Author: Mike

by | Posted 2.15.2013 | Post Comment (No Comments)

    The stock market has begun the year with impressive results showing the best month of January since 1997! I wasn’t even trading at that time! Investors are enthusiast about the US economy and it starts showing on the overall market. Known for more modest and stable performance, dividend stocks benefited from this rally as well.   On February 12th, I’ve decided to pull out 35 dividend stocks outperforming the S&P500. I’ve included both stock growth to dividend payouts and selected stocks showing a 10% total return minimum. My other metrics were as follow: Stocks over $10 Paying between 3% and 6% dividend yield Dividend payout ratio under 75% P/E ratio under 20   I’ve taken off 4 stocks from the original list since I couldn’t get the dividend payout ratio properly from my screener.  This should gives you some interesting stock picking ideas…   This makes 35 top performer dividend stocks for 2013:     My 4 Favorite Dividend Stocks from the List   At the beginning of the year, I’ve compiled 30 dividend stock analyses (20 US and 10 Canadian) and created the 2013 Best Dividend Stocks guide. From the Top 35 performer I’ve listed in this   »Read more

by | Posted 2.12.2013 | Post Comment (1 Comment)

  Investing has become easier for everybody now that we have the internet. The information is easily accessible, trading with a brokerage account has never been more simple and finding stocks with free screeners can be done by a 5th grader. But the fact that information has never been so accessible doesn’t make you a pro-trader and doesn’t guarantee that you will succeed investing.   In fact, I would be tempted to say that we sometimes have too much information. This confuses investors and leads them to bad decisions. Do you think it’s better to chase high yield dividend paying stocks or is it better to buy a dividend aristocrat? Where is the best place to find dividend paying stocks? Once you have opened your brokerage account and you have a few thousand dollars, where do you start?   There are Several Ways to Find Dividend Paying Stocks   So where do you start to find your next dividend stock? A normal reflex would be to start with a free stock screener. If you start by looking for dividend yield, you better have a lot of spare time! Did you know that if you simply look for stocks paying over   »Read more

by | Posted 12.3.2012 | Post Comment (No Comments)

Each month, Dividend Stock Analysis will interview an investment blogger. Instead of simply making a list of the top dividend investing blogs, we thought you would have more fun reading about the author prior to read his blog. If you have more questions about the blogger of the month, write your question in the comment section.   Dividend Monk Profile December’s Dividend Stock Analysis contributor is Matt Alden from Dividend Monk. In my opinion, Matt’s blog is one of the most interesting and useful dividend blog of the internet. I’m almost jealous of his lengthy and detailed stock analyses on his blog! Engineer by day, dividend blogger by night, Matt’s investing advices are always welcomed. He also wrote a great book for any investors who wants to start buying dividend stocks: The Dividend Toolkit.   Questions Asked to Matt   #1 When did you start investing? I started investing in equities in 2005   #2 Why do you invest? What is/or your investing goal? I was always intrigued by economics and finance, despite going into the engineering field rather than into a financial profession. Warren Buffett was the largest influence on me, as he showed a deep knowledge of investing rather than just   »Read more

by | Posted 11.30.2012 | Post Comment (No Comments)

    Before you invest your first dollar in a dividend stock, it’s important to write down your dividend investing process on paper. It may surprise some readers but there is more than one way to build an effective dividend investing strategy. All dividend investors want to see their dividend portfolio grow and make a profit. But not all investing strategies will take into consideration their own personal and financial situation. In order to help guide you to build a solid dividend growth strategy, here are the 4 top questions to answer prior to buying stocks.   How Much Time Do You Have To Manage Your Portfolio?   It’s crucial to answer this question prior to even opening an investing account. If you don’t have much time to spend on dividend investing, an investment broker or advisor may be a great addition to guide you in your investing strategy. It is obviously more expensive but you will avoid a lot of damage that a lack of knowledge can make to your dividend stock portfolio.   Another way to save on time without hurting your dividend strategy is to look into dividend ETFs. They show low MERs while providing an interesting   »Read more

by | Posted 11.20.2012 | Post Comment (No Comments)

Each month, Dividend Stock Analysis will interview an investment blogger. Instead of simply making a list of the top dividend investing blogs, we thought you would have more fun reading about the author prior to read his blog. If you have more questions about the blogger of the month, write your question in the comment section.   My Own Advisor Profile   Mark is in his late 30’s and has been blogging at My Own Advisor since December 2009. He started investing by himself while he was in his 20’s and learned about the investing process by reading books (after he realized that he was paying high MER’s on mutual funds provided by his banker!).   His main investing goal is to build a portfolio generating over $30,000 in dividend income. As at November 2012, he has reached 21% of his goal. This means his current dividend portfolio generates $6,300 per year in payouts.   I particularly like his investing philosophy cited on his site: I believe it produces great returns over time. I buy companies that have a history of paying consistent dividends. I buy companies that have a history of increasing dividends over time. I only buy common stocks in these companies. I keep Canadian   »Read more

by | Posted 11.9.2012 | Post Comment (No Comments)

In order to survive a key investing paradox: to find growth for your assets; you’ll have to ride the stock market rollercoaster with some highs and many drops, think dividend growth investing to answer your concerns. Dividend stocks are a great compromise between both growth from the stock market and steady distributions from fixed income. Before picking up any stocks paying a 5% distribution, there are some rules to follow. After all, I’m sure you don’t want to buy the next Yellow Pages, right?   Rule #1: Look at the Right Ratios   A good dividend stock in your portfolio is one that you will keep for several years. The power of dividend growth investing resides in companies that double their dividend at least every 10 years. This is how you can retire with a dividend portfolio yielding 8%. In order to find this lucky lady, you can start your research by filtering the stock market with the following ratios: Dividend Yield >3% (I’m going after yield after all) 5 Year Dividend Growth >1% (I want this yield to grow over time) Dividend Payout Ratio < 75% (I want sustainable dividend growth) 5 Year Annual Income Growth >1% (I want   »Read more

by | Posted 10.15.2012 | Post Comment (No Comments)

    Do you use current dividend or cost of purchase (COP) dividend yield?   If a stock currently trades at $10 and currently pays a $0.40 annual dividend; how come investor A says the stock dividend yield is 4% and investor B (who purchased the stock a while ago) says the stock dividend yield is 5%? That’s because investor A use the current dividend yield and investor B might use his cost of purchase (COP) dividend yield.   Which one should they both use? The current or the cost of purchase dividend yield? Before answering this question, we should look at both definitions.   Current Dividend   The current dividend yield is used to quantify in percentage the payout made by a company compared to its stock price. Let’s take McDonald’s Corporation example. If you put the ticker “MCD” in Google Finance, you will get the following screen:     In the right column, you get the current dividend payout (Div: $0.77) along with the current dividend yield (yield: 3.33%): $0.77/3.33. If the dividend yield is calculated by dividing the dividend payout by the stock price, how does $0.77 divided by $92.56 give 3.33%?   That’s because Google Finance   »Read more

by | Posted 8.10.2012 | Post Comment (1 Comment)

    Over the years, there are several investing trends that have come and gone. Investors are constantly looking for the next investment guru to tell them about his magic investing formula. From index investing to short selling based on technical analysis, there hundreds of investing theories. You can now play with commodities, forex, calls and puts. Most investing techniques become the “flavor of the month” before rapidly fading away. However, there is one strategy that has been posting solid results for several years: this is called Dividend Investing.   Year after year, quiet and “boring” companies are distributing a part of their profits to their shareholders. This 2 or 3% dividend distribution doesn’t look incredibly awesome to an investor looking for a double digit return. In fact, there are a lot more to dividend investing and simply receiving a quarterly check. This is why I’ve written the 30 things you must know about dividend investing.     #1: Dividend Investing Returns is Huge Over the past 40 years, 58% of the stock market yield was produced by dividends. Dividend stocks maintain a more stable value over time (meaning less stress for investors) while producing a constant cash flow that   »Read more

by | Posted 7.25.2012 | Post Comment (2 Comments)

    Dividend Investing is a popular investing strategy based on a simple principle: the payment of regular distributions to shareholders. This investing technique is interesting because it allows the investor to benefit from both a gain in capital due to good financial performance and dividend payments that make the wait more comfortable. Unfortunately, I’ve seen too many investors keep losing dividend stocks simply because they are receiving these distributions.   The dividend payout is certainly a good argument to hold a stock during a storm on the stock market. However, this doesn’t mean that all dividend stocks are good and should be kept forever. This is why investors must constantly look-up each stock fundamental to assess if the stock will grow and if the dividend will follow.           #1 High Dividend Payout Ratio   The main reason why you would buy a dividend stock is to benefit from dividend growth over time. Receiving a 3% dividend payout on your investment is good, but if this 3% can grow by 5% each year, you will be receiving 6% in 14 years. If you start investing early, you could probably end-up with a safe portfolio paying a   »Read more

by | Posted 7.20.2012 | Post Comment (No Comments)

    The most important thing when you invest in dividend stocks is not the size of your portfolio, the number of transactions or the dividend yield. The most important thing is the research you do prior to making your trade.   Selecting a stock that you will hold for 5, 10 even 15 years is not an easy task. A Dividend investor must look at keeping his stocks for such a long period of time in order to reap the dividend yield and benefit from the dividend growth. If you hold a stock that grows its dividend payout by 7% each year, the dividend yield will double in 10 years!   How Can You Pick The Right Stock for the Next Ten Years? By Doing Some Research!   There are no secrets to building a strong dividend portfolio. You need a stock analysis method and a list of financial websites from which to find your information.  We will be covering stock analysis methods in this blog through other articles. Today’s blog is about our Top Ten Stock Research Websites. The problem with the internet is that there is a lot of free information. Sometimes it’s too much and our   »Read more