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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…

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…

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…

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…

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)  

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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 …

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…

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…

Dividend increases mean more money for you, actually increasing money for you. S&P Dow Jones Indices recently reported 439 dividend increases this year, a 25.4% gain over last year.

S&P Dow Jones Indices reported 439 dividend increases during the third quarter of this year, a 25.4% gain over the 350 increases reported during the third quarter of 2011. Fifty-three companies, of the approximately 10,000 U.S. traded issues, decreased their dividend in the third quarter of 2012 compared to 23 iss…