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Dividend increases are typically met with a positive reaction from investors, while dividend cuts are typically met with a negative reaction. Whether these changes signal positive or negative information, however, depends on the quality of the company and its leverage. Companies...

One cannot simply look at the price of a security and determine if the price is enticing: A $10 stock may be more expensive than a $100 stock when the price is related to current and expected dividend payments, growth and capital appreciation. The dividend yield is a basic, but...

It may not be comforting, but individuals are rewarded over the long term for investing in stocks because stock prices can go up or down. Short-term market volatility and uncertainty creates a risk premium to entice investors to buy and hold stocks. It is important to note, however,...

Value investors are always seeking undervalued stocks to add to their portfolios while pruning those that are overvalued. However, a stock’s price doesn’t always reflect a company’s true value. The dividend yield is a useful measure of value for selecting undervalued securities...

Many investors seek income to supplement their portfolio returns while at the same time insulating themselves from market declines. In “The Little Book of Big Dividends: A Safe Formula for Guaranteed Returns” (John Wiley & Sons, 2010), Charles Carlson outlines a recipe for...

Associate Financial Analyst at AAII Jaclyn McClellan spoke with Moe Ansari on Market Wrap about investing in dividend stocks and the approach used in the AAII Dividend Investing newsletter.     Market Wrap is a nationally syndicated broadcast. Moe begins each Market...

A low-interest rate environment has helped to fuel a run-up in the prices of dividend-paying stocks. Equity-income investing is once again fashionable, but some investment advisers have always preached the long-term benefits of investing in dividend-paying stocks. Lowell Miller...

AAII Journal Editor Charles Rotblut spoke with Moe Ansari on Market Wrap about investing in dividend stocks and the approach used in the AAII Dividend Investing newsletter.     Market Wrap is a nationally syndicated broadcast. Moe begins each Market Wrap broadcast with...

Covered call writing is one of several ways options are traded. While often done on an ad hoc basis, one can assemble and manage a portfolio of covered call option positions as either a part of a larger portfolio or on a stand-alone basis. Such an approach does require more detailed...

What’s the allure of dividend-paying stocks? Dividends provide a segment of return that is always positive. Increases in dividends provide an increased positive cash return and, consequently, increase the value of the instrument producing that return. Positive fluctuations are...