Positioning Statements and Introductory Remarks: Learning from the Past The following presentation, through the lens of our F.A.S.T. Graphs research tool, reveals a picture of each company's past, present and future fundamental values. We're often asked, and even criticized, for placing too much emphasis on historical information and values. Therefore, we offer the following positioning statements in our defense. First of all, before we would ever invest in a company we feel it is only logical to have a perspective on how well the business has been managed. Therefore, a review of the company's operating history speaks volumes about the company's business and the success it has achieved on behalf of shareholders. Success leaves clues, and since the nature of a business... more
I have written before on how important it is to have a legitimate weighting mechanism when picking stocks for a high dividend yield portfolio. It is also very important to stay disciplined with this approach when rebalancing. The notion of weighting by market capitalization is a tired one and has been shown to be inferior to better weighting schemes. My preferred variables for weighting high dividend paying stocks are the following in order of the magnitude of their weighting: Dividend Yield, (1-Debt to Equity), 1 Year Dividend Growth Rate, Payout Ratio, and the 5 Year Dividend Growth Rate. The weights I use are as follows: Factor Weights Yield 55% Debt/Equity 15% 1 yr Div Growth 15% Payout Ratio 10% 5 yr Div Growth 5% ... more
Investment Underground searched for companies with high payout ratios that are in jeopardy of dividend cuts in 2011. Among these names are mining and real estate companies and a couple outside these sectors. If you’re an investor who counts on dividends, consider reappraising your positions in these companies. And if you’re looking to add some new names to your dividend portfolio, check out these 10 safe, high-yield telecom companies or these 7 pharma stocks. Here’s what we found: Garmin (GRMN): No defensibility. It’s as simple as that. Garmin hasn’t been able to build strong enough barriers or a strong enough brand, and with EPS projections negative at (-9.16) through 2013 it isn’t looking sustainable for the company to continue to pay out its 4.5%... more
Here is a current sheet of stocks from the Nasdaq 100 Index that have the highest dividend yields. The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies. In average, they have a dividend yield of 1.81 percent. 59 stocks have a zero dividend. Stocks with high dividend yields seem to be attractive if the dividends are sustainable. Dividends are main wealth contributors and deliver nearly one third of the annual long-term return.... more
Encouraging consumer report and deal activity gave an impetus to the US market, today. Dow Jones Industrial Average added 0.75 percent or 90.48 points to 12,220.93, and Nasdaq Composite gained 0.40 percent or 11.25 points to 2,792.30. The Standard and Poor's 500 was up 0.63 percent or 8.32 points to 1,328.20.
Several companies joined the celebration by declaring their annual and quarterly dividends. Some notable dividend payers are discussed here.
Climarex Energy Co. (NYSE: XEC) declared a regular cash dividend of 10 cents per share, payable on June 1, 2011 to shareholders of record on May 31, 2011. Climarex gained 0.48 percent or $0.16 to $116.88. Gold Resource Corp. (AMEX: GORO) added 0.62 percent or $0.16 to $25.78 as it declared a special cash dividend of $0.03 per... more
As tax time starts moving into full swing, everyone wants to find ways to pay as little tax as possible. Many investors don't realize that they may be able to take advantage of tax-free treatment for the income they earn on their investments -- without even having them in a retirement account. When you talk about avoiding taxes on your investments, the natural first thing most people think of is opening a Roth IRA. With a Roth, you don't have to pay taxes on your capital gains and investment income while your Roth is growing. And even better, when you withdraw money from your Roth after you retire, those withdrawals are tax-free as well.... more
As demand for oil is rising globally, and with signs of inflation in the economy, it makes sense to look at energy stocks. The major oil company stocks listed below offer a generous dividend yield of about 3.4 to 5% and they all have reasonable PE ratios. The dividends are attractive and can rise in time along with inflation. The valuations on these stocks have risen in the past couple of weeks along with oil prices due to tension in the Middle East. Because they are all trading higher than their recent trading range, I would wait for a pullback in these and other energy stocks before buying shares. Eni SPA (E) is a major integrated oil and gas company that engages in the exploration, production and marketing of oil and natural gas. This company operates worldwide and is based in Rome,... more
Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the family clothing industry offer the most promising dividends. Yields and growth rates and payout ratios, oh my!Before we get to those companies, though, you should understand just why you'd want to own dividend payers. These stocks can contribute a huge chunk of growth to your portfolio in good times, and bolster it during market downturns.... more
These three top-tier technology stocks have corrected substantially in the past several trading sessions. All are at levels which should be good entry points for accumulation. All three companies have a forward price to earnings ratio of less than 12. Hewlett Packard (HPQ) and Microsoft (MSFT) both pay dividends now, and Cisco (CSCO) has said it will announce a dividend later this year. These stocks have a Relative Strength Index (RSI) of about 30 which is a level which indicates a stock is oversold. Cisco is a premier networking hardware company that saw its shares fall on earnings results, which some investors found disappointing. The shares currently trade at about $18.64, well below the 50-day moving average of $20.33 and the 200-day moving average of $21.74. The RSI is about 33,... more
We reviewed the investment universe for low volatility, large-cap stocks. Investment Underground found seven safe havens for your money in retirement. Those which passed the test are: 3M Company (MMM) has a market cap of $64 billion. Over the past five years, the share price is up 22%. Moreover, its board of directors recently upped its dividend to $0.55 for Q1 2011. This is a current yield of 2.4%, and MMM has paid dividends since 1916. Shares also trade under a P/E multiple of 16, coming from an EPS of $5.63. For 2011, 3M expects EPS to be in the range of $5.90 to $6.10 or increases in the range of 4.79% to 8.3%. In 2010, the company brought in $26.6 billion in revenues, which is a year-on-year increase of 15.3%. It also has a healthy EBT margin of 21.59%. In comparison, GE (GE) and... more