Login

Log In

Enter your username and password below

DI Old-Article

DI Old-Article Archive: April 2013

GORO: As Good As Gold? Hardly.

I admit, in this near-zero interest world we live in, we’re all starving for yield. But leaping into shares because of a big, fat payout is rarely the best way to get it. Take Gold Resource Corporation (GORO), for instance. It recently boasted a very seductive 7.5% yield, with an annualized payout of $0.72, paid...

Dividend Stock Wars, Oil Edition: Exxon vs. Chevron

Due to popular demand, it’s time for another round of dividend stock wars. This time, I’m throwing two oil majors into the ring – Exxon (XOM) versus Chevron (CVX). Each company declared competitive dividend increases earlier in the month. And each sports a comparable yield and holds relatively equal footing in the industry. So now...

The Little Engine That Can’t

Summer is almost here. Soon homes across America will be firing up lawnmowers. And the engines powering all those lawnmowers across countless acres of American lawns will most likely be from Briggs & Stratton (BGG). Founded in Milwaukee, Wisconsin, in 1908, Briggs & Stratton is the world’s largest manufacturer of gas-powered engines for outdoor power...

How High is Too High for This MLP?

Let’s get one thing clear: Since the Fed lowered interest rates to 0% at the end of 2008, high-yielding securities have seen an across-the-board rise in bid prices. For some, it appears the economy is continuing to get better, despite the lingering problems in the United States and around the world. In fact, Jeffrey Lacker...

The Fed’s Stress Testing Means Massive, Unrealized Dividend Growth

As I’ve said time and time again, aggressive dividend growth – not an aggressive yield – is the primary qualifier for a worthy cash distribution program. It pushes up the yield-on-cost – which I’ve called the ultimate number in dividend investing – and allows for long-term gains that high-yield, low-growth stocks simply can’t achieve. So...

Don’t Get Stuck Holding RPM

As the rebound in the housing market continues to move along, many companies related to housing – in whatever way, shape, or form – are enjoying the ride, as well. Since the first of the year, shares of Home Depot (HD) are up 18%. Shares of Sherwin-Williams (SHW) are up 19%, while shares of Home...

A Brief Warning About a Troubled REIT

Every income investor and their mother love a good REIT. With their potential for big yields and dividend growth, that’s hardly surprising. So let Potlatch Corporation (PCH) serve as a good reminder that not all REITs are created equal… Potlatch specializes in acquiring, managing and maintaining forests, with the dual intent of harvesting the trees...

First-Quarter Dividend Cuts, Increases Are Officially Batsh*t Crazy

Leave it to the Fiscal Cliff to take one of the most predictable aspects of investing – namely, dividends – and turn it into total nonsense. Here’s the quick-and-dirty rundown: In any given non-recessionary month over the last decade, you’ll never count more than 10 companies on the S&P 500 cutting dividends. But just last...

PBI: Still the Most Dangerous Dividend Stock on the S&P 500

There’s a special honor bestowed upon stocks that have both paid and raised payouts for 25-plus years: They’re called Dividend Aristocrats. Very few dividend stocks ever make the list. In fact, currently, there are only 54 such stocks on the S&P 500. And, as everywhere, past performance is no guarantee of future results. So being...

Pfizer’s Not Going Anywhere – And Neither is its Dividend

Pharmaceutical companies stand near the top of the list of dividend staples, right next to utilities and telecoms. For good reason, too. As long as a company has a top-selling product protected by a patent, investors can count on those dividends, quarter in and quarter out. But the operative phrase there is “as long as.”...

Shopping for Dividends

In the market for a $40 stainless steel balloon whisk with an ergonomically designed handle? Or perhaps a $400 bread dough mixer? Or maybe your own personal $6,500 outdoor pizza oven for those occasional holiday cookouts? If these are things you simply must have in your home (whoever you are), chances are you’ll be shopping...

May’s Ex-Dividend Roundup: Intel, Hickory Tech, Northeast Utilities

Every month, I dig through D&I Daily’s dividends calendar in search of stocks worth highlighting that are about to go ex-dividend – that is, pay out cash on a specified date. I’ll  point out both  the good and  the bad, too. Because protecting your hard-earned money from shaky investments is just as key as making gains. Remember, to...

The One Max-Yield Security You’ve Never Heard Of

Business development companies, or BDCs, are a security that most personal investors seem to be totally unaware of. Which is unfortunate, because they offer a heap of benefits that are difficult to find elsewhere. Especially for income investors. Today, however, I’ll be putting you in the know… Strictly Business BDCs, in short, are pass-through investments...

How Manulife’s Bottom-Line Scrambling Threatens its Dividend

Repeat after me: Buy low, sell high. That’s the mantra, right? At times the best stocks to buy – the ones that are “low” – look like the ones to avoid. You know, “blood in the streets,” and all that. In other words, form a value standpoint, it’s often a company in transition that poses...

Cardinal Health is Down, But Not Out

Let’s face it kids – we’re getting older. And some of us faster than others. No, I don’t mean we’re getting older faster on an individual basis. Rather, the population in the United States is aging faster relative to some other countries… You see, the largest demographic group in the United States is the Baby...

A Six-Shooter of High-Velocity Dividend Growth Stocks (Part 2)

In the last issue, I got up on my high horse with one message to shout: Growth beats yield. Like I said, chasing high yield can only result in a world of pain. Instead, finding companies with a penchant for aggressive, consistent dividend growth is the smarter, more profitable dividend investment strategy. To start you...

Urgent Update on Hewlett-Packard

Urgent Update on Hewlett-Packard We recently ran an article on the dismal situation at Hewlett-Packard (HPQ). Since that story went to press, there have been some new developments. As reported in the original article, a viscous shareholder rebellion at HP’s annual meeting in late March nearly succeeded in removing a majority of its board. The...

A Six-Shooter of High-Velocity Dividend Growth Stocks (Part 1)

Say it with me, “Growth beats yield… Growth beats yield… Growth beats yield.” It’s my mantra. Even my own mother is sick of hearing it. (“Oh, cut it out and eat your dinner!”) But I’m not going to stop pounding that drum until every D&I reader (and my mother) understands that chasing yield is about...

31 Quarters and Counting!

How would you like a raise… every three months? That’s something of a dream come true for most employees. But it’s also something of a mythological creature. It’s pretty exciting to think about, but only exists in our imaginations. In reality, quarterly raises just don’t happen. Most employees are lucky these days to get an...

Classic Head-Fake From a Former Tech Great

Traditionally, we like to see dividend increases. By rewarding investors with increased capital participation, a dividend bump is a sign that management has confidence in the company’s performance, and its prospects for the future. But dividend hikes aren’t always good things. Sometimes, an increase in dividends is a cry for help during turbulent times. A...

Tech Stocks Are Taking the Dividend World By Storm

The latest dividend research from FactSet should raise some eyebrows, on two counts. One, dividends are continuing to break records: “Over the year-ended 2012, $310 billion have been paid out in dividends, which is a ten-year high for trailing twelve-month periods.” And two, when it comes to dividend growth, there’s a new ringleader in town...