Dividend Dates & Terms Defined

This article originally appeared in the July 2014 issue of the AAII Journal Though most investors know that a cash dividend is the distribution of money to shareholders, dividend terminology is not as well-understood. Yet ordinary dividend, special dividend, ex-dividend, record date and other terminology have unique and important meanings investors should be aware of. Dividend Types and Subtypes The…

 

Happy Labor Day From Dividend Investing

The September DI Monthly Report is now available online. There are no addition or deletion alerts for September. As we’ve seen in previous months, few companies passed the minimum criteria for consideration, and none were attractive enough to warrant a portfolio change. Read more »  

 

Stock Price Does Not Affect Dividend Payment

It’s no secret that markets were volatile this week. On Monday, the S&P 500 opened at 1965.15 and closed at 1893.21, representing a 3.7% decline. The index’s decline continued into Tuesday, ending the day down 1.6%, putting the S&P 500 into pullback territory (a decline of 5% or more from its most recent peak). While…

 

Focusing on the Longer-Term Trend

This week’s headlines were filled with comments about global economic concerns and increased market volatility. Investors are concerned about why markets are declining, but much of the discussion is ignoring the long-term trend. Lost in the conversation is the fact that the U.S. market has been relatively calm over the last three years. Read more…

 

Placing Trades for New Portfolio Additions

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. Read more »  

 

Three Stocks Out and Two Stocks In

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…

 

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

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…

 

Using Our Bottom-Up Approach to Add a Railroad

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. Read more »