Introduction This is the final installment of the five-part series where I examined the past operating histories and valuations of the 30 Dow Jones Industrial Average stocks. With this 5 Part series I attempted to cover the 30 Dow stocks in order of highest valuations to lowest. For the most part, I suggested that the Read more about Are These 5 Dow Stocks As Cheap As They Appear?: Part 5 of 5[…]
Introduction My investing career officially started in 1970. However, for several years prior to that time I was an avid and interested student of common stock investing. My initial lessons were taught by studying the behavior and practices of the most renowned stock investors. Although these academic pursuits taught me a great deal, nothing taught Read more about The Most Important Stock Investment Lesson I Ever Learned[…]
Investing Thesis When investing for dividend growth there are several key attributes that I consider crucial for long-term success. My definition of long-term success is first and foremost to generate a steadily-rising dividend income stream, and secondarily, the opportunity to generate a reasonable level of capital appreciation. With this article I will present 12 dividend Read more about 12 Dividend Growth Stocks That Meet My “Magic Formula for Dividend Growth Investors”[…]
I never invest in a common stock without a clear expectation of the future returns that it can generate for me. Consequently, I consider this one of the most important steps in my research and due diligence process. Unfortunately, my experience in dealing with investors has led me to conclude that this important step is rarely taken. Most investors possess only a vague idea of what they might earn from investing in a given stock. Many people simply buy a stock hoping that it will go up, and if it pays a dividend, hopeful that the dividend will increase over time. […]
Much of what I write about is related to the importance of valuation in one way or another. I do this, because I am a fervent believer that one of the most important metrics that investors should be considering before investing in a stock is the relative valuation of the shares they are purchasing.
To summarize what I’m saying, if they are interested in investing in a company and discover that the current market valuation is very high, I contend they should either wait or look elsewhere for better valuation. In contrast, if valuation is fair or sound, then I contend they could comfortably go ahead and make the investment. Finally, if the valuation is significantly undervalued, I contend they might consider investing aggressively. […]
Finding attractively valued dividend growth stocks is getting harder and harder to do. The overall market has been on a relentless advance for many years now, and high quality dividend paying growth stocks have been leaders. Consequently, valuations have become extended beyond historical norms and I contend prudence. Nevertheless, there are attractive dividend growth stocks available if you’re willing to look hard enough.
Introduction I believe that building and managing a successful stock portfolio is simple and straightforward, but not necessarily easy. Building and successfully managing a portfolio of individual stocks requires work, a disciplined philosophy and a reasonable commitment of time. But perhaps most importantly, it’s critical to start out with a precise understanding and acceptance of Read more about Retired Investors Should Give This Blue-Chip Technology Stalwart a Close Look[…]
Investing money in anything is never without risk. When investing in liquid investments, prices can and do fluctuate daily. Importantly, all liquid investments can fluctuate in price, and that includes both stocks and bonds. I mention this because price volatility, especially when investing in common stocks, represents one of the biggest risks that investors focus on, some to the point of obsession. […]
I recently published a series of articles on Seeking Alpha and other sites that were free to the public where I presented 20 attractively valued dividend growth stocks with an aggregate yield of 4.3%. If you haven’t already read them, here are links to both of those articles. 20 Dividend Growth Stocks To Buy Today Read more about 20 Attractive Dividend Growth Stocks in Today’s Overvalued Market[…]
We are in the seventh year of a strong bull market, and stock valuations have generally become extended as measured by the S&P 500. It is undeniable that the overall market’s valuation today is higher than it has been in years. However, even though that statement may be true in the general sense, it does not mean that every stock in the market is overvalued. Nevertheless, there are many investors unwilling to invest in any common stocks simply because they believe the market is too high, even though there may be many individual stocks available at attractive valuations. […]