Weekend Reading – May 15, 2011

Here are some excellent articles from the past week from fellow dividend growth investors.

Best High Yield Dividend Growth Stocks
Dividend Growth Investor highlights a list of eight high yield dividend growth stocks. Some people assume that by investing in dividend growth stocks you automatically have to accept low yield. This list proves otherwise. A stock I would include would be Telefonica. It’s one in my portfolio and produces a huge and growing dividend.

You Are Not A Contrarian Investor, and You Don’t Know Squat
The Dividend Pig wrote a fascinating article about how the average investor probably looks through rose colored glasses in terms of their investing abilities. The disadvantage that John Doe has from his home computer when running up against large institutional investors cannot be understated enough. Great read.

Step 5: Research
Dividend Monk highlights step 5 in his 9-step process to build and manage a dividend portfolio. Great stuff here, and research is where an investor gets his/her hands dirty in trying to analyze whether a company fits in the portfolio.

5 Utility Stocks I’m Considering
Dividend Partisan lists five utility stocks that are currently on his watchlist. I think every dividend investor should have at least one utility in their portfolio. I’m currently waiting for a pullback in this sector before pulling the trigger on any utilities.

April 2011 Pocket Change Portfolio Performance Update
D4L has a couple different portfolios, and this one he runs with the income provided from various online endeavors. I can only say that I’ll be happy the day my only portfolio is producing this kind of income. He obviously made a great move in picking up Intel. That was next on my list and I picked up some more Wal-Mart instead. I’ll write about that in the week.

When To Take Profits? or Losses?
The Passive Income Earner highlights when it’s appropriate to take profits or losses. As a long-term buy and hold investor it is always refreshing to read about profits and losses. I’m a little guilty of falling in love with stocks, but it’s always a good idea to be completely unbiased and review your portfolio monthly in a completely objective manner. Don’t hold just to hold. Hold because you are benefiting.

My Top Stress Busters
My Own Advisor discusses ways to reduce stress in order to live a happier existence. I added one way in my comment, and that was to nap. Cat naps always reduce stress for me.

Thanks for reading.

Comments

  1. Oculista says

    Beware of Telefonica. The dividend is being raised by increasing the payout rather than by growing earnings. In the last investor’s day Alierta said that beyond reaching a dividend of 1,75 euros per share in the next years it is unclear what the company will do. He event talk about paying a part od the dividend in shares or reducing the cash dividend to repurchase shares in the same proportion.

  2. says

    Oculista,

    Thanks for commenting. They have committed to a 1.75 Euro per share for 2012. They have also committed to that being a minimum for 2013 and beyond. Will it grow from there? I’m not sure. But based on current prices the entry yield is over 9%, which is pretty fantastic. The payout ratio has grown, but I disagree with you on earnings. EPS was 1.30 in 2006. It was 2.25 in 2010. Revenue was 52,947 in 2006. It was 66,606 in 2010. Clearly, they are growing. Will they keep growing? Nothing is certain with any company. But I think it’s a great investment for the next 2-3 years.

    Thanks for stopping by! I hope you continue to comment as I enjoy talking investments. You may have some surprise to see I actually committed more money to TEF with a recent buy. I’ll be discussing that this week.

    Take care :)

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