Placing Trades for New Portfolio Additions

Posted on August 14, 2015 | Dividend Investing

This week the markets responded negatively to the People’s Bank of China devaluing the yuan by roughly 2% on Tuesday, causing the currency to fall to a four-year low on Wednesday. The currency devaluation caused investors to express concern regarding the health of the global economy.

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Three Stocks Out and Two Stocks In

Posted on August 7, 2015 | Dividend Investing

This is why we roll our eyes when we hear or see “news” alerts about the Dow Jones industrial average being down by “triple-digits.” While a 100-point move may sound big, it’s less than a one percentage point change. Reacting to every headline and alert is not only senseless but will also rack up large amounts of trading and tax costs. While a disciplined strategy may stumble from time to time, the long-term returns from sticking with a good strategy will be far higher than those from being reactive to Mr. Market’s whims ever will be.

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Ten DI Holdings Beat Earnings Estimates by an Average of 3.7%

Posted on July 24, 2015 | Dividend Investing

So far, July, and the year-to-date for that matter, has been marked by increased market volatility. According to S&P Capital IQ, “Through July 22, the S&P 500 experienced closing price volatility of 1% or more three times this month and 31 times this year, versus a total of 38 days each for calendar years 2014 and 2013.” However, they advise investors “not to sweat” the increased volatility. “Despite the impending initial rate hike, nearly 40% of all rate-tightening cycles since World War II did not precede bear markets. When they did, it was by an average of 13 and 1/2 months.”

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Earnings Season Is Upon Us Yet Again

Posted on July 21, 2015 | Dividend Investing

Earnings season is back again and with Greece’s debt problem (almost) behind us, investors can focus on quarterly earnings figures.

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Energy Stocks Hurt Net Dividend Increases, Plus Baxter’s New Cost Basis

Posted on July 10, 2015 | Dividend Investing

Aside from Greece’s debt issues and possible expulsion from the European Union (EU), issues in the Chinese stock market and glitches at the New York Stock Exchange, it was a fairly normal week.

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Using Our Bottom-Up Approach to Add a Railroad

Posted on July 2, 2015 | Dividend Investing

We are making our first change to the DI portfolio since March. ALFAC Inc. (AFL) is being replaced by Union Pacific Corp. (UNP). We discuss the change in the new July Monthly Report, but we’ll give a brief overview of our rationale here.

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Is It Leading or Lagging?

Posted on June 26, 2015 | Dividend Investing

Investors have been looking to recent economic indicators as a means of deciphering where the economy may be headed. Although we don’t particularly consider macroeconomic factors as part of our quantitative model, it is useful to understand what they mean and how investors perceive specific figures.

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The Federal Reserve Signals a Slow Approach to Raising Interest Rates

Posted on June 19, 2015 | Dividend Investing

This week the Federal Reserve reaffirmed its decision to take a slow approach to raising interest rates, which boosted stocks as bond yields slightly declined. Money managers and market analysts say this go-slow approach could prevent Treasury bond yields from rising significantly.

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What Does “When Issued” Mean?

Posted on June 12, 2015 | Dividend Investing

Securities trade on a when-issued basis when a corporate change has been announced and authorized, but the new shares have not yet issued.

The when-issued approach allows companies to seek a smooth transition to post-spin-off trading of the shares of the parent and the spin-off companies by establishing multiple listings…

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Deals, Spin-Offs

Posted on June 5, 2015 | Dividend Investing

There continues to be a high amount of merger and acquisition (M&A) activity occurring. Thomson Reuters released a note this morning calculating U.S. deal-making as totaling $775.8 billion year-to-date. To put the number in perspective, this is a 47% increase over the same period last year.

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