Dividend Growth Investor
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Wall Street Breakfast: Must-Know Newsby SA Editor Rachael Granby- Bank trio becomes duo. Wells Fargo (WFC) will become the largest U.S. bank by branches with its bid for Wachovia (WB), after Citigroup (C) withdrew from compromise negotiations late yesterday on concerns about the quality of some of Wachovia's assets. Wells Fargo, with a bid valued at $11.4B, expects the purchase to be completed by the end of the year, and denies it will have to absorb assets shakier than originally thought.
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Latest Comments139 Comments
A Dividend Primer, You Don't Get Something for Nothing
You are looking at the issue from the standpoint of a daytrader. It is true that the stock price at the open is reduced by the amount of the dividend, but more often than not this is only a cosmetic change as the market adjusts it value up or down based off other factors.
Stocks that pay dividends tend to outperform those that do not, as their dividend checks tend to soften any declines in bear markets and further compound your profits in bull markets.
Highest Yielding Stocks Going Ex-Dividend in December
www.dividendgrowthinve...
Basically this strategy assumes that markets are inefficient and that there is free lunch. Even the author of the article doesn't do what he preaches - then why should you risk a large capital loss for a small dividend?
Top High Dividend Stocks in a Down Market
Merger Arbitrage: Sound Strategy for a Bear Market
It also looks to me as if the fund participates in all deals, which is someting I am not looking to achieve. By all deals I mean deals that are just announced, and still have obvious hurdles in front of them. For example on 6/30/2008 GDL owned shares of YHOO even though the merger was never approved by YHOO's board.
Please review this post on merger arbitrage:
www.dividendgrowthinve...
40 Net Current Asset Stocks for Value Investors
I don't own any of the above stocks. I have been researching TAIT in order to determine how much can you get out of it if the inventory were sold off. I also like that TAIT seems to be returning capital to shareholders through dividends over the past 2 years.
Of course the builders also look interesting as a potential value play. Graham made a lot of money in the 1930's by buying whole companies selling below the net current assets minus total liabilities and then liquidating them..
Markets Punish Dividend Cutters
My reviews of companies cutting or eliminating dividends suggest that more bad news are ahead for stockholders in those that provide negative dividend news. I do write how much the stock has increased or decreased in a given week, but that's because I provide the dividend cuts on a weekly basis. I wish I had started tracking dividend cuts a long time ago..
In a previous post I posted a chart from Ned Davis research, showing that dividend cutters or eliminators underperform the dividend growers and initiators over the long-term. So I wouldn't expect these stocks on average to perform well over time.
On Nov 25 02:48 PM Aalan wrote:
> If a business is losing cash flow due to market conditions beyond
> its control, I'd rather it maintain its long-term viability by putting
> its remaining cash to working more efficiently, rather than cannibalize
> itself to make stockholders happy for another quarter. If you're
> only interested in short-term trades, then your response makes sense--but
> don't blame the business model; that's strictly market-timing.
It Doesn't Always Pay to Follow Buffett's Lead
Furthermore, comparing the one month performance of your clients is irrelevant, since BRK.A holds stocks primarily as long term investments, unless they are special situation type investments.
Why Should Companies Pay Dividends?
The chart from Ned Davis Research compares the performance of dividend paying S&P 500 stocks versus non-dividend paying S&P 500 stocks. All S&P 500 stocks are believed to be established enterprises.
The Dow's Lost Decade
Since the end of 1998 DIA has distributed $20.03 in dividends/share
Since the end of 1999 DIA has distributed $18.36 in divs/share
In 1999 DIA distributed $1.67 in dividends. In 2007 it distributed $2.75. I would say that investors didn't do as bad, although not as good as in prior decades.
Electric Utilities: Thus Far a Relative Safe Haven
Betting on Ford: Ugly Stock, Intriguing Options Opportunity
My Dividend Portfolio: I Like Beer
www.dividendgrowthinve...
Going for High Yield Stocks
Real Price of Gas Approaches a Historic Record-Low
I just wanted to say that I really enjoy the historical perspective in your articles.
I never considered the fact that gas prices are in a long term decline..
100% Yields on Ecuador Bonds: A Sign of the Times
If they have 2 billion on hand, why can't they ( at least theoretically) simply purchase these bonds.. And reduce their debts forever?