Value Investing News

Fair value is really a simple concept. Given some select information such as dividends, dividend growth, holding period, discount rate and few other inputs, one can easily calculate the fair value of a stock. As with most simple things, the devil is in the details - the inputs must be correct to calculate a reasonable fair value, otherwise, garbage in, garbage out.

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Have you noticed that investing in dividend growth stocks has gone main stream? What a change from a couple of years ago when dividends were considered "stodgy, for old people, yawn, boring!" With its new found attention, dividend growth stocks aren't disappointing their newly acquired fans. When all is said and the last word is written, 2011 was a great year for dividends!

32 best dividend stocks selected for 2012 based on valuation and earnings.

Most investors aren't very good at investing. The formula for success in the market is relatively simple. Buy low, sell high. So why do so many people do so poorly? It seems they are doing the exact opposite of what they should be doing. If we can't trust our emotions, how can we succeed in the stock market and still sleep at night? Here is how to do it...

To make our world easier to understand and explain, we like to organize and categorize things into groups for ease of reference. Dividend Stocks are no different. They can be placed into a few categories based on their historic performance and expectations for the future. Here are three broad categories and some representative selections from each:

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Who wouldn't like to earn a safe 15% on their original investment? Normally double-digit returns are the fodder of con artists or associated with extraordinarily risky investments. In either of these cases, the person is usually left holding despair in one hand and an empty wallet in the other. However, I have discovered that you can actually enjoy high yields with minimal risk...

Wal-Mart Stores, Inc. is the largest retailer in North America. Wal-Mart operates a chain of discount department stores, wholesale clubs, and combination discount stores and supermarkets. Linked here is a detailed analysis and commentary.

Payback is the amount of time needed for an investment to earn its cost, undiscounted. Once you earn back your investment, some might say you are in a no-lose situation. I wouldn’t go quite that far, but you have found an investment that that has provided you a good historical revenue stream, and hopefully it will continue to do so in the future.

This week week, I screened my dividend growth stocks database for stocks that will be yielding 10% in 10 years at current yield and dividend growth rate (based on Monday's close). The results are presented below:

Target Corp. operates operates about 1,500 Target and 250 SuperTarget general merchandise stores across the U.S. Linked here is a detailed analysis and commentary.

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.

Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield.

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Cherokee is a brand management company, managing the Cherokee brands through Target and Tesco, and also the Sideout and Carol Little brands. Although a highly efficient business, the company has been stagnating badly over the past 5 years. Can new management get it back on track?

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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.

Wal-Mart Stores, Inc. is the largest retailer in North America and operates a chain of discount department stores, wholesale clubs, and combination discount stores and supermarkets. Linked here is a detailed analysis and commentary.