Checkout Dividend Stocks Research for free Articles! Http://www.dividendstocksresearch.com/dividend-newsletter
Want to find some excellent high dividend stocks? Take a history lesson. See why today’s high yield doesn’t hold a candle to yesterday’s history.
VIP Call Girls in Saharanpur Aarohi 8250192130 Independent Escort Service Sah...
High Dividend Stocks For The Careful Investor
1.
2. Welcome to Dividend Stocks Research
Your premier site for Rankings and
Reviews of the best dividends stocks
around. For more info on dividend stocks
please visit our website
DividendStocksResearch.com
3. Hi, My name is Aaron and I‘m with
Dividend Stocks Research, today were
reviewing our recently published article…
5. Here on the beach in Southern California I
love to watch the tide.
All thebizarre forces at play, gravitational
forces triggered by the moon, the sun,
and the earth’s rotation... much more
refreshing and inspiring than a stock
chart.
6. But even with their predictability, the tides
are as mysterious as the stock market,
and if the mysteries of the stock market
don’t keep us humble, nothing will.
It’s like John Bogle, founder of Vanguard
Funds, says...
7. “Who knows what will do best? I don't
even know anybody who knows anybody
who does.“
So we get up each day and give it our best
shot.
8. We study the work of investors who
achieve success, guys like Burton Malkiel.
In 1973, the Princeton Economics
Professor wrote a wonderful book called
“A Random Walk Down Wall Street.”
9. Profesor Malkiel is living proof that Ivy
League economics professors aren’t all a
bunch of stuffed shirts. He once wrote...
10. “If you bought $1,000 worth of Nortel
stock one year ago, it would now be worth
$49. If you bought $1,000 worth of
Budweiser (the beer, not the stock) one
year ago,
11. drank all the beer, and traded in the cans
for the nickel deposit, you would have
$79. My advice to you…start drinking
heavily.”
12. So when we head off in search of the best
dividend stocksfor high yield, we check
our egos at the door. We try to discipline
ourselves to stick to the rules we figure
will keep us out of trouble.
13. I’ve got a collection of these rules,
including a handful of dividend investing
secrets that work well when it comes to
protecting your money.
15. You should search for high dividend
stocks with extreme care.
There’s so much that can go wrong,
especially with the dividend stocks where
a company is under stress to pay the
dividend.
16. This is why you always want to watch the
dividend payout ratio. The lower, the
better.
High dividend stocks usually haul the
dangerous baggage of high dividend
payout ratios.
17. So when you look at the highest dividend
paying stocks, and you find one with a
dividend payout ratio of less than 30 or
40%, you’ve got the green light to look at
the stock more carefully.
18. It’s easy to come up with a list of the
highest yield dividend stocks. It’s tougher
to find carve out the stocks with decent
dividend payout ratios.
Let me show you how easy it is to find
the highest yielding stocks.
19. Just do a Google search and you’ll have
all kinds of dividend stocks. Most of them
will bring
Professor Malkiel’s advice to mind.
Here’s a prime example.
20. Meet The High Dividend Stock that Pays
An 86.5% Yield
21. Earlier this summer I was checking out
North Atlantic Drilling Limited $NADL. It
was paying a 66.2% yield.
These days, the yield is 86.5%.
Tomorrow? Who knows if $NADL will
even be around.
22. North Atlantic Drilling was trading at $9.65
a year ago. Now it’s at $1.05.
No wonder the yield is so high.
23. One of three things willhappen. North
Atlantic Drilling cuts the dividend, the
stock price edges back up which pulls the
yield back down, or the company goes out
of business.
24. Like any of those possibilities? Any other
scenarios you can think of? Well, the
stock might continue to trade around a
dollar and your yield might still be secure,
but who knows how long this could last?
25. Dividend stocks like North Atlantic Drilling
pump your portfolio full of risks you don’t
have to take.
And here’s another risk you don’t have to
take.
27. Track records matter. A company that
manages to pay a dividend through good
times and bad deserves our respect.
No wonder investors love the S&P 500
Dividend Aristocrats, the stocks that have
been paying growing dividends for at
least 25 years.
28. But they can be expensive for dividend
investors.
The other day I checked to see which
Aristocrats are trading near their highs for
the past year.
29. AT&T $T, Cincinnati Financial $CINF,
Kimberly-Clark $KMB, and Pepsico
$PEP.... they’re all riding high right now.
They all pay a dividend of more than 2.5%.
30. And they all have a history... Cincinnati
Financial has been paying growing
dividends since Eisenhower was in the
White House.
Kimberly Clark has been paying dividends
since Nixon was in the White House.
But here’s the thing.
31. The beauty of compounding turns low
yield or modest yield into high yield.
Albert Einstein called compounding, “The
most powerful force in the universe.”
This compounding gives you two ways to
get the high yield you’re looking for.
32. First, you have the payments of the
dividends piling up. Reinvest those
dividends, you have more shares of your
stock, and that’s the first way you profit
from compounding.
33. But don’t forget you actually have two
compounding factors at work.
The second one is the growth of the
dividend itself.
35. Granted, 2014 was a very good year. In
2001 and in 2010 we saw negative growth
rates for dividend payments. But over the
long haul you’ll get good growth... about
5%.
(Keep in mind that 5% is not adjusted for
inflation.)
36. So when you pick up a dividend stock
that’s paying a low yield, the yield on day
one isn’t the yield you’re paid for as long
as you own the stock.
37. With dividend growth and your reinvested
dividends, it grows at a good clip.
And you also make money from the
growth in your share price.
That’s why you actually wind up with a
high yield when you don’t go looking for
it.
39. There’s a reason why companies like
North Atlantic Drilling Limited pay
unbelievable yields.
They’re in trouble.
Look at how the North Atlantic Drilling
stock has been doing...
40.
41. Sure... an 86.5% yield is great. As long as
it’s paid.
And as long as the stock you bought to
get that yield doesn’t lose 90% of its value
in a year.