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Cisco Announces First Dividend Ever, But I’m Not Buying Any Shares

Cisco recently announced its first ever cash dividend. But I won’t be rushing to buy Cisco shares, here’s why:

  1. I look at a company’s history of paying dividends, at least 10 years or more of uninterrupted dividends.
  2. I look for a long history of increasing dividends at least 5-10 years, the more the better.
  3. I generally don’t invest in technology companies.

Let’s take a look at all 3 reasons….

Company’s history of paying dividends

Whenever I consider shares for investment, one of the thi…

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My Best Investment Yet

275.97% return since I first purchased shares in TransCanada Corporation (TRP) in 2000. The return includes dividends, which I discussed in an earlier post. 275.97% return sounds like a really big number, but aside from the dividends I have not received a penny of profits yet. Why? Because I haven’t sold my shares in TRP yet, perhaps I never will. Why? Because my dividend yield based on the original purchase price is now 11.94% which is better than what I can earn in a savings account, term depo…

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Proof of Profitability

The following four paragraphs come from Kelly Wright and I could not have said it better myself:

"From our perspective and experience, the cash dividend is the more attractive profit path when investing in the stock market. In the first instance the cash dividend is just that, cash in hand; a tangible return on investment. Unless a company is committing outright fraud, a practice that will typically be short-lived, the cash dividend is evidence that the company is indeed generating profits; a c…

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Understand this important factor and become a successful investor!

Actually there are a number of important factors, 12 to be exact. I call them the 12 Rules of Simply Investing and I cover them in great detail in my online Simply Investing course. Today I am going to describe one of the 12 important factors the P/E Ratio. Understand this ratio, and you will save yourself from making poor investment decisions and save thousands of dollars in the process.

Before I knew what the P/E Ratio was all about, I did indeed waste thousands of dollars on lousy investment…

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Saying good-bye to two stocks in our portfolio

This week I say good-bye to two stocks in our portfolio. It’s been a great number of years, but it was time to part our ways. The split wasn’t accidental, in fact this week the Dow closed over 12,000 points for the first time in 2 ½ half years. When this happens I typically use the time to consider selling stocks which have in my opinion not performed well.

I sold Weis Markets (WMK) and Southern Company (SO) this week. I bought WMK back in 2003 when the company was undervalued and had an amazin…

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Welcome to the Simply Investing blog!

Why you should read this blog...

To learn how to make money. Save time, and reduce your risk. Investing does not have to be difficult or time consuming. In this blog I will share my experiences, and tips on becoming a successful investor.

Why I created this blog...

To change the world, one person at a time. When you have financial independence a lot of problems including stress go away. Financial independence give you time to enjoy the things in life that really matter, time with family and f…

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