Retired Investors Don’t Buy Bonds Until?

Introduction

The primary attractions supporting investing in bonds or other fixed income instruments have traditionally been high income and safety.  People invest their principal in bonds and receive a stated interest rate (coupon) over the life of the bond and are given the promise of having their principal returned at maturity.  Under normal times, bonds would typically pay a higher rate of interest than the dividend rate on stocks.  Consequently, bonds have acquired the reputation as low risk and high income instruments. […]

Stocks for 2014: Fairly Valued Dividend Growth Stocks with an Emphasis on Dividends – Part 4

Introduction

I am a firm believer that common stock portfolios should be custom-designed to meet each unique individual’s goals, objectives and risk tolerances.  With that said, I believe it logically follows that in order to create a successful portfolio, the individual investor must first conduct some serious introspection to be sure that they truly “know thyself.”  Therefore, I believe the first, and perhaps most critical step, towards designing a successful equity portfolio is to ask your-self, and honestly answer several important questions.

[…]

Trying To Beat The Market Is A Fool’s Errand

Introduction Proponents of indexing as the best investment strategy seemed to take great delight in reporting how the vast majority of professionally managed portfolios (mutual funds, separately managed accounts, hedge funds, ETFs, etc.) fail to outperform the S&P 500.  Therefore, they argue, it is best not to even try.  Investors should simply invest in index Read more about Trying To Beat The Market Is A Fool’s Errand[…]

Are Blue-Chip Consumer Staples Worth Today’s Premium Valuations?

Introduction to the Consumer Staples Sector The Consumer Staples sector consists of companies that provide essential products.  In other words, Consumer Staples are products that people cannot or are unwilling to do without.  As a result of the essential nature of Consumer Staples, there are several attributes that distinguish this sector from most others.  First Read more about Are Blue-Chip Consumer Staples Worth Today’s Premium Valuations?[…]

The Best Use of Corporate Profit (cash)

Introduction I have recently authored two articles showing that, all other things being equal, a stock that pays its shareholders a dividend generates a higher total return than a stock with similar growth characteristics that doesn’t. This is based on the reality that stock prices follow earnings in the long run, and it is this Read more about The Best Use of Corporate Profit (cash)[…]

Blue-Chip Dividend Aristocrats – There is a Lot of Value in this Market: Part 4

This is the fourth in a series of articles designed to counter a pervasive attitude that common stocks are expensive today.  Furthermore, we would agree with those that contend that we have been in a stealth bull market for the last 18 months or more.  However, would also contend that stocks were so cheap prior Read more about Blue-Chip Dividend Aristocrats – There is a Lot of Value in this Market: Part 4[…]

The US Economy Sitting on the Threshold of a New Golden Age: Part Two

In part one of this multipart series on the US economy I offered the following basic opinion: The majority of the positive aspects underpinning the US economy are being mostly ignored by mainstream media in favor of the smaller, but more titillating, negative aspects. Consequently, I believe that many Americans, and since this is an Read more about The US Economy Sitting on the Threshold of a New Golden Age: Part Two[…]

Our Top 40 Favorite Dividend Champions: Blue-chip Dividend Growth Stocks Today’s Strong Option for Retirement Portfolios Part 2

In part one of this two-part series (Found Here) I laid the groundwork for why I believe that blue-chip dividend paying US equities represent not only a viable, but also a safer investment choice than many give them credit for. I also pointed out why I believe the risk profile on bonds is currently upside Read more about Our Top 40 Favorite Dividend Champions: Blue-chip Dividend Growth Stocks Today’s Strong Option for Retirement Portfolios Part 2[…]

Newsflash: The Dividend Aristocrats Found The Lost Decade

Introduction There are many people who continue to hold a jaundiced view of stocks because they were traumatized by the last two recessions.  Precipitous drops in equity prices drove them to distrust stocks and stock markets.  However, I believe that most of the negative sentiment is a function of what I would describe as vague Read more about Newsflash: The Dividend Aristocrats Found The Lost Decade[…]

Clorox: Dividends, Earnings And Valuation Analysis

. . . . Clorox Co.: A Dividend Champion with 34 Consecutive Years of Dividend Increases Since dividends are paid out of earnings, a clear perspective of a company’s historical earnings growth record is a vital component of a dividend investor’s prudent due diligence process. The following graph plots Clorox Co.’s earnings per share since Read more about Clorox: Dividends, Earnings And Valuation Analysis[…]