The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

Investing Strategy

What Are Utilities and Why You Should Hold Some

Blog, Dividend Growth, Investing Strategy

Utilities include a bunch of boring yet essential stocks for any retirement portfolio. But what are they exactly? Why should you hold them? What to look for? Today, I do a complete overview of this sector and its five subsectors. You probably know by now that I am French-Canadian and my mother tongue is not English. And the first time I heard the word “utilities”, I thought this sounds like "utile" in French. In French, utile means "useful", and it is pretty much a very good definition on …

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Protect Your Dividend, Payout Ratios Explained

Blog, Investing Strategy

What is the best and fastest way to determine the ability of a company to pay dividend? The dividend payout ratio, right? Most investors would agree. However, it's a little more complicated. Today, we're going to review four types of dividend payout ratios along with their pros and cons. 1. The Classic Dividend Payout Ratio What is it? The classic dividend payout ratio is calculated by using the dividend per share divided by earnings per share. This classic method will show you how much …

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4 Steps to Build a Solid Investment Thesis

Blog, Investing Strategy, Stock Analysis, Stock Selection

Many readers ask me how I make my sell decisions. I have only three sell rules and most of my transactions are explained by the first one. I sell when: The company doesn’t match my investment thesis anymore. The company cut its dividend (a few exceptions apply amid COVID-19). The company has grown too much in my portfolio (Apple was worth about 15% of my total investments at one point). As you can see, the investment thesis is at the center of most sells. Here’s a recap of my …

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Best Dividend Achievers from the 2020 List

Best Dividend stocks, Blog, Dividend Growth, Investing Strategy

This list includes all the companies showing more than ten consecutive years with a dividend increase. The Dividend Achievers list is my favorite place to search for an additional dividend grower to add to my portfolio. Investors are often impressed by the Dividend Kings (50+ years with dividend increases) or The Dividend Aristocrats (25+ years), but I prefer to use the Dividend Achievers Index to search for my next potential investment. Including all stocks showing at least 10 consecutive …

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Disney is Reopening, is it Enough?

Blog, Dividend Growth, Investing Strategy

On July 12th, Disney reopened Disney World to the public. Unfortunately, we have limited information about how many tickets were sold and what percentage of normal traffic is being experienced. All we know is it wasn’t a grand opening. Only two theme parks (Magic Kingdom and Animal Kingdom) were opened while the other two (Epcot and Hollywood Studios) will follow on July 15th. Almost at the same time (July 13th), the Hong Kong Disneyland announced its closure as more covid-19 cases surge and …

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Techniques to Avoid Dividend Cuts

Blog, Dividend Growth, Investing Strategy

In my last article, I've covered What is a Dividend Trap. So you can avoid a future wave of dividend cuts, I’d like to offer you my three favorite techniques to avoid them. They have been proven to be highly effective in the past. Beside a few exceptions (mostly due to the nature of the exceptional economic lockdown we suffered), we were able to avoid most of the dividend cuts at DSR. The following is a short and applicable list of actions you should take with your portfolio this summer. …

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