Monday, May 22, 2017

5 Dividend Stocks With A Low P/B Ratio

A declining market is what value and dividend growth investors long for. There have been times in the past where I struggled to find stocks worthy of purchasing. In a down market, the challenge is to pick the best available stocks that will maximize my chances of future success. When looking for value priced stocks, the Price-To-Book (P/B) ratio is one that I like to focus on.

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Sunday, May 21, 2017

Weekend Reading Links - May 21, 2017

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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Thursday, May 18, 2017

Is it that hard to beat the market?

I’ve been thinking about the idea of beating the market on a long-term basis and whether that’s really possible. I laid out some thoughts on that topic below.

There’s a school of thought that suggests the market efficiently prices in all information that’s available to it at any point in time such that it’s theoretically impossible to be able to outperform the market on a long-term basis. Of course the investment results of people like Warren Buffett, Philip Fisher and Peter Lynch obviously suggest otherwise but even a more empirical study of stock price movements suggest that the market is prone to over or under react to information at any point in time. I’ll go into this further, but before that, consider the overall “quality” of the market.

If you think about a broad-based index like the S&P 500 for instance there is obviously varying levels of quality amongst all of the stocks that make up that index. Some of those businesses are clearly on the ascendancy such as Google ,Facebook, Amazon etc. all of which are riding market tailwinds while other businesses such as Ford, U.S. Steel and even Verizon are now on the decline as a result of market changes. Further many of these businesses also have varying levels of profitability, returns on equity and competitive dynamics within their various industries that influence long term returns. Arguably the index itself takes care of better and worst performers through changes in the weighting of these relative components however that doesn’t change the fact that there are still 500 businesses of varying quality within the overall index.

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Wednesday, May 17, 2017

Outlook for May 2017

Things have been chugging along in the markets. As regular readers may have noticed, I have been fairly inactive in my posts on this blog. My work has been very demanding lately and I havent had enough time to dedicate to write new posts and share with you. In fact, I havent been able to follow the markets either….which isn’t a bad thing….taking a break from the lunacy of the stock and bond markets allows me to focus my attention elsewhere. 

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