February 25th, 2011 — Uncategorized
The month of January led to some surprisingly strong economic numbers as statistics for the 4th quarter of 2010 were released. The economy grew at a 3.2% annualized rate, fueled by a strong consumer spending number. Corporate earnings from the 4th quarter also were generally positive, giving the markets positive momentum.
The Federal Open Market Committee of the Federal Reserve decided to...
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January 9th, 2011 — Dividend Investment
Investors are again recommending the proven strategy of buying into dividend-paying stocks. Not only have dividend stocks proven more stable than other stocks in bear markets, but they also provide an investor with a consistent paycheck. This type of market play allows long-term investors a way to make money without losing ownership of their stocks. Retirees who want a return on their money and...
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January 7th, 2011 — Dividend Investment
A common way to find undervalued dividend stocks is to look at the five year average dividend yield, then find stocks that are currently trading low enough to push the dividend yield above the five year average.
Assume the five year average yield is 9%. At $5.00, with 60 cents per share annual dividend, this stock would be undervalued since its yield is above its five year average. If...
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January 7th, 2011 — Dividend Investment
The Dividend Aristocrats is a prestigious group of stocks on the Standard and Poor 500.
The dividends of these prime stocks have been raised every year for over 25 years. Each is considered a safe dividend income investment. Currently, there are 42 stocks on the Dividend Aristocrats list; all of them have consistently raised their dividend each year for a quarter century.
January 7th, 2011 — Dividend Investment
Given the current state of the economy, the sudden and drastic decline in the financial markets, coupled with the drop in consumer demand, it’s hard to discuss income from stocks without eliciting some kind of apprehension or concern. We’ve seen this happen before. There was the stock market crash of 1929, followed by the Great Depression, another stock market disaster in 1987 and...
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January 7th, 2011 — Dividend Investment
Undervalued cheap stocks are a very good way for a sharp investor to make a return on their investment. The definition of an undervalued stock is one that is trading below it’s intrinsic market value. Stocks bought at a low price are then sold as futures for a higher price.
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When searching for undervalued stocks, an investor hopes that the market will eventually...
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January 7th, 2011 — Dividend Investment
Generally, the least speculative stocks offer dividends as incentives to the shareholders to continue to maintain their interests in those companies. Since speculative stocks already offer the sort of massive growth that many aggressive traders seek, those companies do not need to offer dividends to entice people to buy shares; companies that exhibit slow and stable growth, however, are wise...
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January 7th, 2011 — Dividend Analysis
Whole Foods Market (WFMI) is a specialty grocery chain catering to affluent customers who want organic and healthy foods. The chain has 284 stores. The majority of them are in located throughout the U.S., however, it also has a few locations elsewhere. Whole Foods recently bought out its arch rival, Wild Oats, in a calculated move. This makes Whole Foods the most sizable global retailer of...
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