Value Investing News

At some point in the future will we look back at our actions today and refer to them as our greatest missed opportunity? A successful dividend growth strategy takes time. Unfortunately, many income investors don't have the luxury of time on their side and must focus on high-yield investments to meet current expenses.

MRK1YR

Buy and hold has gotten a bad name since the 2008 financial crisis and subsequent recession, but it is still a viable strategy for long-term investors with patience and the ability to pick the right stocks. Finding a financially strong, undervalued company with a durable competitive advantage in its industry, and a large dividend, makes a strong buy and hold candidate.

Magic Formula Investing is a process that can be applied to any list of stocks, not just the market at large. This article shows how you can use the MFI process to find the best opportunities in a variety of scenarios.

Why would investors want to invest in a strategy that requires the stock price to fall for their investment objective to increase?

Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company’s increasing intrinsic value. Great companies that increase dividends tend to have rising share prices over time.

ViroPharma markets two drugs: Vancocin for clostridium difficile infections, and Cinryze for rare hereditary angioedema. The company's investment potential is tied to how fast the latter can replace declining sales from the former.

If you like buying earning power at a discount, earnings yield is a good place to start. It is one of the most useful metrics available to compare the relative valuation of stocks to one of the more predictive measures of future stock returns: EPS.

Eli Lilly, a huge global pharmaceutical company, has a solid portfolio of drugs, a cheap stock price. and pays an attractive dividend. It also faces one of the largest patent cliffs in the industry and a recent important new drug has performed dismally in the market.

The Forbes Top 150 Companies list ranked by Magic Formula Statistics. Which large global companies are both cheap and highly efficient with capital?

Impax Pharmaceuticals is a generic drug maker. While the company is a "Magic Formula mirage" due to the 8-week generic Flomax exclusivity period, it still is an attractive Magic Formula stock for a variety of reasons.

Most dividend investors require consistency from their stock positions. As a result companies which are able to generate rising dividend income over time are viewed more favorably in comparison to companies such as Pfizer (GE) or General Electric (GE), which have followed an inconsistent dividend policy over the past two years.

Last year 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. Here are some highlights on this year’s changes:

The latest report on the performance of the Fat Pitch Financials Value Portfolio hosted at Marketocracy.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

While dividends have produced about 40% of average annual returns each year over the past 8 decades, capital gains are important as well. If investors believe that the company’s performance over time would improve, they would bid up the stock price.