Dividend Reads for the Weekend

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Weeks are passing by and work is being made! As you can see, this is a whole new design for The Dividend Guy Blog! I put that together yesterday night… until 1am ;-) If you want to get familiar with the site, I’d suggest you hit the “Start Here” page. There is also a whole new About Me section (and you’ll even see what I look like!).

I was also pretty busy writing here and there:

12 Month Countdown to Financial Freedom on this blog!

The Right Price For The Right Stock – A 3-Step Stock Valuation Method @ Seeking Alpha

McDonald’s Stock Analysis – Is the Golden Age of the Golden Arches Behind us? @ Dividend Monk

Speaking of which, I officially announced the purchase of the Dividend Monk and offering the complete guide to stock valuation, The Dividend Toolkit, at only $10 for the month of April. Read my post here to get the promotional code.

But there was more than just me this week; the Habs are in Playoff and they kicked the Senators’s ass (and hand! Hahaha!). I’m a huge hockey fan so you know where I’ll be tonight ;-)

Interesting Reads:

3 undervalued stocks at Dividend Yield. Those are three stocks I would consider buying but Caterpillar (CAT) is my favorite. The company is perfectly timed for investors as it can’t really trade under this valuation. On the other side, CAT is a solid dividend payer. Once the resources (mining) industries are back, CAT will fly higher.

Dividend Growth Investor reviews Ameriprise Financial (AMP). Did you know this company raised its dividend by 11.50% last year? Since 2005 (the date the stock went public), the dividend doubled already. Since 2008, EPS keeps rising at a very high pace. This is another great example of a low yield dividend stock with an amazing growth potential.

Recent bought by Dividend Hawk; T. Rowe Price Group (TROW). This company seems to be on every dividend investors’ radar. The company is solid and shows a longer dividend growth history (it’s part of the dividend champion) but after my read on AMP, I would definitely buy the ladder.

Here’s a good article from Dividend Mantra explaining the power of dividend growth. He explains how his holdings are producing pay raises quarters after quarters and he doesn’t have to do much to earn them. It’s definitely easier to earn a pay raise from a stock than from an employer!

The Conservative Investors takes a look at General Electric (GE) after the sales of GE Capital. It’s a well written article on how GE sold GE capital (instead of doing a spinoff) and its future implication on GE business model.

Bert at Dividend Diplomats had the guts to quit his job and improve his quality of life. It’s never easy nor is fun to quit your job but it not only a good move, but the only move to do, when you are not happy at work. Good job Bert!

DivHut covers the wine and spirit sector. I’d say I’m better at buying bottles than stocks in this industry! He covers 4 stocks where Diageo (DEO) seems to be the most interesting. This is also the only stock with a yield over 2.5% among his list.

Dividend life asks an interesting question: how much a dollar is worth for you? He runs calculation on how much a dollar saved today could worth down the road. We all know about the power of compounding interest but getting such graphs in your face once in a while is always a good thing.

My Dividend Growth reviews the newest additions to the dividend growth challenger group. There are lots of healthcare companies making the list. I love the David Fish’s CCC (Champion, Contender, Challenger) list. It’s definitely a great place to start your research for your next buy.

And a Special Mention To…

Larry Fink! The BlackRock (BLK) CEO and a real brain. As an investment guy sitting on one of the most valuable chair in the financial world, Larry Fink wrote a letter to other CEO’s to tell them to stop focusing on short term results and slowdown on rewards to investors (shares buyback programs and raising dividends). While investors activists such as Carl Icahn urges companies (such as Apple (AAPL)) to give more to investors, Larry insists on keeping our bullish market intact by keep our companies on solid ground. That’s pure word of wisdom. As much as I like getting dividends and seeing stocks being buy back by companies, it won’t be of any use if the market tumbles later on. There was a great article in the NY Times about this letter (you can read it here) and I’ll end this post with the end of this article:

Mr. Fink said he met with two activists last week. One of them, he said, told him, “You hate me, don’t you?”

“No, I don’t hate you,” Mr. Fink said he replied. “I’m just trying to get some balance.”

 

Enjoy your weekend and watch some hockey, it’s a fun sport ;-)

 

Mike