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Do You Know When To Buy?

Everyone has heard the phrase “buy low and sell high”. But how do you know when a stock is priced low?

In this blog post I show you exactly how to determine if a stock is priced low. But first you'll need to know these two terms: dividend, and dividend yield.  

Dividend

A dividend is a cash payment made to shareholders. For example the current annual dividend for Johnson & Johnson (JNJ) is $2.44. So if you own 100 shares in JNJ you will receive $244 each year for as long as you own those shar…

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What is a Dividend Aristocrat?

A dividend aristocrat is a company that has paid dividends consecutively for 25 years or more. Standard and Poor's (S&P) maintain a list of US dividend aristocrats. Dividends are key to investing successfully. Dividends are cash payments made to shareholders. Once a dividend is paid it can never be taken back.

If you had invested $100 at the end of 1940 in the stock market, this would have been worth approximately $174,000 at the end of 2011 if you had reinvested dividends, versus $12,000 if di…

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My Dividend Retirement Plan

Well, this is isn't my dividend retirement plan, but it's very close. Dividend Growth Investor wrote a great post on his blog that I'd like to share with my readers. In fact, after I read his post I realized this is exactly what I would've written myself. Dividend Growth Investor writes:

"I invest in dividend stocks, in order to generate a sufficient income stream, that would meet and exceed my expenses in retirement. Retirement to me is the point where my dividend income exceeds my expenses, w…

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Are We in a Bull or Bear Market?

A reader recently asked: "I've heard about Bull and Bear Market... I wonder what's the definition of each one? and how do we recognize each one?" Great question!

THE SIMPLE EXPLANATION:

- A bull market occurs when the market as a whole is rising.

For example the DOW is at 12, 750 today, over the next several months or years if the DOW continues to rise say 13,000 13,500 14,000 then we can look back and say we were in a bull market.

- A bear market occurs when the market as a whole is declin…

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Who is the World Largest Dividend Payer?

Who is the world's largest dividend payer? This company recently increased their dividend by 21%. This company will pay $10.7 billion a year to shareholders, more than any other corporation. This company has been paying dividends since 1882. This company has increased dividends consecutively for 29 years. Can you guess?

The answer is: Exxon (XOM)  

Did you enjoy reading this article? If so, I encourage you to sign up for my newsletter and have these articles delivered via e-mail once a month…a…

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Should You Buy Low and Sell High or Buy Low and Hold?

A reader asked:

"When you buy dividend paying stocks do you usually hang on for ever or are you buying and selling stocks every few years. The problem I have is if you own a stock lets say Canadian Utilities (CU) on the TSX that I have purchased years ago and am getting probably 7% in dividend yield now would you hang on forever even if it seems to be in a decling trend now?"

When I buy dividend paying stocks, I am essentially buying a stream of increasing income. I focus on companies that…

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Do You Think Investing is Easy?

I’ve always said that investing is simple. But you don’t have to take my word for it, here’s a short excerpt from a book called “F Wall Street” by Joe Ponzio (page 16):

“Investing is not rocket science. You don't earn more if you have the higher IQ, nor do you need to be a math genius to make money. You can spend many hours a week or just a few hours a year investing and still earn satisfactory returns. Fifty years ago, investing was much more difficult. Before the advent of the web you had to …

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The Dividend Toolkit Review

Matt Alden, and fellow dividend blogger at the Dividend Monk has recently published a great stock analysis guide. I’ve had the opportunity to read the entire guide and apply some of its concepts. I think this is a great toolkit for any serious DIY investor willing to use the Discounted Cash Flow Analysis (DCF) or Dividend Discount Model (DDM) to determine the true value of a company. The guide starts with the following six core topics:

  • Live Simply, Build Wealth
  • Utilize the Raw Power of Compo…

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A Record Week for Dividend Increases!

Dividend Growth Investor, recently wrote:

"There were a record 73 dividend increases over the past week. This was the busiest week for dividend increases I have witnessed since starting this site five years ago. I review dividend increases each week in an effort to uncover hidden dividend gems as well as to keep close tabs on the pulse of dividends paid by companies I own or am in the process of researching."

Take a look at his blog post where he highlights companies that boosted distributions…

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Buy and Hold? What does Warren Buffett Think?

Warren Buffett recently appeared live on CNBC's Squawk Box for a two-hour interview with Becky Quick.  During their conversation, they discussed a number of issues about the global economey and investing. You can read the complete transcript here.

I'd like to share with you my favorite part:

BECKY:
Last word, Warren, is a sort of free word association game that we've been playing lately. I say a word, you tell me what it makes me think of. And the question we get most frequently from people ab…

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