HK Dividend Stocks
It's time again for Dr Check to recommend high-dividend stocks as defensive plays.
They include Giordano (0709), Goldlion (0533), Texwinca (0321), Pak Fah Yeow (0239), Fujikon (0927), Vitasoy (0345), Fairwood (0052), Sa Sa (0178) and Champion REIT (2778).
During the financial tsunami, some of them offered a dividend yield of more than 10 percent.
These stocks still retain some upside potential.
http://www.thestandard.com.hk/news_deta ... 01207&fc=2
|
|
Dividend Stocks ( General Discussions )
Re: Dividend Stocks
by winston » Tue Dec 07, 2010 9:07 am
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Fri Feb 11, 2011 2:18 pm
Switch to yield plays
The stock market has taken quite a beating of late. Part of this has been blamed on China’s recent interest rate hike and the fear of more tightening measures to rein in rising inflation and property prices.
Additionally, investors are increasingly cautious about an overheated market. While 2010 has been a relatively easy year to see capital growth in stocks, we think this would be harder in 2011.
Fortunately, for investors who could not stomach the risk of a fluctuating portfolio, there are several yield-playing stocks for consideration. We are stringent in our selection, picking only stocks with stable businesses and the ability to sustain a good dividend payout.
We like the telcos for their stable business, particularly StarHub and M1, which offer forward yields of 7.7% and 6.1%, respectively. We also like Ascendas REIT, which gives an attractive dividend yield of 6.5%.
And not to forget, in our small cap strategy report, 2011 Small Cap Picks: Pulling seven rabbits out of the hat (dated 27 January 2011), we also recommended Starhill Global REIT and Boustead Singapore for yield plays
http://www.kimengresearch.com/KimEng/se ... yqVQTZ10M=
The stock market has taken quite a beating of late. Part of this has been blamed on China’s recent interest rate hike and the fear of more tightening measures to rein in rising inflation and property prices.
Additionally, investors are increasingly cautious about an overheated market. While 2010 has been a relatively easy year to see capital growth in stocks, we think this would be harder in 2011.
Fortunately, for investors who could not stomach the risk of a fluctuating portfolio, there are several yield-playing stocks for consideration. We are stringent in our selection, picking only stocks with stable businesses and the ability to sustain a good dividend payout.
We like the telcos for their stable business, particularly StarHub and M1, which offer forward yields of 7.7% and 6.1%, respectively. We also like Ascendas REIT, which gives an attractive dividend yield of 6.5%.
And not to forget, in our small cap strategy report, 2011 Small Cap Picks: Pulling seven rabbits out of the hat (dated 27 January 2011), we also recommended Starhill Global REIT and Boustead Singapore for yield plays
http://www.kimengresearch.com/KimEng/se ... yqVQTZ10M=
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Thu Feb 24, 2011 9:16 pm
How to Earn Predictable Returns That Go Up Every Year By Dan Ferris
Some people like to invest in stocks. Some people like to invest in real estate. Some people like to trade commodities…
But what you really want – what we all want – is an investment that goes up every year.
If you had that, you could invest money regularly, perhaps each month, confident it'd grow enough to outpace inflation and keep your money safe from loss. With that kind of confidence, a person with a regular income can sock a little money away every year, no matter what the economy or the market is doing.
What you want is a chart that looks like this:
No, that's not a stock price graph. It's a picture of larger and larger amounts of cash placed directly in shareholders' pockets by a World Dominating dividend grower. It's the graph of the dividends paid out by Intel from 2001 to the present.
Now compare that to a chart of the S&P 500 from 2001 to today:
Be honest with yourself, look at the above chart, and please tell me what makes the stock market so attractive. I hope you answered, "Nothing," because that's how it looks to me, too.
The S&P is down. It's up. It's all over the place. The long-term effect on investors is maddening. Over the last decade, the market has gone nowhere, compounding at a negative 0.48% a year.
If you count on the stock market's action as a source of investment return, you are literally gambling with your life savings.
Now, you might object: A dividend-grower's stock price can fall, too!
What most people don't understand that when the dividend goes up, the value of your investment goes up. If you're buying an income investment, the investment's value is based on the income you receive. When the income rises, the value of the investment rises, too. The stock market might take years to recognize it. But smart income investors know that doesn't matter so much.
No one has the option of stock prices that always go up. That doesn't exist. But everyone has the option of dividends that always go up. That does exist, and that's why investors who want to make consistent returns from stocks need to focus on dividends… and relentless dividend growers.
www.dailywealth.com
Some people like to invest in stocks. Some people like to invest in real estate. Some people like to trade commodities…
But what you really want – what we all want – is an investment that goes up every year.
If you had that, you could invest money regularly, perhaps each month, confident it'd grow enough to outpace inflation and keep your money safe from loss. With that kind of confidence, a person with a regular income can sock a little money away every year, no matter what the economy or the market is doing.
What you want is a chart that looks like this:
No, that's not a stock price graph. It's a picture of larger and larger amounts of cash placed directly in shareholders' pockets by a World Dominating dividend grower. It's the graph of the dividends paid out by Intel from 2001 to the present.
Now compare that to a chart of the S&P 500 from 2001 to today:
Be honest with yourself, look at the above chart, and please tell me what makes the stock market so attractive. I hope you answered, "Nothing," because that's how it looks to me, too.
The S&P is down. It's up. It's all over the place. The long-term effect on investors is maddening. Over the last decade, the market has gone nowhere, compounding at a negative 0.48% a year.
If you count on the stock market's action as a source of investment return, you are literally gambling with your life savings.
Now, you might object: A dividend-grower's stock price can fall, too!
What most people don't understand that when the dividend goes up, the value of your investment goes up. If you're buying an income investment, the investment's value is based on the income you receive. When the income rises, the value of the investment rises, too. The stock market might take years to recognize it. But smart income investors know that doesn't matter so much.
No one has the option of stock prices that always go up. That doesn't exist. But everyone has the option of dividends that always go up. That does exist, and that's why investors who want to make consistent returns from stocks need to focus on dividends… and relentless dividend growers.
www.dailywealth.com
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Sat Feb 26, 2011 9:08 am
Three Easy Steps to an Income-Rich Retirement By Dan Ferris, The 12% Letter
If you're a financial newsletter reader – and if you're reading this, you are – you hear dozens of promises of easy money from the stock market every week… maybe every day.
But I've found the only one that works. I've found the easy money. And it can guarantee you a rich retirement.
Don't close this e-mail. This is NOT the advice you're reading anywhere else. Give me three minutes, and I'll show you why…
The first step to a rich retirement is to buy dividend-paying stocks.
If you aren't earning dividends, the odds are against making money in stocks. Dividends beat all other sources of return from stocks (inflation, earnings growth, and changes in valuation) put together.
A few years ago, well-known researcher/investor Rob Arnott wrote about this in the Financial Analysts Journal. Arnott researched the sources of stock market returns during the 200 years from 1802-2002. Here's what he found (emphasis added):
The importance of dividends for providing wealth to investors is self-evident. Dividends… dwarf the combined importance of inflation, growth, and changing valuation levels.
This result is wildly at odds with conventional wisdom, which suggests that … stocks provide growth first and income second.
In other words, if you're not buying dividend-paying stocks, you're missing your best chance at making money in stocks. The only way to guarantee you'll always make money in stocks is to focus your investments on stocks that pay dividends.
But you shouldn't just buy any old income stock. The second step is to focus on the very best income payers.
This idea hit me like a ton of bricks when I read a study by Ned Davis Research, a well-known and widely respected investment and research firm.
Ned Davis compared the returns of all the stocks in the S&P 500 from 1972 to 2004. They studied the S&P 500 stocks by separating them into groups, based on the dividend paying policy of the company. And look what sort of returns they produced…
Non dividend-paying stocks: 4.3% per year
Dividend cutters or eliminators: 5.2% per year
Dividend payers with no change in dividends: 7.3% per year
Dividend growers and initiators: 10.6% per year
Moving "up the ladder" from a plain dividend payer to a dividend grower increases your annual returns from 7.3% to 10.6%… that's almost twice as good. Imagine that difference over a decade or two of investing…
And that brings me to the final – and most important – step…
The Miller/Howard investment firm invests primarily in dividend-paying stocks. One of the principals, Lowell Miller, wrote a good book about dividend investing, The Single Best Investment.
Miller/Howard recently did a study of the S&P 500 from 1935-2010. They found that, if you invested $1 in the S&P 500 and relied upon price appreciation alone, it grew to $93.65 through the end of 2010. That's almost 94 times your money. Not bad. But if you reinvested the dividends along the way, you turned $1 into $1,740.30.
Buying dividend growers and reinvesting your dividends is the only easy money in the stock market. If you're an income-focused investor, following this strategy will make the difference between a good investment… and decades of comfortable retirement living.
Source: Daily Wealth
If you're a financial newsletter reader – and if you're reading this, you are – you hear dozens of promises of easy money from the stock market every week… maybe every day.
But I've found the only one that works. I've found the easy money. And it can guarantee you a rich retirement.
Don't close this e-mail. This is NOT the advice you're reading anywhere else. Give me three minutes, and I'll show you why…
The first step to a rich retirement is to buy dividend-paying stocks.
If you aren't earning dividends, the odds are against making money in stocks. Dividends beat all other sources of return from stocks (inflation, earnings growth, and changes in valuation) put together.
A few years ago, well-known researcher/investor Rob Arnott wrote about this in the Financial Analysts Journal. Arnott researched the sources of stock market returns during the 200 years from 1802-2002. Here's what he found (emphasis added):
The importance of dividends for providing wealth to investors is self-evident. Dividends… dwarf the combined importance of inflation, growth, and changing valuation levels.
This result is wildly at odds with conventional wisdom, which suggests that … stocks provide growth first and income second.
In other words, if you're not buying dividend-paying stocks, you're missing your best chance at making money in stocks. The only way to guarantee you'll always make money in stocks is to focus your investments on stocks that pay dividends.
But you shouldn't just buy any old income stock. The second step is to focus on the very best income payers.
This idea hit me like a ton of bricks when I read a study by Ned Davis Research, a well-known and widely respected investment and research firm.
Ned Davis compared the returns of all the stocks in the S&P 500 from 1972 to 2004. They studied the S&P 500 stocks by separating them into groups, based on the dividend paying policy of the company. And look what sort of returns they produced…
Non dividend-paying stocks: 4.3% per year
Dividend cutters or eliminators: 5.2% per year
Dividend payers with no change in dividends: 7.3% per year
Dividend growers and initiators: 10.6% per year
Moving "up the ladder" from a plain dividend payer to a dividend grower increases your annual returns from 7.3% to 10.6%… that's almost twice as good. Imagine that difference over a decade or two of investing…
And that brings me to the final – and most important – step…
The Miller/Howard investment firm invests primarily in dividend-paying stocks. One of the principals, Lowell Miller, wrote a good book about dividend investing, The Single Best Investment.
Miller/Howard recently did a study of the S&P 500 from 1935-2010. They found that, if you invested $1 in the S&P 500 and relied upon price appreciation alone, it grew to $93.65 through the end of 2010. That's almost 94 times your money. Not bad. But if you reinvested the dividends along the way, you turned $1 into $1,740.30.
Buying dividend growers and reinvesting your dividends is the only easy money in the stock market. If you're an income-focused investor, following this strategy will make the difference between a good investment… and decades of comfortable retirement living.
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Sun Mar 06, 2011 8:02 am
A Solution to the No. 1 Retirement Worry
By Dr. David Eifrig, Retirement Millionaire
The number one retirement worry this year is the same as it was in 2010… and my no-brainer solution to this worry is still the same, too.
Here's what I'm hearing from my retired friends and readers:
I'm worried about all this government spending producing rampant inflation… overheating the economy… and ruining my savings.
If the inflation boogeyman has you ready to dump all your investments and head for a bomb shelter… relax. "Overheated" is the last word I'd use to describe our economy.
Longtime readers of my Retirement Millionaire advisory are familiar with the "money multiplier," also known as the M1. It's one of the most useful indicators in the world.
The money multiplier monitors the amount of money individuals and businesses have to spend on consumption or investment… relative to the money available for banks to lend.
When the ratio is less than "1," it implies banks aren't lending as much as they could and/or folks have less to spend on things that would increase economic activity.
A reading greater than 1 suggests individuals and businesses have money in reserve that is primed to flow into the economy… like water building behind a dam.
As you can see from the chart below, the reservoir is low. Money is still not moving through the economy swiftly or broadly among sectors. You can take all the dire warnings of inflation and chuck them in the garbage right now.
Until this indicator ticks above 1, inflation is NOT a problem… or even a worry in the near term.
The declining M1, along with the slow recovery in housing values, means the economy isn't completely out of the woods yet. And until people have the power to spend, the prices of goods won't rise. Again, until the M1 passes 1, inflation remains a distant concern. So don't crawl into the bomb shelter just yet.
The good news for investors here is that there is a stock strategy that will do well regardless of increasing inflation, flat inflation, or even mild deflation.
It's owning the world's best businesses, businesses that produce huge cash flows by selling vital products and then direct lots of that cash to the pockets of their shareholders… via constant and rising dividends.
For example, my Retirement Millionaire readers are collecting safe and growing income streams with companies like Chevron, which has increased its dividend every single year for 22 consecutive years. We're also collecting safe and growing dividends from Intel.
Both companies are rock-solid dividend payers… with the strength to survive and pay you cash through good times and bad. They'll do well in the current environment, and they'll be able to increase their payouts if the economy picks up speed. These sorts of companies are a great place to keep a portion of your retirement portfolio.
To sum up, I'm just as concerned about the long-term effects of our spendthrift government as the next guy. But I'd rather focus on what the facts say right now, and position myself accordingly. Right now, the facts say inflation is not a worry… and the cash dividends in our accounts say my favorite stock strategy is working.
www.dailywealth.com
By Dr. David Eifrig, Retirement Millionaire
The number one retirement worry this year is the same as it was in 2010… and my no-brainer solution to this worry is still the same, too.
Here's what I'm hearing from my retired friends and readers:
I'm worried about all this government spending producing rampant inflation… overheating the economy… and ruining my savings.
If the inflation boogeyman has you ready to dump all your investments and head for a bomb shelter… relax. "Overheated" is the last word I'd use to describe our economy.
Longtime readers of my Retirement Millionaire advisory are familiar with the "money multiplier," also known as the M1. It's one of the most useful indicators in the world.
The money multiplier monitors the amount of money individuals and businesses have to spend on consumption or investment… relative to the money available for banks to lend.
When the ratio is less than "1," it implies banks aren't lending as much as they could and/or folks have less to spend on things that would increase economic activity.
A reading greater than 1 suggests individuals and businesses have money in reserve that is primed to flow into the economy… like water building behind a dam.
As you can see from the chart below, the reservoir is low. Money is still not moving through the economy swiftly or broadly among sectors. You can take all the dire warnings of inflation and chuck them in the garbage right now.
Until this indicator ticks above 1, inflation is NOT a problem… or even a worry in the near term.
The declining M1, along with the slow recovery in housing values, means the economy isn't completely out of the woods yet. And until people have the power to spend, the prices of goods won't rise. Again, until the M1 passes 1, inflation remains a distant concern. So don't crawl into the bomb shelter just yet.
The good news for investors here is that there is a stock strategy that will do well regardless of increasing inflation, flat inflation, or even mild deflation.
It's owning the world's best businesses, businesses that produce huge cash flows by selling vital products and then direct lots of that cash to the pockets of their shareholders… via constant and rising dividends.
For example, my Retirement Millionaire readers are collecting safe and growing income streams with companies like Chevron, which has increased its dividend every single year for 22 consecutive years. We're also collecting safe and growing dividends from Intel.
Both companies are rock-solid dividend payers… with the strength to survive and pay you cash through good times and bad. They'll do well in the current environment, and they'll be able to increase their payouts if the economy picks up speed. These sorts of companies are a great place to keep a portion of your retirement portfolio.
To sum up, I'm just as concerned about the long-term effects of our spendthrift government as the next guy. But I'd rather focus on what the facts say right now, and position myself accordingly. Right now, the facts say inflation is not a worry… and the cash dividends in our accounts say my favorite stock strategy is working.
www.dailywealth.com
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Mon Mar 21, 2011 6:39 pm
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in."
John D. Rockefeller
John D. Rockefeller
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Tue Mar 29, 2011 8:52 pm
This Strategy Turned $100 into Over $1 Million By Dr. Steve Sjuggerud
Tuesday, March 29, 2011
Which sounds better to you?
Strategy 1, which turned $100 into $370.
Strategy 2, which turned $100 into over $1 million, "some 270 times greater," according to the authors of a study on these two strategies.
The numbers are legit…
Spanning 111 years and 19 countries, this study might be the most comprehensive one done on the topic. Elroy Dimson, Paul Marsh, and Mike Staunton of the London Business School did the study, and it appeared in the 2011 Credit Suisse Global Investment Yearbook.
The topic, surprisingly, is dividend-paying stocks.
Most investors don't pay much attention to dividends. Heck, you can't blame them… What's the point? Week-to-week stock market fluctuations can be greater than the entire year's dividend yield.
But you can't think that way…
The study's authors say, "While year-to-year [stock market] performance is driven by capital gains, long-term returns are heavily influenced by reinvested dividends… The longer the investment horizon, the more important is dividend income."
As the authors remind us, academic studies of dividend yields have already proven that "higher-yielding stocks have outperformed lower yielders." So they wanted to test a different wrinkle: "Perhaps higher-yielding [country stock markets] have also outperformed lower-yielders."
The authors performed a simple test across their 111-year database. The results were astonishing…
Countries where the dividend yields were tiny delivered tiny gains. And countries that paid high dividend yields delivered off-the-charts returns.
The test could hardly have been simpler. Here's how it worked:
The study ranked 19 countries according to their dividend yields at the end of each year. Then it divided the list into five groups, from those with the highest yields on down. (Each group had four countries, except the middle group, which had three countries.)
If you had started with $100 in 1900, and invested in the highest-yielding countries each year, it would have turned into over $1 million at the end of 2010 – versus $370 from investing in the lowest-yielding countries.
The results were uniform across all time frames, as the chart here shows. The highest-yielding countries' stock markets always beat the lowest-yielding countries over time…
The authors have two conclusions:
1) Investors should focus on the long term and not be too influenced, or daunted, by short-term price fluctuations.
2) Dividends are central to stock valuation.
So what are the top four dividend-yielding countries right now? Spain, Portugal, Australia, and New Zealand.
If you're bold enough, you might consider stepping up and owning country funds in these places… You have 111 years of history on your side.
But whether you invest in these countries or not, keep in mind, over time, dividends end up making up a much larger portion of your total return than you probably ever thought.
www.dailywealth.com
Tuesday, March 29, 2011
Which sounds better to you?
Strategy 1, which turned $100 into $370.
Strategy 2, which turned $100 into over $1 million, "some 270 times greater," according to the authors of a study on these two strategies.
The numbers are legit…
Spanning 111 years and 19 countries, this study might be the most comprehensive one done on the topic. Elroy Dimson, Paul Marsh, and Mike Staunton of the London Business School did the study, and it appeared in the 2011 Credit Suisse Global Investment Yearbook.
The topic, surprisingly, is dividend-paying stocks.
Most investors don't pay much attention to dividends. Heck, you can't blame them… What's the point? Week-to-week stock market fluctuations can be greater than the entire year's dividend yield.
But you can't think that way…
The study's authors say, "While year-to-year [stock market] performance is driven by capital gains, long-term returns are heavily influenced by reinvested dividends… The longer the investment horizon, the more important is dividend income."
As the authors remind us, academic studies of dividend yields have already proven that "higher-yielding stocks have outperformed lower yielders." So they wanted to test a different wrinkle: "Perhaps higher-yielding [country stock markets] have also outperformed lower-yielders."
The authors performed a simple test across their 111-year database. The results were astonishing…
Countries where the dividend yields were tiny delivered tiny gains. And countries that paid high dividend yields delivered off-the-charts returns.
The test could hardly have been simpler. Here's how it worked:
The study ranked 19 countries according to their dividend yields at the end of each year. Then it divided the list into five groups, from those with the highest yields on down. (Each group had four countries, except the middle group, which had three countries.)
If you had started with $100 in 1900, and invested in the highest-yielding countries each year, it would have turned into over $1 million at the end of 2010 – versus $370 from investing in the lowest-yielding countries.
The results were uniform across all time frames, as the chart here shows. The highest-yielding countries' stock markets always beat the lowest-yielding countries over time…
The authors have two conclusions:
1) Investors should focus on the long term and not be too influenced, or daunted, by short-term price fluctuations.
2) Dividends are central to stock valuation.
So what are the top four dividend-yielding countries right now? Spain, Portugal, Australia, and New Zealand.
If you're bold enough, you might consider stepping up and owning country funds in these places… You have 111 years of history on your side.
But whether you invest in these countries or not, keep in mind, over time, dividends end up making up a much larger portion of your total return than you probably ever thought.
www.dailywealth.com
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Wed Mar 30, 2011 7:53 pm
The Ultimate Stock Strategy for Today's Market By Dan Ferris
In yesterday's essay, Steve showed how important it is to focus on dividends when looking to invest in different countries.
The study, which spanned 111 years, proved once again that to get rich in stocks over the long term, you must focus on cash dividends. It's even more "back up" for the dividend idea I showed you last month.
Remember, we're in a "sideways" market. Stocks have gone sideways since early 2000. They've fallen sharply twice (2000-2002 and 2007-2009) and rallied twice (2002-2007 and 2009-2010). The antidote to this sort of market is buying the world's best companies that pay out ever-increasing streams of income in the form of cash dividends.
You see, two things happen in a sideways market…
First, the stock market essentially goes nowhere for years. But it doesn't feel that way while you're in the middle of it… In a sideways market, stock prices ratchet up and down, making new highs and new lows within a few years of each other. So it always feels like stocks are going somewhere. But in the end, you haven't gone much of anywhere at all.
Second, from the beginning of the sideways market to the end, stock market valuations trend gradually downward. Past sideways markets have always started with stocks over 20 times earnings and haven't ended until stocks bottomed out below 10 times earnings. We have no reason to expect the current sideways market will be any different.
The S&P 500 traded in excess of 40 times earnings at the peak in 2000. It bottomed at 13.3 times earnings in March 2009 and trades around 14 times earnings today. Overall, stocks have gone nowhere for 10 years. But valuations have declined.
This is why earning substantial cash dividends is so important to investors right now…
Cash flow rules in a sideways market – cash flow paid to investors via regular dividends. If a stock doesn't pay you dividends, it's more likely the share price will go nowhere over the next several years than at any other time in history.
Since you can't depend on the market pushing stock prices higher… you can't depend on the economy pushing earnings higher… more than ever before, you need to focus on cheap, World Dominating Dividend Growers.
Over the past few years, we've introduced many of these wealth compounders in DailyWealth… like dividend machine Altria, relentless dividend grower Procter & Gamble, and Microsoft, one of the safest stocks in the world today.
Buying these elite dividend machines at the right price should be the primary goal of stock investors. It's what investors must live and breathe more than any other priority until the sideways market is over, many years in the future.
Source: Daily Wealth
In yesterday's essay, Steve showed how important it is to focus on dividends when looking to invest in different countries.
The study, which spanned 111 years, proved once again that to get rich in stocks over the long term, you must focus on cash dividends. It's even more "back up" for the dividend idea I showed you last month.
Remember, we're in a "sideways" market. Stocks have gone sideways since early 2000. They've fallen sharply twice (2000-2002 and 2007-2009) and rallied twice (2002-2007 and 2009-2010). The antidote to this sort of market is buying the world's best companies that pay out ever-increasing streams of income in the form of cash dividends.
You see, two things happen in a sideways market…
First, the stock market essentially goes nowhere for years. But it doesn't feel that way while you're in the middle of it… In a sideways market, stock prices ratchet up and down, making new highs and new lows within a few years of each other. So it always feels like stocks are going somewhere. But in the end, you haven't gone much of anywhere at all.
Second, from the beginning of the sideways market to the end, stock market valuations trend gradually downward. Past sideways markets have always started with stocks over 20 times earnings and haven't ended until stocks bottomed out below 10 times earnings. We have no reason to expect the current sideways market will be any different.
The S&P 500 traded in excess of 40 times earnings at the peak in 2000. It bottomed at 13.3 times earnings in March 2009 and trades around 14 times earnings today. Overall, stocks have gone nowhere for 10 years. But valuations have declined.
This is why earning substantial cash dividends is so important to investors right now…
Cash flow rules in a sideways market – cash flow paid to investors via regular dividends. If a stock doesn't pay you dividends, it's more likely the share price will go nowhere over the next several years than at any other time in history.
Since you can't depend on the market pushing stock prices higher… you can't depend on the economy pushing earnings higher… more than ever before, you need to focus on cheap, World Dominating Dividend Growers.
Over the past few years, we've introduced many of these wealth compounders in DailyWealth… like dividend machine Altria, relentless dividend grower Procter & Gamble, and Microsoft, one of the safest stocks in the world today.
Buying these elite dividend machines at the right price should be the primary goal of stock investors. It's what investors must live and breathe more than any other priority until the sideways market is over, many years in the future.
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Sat Apr 02, 2011 7:59 pm
This Is the Greatest Stock Market System Ever Discovered By Brian Hunt
"I have some money I want to invest in the stock market. Where should I put it?"
This month, a good friend called to ask this question. He knows I'm in the investment newsletter business and an active investor… which makes his question the financial version of asking a doctor friend, "Does this look infected to you?"
The answer I gave him is the same one I give my mother. I urged him to begin using the investment system I use myself… the greatest stock investment system in the world.
After I told him how to use the system, I said, "If you're really greedy, if you want to safely make a ton of money in stocks, use this system exclusively."
Before I discuss the system, it's important to note the word "safely." This is big…
You see, with the debt problems in the U.S. and Europe… and with the Middle East/North Africa (MENA) crisis threatening as much as two-thirds of the world's oil reserves… the only investment prediction I'm comfortable making is that the next five years are going to be darn volatile… and full of risk.
This leads me to seek out only the safest havens, offering the deepest values, for my long-term "401(k) type" investments. This leads me to the greatest stock investment system in the world. It leads me to be obsessed with my colleague Dan Ferris' idea of "World Dominating Dividend Growers."
Longtime DailyWealth readers have heard about this idea before. World Dominating Dividend Growers are the biggest and best companies on the planet… companies like Intel, Microsoft, and Johnson & Johnson.
They hold dominant positions in their industries and the best brand names. They have fat profit margins and enormous pricing power. They can use tough times to gain margin share against competitors with less pricing power and greater need for financing.
If the risks I see on the horizon turn into bigger problems, these companies are "armor plated"… and will still crank out cash flows.
For example, let's say we run into another round of trouble with the banks. No problem. Remember, World Dominating Dividend Growers are the biggest and best. They have modest or zero levels of debt, so they're not vulnerable to contractions in bank lending. (This type of vulnerability killed a lot of companies in the 2008 credit crisis.)
There are two key things to keep in mind when it comes to World Dominating Dividend Growers…
One, you have to buy them at the right price. Like any investment, the price you pay to own a slice of a World Dominating Dividend Grower is the key factor in building wealth over the long term. Coca-Cola is a fantastic World Dominating company, but if you buy the stock when it is overpriced, you can still lose a lot of money.
Many folks bought Coca-Cola shares in 1998, when the company traded for more than 40 times earnings. They then watched the value of their shares fall by 50%. This example shows it's plenty easy to lose money in a great company if you don't buy at a good price.
As a rough rule of thumb, I only buy World Dominating Dividend Growers when they're trading for around eight to 10 times earrings. This is a good price to pay for a share in an elite company like Intel or Johnson & Johnson.
The second thing to keep in mind with these companies is that I am buying them for their dividend growth. I am buying them to collect safe dividend streams that I will direct towards buying more shares… which will allow me to collect more dividends… which will allow me to buy more shares… which will allow me to collect more dividends.
This is the practice known as "compounding." It's a practice advisory legend Richard Russell calls the "royal road to riches." It's the safest, surest, best way to build wealth in the stock market. Again, if you're greedy… if you like huge long-term returns, you should focus on compounding.
As a longtime fan of investment newsletters, and now as an "industry insider," I know one of the most frequent questions in the back of a reader's mind is, "Well, they say to do this thing, but what are they telling their friends and family to do? What are they actually doing with their own money?"
I hope this essay answers that question. Our firm sees plenty of risks on the horizon. So we're telling anyone who will listen to participate in the safest, most profitable long-term investment program known to man. We're telling people to compound their wealth with World Dominating Dividend Growers. And we're doing it ourselves.
These companies are safe. They're dominant. They pay out ever-increasing steams of income. But a warning: Only buy them if you're greedy…
Source: Daily Wealth
"I have some money I want to invest in the stock market. Where should I put it?"
This month, a good friend called to ask this question. He knows I'm in the investment newsletter business and an active investor… which makes his question the financial version of asking a doctor friend, "Does this look infected to you?"
The answer I gave him is the same one I give my mother. I urged him to begin using the investment system I use myself… the greatest stock investment system in the world.
After I told him how to use the system, I said, "If you're really greedy, if you want to safely make a ton of money in stocks, use this system exclusively."
Before I discuss the system, it's important to note the word "safely." This is big…
You see, with the debt problems in the U.S. and Europe… and with the Middle East/North Africa (MENA) crisis threatening as much as two-thirds of the world's oil reserves… the only investment prediction I'm comfortable making is that the next five years are going to be darn volatile… and full of risk.
This leads me to seek out only the safest havens, offering the deepest values, for my long-term "401(k) type" investments. This leads me to the greatest stock investment system in the world. It leads me to be obsessed with my colleague Dan Ferris' idea of "World Dominating Dividend Growers."
Longtime DailyWealth readers have heard about this idea before. World Dominating Dividend Growers are the biggest and best companies on the planet… companies like Intel, Microsoft, and Johnson & Johnson.
They hold dominant positions in their industries and the best brand names. They have fat profit margins and enormous pricing power. They can use tough times to gain margin share against competitors with less pricing power and greater need for financing.
If the risks I see on the horizon turn into bigger problems, these companies are "armor plated"… and will still crank out cash flows.
For example, let's say we run into another round of trouble with the banks. No problem. Remember, World Dominating Dividend Growers are the biggest and best. They have modest or zero levels of debt, so they're not vulnerable to contractions in bank lending. (This type of vulnerability killed a lot of companies in the 2008 credit crisis.)
There are two key things to keep in mind when it comes to World Dominating Dividend Growers…
One, you have to buy them at the right price. Like any investment, the price you pay to own a slice of a World Dominating Dividend Grower is the key factor in building wealth over the long term. Coca-Cola is a fantastic World Dominating company, but if you buy the stock when it is overpriced, you can still lose a lot of money.
Many folks bought Coca-Cola shares in 1998, when the company traded for more than 40 times earnings. They then watched the value of their shares fall by 50%. This example shows it's plenty easy to lose money in a great company if you don't buy at a good price.
As a rough rule of thumb, I only buy World Dominating Dividend Growers when they're trading for around eight to 10 times earrings. This is a good price to pay for a share in an elite company like Intel or Johnson & Johnson.
The second thing to keep in mind with these companies is that I am buying them for their dividend growth. I am buying them to collect safe dividend streams that I will direct towards buying more shares… which will allow me to collect more dividends… which will allow me to buy more shares… which will allow me to collect more dividends.
This is the practice known as "compounding." It's a practice advisory legend Richard Russell calls the "royal road to riches." It's the safest, surest, best way to build wealth in the stock market. Again, if you're greedy… if you like huge long-term returns, you should focus on compounding.
As a longtime fan of investment newsletters, and now as an "industry insider," I know one of the most frequent questions in the back of a reader's mind is, "Well, they say to do this thing, but what are they telling their friends and family to do? What are they actually doing with their own money?"
I hope this essay answers that question. Our firm sees plenty of risks on the horizon. So we're telling anyone who will listen to participate in the safest, most profitable long-term investment program known to man. We're telling people to compound their wealth with World Dominating Dividend Growers. And we're doing it ourselves.
These companies are safe. They're dominant. They pay out ever-increasing steams of income. But a warning: Only buy them if you're greedy…
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Re: Dividend Stocks
by winston » Sun Apr 03, 2011 10:52 am
Singapore Dividend Stocks
Against the backdrop of global uncertainty, local brokerage UOB KayHian recommends that investors seek refuge in high-yielding, ex-dividend status stocks even as the market continues to stay choppy.
Based on a list of stocks going ex-dividend in April prepared by UOB on March 31, telecommunications solutions provider Nera Telecom will pay out a dividend of 4 cents a share on April 26, representing the highest yield on the list at 9.76%. Nera Tel trades at 41 cents and has a market cap of $145 million.
Meanwhile, electronics company Elec & Eltek -- which trades at US$3.39 each with a market cap of US$626 million ($790 million) -- will pay a dividend of US 25 cents per share on April 4, representing a yield of 7.37%.
Other companies that will trade ex-dividend this month include printed circuit board manufacturer CEI Contract Manufacturing at a yield of 6.93% on April 19, mechanical engineer Mun Siong at 5% on April 27, technology equipment supplier Frencken Group at 4.8% on April 29 as well as M1 at a yield of 4.63% on April 11.
Other larger blue-chip companies due to pay dividends include rig builders Sembcorp Marine and Keppel Corporation as well as Sembcorp Industries, Keppel Land, ST Engineering and ComfortDelgro Corp at yields of between 1.77% and 5.35%.
-- Kang Wan Chern
Source: The Edge
Against the backdrop of global uncertainty, local brokerage UOB KayHian recommends that investors seek refuge in high-yielding, ex-dividend status stocks even as the market continues to stay choppy.
Based on a list of stocks going ex-dividend in April prepared by UOB on March 31, telecommunications solutions provider Nera Telecom will pay out a dividend of 4 cents a share on April 26, representing the highest yield on the list at 9.76%. Nera Tel trades at 41 cents and has a market cap of $145 million.
Meanwhile, electronics company Elec & Eltek -- which trades at US$3.39 each with a market cap of US$626 million ($790 million) -- will pay a dividend of US 25 cents per share on April 4, representing a yield of 7.37%.
Other companies that will trade ex-dividend this month include printed circuit board manufacturer CEI Contract Manufacturing at a yield of 6.93% on April 19, mechanical engineer Mun Siong at 5% on April 27, technology equipment supplier Frencken Group at 4.8% on April 29 as well as M1 at a yield of 4.63% on April 11.
Other larger blue-chip companies due to pay dividends include rig builders Sembcorp Marine and Keppel Corporation as well as Sembcorp Industries, Keppel Land, ST Engineering and ComfortDelgro Corp at yields of between 1.77% and 5.35%.
-- Kang Wan Chern
Source: The Edge
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112629
- Joined: Wed May 07, 2008 9:28 am
Return to Other Investment Instruments & Ideas
Who is online
Users browsing this forum: No registered users and 1 guest