Investing in dividend-paying stocks, especially those with high yields, can sometimes cause investors to focus too much on current income at the expense of total return. Total return is one of the most important concepts in finance, and it involves more than just the dividends a company pays out. Let’s take a closer [...]
There is a famous investment tip that says, “Buy the rumor, sell the news.” Stocks sometimes trade higher (or lower) heading into “major” news announcements before reversing course immediately following the event. Anticipated market-moving news items can include quarterly earnings reports, business rumors, macroeconomic trends, new product launches, and more. Not surprisingly, [...]
The tallest tree in the world towers over the Earth at nearly 370 feet in height. The tree is part of Redwood National Park in California and is estimated to be 700 to 800 years old. If you are aware of any dividend stocks with an equally impressive growth streak, please let us know :-) At [...]
Master limited partnerships risks are increasingly in focus by dividend investors as energy prices remain depressed. The sector has attracted income investors thanks to its relatively high dividend yields, historically stable cash flows, and perceived protection from swings in commodity prices. However, with many energy master limited partnerships down over 30% in 2015, it’s time [...]
Blue chip dividend stocks can be some of the most appealing investment opportunities for income and capital appreciation. If you have ever wondered what blue chip dividend stocks are, why they are attractive, where you can find them, and what the best ones are, you have come to the right place. What are Blue [...]
They have surged in popularity over the past decade, but what is a master limited partnership (MLP)? The rise of MLPs has been driven by low interest rates and the massive build-out of new energy infrastructure in the United States to help deliver oil and gas from new shale plays. MLPs offer relatively high dividend yields, [...]
Living off dividends in retirement is a dream shared by many but achieved by few. In today’s environment marked by rising life expectancies, extremely low bond yields, and a 7-year bull market, retirees face challenges on all fronts to build a consistent income stream that will last a lifetime. Before zeroing in on any particular strategy [...]
While dividends have historically accounted for 20-40% of the stock market's total return, dividend investors need to remember that changes in the stock's price still account for the majority of returns. In our opinion, some of the biggest factors that can determine how much a stock moves are: (1) the industry it operates in; (2) [...]
Howard Marks, Chairman of Oaktree Capital Management, publishes memos that we enjoy following. He has been investing since the 1960s and maintains a very successful track record. Excerpts from his most recent memo, “It’s Not Easy,” are worth sharing. In the 15-page piece, Marks reviews more than 15 popular nuggets of investment “wisdom,” pointing out their [...]