Value Investing News

There is perceived safety in size. Giant corporations aren't randomly grown. Instead, they are carefully built through superior management and foresight. Often these are more mature companies that also offer stability and predictability, usually at the expense of dynamic growth. These are your mega-cap stocks...

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When people learn that I am an income investor it is not uncommon for them to ask why I invest in stocks instead of other "safer" alternatives. I generally start with my short answer of, "Dividend stocks have a secret ingredient that makes them a much more desirable investment." Needless to say this usually piques their interest and normally the response is something like, "Secret ingredient?

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This year I turned 50, and I now find myself thinking about, and planning for, retirement much more than in the past. I have long since resolved that social security will not provide for my needs in retirement (nor was it ever intended to). Fortunately, I am one of an ever-shrinking group that is still covered by a defined benefit pension plan.

Johnson & Johnson is a leader in the pharmaceutical, medical device and consumer products industries. Linked here is a detailed analysis and commentary...

When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is how you allocate your assets. As I approach retirement, I routinely step back consider my asset allocation and how well it is working for me...

The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and dividends earned. Total dividends received during the month were $944.20, consisting of:

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I have a dream that one day battered down dividend stocks in the sweltering heat of an unjust tax increase, will be transformed into an oasis of untapped value and significant yield. I have a dream that my investments will one day live in a market where they will not be judged by their underlying business fundamentals but by the media-driven fear of irrational traders.

As investors in Dividend Growth Stocks, we want to limit our purchases to only the very best stocks. Our first step is to look at published lists of dividend companies such as S&P 500 Dividend Aristocrats, US Broad Dividend Achievers™ Index and The U.S. Dividend Champions.

We all like things presented in their simplest terms. Headlines like "Two simple steps to lose that unwanted weight" always grabs our attention, even if it is just to smile and say I wish it were true. I enjoy reading inspiring quotes. They often put life's issues in their simplest terms and in doses that are easy to swallow.

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Over the last several years some companies have chosen to not raise their dividend, while others decided to cut their dividend and a few even decided to stop paying a dividend. In some cases their financials did not warrant the change. As investors in dividend growth stocks, we want to look for companies with a positive dividend culture.

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Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in June, extending the streak to 24 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 53 of the last 55 months...

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Any investor that understands the merits of asset allocation also understands the importance of including an international allocation in their portfolio. The concept is that in "normal" times there is always a market somewhere in the world rallying. To meet my set international allocation, I have focused on the following areas within my portfolio...

Abbott Laboratories is a diversified life science company that is planning to split into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals. Linked here is a detailed analysis and commentary.

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Quantitative easing (QE), it is such a benign term. It is somewhat relaxing rolling off your lips. Unfortunately, this rose has thorns. QE in simple terms is the government printing money and buying financial assets (e.g. bonds, etc.) in an effort to stimulate the economy. A side effect of QE is higher prices of the financial assets bought, which in turn lowers their yield...

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Fad diets and fad investing plans rarely work. They are primarily designed to separate you from your money and make the seller wealthy. Real wealth is built with sweat equity and a sound financial plan. For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success...