Tag Archives: JNJ

Recent happenings in income land

I’m finally back from my exile in the woods. I would recommend the Gila National Forest in Southwestern New Mexico to anyone who wants a bit of peace and quiet. Now back to the business of income investing. There has been a lot going on in income investor land recently. Here are some of the items that caught my eye and what I think of them. Intel Q1 2011 earnings. Intel blew away earnings estimates in Q1. The corporate. server, and cloud computing markets are just going gangbusters, offsetting weak developed market PC demand. Although emerging market PC is doing … Continue reading

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The importance of valuation for income investors

The price you pay for an investment is the primary determiner of risk. Plain & simple. As legendary value investor Seth Klarman puts it; Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Absolutely! I find that too many income investors are way too focused on uncertainty, i.e. volatility, as a measure of risk and often view valuation as of lesser importance. Today I want use the example of Johnson and Johnson (JNJ) to show the importance of valuation for dividend investors. JNJ is a classic bread … Continue reading

Posted in Dividends, Stocks | Tagged , , , | 12 Comments

Timing high dividend stocks doesn’t work

One of the things I love about investing is the opportunity to constantly learn and become a better investor. Your results are strongly driven by the time and effort you put into the process. In the past few months I’ve been researching an interesting idea I had. Two posts drove this idea. In this post, I discussed the power of dividends as a bear market protector or return accelerator. In other words, dividends enhance returns in down markets. In another post, I presented a market timing system that not only produced better returns but also lowered volatility compared to a … Continue reading

Posted in Dividends, Portfolio | Tagged , , , , | 6 Comments