The Connolly Report, Vol XXXIV #6 about dividend growth stock uploaded Dec 31. report summaries
why_dg_march2015.pdf Dividend Growth Investing
- $31.54 is average cost of a dollar's worth of dividends from Connolly Report list as of March 1st 2015. In contrast, on March 7 2009, it was $16.46. Will that bargain price be reached again is the question? It could easily happen. If the economy was in good shape, interest rates would not be so low. To mention one cause, stock prices have been rising because of quantitative easing. It's an expensive time to buy dividends now. Hope prices fall soon if you have cash to buy dividend growth common and want greater returns. Except for one stock mentioned inside this site, I'm still waiting for better valuations: lower valuations on purchases increase future returns.
Martin Mittelstaedt's June 15 2012 column in the Report on Business discussed the cost of a dollar's worth of dividends. “Behind rising dividend yields, a hidden warning for [the] economy”.
Linked just below is a rather good item (May 23 2011) about reasons to buy and hold dividend growth stocks: http://seekingalpha.com/article/271326-9-real-world-reasons-to-own-dividend-growth-stocks?source=from_friend
- Fourth Quarter 2014 - Construct an individual dividend growth portfolio
- Third Quarter 2014 Link to a retirement investing column in The Economist
- Second Quarter 2014 - You could lose half of your money in funds . . .
- First Quarter 2014 - the essence of dividend growth investing
- Fourth Quarter 2013 - Selling dud dividend growth common into frothy market
- Third Quarter 2013 What do dividend growth investors do that is different?
- Second Quarter 2013 - PBS Frontline - The Retirement Gamble - Dump your funds!
- First Quarter 2013 - dividends provide most of the return
- Third quarter 2012 - still “high valuations portend low returns from here” if you buy now
- Fourth Quarter 2012 - a growing income, up 9.6% in 2012
- Second Quarter 2012 - Started down, but risk on again
- First Quarter 2012 - Probable Outcomes
- Fourth Quarter 2011 - caution is the byword
- Third Quarter 2011 - observe comment titles below
- Second Quarter 2011 - no margin of safety
- First Quarter 2011 - market overextended
- Fourth Quarter 2010 - most stocks still expensive
- Third Quarter 2010 - Behavioural Investing
- Second Quarter 2010 - Wait.
- First Quarter 2010 - Seven lean years ahead
- DGDPG2013 - An example of how dividend growth drives price growth…
- Falling Market - some thoughts in June 2012
- Living from dividends in retirement WSJ_May10
- A few items down under Evidence it Works , I've keyed a paragraph and link to a Fortune column about dividend growth investing - November 1990 - Income, my true love…
- Yield on Cost: If you bought 1000 shares of Toromont in 2005, your yield on the cost then would now be 2.9%. No big deal, eh! However, if you purchased 1000 shares of Toromont ten years ago for $8,130 your yield on cost would now be 7.4%. That's not bad. Now, if you had bought the 1000 shares of Toromont back in 1990 for $750 your would have received close to $4000 in dividends over the 20 years, be earning 80% on your original investment and had 536% of your original investment paid back with the dividends. Twenty years is a long time, but WOW look what your $750 would be earning now. In addition, you'd have a capital gain of…well work it out. What is the price of a share of TIH now. Multiply by 1000. And you bought 1,000 shares for $750. Maybe you had better investigate dividend growth investing. Data courtesy of MacDougall, MacDougall and MacTier
- under No-No financial products Target date funds/variable annuities;
- under Investment Topics Yield + Dividend Growth = Return
- When to buy? under Potpourri
What I do, in a sentence:
When they are rather value priced, I buy dividend-growing common stock and hold them and hold them for the rising yields.
When they are value priced, I buy common* shares of companies with a good record of dividend growth and hold them for the rising income. In 2008 our dividend income rose in spite of the turmoil by 9.9%. Did your income rise by 10% last year. Our income will be up again in 2010 too. Our retirement plan is working. It's not the value of the capital that's so important, it's the income it generates…tax advantaged income…secure income. Except for Telus in 2002, the last time there was a dividend reduction in a stock in my list, other than Manulife in early August 2009, was during the last century (TRP Dec '99). Before that: NA and RYL in 1992. Dividend reductions from good dividend growers are rare events.
Since 1981…every two months for 30 years . . .
The Connolly Report, about dividend growth stocks, by Tom Connolly (B. Comm, 1964) has been published continuously every two months since 1981…now from downtown Kingston, Ontario. The print edition of The Connolly Report has been closed since 2001. The on-line edition could be open to new subscribers in February 2015 when renewals for 2015 are over. That will be volume 35.
- Palestine - We buried first cousin Joe Holmes in early July. He was three days older than I am: heart. Immediately after the funeral, his only remaining brother Bob returned to Palestine to re-join other Internationals trying to mitigate the oppression caused by the Israeli occupation and 'the reserves' being created by the illegal annexation wall and expanding settlements. http://www.stopthewall.org
For fair trade products (like olive oil) from Palestinian farmers go to: www.zatoun.com
Wisdom: ”“The single factor that drives investor success is not picking winning firms, but rather the entry point at which the firms are purchased.”
The Investment Zoo by Stephen Jarislowsky - the best Canadian general investment book ever. Unfortunately, The Investment Zoo is out of print (Oct 2014).
Lowell Miller's The Single Best Investment - Creating Wealth with Dividend Growth is the best book on dividend growth investing…though with American examples. A book report was in December 2006 issue and will be inside this site.
Building Wealth with Dividend Stocks by Joseph Tigue (he worked for S&P for years…they have the data) is also a great book on dividend investing, but again it's American data. Nine of Tigue's pages are worth the price of the book. Chapter 5 is the best. The essence of dividend growth investing is outlined in the middle of page 66 of Building wealth with Dividend Stocks. I prepared a book report for subscribers: it's inside this site.
- New to investing? Some basic ideas to get you started...