Last time, I wrote about How To Generate The Income You Need From A Dividend Portfolio for retirees. In that article, more than 200 comments were generated!
The vibrant SA community added to the discussion, including personal stories and other strategies for generating income, such as using closed-end funds, preferred shares, and options. SA community member, CMPMD, generously shared a tested way to protect your stock portfolio even during market crashes.
This time, I'll write about how to protect the principal of your dividend portfolio.
To protect the principal of your portfolio, there are multiple things retirees can do, such as buying quality companies at the right valuations.
The thing is each of us probably has a different definition for "quality"... more
On a year-over-year basis the UBS ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN (NYSEARCA: BDCL) has returned 41.1% based on a purchase on March 21, 2016 at $15.90, the March 21, 2017 price of $20.80 and the dividends of $2.853 paid since March 21, 2016. This does not include any reinvestment of dividends or any gains or losses on reinvestment of dividends. It also does not include my projected April 2017 quarterly dividend of $0.8261. The Index upon which BDCL is based is a float-adjusted, capitalization-weighted Index that includes business development companies listed on the major exchanges. There is an unleveraged ETN that is based on the same index, the UBS ETRACS Wells Fargo Business Development Company ETN ( BDCS). It should be noted that Wells Fargo (NYSE:... more
Physicians Realty Trust (NYSE: DOC) affords income investors with a stable dividend and compelling growth prospects as the real estate investment trust continues to invest a lot of money into its property portfolio. Physicians Realty Trust has good (though not great) dividend coverage stats, and the dividend should be safe at this point. Physicians Realty Trust's shares are throwing off a 5 percent dividend yield.
Real estate investment trusts are attractive income vehicles for dividend investors. They invest in a portfolio of real estate properties and then sign long term leases with tenants. The recurring cash flow from the leases is then used to pay shareholders a regular cash dividend, potentially significantly increasing the yield on cost for income investors over time.... more
Masco Corporation (NYSE: MAS) announced that its Board of Directors declared a quarterly dividend of $.10 per common share, payable on May 8, 2017, to shareholders of record on April 17, 2017.... more
Ford Motor's (NYSE: F) shares crashed this week after the U.S. auto company was again rated 'Underweight' by Morgan Stanley. But that was not all the bad news shareholders had to digest recently: U.S. auto sales in February declined at a quick pace, and Ford Motor guided for 1st quarter profits that missed analysts' consensus estimates.
It really wasn't a good week to be a Ford shareholder. Analysts at investment bank Morgan Stanley reaffirmed their 'Underweight' rating for Ford Motor's shares with an $11 target price. According to MarketBeat, a website that consolidates analyst research and their target prices, eleven analysts out of twenty-one rate Ford Motor's shares 'Buy/Strong Buy', while eight analysts think investors should... more
Almost three years ago I wrote a post titled, "Why I Love Stock Spin Offs." I essentially discussed the typical "unlocked" values stock spin-offs can provide for both the parent and offspring stock once the separation occurred. In general, many stock spin-offs do offer great value and benefits to shareholders, as the newly separated businesses can better focus on their core business or sector more efficiently. Many conglomerates operate businesses in various sectors, and thus have an inability to focus their company core competency in the appropriate direction. Of course, these are the spin-offs that tend to offer the best return for their shareholders as two smaller yet potentially stronger companies emerge. Sometimes, however, a company may decide to shuttle off a... more
Accenture (NYSE: ACN) reported second-quarter results that caused its stock to drop 3-4% Thursday morning.
Accenture’s organic sales grew 6%, and adjusted earnings per share were roughly flat compared to the prior-year period.
The company’s sales and earnings were roughly in line with analysts’ estimates heading into the quarter.
Management expects full-year revenue growth of 6-8%, which is slightly higher than its previous forecast of 5-8% growth.
Accenture also increased its adjusted earnings per share guidance to $5.70 to $5.87 from $5.64 to $5.87.
Accenture’s shares hit an all-time high earlier this week before selling off Thursday and have roughly kept pace with the broader market over the last year.
Why did the stock... more
AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today reported that the board of directors recently approved the payment of a 5% stock dividend per common share payable on May 19, 2017 to shareholders of record as of May 1, 2017.... more
Western Asset Mortgage Capital (NYSE: WMC) declared their latest dividend at $.31, in line with the previous few quarters. That may bring a sigh of relief to some shareholders, but it won't last unless management continues rolling hedges forward to avoid passing the hedging costs through core earnings. This is one of the dividends that is likely to be on the chopping block for Q2 or Q3, so why was it sustained for now? Cynics might say it is for a better shot at issuing shares near book value to pump up management fees. For now, investors are getting some cash back. If they want, they can ignore the evidence staring them in the face. This is a zombie dividend.
Core Earnings Plus Drop Income
For the first quarter WMC slaughtered analyst estimates by reporting $.52 on the... more
J.M. Smucker Company (NYSE: SJM) is a longtime dividend payer with a high rate of dividend growth. If you are looking for a dividend payer with a low current yield and a very high dividend growth rate, this stock could be the one for you. For me, it's current yield is too low to make it a buy right now.
Is SJM a good investment partner?
When I am trying to decide whether or not to invest money in a company by buying its stock, I want to find a company that will make a good investment partner that will help me achieve my investment goals as a dividend growth investor. To find such a partner I look for 4 items, which I call my checklist. Each item in the checklist supports later items in the checklist so that the final item, growing dividends, is well supported by the company.... more