Warren Buffett is a fan of railroad operators and acquired Burlington Northern Santa Fe (BNSF) in 2010 for $ 34 billion, adding the company to Berkshire Hathaway's portfolio
of high quality dividend stocks.
Not exact matches
That's because being able to buy a
high -
quality dividend growth
stock when it's undervalued confers a lot
of benefits to the long - term investor.
More specifically, I'm speaking about collecting
dividends from a broad portfolio
of high -
quality dividend growth
stocks.
While having all
of this information at hand is wonderful, I'm going to take it a step further by revealing and discussing a
high -
quality dividend growth
stock that right now appears to be undervalued...
As I note throughout the Undervalued
Dividend Growth Stock of the Week series, a high - quality dividend growth stock that's undervalued can confer multiple benefits to the long - term investor: a higher yield, greater long - term total return prospects, and le
Dividend Growth
Stock of the Week series, a high - quality dividend growth stock that's undervalued can confer multiple benefits to the long - term investor: a higher yield, greater long - term total return prospects, and less
Stock of the Week series, a
high -
quality dividend growth stock that's undervalued can confer multiple benefits to the long - term investor: a higher yield, greater long - term total return prospects, and le
dividend growth
stock that's undervalued can confer multiple benefits to the long - term investor: a higher yield, greater long - term total return prospects, and less
stock that's undervalued can confer multiple benefits to the long - term investor: a
higher yield, greater long - term total return prospects, and less risk.
For more information on Amgen, check out my most recent Undervalued
Dividend Growth Stock of the Week article on this high - quality dividend growt
Dividend Growth
Stock of the Week article on this high - quality dividend growth s
Stock of the Week article on this
high -
quality dividend growt
dividend growth
stockstock.
The biggest challenge with the
Dividend Aristocrats list is that each stock must be a member of the S&P 500 Index, cutting out many other high quality dividend growth
Dividend Aristocrats list is that each
stock must be a member
of the S&P 500 Index, cutting out many other
high quality dividend growth
dividend growth
stocks.
The O'Shares FTSE Russell Small Cap
Quality Dividend ETF tracks an index of US small - cap stocks weighted for exposure to quality, low volatility, and high yield f
Quality Dividend ETF tracks an index
of US small - cap
stocks weighted for exposure to
quality, low volatility, and high yield f
quality, low volatility, and
high yield factors.
Sure
Dividend uses The 8 Rules of Dividend Investing to systematically identify the best high quality dividend growth stocks for the lon
Dividend uses The 8 Rules
of Dividend Investing to systematically identify the best high quality dividend growth stocks for the lon
Dividend Investing to systematically identify the best
high quality dividend growth stocks for the lon
dividend growth
stocks for the long - run.
My stated goal
of achieving Semi-Financial Freedom (SFF) involves, on the investment side
of the equation, accumulating
high quality dividend growth
stocks and reinvesting the income.
The more shares you own
of high -
quality dividend stocks, the more money you make from
dividends.
Whatever your criteria, it's important to know that there are literally hundreds
of quality high dividend stocks that make for a great addition to the portfolio for patient investors.
Most utilities, packaged food and mature pharmaceutical companies possess characteristics often thought
of as typical for value
stocks:
high free cash generation,
high quality balance sheets and
high dividend payouts.
Higher -
quality dividend - paying
stocks are understood within the industry to mean those issued by large, stable companies that generally invest in profitable projects, manage their expenses effectively, and grow their cash flow — some
of the hallmarks
of companies that are able to sustain and grow
dividends over time.
The appeal increases when you consider that
dividend - growth companies tend to be
of higher quality and lower volatility than the broader
stock market.
If you're not familiar with Loyal3 they are a commission - free broker with a decent collection
of stocks, including some
high quality dividend growth
stocks.
This is a very
high quality stock with excellent management, a nice
dividend yield
of 4.2 per cent and a tidy balance sheet — perfect for the bottom drawer.
While our emphasis on
higher -
quality, large - cap
stocks with above - average
dividends was slightly out
of step with a momentum - driven environment, we believe it is a prudent strategy from a longer - term standpoint.
Another option, though may be not as safe as CDs or money market accounts, is
high quality dividend paying
stocks (always understand that investing in the
stock market is riskier than putting money in bank accounts), some with more than 5 %
dividend yield at the end
of 2010.
Sixty percent
of the portfolio is allocated to
high -
quality American and international
dividend - paying
stocks via the positions in $ VIG, $ DLN, and $ PID.
If you stick with top
quality stocks paying the
highest dividends, the income you earn can supply a significant percentage
of your total return — as much as a third... Read More
Now that we see the power
of dividend growth investing, and now that we see why an undervalued
dividend growth
stock can be such a compelling opportunity, let's take a look at a
high -
quality dividend growth
stock that appears to be undervalued...
Fortunately, it's not terribly difficult to recognize undervalued
high -
quality dividend growth
stocks and take advantage
of these opportunities.
• Trimmed JNJ and PEP each back to 9 %
of the portfolio to get them under the 10 % - max guideline • With the proceeds, added to existing positions in AT&T (T) and Microsoft (MSFT) • With the remaining proceeds, started a new position in Digital Realty Trust (DLR) Thus, this package
of trades served several strategic goals at the same time: • It corrected the over-sized positions by getting them back under 10 %
of the portfolio • It allowed me to increase my stakes in two
high -
quality dividend growth companies • It allowed me to add a new position, bringing me closer to my target
of 20 - 25
stocks overall.
I make use
of three components: 1) A single premium immediate annuity (SPIA), 2) Corporate bonds and / or preferred
stocks and 3)
High quality dividend stocks.
«
Dividend growth
stocks tend to be
of higher quality than those
of the broader market in terms
of earnings
quality,» write S&P strategists Tianyin Cheng and Vinit Srivastava.
The effect
of buying
high quality dividend paying
stocks has three layers
of wealth accumulation baked in:
If you stick with top
quality high dividend yield
stocks, the income you earn can supply a significant percentage
of your total return — as much as a third
of your gains.
The
dividend aristocrats list is a great source to begin further research into
high quality investments, or you may prefer to buy all
of these
stocks in a basket.
Currently there are 50
stocks that make the cut, all
of which are
high quality, have large moats that have allowed them to continue to prosper during all points
of the business cycle, even raising
dividends during times
of recession.
The purpose
of owning
high quality dividend growth
stocks is to see your
dividend income steadily grow through time.
Maybe there are somewhat more stable
stocks larger companies
stocks dividend payers maybe there's a larger percentage
of high -
quality bonds in there relative to your very long - term horizon.
My general thesis when it comes to investing in tech companies is to diversify across a number
of the
highest -
quality and most profitable
dividend growth
stocks in the space, limiting myself to those companies that have demonstrated an ability to change / adapt over time (with the dot - com bubble itself being a nice test
of that).
If you stick with top
quality high dividend paying
stocks, the income you earn can supply a significant percentage
of your total return — as much as a third
of your gains.
With all
of this in mind, being able to buy a
high -
quality dividend growth
stock when it's undervalued can be a compelling and powerful long - term investment opportunity.
but latter in life wish I had moved it to my Reg - IRA account where I can probably beat the a S&P 500 index with a group
of 5
high quality dividend - paying
stocks and some time investment.
The appeal increases when you consider that
dividend - growth companies tend to be
of higher quality and lower volatility than the broader
stock market.
Especially, when he sees
high quality stocks at prices cut to 25 %
of today's levels but still paying today's
dividend amounts.
When
stocks are cheap, you have your choice
of many top
quality companies offering
high dividend yields.
Gift them a portfolio
of high -
quality,
dividend - paying
stocks, and set it up so they need to have your approval or signature to liquidate it.
So with ENB, I will benefit
of both worlds:
high dividend payer and
high quality stock.
My stated goal
of achieving Semi-Financial Freedom (SFF) involves, on the investment side
of the equation, accumulating
high quality dividend growth
stocks and reinvesting the income.
Each one
of these
stocks has paid
higher dividends every year for at least 25 years, each is a
high quality business, each has a large moat, and each has proven itself through multiple business cycles, not only maintaining the
dividend but even increasing them during recessions.
Consider buying the ETF or, if you're up for the challenge
of researching individual
stocks, use the ETF's underlying holdings as a screened list
of high -
quality dividend payers from which to choose.
This
Dividend Aristocrats List is a great source to begin further research into
high quality investments, or you may prefer to buy all
of these
stocks in a basket.
General Mills Inc (GIS) is a
high quality blue - chip
dividend growth
stock with a consistent long - term record
of earnings growth averaging approximately 8 % per annum.
If you are not immediately using the
dividends for some expense purpose (pay bills,
higher quality of life) why would you not consider a lower
dividend / no
dividend yeilding growth
stock, at least for a time?
Many
of the
dividend growth
stocks I will be covering in this series are
of high quality.
Similarly, for the
High Quality,
High Dividend Stocks, I use the equations: = -LRB--LRB-(J64 + J40) * 0.5 - J52) * -LRB-($ E$ 19 - 8) / 4) ^ 2) + (J64 - J40) * 0.5 * -LRB-($ E$ 19 - 8) / 4) + J52 I interpolate among years in
Dividend Calculator B. I ignore all interactions (between the number
of years and the payout ratio).
The
high dividend,
high quality stock portfolio should be able to supply an income
of 2.9 % based on DVY (an exchange traded fund).