Monday, November 24, 2014

Dividend Investors Should Focus On Stocks, Not The Market

The election may be settled, but investors fears are not. When Obama was first elected, the market plunged on worries of the looming Fiscal Cliff and European concerns. Budget negotiations began on Capitol Hill, optimism returned and the market responded. More recently, Obama's popularity plunged, then the Republicans regained control of the Senate. Is it a stock market, or a yo-yo?


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Sunday, November 23, 2014

Weekend Reading Links - November 17, 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, November 22, 2014

What to Look for in a MLP

There are a few key areas where MLPs can be fairly attractive for individual investors alongside other investments like dividend stocks.
First, unless you’re a particularly interested and savvy investor, I’d propose sticking to fairly stable businesses. The fairly stable MLPs tend to be pipeline businesses and other very reliable cash-generating assets.
Second, there are three key areas for MLPs I look for. They are: MLPs on the low side of the IDR payouts, publicly traded General Partners, and MLPs with no General Partner.


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Friday, November 21, 2014

Eaton Corporation Stock Analysis

Eaton Corporation plc (ETN) operates as a power management company worldwide. This dividend company has paid dividends since 1923 but is the type of company that does not raise them every year. For example, in the past two decades the company kept annual dividends unchanged in 1999, 2000, 2002 and 2009. I recently initiated a position in the company, and just now managed to get some time to do a write up about it.

Over the past decade this dividend growth stock has delivered an annualized total return of 10.70% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders.

The company has managed to deliver an 11.80% average increase in annual EPS over the past decade. Eaton is expected to earn $4.60 per share in 2014 and $5.34 per share in 2015. In comparison, the company earned $3.90/share in 2013.

The annual dividend payment has increased by 13.80% per year over the past decade, which is higher than the growth in EPS. I would expect the dividend growth rate to be closer to 10% for the near future.

Currently, Eaton is attractively valued at 15.30 times forward earnings, and has a dividend yield of 2.80%. I initiated a position in the company in the past month. I would be looking forward to adding to my position in the company in the coming years, subject to availability of funds, opportunity cost and valuation.

Full Disclosure: Long ETN

Review the full analysis at Seeking Alpha

Relevant Articles:

Two and a half purchases I made this week
Ten Dividend Seeds I Planted for Long Term Income
14 Dividend Growth Stocks I Bought On the Dip Last Week
Does diversification lead to lower quality of investments in a dividend portfolio?
How to stay motivated on your road to financial independence

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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