This past week was kind of hectic for me. We've been busy at work getting ready for a big corporate inspection on the 22nd. On top of that, we've been busier than usual due to increased traffic from people who've gotten their tax refunds. So it's been kind of crazy there.
On a brighter note, I collected several dividend payments. In my taxable portfolio I received dividend payments from REIT O, limited partnerships LGCY, EVEP and SGU. For my IRA account I collected dividends from SPY, T, DE and ABT. Also purchased a stake in NYB for their current dividend yield of 7.72%. While NYB may be somewhat risky, the price was right and the rewards in high yields and possible capital gains made it worth the risk for me.
On my shopping trips this week, I continued to benefit from my version of extreme couponing. I saved a handy 38% at the grocery store by matching coupons with sale items. On my Sunday trip to Walgreens I saved close to 50% off my total purchases! I also got 2 more chances to win $3,000 with their customer surveys. It's been really great, since I've started couponing, to keep my house so well stocked with food, cleaning supplies and personal care items. I have never had my home so well stocked in my entire life. Coupons are the way to go. I even save $25 on work I had done on my Honda Civic by using a coupon from the dealership.
While I was at the Lake of the Ozarks for my annual February get away at Port Elsewhere, I made good use of coupons to buy food for the condo so I didn't have to go out to eat. While there, I shopped for new shoes at the Nike outlet store and got an $80 dollar pair of Nikes for $21, almost 75% off! All the savings from coupons and sale items are making it much easier to weather the slump in the economy and rebuild my investment portfolio after paying medical bills from my heart attack. It also helps make it easier with ongoing medical bills for follow up care.
Showing posts with label dividends. Show all posts
Showing posts with label dividends. Show all posts
Sunday, February 19, 2012
Thursday, June 2, 2011
THE DOW'S TOP FIVE DIVIDEND YIELDS
The top 5 dividend leaders of the Dow Jones:
1. AT&T (T) 5.45%
2. Verizon (VZ) 5.28%
3. Merck (MRK) 4.14%
4. Pfizer (PFE) 3.73%
5. Intel (INTC) 3.73%
Of the five, Intel announced a raise in dividends this year. A good dividend payout, although not reason enough to invest on in a stock, may decreased volatility in an uncertain market. Something to keep in mind in the next few months. I currently own shares of AT&T (taxable and IRA accounts) and Intel (taxable account) as part of my long term investment plan.
1. AT&T (T) 5.45%
2. Verizon (VZ) 5.28%
3. Merck (MRK) 4.14%
4. Pfizer (PFE) 3.73%
5. Intel (INTC) 3.73%
Of the five, Intel announced a raise in dividends this year. A good dividend payout, although not reason enough to invest on in a stock, may decreased volatility in an uncertain market. Something to keep in mind in the next few months. I currently own shares of AT&T (taxable and IRA accounts) and Intel (taxable account) as part of my long term investment plan.
Sunday, May 8, 2011
CREATE YOUR OWN CASH MACHINE!
No I'm not talking about some get rich quick scam, I'm talking about a dividend stock portfolio. About 5 years ago, I switched from a strategy of investing in "growth" stocks to investing in dividend paying stocks. Couldn't be happier with the results!
Since that time I've managed to accumulate positions in 24 stocks in my regular taxable account and 9 stocks in my IRA account. Of the 24, three pay monthly dividends and the rest pay dividends each quarter, for a total of 120 dividend payments per year or an average of 10 per month. In my IRA account I hold 8 stocks which pay quarterly and 1 which pays every 6 months, for a total of 34 dividend payments per year. Combining the 2 accounts, I receive a total of 156 dividend payments a year or an average of 13 dividends per month. Granted some payments are quite small and some I have reinvested, but think of the wealth building power of getting paid 13 times per month!!!
If all this weren't enough, I continue to add to my holdings through dividend re investments and regular monthly cash contributions to my account. In 5 years I've managed to create a "cash machine" that continues to churn out more money month after month! Eventually it will far surpass my earned income and I will be free to work or not to work. What could be better than that? (#340)
Since that time I've managed to accumulate positions in 24 stocks in my regular taxable account and 9 stocks in my IRA account. Of the 24, three pay monthly dividends and the rest pay dividends each quarter, for a total of 120 dividend payments per year or an average of 10 per month. In my IRA account I hold 8 stocks which pay quarterly and 1 which pays every 6 months, for a total of 34 dividend payments per year. Combining the 2 accounts, I receive a total of 156 dividend payments a year or an average of 13 dividends per month. Granted some payments are quite small and some I have reinvested, but think of the wealth building power of getting paid 13 times per month!!!
If all this weren't enough, I continue to add to my holdings through dividend re investments and regular monthly cash contributions to my account. In 5 years I've managed to create a "cash machine" that continues to churn out more money month after month! Eventually it will far surpass my earned income and I will be free to work or not to work. What could be better than that? (#340)
Sunday, October 24, 2010
TIME OFF WORK
Took a couple extra days off work this week. Just needed some down time, so I went to the Isle of Capri casino in Booneville. Played the slot machines for a couple of hours, lost $50, but I had a good time. Decided to go to Sedalia for some shopping at Big Lots. Didn't find anything there, but I did pick up a nice addition to my Egyptian collection, later in the day, at Hobby Lobby. So it's been a relaxing weekend overall.
Going forward this week we'll be looking at the GDP report and the report on consumer confidence. Experts aren't expecting much of either report, so any surprise gains could bode well for stocks. Also, a great deal of money has been moving out of government bonds lately and the money has to go somewhere. If a decent percentage is reinvested in the market we could see some additional gains. I'm looking for the big push, one way or the other, to come after the November elections. However, we could see movement before the elections as investors factor in expected election results. Just have to wait and see.
Collected some good dividend payments in the past few weeks, including my last payment for this month from Windstream (WIN: NASDAQ). They have a current dividend yield of 8.03% on their recent share price of $12.45. However, I would caution that their current earnings may not support continued payment of such a high dividend. Right now I'm holding on to the stock since I bought in at a lower price and my yield is closer to 10%, but I am watching it very closely. If earnings do not pick up I may be selling my position and moving the money elsewhere.
Going forward this week we'll be looking at the GDP report and the report on consumer confidence. Experts aren't expecting much of either report, so any surprise gains could bode well for stocks. Also, a great deal of money has been moving out of government bonds lately and the money has to go somewhere. If a decent percentage is reinvested in the market we could see some additional gains. I'm looking for the big push, one way or the other, to come after the November elections. However, we could see movement before the elections as investors factor in expected election results. Just have to wait and see.
Collected some good dividend payments in the past few weeks, including my last payment for this month from Windstream (WIN: NASDAQ). They have a current dividend yield of 8.03% on their recent share price of $12.45. However, I would caution that their current earnings may not support continued payment of such a high dividend. Right now I'm holding on to the stock since I bought in at a lower price and my yield is closer to 10%, but I am watching it very closely. If earnings do not pick up I may be selling my position and moving the money elsewhere.
Monday, September 13, 2010
LATEST ADDITIONS TO MY PORTFOLIO
Added shares of telecom Windstream Corporation (WIN:NASDAQ) to my taxable stock account. It's been a great performer for my portfolio and I like the dividend (currently 8.06% on their recent share price of $12.39). Windstream is one of my long term holdings.
For my IRA account I purchased shares of Credit Suisse Group (CS:NYSE). They currently pay a dividend of $1.78 which represents a yield of 3.84% on their recent share price of $46.66. While it's not the highest yield, I think they have good prospects for increasing dividends in years to come. CS is one of my long term holdings for my IRA account.
I'm happy with the way the markets have been moving of late, although I'm not too optimistic that the upward trend will continue. I'm thinking a lot hinges on the direction of the November elections. Should the Democrats retain control of both houses, which seems unlikely, I'd expect a prolonged drop in equities. If the GOP manages to rest control of both the House and the Senate, I expect the stock market to react quite favorably, at least through the first part of 2011. Aside from the above scenarios, the only real market mover that I foresee would be a dramatic increase in new jobs, which I believe is highly unlikely. Should the jobs situation get worse, it would present another tremendous buying opportunity when equities bottom out. At least for those who still have money and the courage to invest in stocks.
For my IRA account I purchased shares of Credit Suisse Group (CS:NYSE). They currently pay a dividend of $1.78 which represents a yield of 3.84% on their recent share price of $46.66. While it's not the highest yield, I think they have good prospects for increasing dividends in years to come. CS is one of my long term holdings for my IRA account.
I'm happy with the way the markets have been moving of late, although I'm not too optimistic that the upward trend will continue. I'm thinking a lot hinges on the direction of the November elections. Should the Democrats retain control of both houses, which seems unlikely, I'd expect a prolonged drop in equities. If the GOP manages to rest control of both the House and the Senate, I expect the stock market to react quite favorably, at least through the first part of 2011. Aside from the above scenarios, the only real market mover that I foresee would be a dramatic increase in new jobs, which I believe is highly unlikely. Should the jobs situation get worse, it would present another tremendous buying opportunity when equities bottom out. At least for those who still have money and the courage to invest in stocks.
Monday, March 1, 2010
ADJUSTING MY INVESTMENT STRATEGY
While revising my investment plan at the first of this year, I wanted to cut investment costs while increasing stakes in some of my long term holdings. At the same time, I set a goal to increase cash holdings as well. To attain both goals, I instructed my investment company to re-invest dividends on 6 of my top long term investments and had them pay the dividends from the other 22 stocks in my regular portfolio to my money market account.
By doing this, I'll be increasing my stakes in the my top 6 long term holdings, while keeping investment costs low. (My investment company charges no commissions for re-invested dividends). This still leaves me with an income stream of dividend payments from 8 to 12 stocks each month. The dividends from those stocks will build cash holdings in my money market account, with or without any additional money invested on my part.
I do plan to invest additional funds in some of the energy partnerships. I've been doing quite well with those as far as price appreciation and dividend income. Considering energy prices are still relatively low, I would expect these investments to do quite well as the overall economy begins to recover and energy prices go up.
By doing this, I'll be increasing my stakes in the my top 6 long term holdings, while keeping investment costs low. (My investment company charges no commissions for re-invested dividends). This still leaves me with an income stream of dividend payments from 8 to 12 stocks each month. The dividends from those stocks will build cash holdings in my money market account, with or without any additional money invested on my part.
I do plan to invest additional funds in some of the energy partnerships. I've been doing quite well with those as far as price appreciation and dividend income. Considering energy prices are still relatively low, I would expect these investments to do quite well as the overall economy begins to recover and energy prices go up.
Monday, February 1, 2010
CLOROX (CLX) REPLACING SYSCO (SYY)
In a further effort to increase dividend income, while boosting prospects for continued growth of my portfolio, my latest move is to sell my shares in Sysco Food Service (SYY) and replace them with Clorox (CLX). While I believe that Sysco is a good long term investment I think that Clorox will fair better. I also believe that Sysco has enjoyed somewhat of a boost from reductions in transportation related expenses over the past year. While both stocks are affected by transportation costs, I think it likely that Sysco will suffer more of a negative impact to earnings should oil prices increase.
Clorox Company was founded in Oakland, Calif., in 1913 and is incorporated in Delaware. The Company is a leading manufacturer and marketer of consumer products. The Company sells its products mainly through mass merchandisers, grocery stores and other retail outlets. It markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Green Works(tm) natural cleaners and laundry products, Poett(r)and Mistolin(r)cleaning products, Armor All(r) and STP(r) auto-care products, Fresh Step(r) and Scoop Away(r) cat litter, Kingsford(r) charcoal, Hidden Valley(r) and K C Masterpiece(r) dressings and sauces, Brita(r) water-filtration systems, Glad(r) bags, wraps and containers, and Burt's Bees(r) natural personal care products. With approximately 8,300 employees worldwide, the Company manufactures products in more than two dozen countries and markets them in more than 100 countries. The Company operates through strategic business units which are aggregated into four reportable segments: Cleaning, Lifestyle, Household and International. Cleaning consists of laundry, home-care, professional products and auto-care products marketed and sold in the United States. Products within this segment include laundry additives, including bleaches, under the Clorox(r) and Clorox 2(r) brands home-care products, mainly under the Clorox(r), Formula 409(r), Liquid-Plumr(r), Pine-Sol(r), S.O.S(r) and Tilex(r) brands natural cleaning and laundry products under the Green Works(tm) brand and auto-care products mainly under the Armor All(r) and STP(r) brands. Lifestyle consists of food products and water-filtration systems and filters marketed and sold in the United States and all natural personal care products. Products within this segment include dressings and sauces, mainly under the Hidden Valley(r) and K C Masterpiece(r) brands water-filtration systems and filters under the Brita(r) brand and all natural personal care products under the Burt's Bees(r) brand. Household consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Products within this segment include plastic bags, wraps and containers, under the Glad(r) brand cat litter products, under the Fresh Step(r), Scoop Away (r) and Ever Clean(r) brands and charcoal products under the Kingsford(r) and Match Light(r) brands. International consists of products sold outside the United States. These products include home-care, laundry, auto-care, water filtration, charcoal and cat litter products, dressings, plastic bags, wraps and containers, and insecticides, mainly under the Clorox(r), Javex(r), Glad(r), PinoLuz(r), Ayudin(r), Limpido(r), Clorinda(r), Poett(r), Mistolin(r), Lestoil(r), Bon Bril(r), Nevex(r), Brita(r), Armor All(r), STP(r), Green Works(r), Sabra(r), Pine-Sol(r) and Agua Jane(r), Ever Clean(r), Chux(r), Kingsford(r), and Hidden Valley(r) brands.
Most of the Company's products are nationally advertised and sold within the United States to mass merchandisers, warehouse clubs, and dollar, military and other types of retail stores mainly through a direct sales force, and to grocery stores and grocery wholesalers mainly through a combination of direct sales teams and a network of brokers. The markets for consumer products are highly competitive. Most of the Company's products compete with other nationally advertised brands within each category and with private label brands and generic non branded products in certain categories. The Company must comply with various environmental laws and regulations in the jurisdictions in which it operates, including those relating to air emissions, water discharges, the handling and disposal of solid and hazardous wastes and the remediation of contamination associated with the use and disposal of hazardous substances.
Replacing Sysco with Clorox shares is the last step in realigning my stock portfolio for 2010. For the remainder of the year I will be adding to my current positions and may add additional stocks, if I find any I believe will do well. In my next post, I will be listing my top 10 holdings for the beginning of 2010. As with all my postings, I will be doing this for informational purposes only. I do not recommend that anyone follow my investments or advice blindly. I do recommend doing your own research and finding investments that are right for you.
Clorox Company was founded in Oakland, Calif., in 1913 and is incorporated in Delaware. The Company is a leading manufacturer and marketer of consumer products. The Company sells its products mainly through mass merchandisers, grocery stores and other retail outlets. It markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Green Works(tm) natural cleaners and laundry products, Poett(r)and Mistolin(r)cleaning products, Armor All(r) and STP(r) auto-care products, Fresh Step(r) and Scoop Away(r) cat litter, Kingsford(r) charcoal, Hidden Valley(r) and K C Masterpiece(r) dressings and sauces, Brita(r) water-filtration systems, Glad(r) bags, wraps and containers, and Burt's Bees(r) natural personal care products. With approximately 8,300 employees worldwide, the Company manufactures products in more than two dozen countries and markets them in more than 100 countries. The Company operates through strategic business units which are aggregated into four reportable segments: Cleaning, Lifestyle, Household and International. Cleaning consists of laundry, home-care, professional products and auto-care products marketed and sold in the United States. Products within this segment include laundry additives, including bleaches, under the Clorox(r) and Clorox 2(r) brands home-care products, mainly under the Clorox(r), Formula 409(r), Liquid-Plumr(r), Pine-Sol(r), S.O.S(r) and Tilex(r) brands natural cleaning and laundry products under the Green Works(tm) brand and auto-care products mainly under the Armor All(r) and STP(r) brands. Lifestyle consists of food products and water-filtration systems and filters marketed and sold in the United States and all natural personal care products. Products within this segment include dressings and sauces, mainly under the Hidden Valley(r) and K C Masterpiece(r) brands water-filtration systems and filters under the Brita(r) brand and all natural personal care products under the Burt's Bees(r) brand. Household consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Products within this segment include plastic bags, wraps and containers, under the Glad(r) brand cat litter products, under the Fresh Step(r), Scoop Away (r) and Ever Clean(r) brands and charcoal products under the Kingsford(r) and Match Light(r) brands. International consists of products sold outside the United States. These products include home-care, laundry, auto-care, water filtration, charcoal and cat litter products, dressings, plastic bags, wraps and containers, and insecticides, mainly under the Clorox(r), Javex(r), Glad(r), PinoLuz(r), Ayudin(r), Limpido(r), Clorinda(r), Poett(r), Mistolin(r), Lestoil(r), Bon Bril(r), Nevex(r), Brita(r), Armor All(r), STP(r), Green Works(r), Sabra(r), Pine-Sol(r) and Agua Jane(r), Ever Clean(r), Chux(r), Kingsford(r), and Hidden Valley(r) brands.
Most of the Company's products are nationally advertised and sold within the United States to mass merchandisers, warehouse clubs, and dollar, military and other types of retail stores mainly through a direct sales force, and to grocery stores and grocery wholesalers mainly through a combination of direct sales teams and a network of brokers. The markets for consumer products are highly competitive. Most of the Company's products compete with other nationally advertised brands within each category and with private label brands and generic non branded products in certain categories. The Company must comply with various environmental laws and regulations in the jurisdictions in which it operates, including those relating to air emissions, water discharges, the handling and disposal of solid and hazardous wastes and the remediation of contamination associated with the use and disposal of hazardous substances.
Replacing Sysco with Clorox shares is the last step in realigning my stock portfolio for 2010. For the remainder of the year I will be adding to my current positions and may add additional stocks, if I find any I believe will do well. In my next post, I will be listing my top 10 holdings for the beginning of 2010. As with all my postings, I will be doing this for informational purposes only. I do not recommend that anyone follow my investments or advice blindly. I do recommend doing your own research and finding investments that are right for you.
Tuesday, January 19, 2010
Star Gas Partners, LP
My first new investment for 2010 is Star Gas Partners, an energy limited partnership. Their dividend yield is 6.50% on their recent share price of $4.14 and the company has a great deal of cash per share. Earnings are more than sufficient to maintain or increase their current dividend, so I think it will be a great addition to my regular stock portfolio.
Star Gas Partners, L.P., a publicly traded Delaware limited partnership was formed on October 16, 1995. The Company is a home heating oil distributor and services provider with one reportable operating segment that mainly provides services to residential and commercial customers to heat its homes and buildings. The general partner of the Partnership is Kestrel Heat, LLC, a Delaware limited liability company is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company. Petro Holdings, Inc., an indirect wholly owned subsidiary of the Partnership is a Northeast and Mid-Atlantic region retail distributor of home heating oil and related services. The Company is a retail distributor of home heating oil in the United States. It also sells home heating oil, gasoline and diesel fuel. It installs, maintains and repairs heating and air conditioning equipment for its customers and provides ancillary home services, including home security and plumbing to its customers. The Company's suppliers include Global Companies, Sunoco Inc. and NIC Holding Corp. It competes with distributors offering a range of services and prices, from full-service distributors, like companies in the home heating oil business. Star Gas Partners markets its products and services under number of trademarks include such as Petro and Meenan. The Company segregates its customers in two catogories residential and commercial. It is subject to number of federal, state and local environmental, health and safety laws and regulations.
Star Gas Partners, L.P., a publicly traded Delaware limited partnership was formed on October 16, 1995. The Company is a home heating oil distributor and services provider with one reportable operating segment that mainly provides services to residential and commercial customers to heat its homes and buildings. The general partner of the Partnership is Kestrel Heat, LLC, a Delaware limited liability company is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company. Petro Holdings, Inc., an indirect wholly owned subsidiary of the Partnership is a Northeast and Mid-Atlantic region retail distributor of home heating oil and related services. The Company is a retail distributor of home heating oil in the United States. It also sells home heating oil, gasoline and diesel fuel. It installs, maintains and repairs heating and air conditioning equipment for its customers and provides ancillary home services, including home security and plumbing to its customers. The Company's suppliers include Global Companies, Sunoco Inc. and NIC Holding Corp. It competes with distributors offering a range of services and prices, from full-service distributors, like companies in the home heating oil business. Star Gas Partners markets its products and services under number of trademarks include such as Petro and Meenan. The Company segregates its customers in two catogories residential and commercial. It is subject to number of federal, state and local environmental, health and safety laws and regulations.
Friday, December 18, 2009
Financial Plan For 2010
As the new year approaches, I'm finalizing my financial plan for 2010. I wrote back in November that I was considering selling some stock to pay off credit card debt. I've changed my mind after reading in one of the "Rich Dad" series of books, by Robert Kyosaki, that the rich do not dip into savings to pay off debt or meet cash shortfalls. That defeats the whole purpose of "paying yourself first". So instead I've decided to use a percentage of the dividend income from the stocks to pay off the debt and reinvest the rest to continue building my portfolio, while reducing debt. I should be completely debt free by the end of next year, which will allow me to increase my monthly investments by 300%.
The real point here is that I'm trying to get away from the poor persons mentality of always paying everyone else before paying myself. By continuing to pay myself, even when my cash flow is tight, it makes me look for ways to increase my means. In other words, I'm a lot more motivated to look for ways to increase my income, to cover my expenses.
I used to invest any money I managed to save after paying everything else. Now I consider my monthly investments a part of my expenses. The way I see it, if I'm willing to work so hard to come up with the money to make car payments for 3 or 4 years to buy a depreciating asset, shouldn't I be even more enthusiastic about working for a better future for myself and my loved ones? I've really shifted my thinking regarding saving and investing. It's no longer money I manage not to spend, it's money I've budgeted, the same way I budget to pay for a car or anything else. Only I'm paying for a better life!
So I'm finalizing my wealth building plan for 2010 and looking forward to another great year of adding income producing assets to my investment portfolio. I'm setting some ambitious goals and working on a plan to get there.
The real point here is that I'm trying to get away from the poor persons mentality of always paying everyone else before paying myself. By continuing to pay myself, even when my cash flow is tight, it makes me look for ways to increase my means. In other words, I'm a lot more motivated to look for ways to increase my income, to cover my expenses.
I used to invest any money I managed to save after paying everything else. Now I consider my monthly investments a part of my expenses. The way I see it, if I'm willing to work so hard to come up with the money to make car payments for 3 or 4 years to buy a depreciating asset, shouldn't I be even more enthusiastic about working for a better future for myself and my loved ones? I've really shifted my thinking regarding saving and investing. It's no longer money I manage not to spend, it's money I've budgeted, the same way I budget to pay for a car or anything else. Only I'm paying for a better life!
So I'm finalizing my wealth building plan for 2010 and looking forward to another great year of adding income producing assets to my investment portfolio. I'm setting some ambitious goals and working on a plan to get there.
Sunday, December 13, 2009
The Newest Addition to My Portfolio
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread." -- Warren Buffett, Oct. 16, 2008
When Warren Buffett made the above statement, I was still buying stock. I bought stock all through 2008 and 2009 and expect to do so in 2010. Buffett also once famously boasted that he would be able to earn 50% annual returns ... but only if he had a whole lot less money. Why? Because he'd be able to freely buy and sell small stocks that the hotshots on Wall Street don't adequately cover.
With that in mind, I decided to buy back in to Advance America Cash Advance (AEA: NYSE). The Group's principal activity is to provide cash advance services in the United States. It offers prepaid debit cards, money transfer services and tax preparation services as an agent for third-party vendors and check cashing services at state authorized rates. The Group focuses primarily on providing cash advance services to middle-income working individuals. As of 31-Dec-2008, it operated 2,767 centers in 33 states in the United States, 20 centers in the United Kingdom and 10 centers in Canada, and had 79 limited licensees in the United Kingdom.
I held shares of AEA twice before and made a nice profit both times on the capital gains. My reason for buying back in this time is for the dividend yield of 4.04%. Their current price of $6.19 and earnings per share of $0.66 allow for continued payment of their current dividend while also fueling future growth. With a return on equity of 23.40% and very little debt, I'm thinking they are in a good position for some excellent growth. And it doesn't hurt that I will be earning over 4% in dividends along the way.
When Warren Buffett made the above statement, I was still buying stock. I bought stock all through 2008 and 2009 and expect to do so in 2010. Buffett also once famously boasted that he would be able to earn 50% annual returns ... but only if he had a whole lot less money. Why? Because he'd be able to freely buy and sell small stocks that the hotshots on Wall Street don't adequately cover.
With that in mind, I decided to buy back in to Advance America Cash Advance (AEA: NYSE). The Group's principal activity is to provide cash advance services in the United States. It offers prepaid debit cards, money transfer services and tax preparation services as an agent for third-party vendors and check cashing services at state authorized rates. The Group focuses primarily on providing cash advance services to middle-income working individuals. As of 31-Dec-2008, it operated 2,767 centers in 33 states in the United States, 20 centers in the United Kingdom and 10 centers in Canada, and had 79 limited licensees in the United Kingdom.
I held shares of AEA twice before and made a nice profit both times on the capital gains. My reason for buying back in this time is for the dividend yield of 4.04%. Their current price of $6.19 and earnings per share of $0.66 allow for continued payment of their current dividend while also fueling future growth. With a return on equity of 23.40% and very little debt, I'm thinking they are in a good position for some excellent growth. And it doesn't hurt that I will be earning over 4% in dividends along the way.
Friday, September 18, 2009
Realty Income Increases Monthly Dividend
Recently I wrote about getting back to investing in REITs. Today I read about Realty Income increasing their monthly dividend and decided to add shares to my portfolio. Its Board of Directors has declared an increase in the Company's common stock monthly cash dividend to $0.1426875 per share from $0.142375 per share. The dividend is payable on October 15, 2009 to shareholders of record as of October 1, 2009. This is the 48th consecutive quarterly increase and the 55th dividend increase since Realty Income went public in 1994. The new monthly dividend amount represents an annualized dividend amount of $1.71225 per share as compared to the previous annualized dividend amount of $1.7085 per share. The Company continues its long-term policy of declaring and paying dividends on a monthly, rather than on a quarterly, basis.
The Chief Executive Officer of Realty Income commented, "We are pleased that, despite challenging economic conditions, our operations allow us to once again increase the amount of the dividend we pay to our shareholders. With the payment of the October dividend we will have made 471 consecutive monthly dividend payments."
Realty Income (O), The Monthly Dividend Company(R), is a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date the Company has declared 471 consecutive common stock monthly dividends throughout its 40-year operating history and increased the dividend 55 times since Realty Income's listing on the New York Stock Exchange in 1994. The monthly dividend is supported by the cash flow from over 2,300 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is a buyer of net-leased retail properties nationwide.
The Chief Executive Officer of Realty Income commented, "We are pleased that, despite challenging economic conditions, our operations allow us to once again increase the amount of the dividend we pay to our shareholders. With the payment of the October dividend we will have made 471 consecutive monthly dividend payments."
Realty Income (O), The Monthly Dividend Company(R), is a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date the Company has declared 471 consecutive common stock monthly dividends throughout its 40-year operating history and increased the dividend 55 times since Realty Income's listing on the New York Stock Exchange in 1994. The monthly dividend is supported by the cash flow from over 2,300 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is a buyer of net-leased retail properties nationwide.
Wednesday, September 16, 2009
Philip Morris Boosts Dividend!
Was glad to hear tobacco giant Philip Morris International Inc. (PM) will be boosting their quarterly dividend payout by 7.4%. The new dividend payout is 58 cents per share quarterly, compared to a prior payout of 54 cents. The company said that the dividend is payable Oct. 9th to shareholders of record as of Sept. 28. I added Philip Morris as a long term holding a few months back, and will probably pick up more shares before the 28th to take advantage of the increased dividend. While sales of cigarettes and tobacco products in the U.S. have declined, this is not the case in other countries.
I sold my stake in Altria, earlier in the year, when the new cigarette tax went in to effect. The thinking being, with the current state of the economy and the ridiculous increase in the price of cigarettes, Philip Morris International would be in a better position than Altria to make a profit and pay dividends to shareholders.
About Philip Morris:
"Philip Morris International (PMI) is the leading international tobacco company, with products sold in approximately 160 countries. In 2008, we held an estimated 15.6% share of the international cigarette market outside of the USA. In 2008, we reported net revenues, excluding excise taxes, of $25.7 billion, and operating income of $10.2 billion.
We own seven of the top 15 brands in the world and have a strong mix of international and local products that seek to appeal to a wide array of adult smokers. We are committed to providing our consumers with the highest-quality tobacco products.
We are driven to create the best possible return for shareholders, while proactively engaging regulators and the public health community to address the complex issues surrounding tobacco use."
Visit Philip Morris:
http://www.philipmorrisinternational.com/PMINTL/pages/eng/ourbus/About_us.asp
I sold my stake in Altria, earlier in the year, when the new cigarette tax went in to effect. The thinking being, with the current state of the economy and the ridiculous increase in the price of cigarettes, Philip Morris International would be in a better position than Altria to make a profit and pay dividends to shareholders.
About Philip Morris:
"Philip Morris International (PMI) is the leading international tobacco company, with products sold in approximately 160 countries. In 2008, we held an estimated 15.6% share of the international cigarette market outside of the USA. In 2008, we reported net revenues, excluding excise taxes, of $25.7 billion, and operating income of $10.2 billion.
We own seven of the top 15 brands in the world and have a strong mix of international and local products that seek to appeal to a wide array of adult smokers. We are committed to providing our consumers with the highest-quality tobacco products.
We are driven to create the best possible return for shareholders, while proactively engaging regulators and the public health community to address the complex issues surrounding tobacco use."
Visit Philip Morris:
http://www.philipmorrisinternational.com/PMINTL/pages/eng/ourbus/About_us.asp
Tuesday, August 25, 2009
Canadian Energy Trusts
I got out of Canadian Energy trusts last and at the first part of this year, as their share prices and the price of oil began to drop. However, now that share prices are down and appear to have stabilized, I thought they might be worth a second look.
Oil is expected to average above $73 in 2010, and with a recovery in the global economy, could go even higher. Which means the Canadian trusts would be in a good position to make money. I've decided to ease my way back in by buying shares of Pengrowth Energy Trust.
Pengrowth (PGH) currently has a dividend yield above 12% on their recent share price of $8.87. Their earnings are currently sufficient to maintain their dividend payout and I expect those earnings to go up. Of course Canada will take their share in taxes, but I do like the idea of another high dividend payer in my portfolio.
Oil is expected to average above $73 in 2010, and with a recovery in the global economy, could go even higher. Which means the Canadian trusts would be in a good position to make money. I've decided to ease my way back in by buying shares of Pengrowth Energy Trust.
Pengrowth (PGH) currently has a dividend yield above 12% on their recent share price of $8.87. Their earnings are currently sufficient to maintain their dividend payout and I expect those earnings to go up. Of course Canada will take their share in taxes, but I do like the idea of another high dividend payer in my portfolio.
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