It's been kind of a slow week for me investment wise. End of the month I guess. Anyway, collected a nice dividend from New Zealand Telecom (NZT). The stock itself didn't hold up well in the downturn, but I believe in the company and they carry a dividend of 11.31% on their recent price of $7.70. So I'm keeping the stock for the yield and looking for some recovery. I'm thinking it will happen, just may take some time.
Put in an order with my IRA account to purchase more shares of S&P 500 Index SPDR (SPY). While the dividend is not so impressive (2.10%), I'm expecting to collect some decent capital gains with this fund. SPY is definitely one of my long term holdings for my retirement account. I also like the fact that SPY invests in some sectors currently not represented in my overall investment portfolio.
On a personal note, looking forward to the latest round of "Dancing With the Stars" and the new season of "Glee" on television! Also looking forward to the November elections, it will be interesting to see how that plays out.
Showing posts with label dividend investors. Show all posts
Showing posts with label dividend investors. Show all posts
Wednesday, September 29, 2010
Sunday, July 19, 2009
Dividend Stock Investing Is Far From Dead
Dividend stock investing has been an attractive investment strategy for several reasons. They provide you with a real return immediately, in the form of dividend payouts as opposed to growth stocks, which only provide profits when you sell. Increasing dividend payouts, offer the shareholder a hedge against inflation not provided by non dividend paying stocks. Shareholders are able to choose what to do with dividend cash, paying bills, adding to cash savings, reinvesting in stock or whatever strikes their fancy. Now that so many weak dividend paying companies have either cut or eliminated their payouts entirely, it might seem as though dividend investing is no longer a viable strategy. On the contrary, getting rid of the weaker dividend payers has made the stronger companies even more apparent, making it easier to build a solid dividend portfolio. In fact, with stock prices well off last year's highs, dreadfully low interest rates, dividend yields higher than they've been in years, now is an excellent time to load up on the best dividend stocks.
Some things to keep in mind when searching for dividend stocks:
Look for stocks with above-average dividend yields (currently 2.25%). I personally shoot for around 6 to 8% yields, higher risk yes, but potentially much higher returns. You will also want to make sure the company generates enough free cash flow to maintain and possibly increase its dividend, otherwise it's doubtful they will continue payouts. While it's no guarantee of future returns, it's also beneficial to look for companies with a long history of increasing its payouts in proportion to earnings growth. If the company is growing earnings it should be rewarding shareholders with increases in dividend payments. In order to accomplish all of the above, you would definitely want any prospective investment to have a solid balance sheet. If they are carrying too much debt and are unable to repay creditors, they will not be able to pay you.
So even though we've seen drastic cuts in payouts, from some dividend stocks and others who have eliminated their dividends entirely, now is really a good time to be a dividend stock investor. Far from being a dead investment strategy, it may prove to be one of the best strategies going forward.
Some things to keep in mind when searching for dividend stocks:
Look for stocks with above-average dividend yields (currently 2.25%). I personally shoot for around 6 to 8% yields, higher risk yes, but potentially much higher returns. You will also want to make sure the company generates enough free cash flow to maintain and possibly increase its dividend, otherwise it's doubtful they will continue payouts. While it's no guarantee of future returns, it's also beneficial to look for companies with a long history of increasing its payouts in proportion to earnings growth. If the company is growing earnings it should be rewarding shareholders with increases in dividend payments. In order to accomplish all of the above, you would definitely want any prospective investment to have a solid balance sheet. If they are carrying too much debt and are unable to repay creditors, they will not be able to pay you.
So even though we've seen drastic cuts in payouts, from some dividend stocks and others who have eliminated their dividends entirely, now is really a good time to be a dividend stock investor. Far from being a dead investment strategy, it may prove to be one of the best strategies going forward.
Sunday, June 14, 2009
Looking Forward To Summer
I'm looking forward to summer and to seeing whether the rally in stocks will continue. Traditionally, the old stock market wisdom is, "In May go away." Some experts were expecting to see continued run this year, as long as the recovery in the economy continues. But from what I've been seeing, it looks like a lot of buyers will be slowing down for the summer months and I'm thinking things will pick up again in August or September. So I probably won't be doing many quick trades.
Usually, during this time of year, I take time to find good quality dividend stocks to add to my long term holdings. This year is likely to be no exception. If the market is taking a break, it will be the perfect time to pick up stocks at lower prices. I may be adding to some of my current holdings like AT&T (T), General Electric (GE), Merck and Co. (MRK) and a few others. Might also buy back in to British Petroleum (BP) and Universal Insurance (UVE) since I think both have good long term prospects and they both pay good dividends. I do still hold both stocks in my IRA account for the long term payouts and growth prospects. Also hoping to pick up more shares of AFLAC (AFL) if I can get them at a decent price. Would also like to unload some of my less productive holdings and re-invest the cash. I'm currently holding extra cash in my money market account in case the market does drop back some, so I will be able to take advantage of bargain priced stocks.
Hope everyone had a great weekend!
Usually, during this time of year, I take time to find good quality dividend stocks to add to my long term holdings. This year is likely to be no exception. If the market is taking a break, it will be the perfect time to pick up stocks at lower prices. I may be adding to some of my current holdings like AT&T (T), General Electric (GE), Merck and Co. (MRK) and a few others. Might also buy back in to British Petroleum (BP) and Universal Insurance (UVE) since I think both have good long term prospects and they both pay good dividends. I do still hold both stocks in my IRA account for the long term payouts and growth prospects. Also hoping to pick up more shares of AFLAC (AFL) if I can get them at a decent price. Would also like to unload some of my less productive holdings and re-invest the cash. I'm currently holding extra cash in my money market account in case the market does drop back some, so I will be able to take advantage of bargain priced stocks.
Hope everyone had a great weekend!
Friday, June 12, 2009
Stocks May Go Lower Today
Stocks are predicted to go lower today ahead of the G8 summit. It's been a slow week for my portfolio. Bought shares in some limited partnerships at the beginning of the week and the balance of my portfolios hasn't moved much. Been doing a lot of research and checking out investment websites. Found a few new blogs about investing that seem well worth following. Also found a great article about dividend investing:
http://www.bestgrowthstock.com/blog/2009/06/11/time-to-dive-into-stock-dividends/
Dividends are a form of passive income from the stocks you hold in your portfolio. By purchasing stocks with a good track record of paying dividends, investors can generally guarantee decent returns. Shares in a company that pays consistent dividends can perform better than many other types of investments, including standard savings accounts and certificates of deposit. This is a very hands-off method of making money from stocks. Instead of constantly trading, you just buy the stock and collect the dividends.
Dividend stock investing can be a good long-term strategy, but it’s still important to remember that it is not without risk and to monitor how your stocks are doing. If dividends are cut or, worse yet, stopped all together, it may be time to consider a different investment.
On a more personal note, had a pretty good week for job searches. Did my first interview with the state and it went very well, should here from them in a couple of weeks. Also found out that Probation and Parole, the people I really want to work for, have 45 new job openings they will be hiring for soon. So I'm looking forward to hearing from them. I'm on the state register for several jobs, so sooner or later something should work out there.
http://www.bestgrowthstock.com/blog/2009/06/11/time-to-dive-into-stock-dividends/
Dividends are a form of passive income from the stocks you hold in your portfolio. By purchasing stocks with a good track record of paying dividends, investors can generally guarantee decent returns. Shares in a company that pays consistent dividends can perform better than many other types of investments, including standard savings accounts and certificates of deposit. This is a very hands-off method of making money from stocks. Instead of constantly trading, you just buy the stock and collect the dividends.
Dividend stock investing can be a good long-term strategy, but it’s still important to remember that it is not without risk and to monitor how your stocks are doing. If dividends are cut or, worse yet, stopped all together, it may be time to consider a different investment.
On a more personal note, had a pretty good week for job searches. Did my first interview with the state and it went very well, should here from them in a couple of weeks. Also found out that Probation and Parole, the people I really want to work for, have 45 new job openings they will be hiring for soon. So I'm looking forward to hearing from them. I'm on the state register for several jobs, so sooner or later something should work out there.
Subscribe to:
Posts (Atom)
