In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and […]
What if I told you that there was a way to glimpse into the future? To somewhat accurately estimate the future returns on your investments? Well, with dividend investing there is a way. Its called the Gordon Growth Model or as I like to call it, the Magic Dividend Formula. […]
In my last post I covered the easiest and most obvious way to get exposure to dividend stocks, by investing in dividend ETFs. While dividend ETFs give you one of the biggest benefits of dividend investing, higher returns, they fail to deliver on other key benefits of dividend investing; lower […]
Time for guide #2 to the blog. This post lists what I think is a good introduction to dividend investing and some of the nuances behind it. Enjoy! Core strategy: dividend investing – why dividend investing makes up the core of my investment strategy. Simple really. Better long term returns. […]
In my last post I described the commutative property for dividends, i.e. that a 3% div stock with a 2% growth rate is exactly the same as a 2% div stock with a 3% div growth rate. I showed that the commutative property only holds for investments in non-taxable accounts […]
Sometimes it is good to get back to basics. After a recent conversation with a family member, an elementary school teacher, about the school’s decision to rename improper fractions into something else (no, I’m not joking) I ended up thinking about some dividend basics. One of the basic properties in […]
Kinder Morgan kicked off MLP earnings season on October 17 with a very strong report. I’ll briefly discuss the report and then discuss valuation and expected future returns for the Kinder Morgan family of companies. Kinder Morgan’s Q3 2012 earnings were very strong. The full press release is here for […]
I’ve been thinking about writing an income investing newsletter at some point….but haven’t quite committed to that concept yet. Baby steps, baby steps….so, with that in mind I thought I’d start out with a monthly commentary on the positions I hold or have held throughout the month. Feel free to […]
Aflac (AFL) is currently one of my favorite undervalued dividend stocks. I’ve mentioned it briefly in two prior posts (here and here). The company’s core business is strong and has great growth prospects. The current market environment has it quite undervalued and thus presents a great opportunity for patient long […]
Value investing seems easy when you first approach it. Buy stocks that are undervalued and wait until they return to at least fair value. Finding those stocks that are cheap is also pretty easy. Pick your favorite ratio, arm yourself with a stock screener, and you can easily find a […]
Kinder Morgan announced Q4 2011 earnings after market on Jan 18, 2011. Being one of the top 3 MLPs by size, having the most diverse business, and being one of the best managed MLPs I think its illustrative of what is going on in the MLP sector to look at […]