Interesting Links

For your reading pleasure a few interesting articles from around the globe about dividends, stocks, the market and other just plain interesting finance or economic oriented articles- enjoy!

• Fear of Money
• How bubbles grow
• Bonds in Danger Zone?
• How Texas avoided the meltdown
• Mr. Distress is Ready to Buy
• A star fund manager gets cautious
• Citi to return TARP

Anticipating Dividend Increases

I am a big fan of companies that make it a regular habit of dialing up a dividend. This is why I have been such a proponent of the dividend aristocrat group. Nothing perturbs me more though than to buy into a 2% dividend stock that I believe will crank up its rate only to be forced to wait multiple years before seeing that increase. To counteract this here is a simple parachute that can increase your confidence that a rate will increase.
Read More...

Three Key Ratios For Investors

if you could only have four ratios to evaluate a company what would they be? This is a fun question that is popular in investing circles. For a laugh I’ll take my shot at it, what would you pick?

1) Current Ratio

Current Assets / Current Liabilities

Why?

This ratio keeps track of the company’s ability to pay its short term debt. If a company doesn’t have safety money to deal with debt then they might not be in business tomorrow and I don’t need any of that.

2) Dividend Yield

Annual Dividend Per Share / Price Per Share
Read More...

Dividend Cuts – New Management

In our continuing series on dividend cuts, why they happen and how to learn to see them coming before they hit your portfolio today we are going to look at the curse of new management.

New Management

Bringing in new management is a regular occurrence in any large business. Management can be cycled in as a result of retirement or simply as the result of the board seeing the need for a changing of the guard. New management can come from one of two places, internal promotion and external hiring. The condition I will describe here comes as the result of both these types of hirings, but is a far more frequent occurrence with external hiring.
Read More...

Why Dividend Rate Cuts Happen – Competition

In our continuing series on dividend cuts and how to avoid them, today we are going to look at what the effects that market and sector pressures have on making company’s cut dividends, and how you can train yourself to see them coming.

As we discussed previously dividend cuts can beat up your portfolio so they should be avoided at all cost. By exploring some of the main reasons that cuts happen perhaps we will better understand why they happen and how to purge these stocks before the bad news hits.
Read More...

Dividend Rate Cuts – Stale Dividends

Dividend rate cuts are painful and can send your portfolio into a tailspin. Why do they happen and can we see them coming? In our continuing series on dividend rate cuts we are going to look at stale dividends with these questions in mind.

Stale dividend rates/ earnings

Dividend rates are set by companies with an expectation around the future growth of the company. As the company’s profits increase so too should the dividend rate. When you find a company where the dividend has remained fix for an extended period what you have is a stale dividend.
Read More...

Buy with a solid Dividend (Session 7)

The final page in our series on Graham’s investment theory is dedicated to dividends. I saved the best, and most contentious for last. Investors love to split themselves into groups- technical analysts, fundamental analysts, value investors, growth investors. In the same vein there are dividend investors and growth investors. Without further adieu let’s get into it.
Read More...

Buy a Company with a Future (Current Ratio) (Session 5)

Current ratio is an important one; it shows us how the company will survive in the short term. As I mentioned earlier there are reasons why the company is currently cheap our job is to figure out why and also to build in a safety margin to make sure they are going to survive the reason they are so cheap.
Read More...

Buy on the Cheap (Price/Book Ratio) (Session 4)

If you made it through price to earnings ratio, price to book ratio will be a piece of cake.
Read More...

Advertisement

Advertise Here