Monday, October 20, 2014

Buy And Hold Is Not Buy And Forget

We have all heard it. Mainstream media pundits talking about 'the lost decade' and that 'buy-and-hold as a strategy is dead and gone, if ever it was a viable strategy.' Sorry folks, but I am not buying or holding their position on buy-and-hold. Buy-and-hold is neither dead, gone or even sick, but I will concede - it is misunderstood.

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Sunday, October 19, 2014

Weekend Reading Links - October 19, 2014

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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Saturday, October 18, 2014

Dividend Discount Model Overview

The Dividend Discount Model (DDM) is the key valuation technique for dividend stocks.
The most straightforward form of it is called the Gordon Growth Model. This guide explains how it works and the streamlined way to use it.

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Friday, October 17, 2014

Disney: A Wide-Moat Stock To Hold Forever

The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The company is not a typical dividend growth stock, although it has paid dividends since 1957, and has never cut them. Disney is the type of company that raises dividends for a few years, then keeps them unchanged, after which it raises them again. Disney is also one of the 60 companies, which could be purchased commission-free using Loyal3, with as little as $10.

Currently, Disney is overvalued at 20.80 times forward earnings and a low yield of 1% . I really like the company, and I believe it has a wide moat. I have hesitated initiating a position in the company for the past 20 points, because of irrelevant factors such as low yield, while ignoring the company's strong competitive position. I would feel more comfortable initiating a position in the company at lower prices, which is why I am going to be monitoring it closely. While the economics and prospects for the business are amazing, I do not like to overpay for even the best businesses, nor do I want to chase share prices higher. I would be most happy to initiate a position below $84 - $85/share. I would be even more ecstatic if I could purchase shares at 15 - 16 times earnings, which is equivalent to a dip below $70/share. This is the type of company to hold forever.

Check the full article over at Seeking Alpha

Full Disclosure: None

Relevant Articles:

How to analyze dividend stocks
PepsiCo (PEP) Dividend Stock Analysis 2014
McDonald’s (MCD) Dividend Stock Analysis 2014
Johnson & Johnson (JNJ) Dividend Stock Analysis
Wal-Mart (WMT): The Time To Buy Is When No One Likes a Quality Dividend Company

This article was written by Dividend Growth Investor. If you enjoyed this article, please subscribe to have future articles emailed to you [Email] or follow me on Twitter [Twitter]

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