12 Dividend Growth Stocks That Meet My “Magic Formula for Dividend Growth Investors”

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”[…]

Which Is the Better Valuation Metric? The P/E Ratio or the PEG Ratio: Part 1

Introduction

Recently, I have been engaged in rather intense discussions regarding the validity of P/E ratios versus PEG ratios as proper or appropriate valuation metrics.  I generally find these types of debates befuddling for a couple of reasons.  One, they are often a result of a failure to communicate.  Either party or sometimes both parties assume that their adversary holds or supports a specific position which may or may not be a fact. […]

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Beware the Financial Destruction of Overvaluation

Introduction

After such an extended bull run it’s only logical to assume that many stocks are trading at frothy valuations.  On the other hand, it’s also important to keep in mind that it is a market of stocks and not a stock market.  Nevertheless, the truth is that many stocks are now significantly overvalued based on both historic norms and fundamental values.  This is not true of all stocks, because it is also true that there are high quality stocks available today that are fairly valued.  However, they are admittedly getting more difficult to find.

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Dividends Don’t Drive Total Return They Contribute To It: Part 1

Dividends Don’t Drive Total Return They Contribute To It: Part 1 Introduction I believe there is a critical piece of investment wisdom that all investors in common stocks should possess.  Every common stock investor should have a clear understanding of where and how long-term common stock returns are generated or come from.  When an investor Read more about Dividends Don’t Drive Total Return They Contribute To It: Part 1[…]

Why It’s a Mistake To Be Raising Cash In This Market

Introduction

It appears that I have become caught up in a spirited discussion regarding holding cash in investment portfolios.  However, I believe that my position on this important subject is being misrepresented.  Therefore, I felt compelled to offer this article for clarification of my true position and beliefs on the utilization of cash in portfolios. […]

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Suffering Stock Market Stress? Consider This Market with Negligible Volatility and Consistently Rising Values Instead!

Introduction

It would be an understatement to call the recent stock market activity turbulent.  High stock price volatility makes investors anxious and some people even become downright frightened.  These emotional responses are often exaggerated for people in or near retirement.  Therefore, I contend that all investors need to find ways to keep their emotions in check in order to avoid panicking, which typically leads to the making of a devastating financial mistake. […]

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The Interpretation of the Earnings and Price Correlated F.A.S.T. Graphs™ Made Simple

The Interpretation of the Earnings and Price Correlated F.A.S.T. Graphs™ Made Simple

At their core, F.A.S.T. Graphs™ are easy to interpret and understand. When you are clear on what the lines and shaded areas on a F.A.S.T. Graphs™ represent, you will experience an instantaneous and comprehensive understanding of the business behind the stock, and how the market has, and is, pricing it. […]

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How Can You Avoid Value Traps In this Market?

Introduction

When the stock market turns bad, like it has been recently, investors find it extremely difficult to remain positive.  As a result, people tend to be more cynical during bad times than they would normally be during better times.  When this happens, it becomes all too easy to paint every stock in the stock market with the same negative brush.  Since most stocks will, temporarily at least, experience falling prices during a bad market, the distinction between good stocks and bad stocks can become blurred. […]

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How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1

Introduction Every investor in common stocks is faced with the challenge of knowing when to buy, sell or hold.  Additionally, this challenge will be approached differently by the true investor than it would by a speculator.  But since I know very little about speculation (trading or market timing), this article will be focused on assisting Read more about How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1[…]

The Truth About The Impact Of Dividend Reinvesting

Introduction There is a growing trend towards doing-it-yourself (DIY) portfolio management.  Many individual investors have become disillusioned with professional investment management at various levels, to include mutual funds as well as custom-designed professionally-managed portfolios. Consequently, they have become motivated to take their financial futures into their own hands and manage their own portfolios. Generally, I Read more about The Truth About The Impact Of Dividend Reinvesting[…]