Yield on cost is a common metric cited by dividend investors as they measure and manage their portfolios. But is yield on cost really one of the most important financial ratios for successful dividend investing? In this article, I will provide my definition of what yield on cost is, show how to calculate [...]
I previously wrote an article about measuring and managing dividend stocks, but have you ever wondered how to build a dividend portfolio in the first place? Like most things with investing, everyone has their own opinion about how to construct a portfolio. Most of the debate usually centers on how many holdings an investor [...]
As I write this post, stock markets around the world are reeling. The S&P 500 finished down more than 3.5%, most European markets closed down at least 6% (including double-digit losses in Italy, Spain, and Greece), and Japan's Nikkei 225 dropped by approximately 8%. We haven't seen this type of volatility since 2008. [...]
Warren Buffett sold AT&T out of Berkshire Hathaway’s portfolio of high-yield dividend stocks during the first quarter of 2016. Warren Buffett acquired his stake in AT&T during the third quarter of 2015 as a result of AT&T’s acquisition of DirecTV. Buffett had owned DirecTV prior to the acquisition (his first purchase was in [...]
Canadian National Railway (CNI) has increased its dividend every year since its initial public offering in 1995, averaging 17% annual growth over that time period. Since they were deregulated in the 1980s, railroad operators have enjoyed a boom in productivity and fortified their position as an essential piece of North America’s supply chain. [...]
Without Texas Instruments (TXN), most of the world’s electronic equipment would not function. The company is an extremely important player in virtually every end market and maintains numerous competitive advantages. Texas Instruments has also been a free cash flow machine, converting close to 30 cents of every $1 in sales into free cash flow. [...]
The railroad industry is extremely durable, and Union Pacific (UNP) has proven to be no exception since its founding in the 1860s. Railcars are a critical mode of transportation and move about 40% of U.S. freight as measured in ton-miles (the length freight travels). Without companies like Union Pacific, the country’s supply chain could [...]
Kraft Heinz (KHC) accounts for nearly 20% of Berkshire Hathaway’s portfolio and is one of Warren Buffett’s favorite dividend stocks. The company maintains a wonderful portfolio of brands, sells recession-resistant products, generates dependable free cash flow, and is taking steps to further bolster its margins and earnings. These are many of the qualities [...]
Home Depot (HD) has paid uninterrupted dividends since the late 1980s and is a dividend growth machine. Since making its first quarterly dividend payment of 0.044 cents per share in 1987, Home Depot’s dividend has increased to 69 cents. The quarterly dividend has also more than doubled since 2012. Home Depot possesses many [...]
Crown Castle (CCI) only began paying dividends in 2014, but the company currently offers income investors a high dividend yield near 4% with 6-7% annual dividend growth potential. Crown Castle also has an attractive business model with substantial recurring revenue, excellent free cash flow generation, and extremely high incremental margins. Let’s take a [...]
The best monthly dividend stocks provide predictable, growing income. With 550 consecutive monthly dividends paid and 74 consecutive quarterly increases, Realty Income (O) is one of the most dependable dividend-paying stocks in the market. If the valuation is reasonable, these are the types of companies I like to own in our Conservative Retirees dividend [...]
The best dividend ETFs for long-term investors charge low fees, maintain nice diversification, keep turnover low, and track benchmarks that apply some filters for business quality and dividend safety. I reviewed the pros and cons of investing in dividend ETFs earlier, but I never identified specific funds that I consider to be the best [...]
An exchange traded fund, or ETF, is a publicly-traded fund that tracks an index such as the S&P 500. There are nearly 2,000 ETFs in the U.S., but fewer than 150 funds are specifically classified as dividend ETFs. Dividend ETFs can provide a number of benefits for investors seeking safe retirement income or long-term [...]
The Nasdaq Dividend Achievers Index is a group of companies that have consistently rewarded shareholders with increasing dividend payouts. Companies qualify for the Dividend Achievers List if they have raised their dividends each year for at least 10 consecutive years and meet certain trading liquidity requirements. Why is the Dividend Achievers List popular? [...]
Eaton shares several characteristics with some of the companies we hold in our Top 20 Dividend Stocks portfolio. The company scores well for Dividend Safety and Dividend Growth, has paid dividends every year since 1923, generates excellent free cash flow, and has a relatively high dividend yield near 3.7%. Eaton’s stock also trades [...]