Value Investing News

For many people the S&P 500 and U.S. Stock Market are synonymous terms. While in reality the U.S. stock market is much larger with public companies numbering in the thousands. The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 1957 and is the second most recognized index in the U.S.

This year the market has been quite volatile. With significant run ups followed by steep declines. This has provided income investors first hand experience in managing both their emotions and their income portfolio in an unsettled market. To make the most of these trying times, here are some concepts to help you succeed and thrive during a market correction:

In 2009, I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it.

Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that long-term and sustainable high-yield investments are grown over time. This is accomplished by purchasing high-quality dividend investments with a reasonable yield and a long history of growing their dividends, and waiting for the yield on cost to grow.

Over the next several weeks I plan to look at different sectors that have traditionally been very friendly to dividend investors. Each of these sectors have attributes that make the companies in them potentially desirable to long-term buy-and-hold dividend growth investors. Understanding these attributes will hopefully help us to select the very best companies for our income portfolios.

Nu Skin is a global direct marketing company specializing in skin care products and nutritional supplements. Can new product introductions and emerging markets provide enough growth to make this a good investment?

Pre-Paid Legal is a provider of what amounts to "legal insurance" for individuals and families. The business model is profitable but shady, based on a controversial multi-level marketing scheme and selling a product that is of questionable value.

What a difference a year makes. This time last year we were looking at big-name dividend cuts and very few increases. Last week’s 16 increases set the stage for this week’s flood of companies, large and small, raising cash dividends paid to their shareholders.