Saturday, September 20, 2014

Dividend Growth Investing 101

Dividend Growth Investing is about purchasing dividend stocks that grow their dividends over time, and then holding onto those investments for quite a while as you receive continually increasing passive income from those companies.
Why this strategy? Because it gives you passive income that grows exponentially each year, and simultaneously builds your net worth over the long-term. Wealth is not simply about having a lot of assets, it’s about generating a significant amount of passive income that grows over time. Dividend Growth Investing works to build both your passive income and your net worth, can be more reliable than other investing methods, requires less time, and can be performed by anyone with sufficient discipline and basic math skills.


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Friday, September 19, 2014

Dividend Stock Analysis of McDonald's (MCD)

McDonald’s Corporation (MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. As of December 31, 2013, it operated 35,429 restaurants, including 28,691 franchised and 6,738 company-operated restaurants. McDonald’s is a dividend champion which has increased distributions for 38 years in a row.

Over the past decade this dividend growth stock has delivered an annualized total return of 17.90% to its shareholders.

The company has managed to deliver 16.70% average increase in annual EPS over the past decade. I expect future growth in annual earnings and dividends to be in the range of 7% - 10% per year in the next decade.

Currently, the stock is attractively valued at times earnings and a current yield of %. There is an increasingly negative sentiment toward the company. I believe McDonald’s will overcome its problems, and reward patient shareholders who have a long-term horizon. I also find it easier to buy shares in a company when there is some known hang-up, which keeps price depressed. I would be even more excited if shares fell further from here, because this would mean more shares and more dividend income for every dollar I put to work. I have been adding to my position in the stock slowly throughout 2014.


Full Disclosure: Long MCD and YUM

Relevant Articles:

7 Dividend Paying Stocks I Purchased Without Paying Commissions
Six Notable Dividend Increases so far in September
14 Dividend Growth Stocks I Bought On the Dip Last Week
Are you drowning in cash?
How to buy dividend stocks with as little as $10

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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Thursday, September 18, 2014

Why I purchased GE

At the time of writing this article, the S&P 500 is sitting just a tad above 2,000 points. This after a five-year run that has seen the index up almost 100%. Think about that: The index almost doubled itself in just five short years. Is that collection of 500 stocks now worth twice what they were in late 2009?
Warren Buffett was eternally correct in asserting that price is what you pay, while value is what you get.


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Wednesday, September 17, 2014

Top Dividend Stocks With No Debt But High Cash On Balance Sheet

I hate it when one of my stock holdings cut its dividends. Tesco did it recently and I will lose now 75 percent of my income from the stake. 

For sure, it’s not much because the stock has only a portfolio share of around one percent but I've bought this share in hopes to get a stable output or a rising long-term dividend with low taxation.


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