Value Investing News

The Procter & Gamble Company is a leading consumer products company the markets household and personal care products in more than 180 countries. Linked here is a detailed analysis and commentary.

The Clorox Company is a diversified producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products. Linked here is a detailed analysis and commentary.

The S&P 500 Dividend Aristocrats is the most recognized list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This index is a member of the S&P Dividend Aristocrats index series.

Colgate-Palmolive Company (Colgate) is a major consumer products company that markets oral, personal and household care and pet nutrition products in more than 200 countries and territories. Linked here is a detailed analysis and commentary.

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:

Growth or yield? In a perfect world, income investors would want both from their investments and are not interested in investments that offer neither. This is where the common ground ends, and the debate begins. Without the benefit of a perfect world, we are left with the middle ground which is a balancing act between growth and yield.

When it comes to investing in Dividend Growth Stocks certain sectors have been more favorable to investors than others. Historically, the sectors most popular with dividend investors include Financial Services, Healthcare and Consumer Defensive. Each has provided good yields and growth over the years.

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in August, extending the streak to 14 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 43 of the last 45 months.

It is my goal to create an ever-increasing income stream from dividend growth stocks, while it is my desire to beat the S&P 500 index over the long-term. I believe in long term my dividend income will rise AND I will beat the S&P 500. Otherwise, it would not be a realistic desire. This has been the case since I have been publically tracking my dividend growth portfolio.

Advertisement:

When selecting dividend growth stocks, I take a value approach in determining the maximum price I can pay and still obtain my long-term target. The focus is on the investment's value derived from the future dividend stream generated by the stock. Since I am looking at stocks differently than many other investors, I can often find value, as I have defined it, when others can not.

The Procter & Gamble Company is a leading consumer products company that markets household and personal care products in more than 180 countries. Linked here is a detailed analysis and commentary.

Advertisement:

The Clorox Company is a diversified producer of household cleaning, grocery, and specialty food products is also a leading producer of natural personal care products. Linked here is a detailed analysis and commentary.

Life often deals us difficult circumstances to work through at what seems to be the most inopportune time. During economic downturns, many people lose their jobs at a time when companies aren't hiring. When things like this happen, those with an alternative income, including dividend growth stocks, are in a better position to deal with the circumstances thrust on them.

Every investor wants to earn more. It is how we define "more" and how we go about earning it that defines the type of investor we are. Income investors want more income. Yield is a significant determinate of income. There are two ways to own a high yield portfolio. They are:

Advertisement:

Colgate-Palmolive Company (Colgate) is a major consumer products company that markets oral, personal and household care, and pet nutrition products in more than 200 countries and territories. Linked here is a detaild analysis and commentary.