Dividend Stocks ( General Discussions )

[winston]

The Most Important Dividend Advice You’ll Ever Get by Charles Sizemore

In investing – heck, in life in general – if something looks too good to be true, it probably is.

Nowhere is this more true than in the world of high-dividend stocks.

A generation ago, investors looked to the bond market for income. That made sense when you could get a safe yield of 8% or higher.

But at today’s puny yields, bonds aren’t going to cut it for most retirees. The 10-year Treasury yields about 2.1% as I’m writing this.

That means you’d need to have $3.6 million invested just to generate an income of $75,000 per year.

Needless to say, most retired investors don’t have $3.6 million just lying around. Most don’t have one tenth that amount.

To make up for the money they don’t have in the bank, they’ve been committing that cardinal sin of investing: chasing yield in high-dividend-paying stocks.

Let’s say that you find a stock yielding a fat 10% in dividends. You can generate that same $75,000 with just $750,000 invested. Now, that’s still a lot of money, of course. But it’s a lot less than $3.6 million.

But there’s a problem with this. Remember, bond interest is a contractual obligation. If the bondholder doesn’t pay you, you can sue them. And if they fall into bankruptcy, you are first in line to get paid.

Not so with dividends. A company can cut its dividend at any time at the discretion of the board of directors. And as an investor, there’s not a thing you can do about it.

Dividends get slashed all the time. According to Street Insider, 837 companies have cut or eliminated their dividend this year alone, including large players like Freeport McMoran.

As recently as August, Freeport-McMoran was yielding nearly 10%. They were paying out a quarterly dividend of $0.313 per share. Now? A lousy $0.05 per share.

I’m not going to tell you to dump all of your dividend-paying stocks. But I am going to give you some advice on how to better think about dividends.

To start, longevity and growth are far more important than current yield.

The longer a stock has paid a dividend, the less likely it is that dividend will be cut. Sure, a crisis can always come out of the blue – think the 2010 Gulf of Mexico oil spill that clobbered BP – but if a company has managed to pay and grow its dividend for multiple consecutive decades, this is a company that can likely survive a zombie apocalypse.

The next point to remember is the payout ratio.

This can be defined differently for different types of stocks. For example, REITs and MLPs use different accounting terminology.

But the concept is the same. A healthy company should be paying out considerably less in dividends than it takes in as earnings and cash flow. It’s not sustainable for a company to pay out more than it makes.

Still, it never ceases to amaze me how investors routinely get suckered into yield traps like these.

So, if you want a durable income portfolio to tide you over in retirement, repeat after me:

Don’t chase yield!

Don’t risk dividends just because they pay out more than bond interest!

And don’t trust a company that pays out more than it takes in!


Source: Dent Research

[winston]

Where in the World Are Income Bargains? By Martin Hutchinson

There are several exchange-traded funds (ETFs) specializing in emerging market dividend investments, any of which would be suitable for a U.S.-based income investor.

The Wisdom Tree Emerging Markets High-Dividend ETF(DEM) seeks to match the Wisdom Tree Emerging Markets High Dividend Index. It’s a $1.5 billion fund with a yield of 5.4% and a 0.64% expense ratio.

Next there’s the SPDR S&P Emerging Markets Dividend ETF(EDIV), a $298 million fund seeking to match the S&P Emerging Markets Dividend Index. It yields 5.3% and has an expense ratio of 0.59%.

Finally, there’s the iShares Emerging Market Dividend ETF(DVYE), a $158 million fund seeking to match the Dow Jones Emerging Markets Select Dividend Index. This one yields 6% and has a 0.68% expense ratio.

Source: Wall Street Daily

http://www.thetradingreport.com/2015/11 ... -bargains/

[winston]

3 ETFs to Benefit From Monthly Dividend Stocks

If you love monthly income then you might just love these dividend ETFs

By Todd Shriber

Source: Investor Place

http://investorplace.com/2015/11/monthl ... jlGz7crKM8

[winston]

3 ETFs Delivering Double-Digit Dividend Yields

These high yield ETFs have income in spades

By Aaron Levitt

Source: Investor Place

http://investorplace.com/2015/11/divide ... kUpMHYrKM8

[winston]

2 Emerging Market Dividend ETFs for Adventurous Investors

Developing world equity funds have been duds, but that could soon change

By Todd Shriber

Source: Investor Place

http://investorplace.com/2015/11/divide ... k5kB3YrKM8

[winston]

3 Must-Own Dividend ETFs

Here are some of the most potent dividend ETFs available to investors today

By Todd Shriber

Source: Investor Place

http://investorplace.com/2015/12/three- ... oXxwhV96M8

[winston]

America’s 25 Best-Yielding Large-Cap Dividend Stocks

Take them all with a grain of salt, but these dividend stocks currently offer the biggest and best payouts

By James Brumley

Source: Investor Place

http://investorplace.com/2015/12/2016-a ... oYA4RV96M8

[winston]

not vested

3 Dividend ETFs to Buy Today

VIG, DTD and HDV give investors exposure to many of the best dividend stocks

By Aaron Levitt

Source: Investor Place

http://investorplace.com/2016/01/divide ... pBncRV96M8

[winston]

BlackRock, Inc. Leads 6 Dividend Stocks Increasing Payouts

BLK, DLPH and O lead income performers despite the rough market

By Jim Woods

Source: Money Threats

http://investorplace.com/2016/01/blackr ... p81bSp96M8

[winston]

7 Dividend Stocks That Are Suddenly Bargains

These dividend winners have been unfairly punished

By Charles Sizemore

Source: Sizemore Capital

http://investorplace.com/2016/01/divide ... qIIKip96M8