December Monthly Report, and Where Is the Santa Claus Rally?
Posted on December 12, 2014 | Dividend Investing
The December monthly report is now online. No transactions were made this month, following the changes we made in October and November. A few energy stocks crossed our radar screen, but none that we were ready to add to the DI portfolio this month.
In the December report, we discuss whether stock buybacks are good or bad for shareholders. There has been a debate within the media about the pros and cons of share repurchase programs. Since buybacks compete with dividends for corporate cash, we wanted to share the points made by both sides with you.
Our Stance on Owning Oil-Related Stocks
Posted on December 5, 2014 | Dividend Investing
While we were off for the holidays, oil-related stocks experienced a sizable drop.
When Will Apple Be Worth $1 Trillion?
Posted on November 21, 2014 | Dividend Investing
Hedge fund executive Steve Einhorn predicted that DI holding Apple Inc. (AAPL) will command a market capitalization of $1 trillion. Einhorn, of Omega Advisors, made the prediction at the Reuters Global Investment Outlook Summit on Monday. He did not give a timeline, however, only saying the stock could “eventually” get there.
New Portfolio Changes and the November Monthly Report
Posted on November 7, 2014 | Dividend Investing
More details about the Dividend Investing portfolio changes, including our rationale for the moves, are given in the November monthly report, which is now on the Dividend Investing website.
Waving Goodbye to Quantitative Easing in the U.S.
Posted on October 31, 2014 | Dividend Investing
The Federal Open Market Committee voted to end its asset purchase program, or QE3 (quantitative easing 3) as the financial industry folks like to call it. It’s not the full end to monetary stimulus, however. The Federal Reserve will continue to reinvest principal payments, meaning the early repayment of bonds it currently holds. Interest rates will be kept at rock-bottom low levels too.
Week Almost Completely Filled With Gains
Posted on October 24, 2014 | Dividend Investing
The DI portfolio came pretty close to having all 24 stocks post gains this week.
Our Industrial Holdings Rev Up in an Otherwise Down Week
Posted on October 17, 2014 | Dividend Investing
Mr. Market threw tantrums, smiled and basically left everyone’s head turning this week. How any domestic-oriented stock portfolio performed depended on both its market capitalization and its industry exposure.
Putting This Week’s Volatility Into Perspective
Posted on October 10, 2014 | Dividend Investing
The relative calm the market has enjoyed over the past couple of years was interrupted this week. Our benchmark, the iShares Dow Jones U.S. Index ETF (IYY), rose or fell by at least 1.5% on three consecutive days. This was the first time the fund has changed in value by 1.5% or more on three consecutive trading days since November 2011.
DI Portfolio Changes, Plus the October Monthly Report
Posted on October 3, 2014 | Dividend Investing
We are making our first changes to the DI portfolio since June. Details can be found in the October Monthly Report, which is now available on the DI website, but here is a quick summary.
Small-Cap Stocks Are Lagging, But We’re Not Intentionally Avoiding Them
Posted on September 26, 2014 | Dividend Investing
Small-cap stocks have been receiving a bit of attention lately for their lackluster performance. As of yesterday’s close, the Russell 2000 index has a year-to-date loss of 3.71%. This is nearly 10 percentage points worse than the Russell 1000 index, which is up 7.64% year-to-date.
The decline has some sparked some debate about the market’s overall momentum. There is a school of thought that large-cap stocks cannot continue to march higher without small-cap stocks also doing well. While we don’t disagree with the concept of a broad-based rally being a good thing, we’ll point out that large-cap and small-cap stocks have not historically always moved in lockstep. The 2014 Ibbotson SBBI Yearbook says small-company stocks have had a 0.79 correlation to large-company stocks since 1926.