But let's break down the company's top - line and bottom - line growth, which will surely have a lot to
say about its dividend growth moving forward.
If there's one thing we can
say about Dividend Growth Investor, it's that he's consistent.
Not exact matches
The difference is that in an S corp, owners pay themselves salaries plus receive
dividends from any additional profits the corporation may earn, while an LLC is a «pass - through entity,» which means that all the income and expenses from the business get reported on the LLC operator's personal income tax return,
says Ebong Eka, a CPA who also pens his own blog
about the world of entrepreneurship at MoneyMentoringMinutes.com.
He thinks Apple will increase its
dividend, but he'll be watching on Tuesday to see if the company
says anything
about the pace of those
dividend increases.
Luciano Siracusano, chief investment strategist at ETF and index developer WisdomTree (wetf),
says the 1,400
dividend - paying stocks in the company's WT Dividend index now have average yields of about 3 %, twice the yield of 10 - year Tre
dividend - paying stocks in the company's WT
Dividend index now have average yields of about 3 %, twice the yield of 10 - year Tre
Dividend index now have average yields of
about 3 %, twice the yield of 10 - year Treasuries.
In the European market, the oil sector has a high
dividend yield of
about 6 percent — the highest there is — which adds up to real value,
says Nick Nelson, head of global and European equity strategy at UBS.
The El Dorado, Arkansas - based company also
said its board authorized a special
dividend of $ 2.50 per share for a total payout of
about $ 500 million, and a common stock buyback program of up to $ 1 billion.
That
said, while stock prices have been more volatile, and unusually strong in recent years,
dividend yields still added
about 2 % to stock market returns each year.
They're the middle class that he's talking
about and you would hit them pretty hard if you took the
dividend tax credit away or you reduced it,» he
said.
Companies also are expected to pay out
about 33 % of profit in the fourth quarter, Mr. Silverblatt
says, as profit growth outpaces
dividend increases.
If I assume a
dividend growth rate of 6 percent (
about the long - run average *), the current S&P 500
dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500
dividend yield of 4 percent (Hussman
says that the
dividend yield on stocks has historically averaged
about 4 percent), the expected nominal return over ten years is 2.4 percent annually.
I would
say about time, 6 years without a
dividend increase in a company that established is an long time haha.
And I
said, «I wonder if you thought
about framing in a different way, you know, whether it's
dividend yield or earnings yield, when the market goes down 20 %, 40 %, 50 %.»
GE
said plans to exit its financial businesses are ahead of schedule and it expects its GE Capital unit to yield
dividends of
about $ 3 billion in 2015.
This isn't a problem for investors with long time horizons (
say 10 + years to retirement) or large enough portfolios to live entirely off
dividends, but if your portfolio is small and you need to periodically sell shares to fund living expenses (such as with the 4 % rule), then this short to medium - term risk is something to be aware of as you think
about portfolio diversification.
The panel
said shareholders had been confused
about the value of Saputo's offer by two franked
dividends WCB had planned to pay shareholders — but which were subsequently withdrawn — under a previous Saputo offer.
With passive
dividend income comes more options, and while I've
said it before at least a dozen times, I'll
say it again because it's so true: Options is what this game is all
about.
Investors looking for stable
dividend - paying stocks (with
about a 2 % yield) can add the stock to their Canadian holdings,
says Hornett.
Prior to the market hitting a spate of turbulence, for the last four years, I had rarely heard anyone
say something bad
about a buyback or a special
dividend.
But generally speaking, it's safe to
say that a
dividend stock aggressively raising its payout is a healthy company and one that is justifiably confident
about its future.
I can only dream
about where I'd be if I saved and
dividend invested even 10 % of my income from 18 on... I understand the pain lol But like you
said, it's the way you learn.
But we'd
say the same thing
about focusing on p / e ratios, or
dividend yields, or the number of patents a company owns.
That
said, nothing
about interest rates should affect O's ability to keep churning out those monthly
dividends and quarterly increases.
But if you own companies like BCE Inc., Telus Corp., Fortis Inc. or TransCanada Corp. that are able to grow their
dividends — sometimes twice a year — you don't have much to worry
about,» the manager
said.
To what extent do you view your investing life as an extension of your personal life?By that I mean to what extent do the personal morals and ethical values of Tim the man govern the investing decisions of Tim the
dividend growth investor?If you ask your typical
dividend growth investor if they would be willing to invest in a lucrative but immoral venture,
say selling child pornography or crack cocaine, the answer would probably be «absolutely not» regardless of the yield, valuation or growth prospects of the underlying venture.And yet, ask that same investor what their thoughts are
about Phillip Morris and they would probably describe what a wonderful investment it is and go on
about why you should own it.Do your personal morals ever come into play when buying companies, or do you compartmentalize your conscience, wall it off from the part of your brain that thinks
about investments, and make your investing decisions based on the financial prospects of the company?The reason why I'm asking is that I keep identifying stocks of companies that I love from an investing perspective but despise on a human level.I can not in good conscience own any piece of Phillip Morris knowing the impact that smoking related illness has on the families of smokers.You might
say that the smoker made his choice to smoke so you don't mind taking his money, but his children never made that choice and they are the ones who will suffer when he dies 20 years too soon.
All that to
say, I do not believe one bit that investors need to shy away from
dividend - paying stocks, but rather should be mindful
about what role increased rates might have on them.
On an income portfolio yielding 4.5 %, Baskin
says the higher taxes on U.S.
dividends can knock
about 1.25 % off your returns.
That
said, I believe that many investors have bought into myths and misunderstandings
about dividends.
Now even though I am talking
about dividend reinvestment, I am not
saying to target
dividend - paying stocks in your portfolio.
That
said, the current yield is a monster 8 % so I don't really care
about or need
dividend growth.
A couple of weeks ago, I wrote that Scottrade, my long - time stock broker is
about to launch its own flexible
dividend reinvestment program, which the brokerage firm
says will be different from the traditional
dividend reinvestment program (DRIP) that automatically reinvest
dividends after they have been received without investors» intervention.
As you
say, to have increased the
dividend for 22 years in such a cyclical industry is a great achievement and
says good things
about the management.
We'll see how it goes, but I agree with you in that the
dividend growth track record
says a lot
about the company's culture and its management.
Additionally,
dividends say a lot
about the fundamental health of a company, and this is one of the main reasons why
dividend stocks tend to do so well over time.
The
dividend yield
says nothing
about the certainty of its continued payment.
I will
say that there is one pro
about maintaining the
dividend champion trophy, it stands as a safe haven for investors.
That
said, while stock prices have been more volatile, and unusually strong in recent years,
dividend yields still added
about 2 % to stock market returns each year.
If you assume low multiples at the end of
say, a 10 - year holding period, it would take heroic assumptions
about the growth of
dividends and earnings to get a respectable return from stocks (see: Estimating the Long Term Return on Stocks).
The company's combination of attractive total returns and safety even has some
dividend investors
saying it's their civic duty to inform fellow investors
about the company.
That being
said, even at today's historically attractive valuation multiples, investors should likely only expect to earn a potential total annual return of
about 5.9 % to 6.9 % (1.9 % yield plus 4 % to 5 % annual earnings growth) over the next decade, far below the company's historical return rate and the returns offered by most other
dividend aristocrats.
He
said investors should think
about dividend growth not only in the large cap space, but in the mid - and small - cap space as well as international.
«That $ 260,000 in combined TFSA assets with 3 %
dividend yield in seven years works out to
about $ 7,800 in tax - free income,»
says DeGoey.
If I assume a
dividend growth rate of 6 percent (
about the long - run average *), the current S&P 500
dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500
dividend yield of 4 percent (Hussman
says that the
dividend yield on stocks has historically averaged
about 4 percent), the expected nominal return over ten years is 2.4 percent annually.
As I
said in a prior posting
about matching, the sustainability of matching dollar - for - dollar becomes less tenable as my
dividend income rises faster than my salary.
I've heard from a few investors that
said they didn't care much
about higher tax rates on
dividends.
Such policies are fine, but
dividend growth in these cases has little to
say about management expectations.
Then he would invest the money so it produced an annual income of
about $ 5,000 to $ 10,000 a year, something Louis
says he could probably do by investing in good
dividend - paying stocks or a well - balanced portfolio of index mutual funds.
Dividends say a lot
about the health of the business.
What can you
say about 56 years of
dividend growth?
I don't know that valuation, based
say on a calculation of future returns sought, tells me very much
about a company's ability to consistently pay
dividends with growth.