Research’s Retirement Compounders (RCs), our aim was to find a compelling competitive advantage to make the RCs a big winner, especially during bad times. Our overriding goal was to help investors like you achieve investment success with comfort and confidence. Our strategy was to accept underperformance during speculative market runs (like we’ve seen in recent years), with the expected tradeoff of better performance during down markets. The idea was never to beat the market over time or on a consistent basis. Rather, we fully expected the low risk RCs (both price … [Read more...]
Kaboom! Go the Dividends
The Federal Reserve has destroyed the portfolios of savers with zero percent interest rates. But investors have loaded up on risk by reaching for yield. That's a mistake. Dividend paying stocks with too-good-to-be-true yields have taken a hit. High yields are good, but there needs to be a viable business to support the cash needed to pay the dividend. Some yields are high because the stock prices are down. Do your homework or let us help you. Our dividend-centric Retirement Compounders can do the heavy lifting for you. … [Read more...]
Dividends Lead Tech into Summer
High flying speculative tech stocks often make the news and are anchors of the water-cooler conversation. But as you can see in the chart below, since the beginning of April, sturdy dividend Aristocrats have led NASDAQ's 100 top stocks in total return. We advise a dividend focused strategy for investors looking to retire with a low risk portfolio. Read our recent special report, Collecting Rare and Hard to Find Dividends for seven of our favorite dividend stocks. Get the report by clicking here. … [Read more...]
All Hail the Dividend
Historically dividends make-up about 2/3rds of stock returns. The S&P 500 has a miniscule dividend yield of 1.95%. That’s not saying much for future stock returns. That’s why we continue to pound the pavement for yields twice that. More on dividends in The WSJ: Ultimately, dividends drive long-term shareholder performance. From 1970 to 2012, the dividend yield accounted for about two-thirds of real stock-market returns in major markets, Credit Suisse notes. Sometimes the market appears to forget that in its enthusiasm for the latest fad offering the prospect of large price … [Read more...]
Collecting Rare and Hard to Find Dividends
Your key to surviving market volatility is to make sure you have dividend paying stocks. With dividends you’re a winner each and every year. As a dividend-centric investor your goal isn't to sell stocks at a higher price. It is to hold onto stocks that pay you a rich dividend. As you can see in this chart, losing money can happen literally overnight. Most investors get out at the wrong time—on the way down. But when you invest for dividends you’re not a seller or a buyer—you’re a collector. And collecting rare and hard to find dividends turns out to be quite fun. As you can see from the chart … [Read more...]
How to Increase Shareholder Return Today
The Wall Street Journal ran an article yesterday titled Top U.S. Firms Are Cash-Rich Abroad, Cash-Poor at Home. The piece pointed out that American companies are holding record amounts of cash, but much of it is overseas. By example, “Emerson Electric Co. has $2 billion of cash in the bank. But this year it had to borrow money in the U.S. to help buy back shares, distribute dividends and even pay its taxes.” Why does Emerson Electric hold $2 billion in cash overseas and borrow money to fund dividends in the U.S.? Sounds like an awful waste of time and effort that could be better spent … [Read more...]
Why Stocks Go Up
Stocks have been wild lately. They swing up; they swing down. Listen to the boys and girls on CNBC and you hear, “You bet this market’s got some legs—it should continue up.” Then the next morning Spain has trouble selling bonds, and stocks fall 100 points at the open. You could have had a better night watching Modern Family. For my money, it’s the increase in dividends that makes a stock go up. You buy a stock, it pays a dividend, and then next year it increases that dividend. What’s not to like? If a company increases its dividends for a loooong time, then it becomes one of the dividend … [Read more...]
Income Investors: Be Not Afraid
The Problem Without congressional action the Bush tax cuts will expire in 2013. Expiration would lead to higher income taxes for all brackets, and lead to dividends being taxed at marginal income tax rates for middle-and upper-income filers. The potential for higher income tax rates on dividends is scaring many income investors. These investors are wondering if it is time to sell dividend stocks and buy non-dividend payers. The short answer is no. Compromise on the Way The President is pushing to keep income tax rates the same for all but the top tax bracket, and pushing to keep … [Read more...]
50% Tax on Dividends
Determining your income needs for retirement is no easy task. In terms of enjoyment, it is right up there with getting a root canal and filing your taxes. And at least with tax returns, there’s hope of a refund when you’re done. Not so with retirement budgeting. Once you have some figures laid out on paper, you get to present the budget to your spouse. That’s when you realize she actually was paying attention to you—and whatever toys you bought last year. So you work through all that—the credit card bills and bank statements are marked and dog-eared—and it’s time to move forward. But … [Read more...]
Dividend Increases
According to Standard & Poor’s, 2011 is setting up to be an excellent year for dividend increases. To date, at least 150 companies have increased their dividends. And that’s with less than half of the year gone by. That’s a solid pace, considering that 256 companies increased their dividends in all of 2010. But don’t be fooled by headlines promoting big increases. Even an impressive 20% increase like the one Cablevision announced on Wednesday can leave investors wanting more, since it still only yields 1.7%. On the flip side, National Bankshares Inc. increased its dividend by only … [Read more...]
- « Previous Page
- 1
- …
- 7
- 8
- 9
- 10
- 11
- Next Page »