Value Investing News

We all want to find the best value when we buy a stock. One of the oldest metrics used is the price earnings (P/E) ratio. It is calculated as the market value per share divided by earnings per share (EPS). A high P/E ratio infers that investors expect strong future earnings growth. Conversely, a low P/E suggests limited future growth.

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As dividend growth investors, 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. These lists are used to narrow the population of all publically traded companies down to the very best dividend stocks.

During what was a turbulent week in the markets, several companies expressed enough confidence in their long-term prospects to boost distributions.

Some say your home is your greatest wealth building asset. Others would say your income is your greatest wealth building asset. So, what is your greatest wealth building asset? Everyone is born with it. Few realize its importance until they lose most of it. The asset is so priceless it can’t be bought. Your most valuable wealth building asset is...

RLI Corp, based in Peoria, IL, provides selected property, casualty and surety insurance. Linked here is a detailed analysis and commentary.

Though many dividend stocks are now trading in excess of their calculated fair value, capital appreciation is not the primary reason for investing in dividend stocks. Dividend fundamentals are what drive my purchase decision, and if I could only look at one metric it would be...