Value Investing News

Compound interest is when interest previously earned is added to the principle and is considered when calculating future interest – i.e. earning interest on interest. So, what’s more powerful than compound interest? Compound dividends! Compound dividends are like compound interest on steroids.

Two more dividend aristocrats raised their distributions last week, bringing the total number of raisers in the elite index to 30. This is quite impressive, given the fact that there are almost 5 more months to go before the year is out and that there are only 51 components in it.

Several large companies announced dividend increases over the past week. One of the most notable bullish calls came from the telecom sectors as AT&T (T) showed confidence in its business model by increasing its dividend payment to shareholders for the twenty fifth consecutive years. Despite the tough macroeconomic conditions AT&T (T) is still committed to raising its quarterly dividend.

According to Greg MacDonald, an analyst at National Bank Financial, BCE should be able to pay a dividend ranging between $1.46 and $1.80 a share, giving the shares a yield of 6.6 per cent based on the current share price. Thanks to ControlledGreed.com for pointing out this article.

The Special Situations Real Money Portfolio manages to hold fairly steady in November with a win on the BUD merger arbitrage and a loss with the Capital Properties going private transaction. However, my luck may be taking a turn for the worse.

This portfolio focused on arbitrage and special situations was up 10.5% in September and is up over 20% so far this year. Read how the portfolio is adapting to the changing investment climate by temporarily focusing on merger arbitrage opportunities.

A roundup of last week's stock market related blog posts hosted at Fat Pitch Financials.

Analysis of the expected payoff of BCE deal.