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Screening for Dividend Income

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

 

Reinvesting Dividends

The approach used in managing AAII’s DiReinvesting Dividendsvidend Investing portfolio is to allocate proceeds received from dividend payments to cash. The cash, along with any proceeds from the sale of holdings in excess of the average size of all DI holdings, is then used either to help fund the purchase of a new stock or to reinvest into an existing holding. This approach allows us to direct how the cash is invested on a case-by-case basis. However, this approach isn’t the only option available. This article discusses the different dividend reinvestment options that investors have.

 

The Weiss Approach to Value in Blue-Chip Stocks

Jaclyn McClellan

Geraldine Weiss was crowned “The Grand Dame of Dividends” and has been regarded as the “Dividend Detective” for good reason. Her approach melds a conservative, blue-chip investment style with a value approach using dividend yield as a guide to value. Weiss felt that a stock’s dividend yield can say a lot about its value as well as the direction of the market. This article summarizes her approach, as it was outlined in the book “Dividends Don’t Lie,” and which served as a game plan for Weiss’ investment advisory newsletter, Investment Quality Trends.

 

Using Bonds Instead of Stocks for Portfolio Income

Using Bonds Instead of Stocks for Portfolio IncomeMaximizing consistent and predictable cash flow is key for meeting retirement objectives. By taking a savvy approach to bond buying, you can minimize your taxes, limit your expenses, reduce your risk and increase your predictable cash flow. Municipal bonds can help investors accomplish this.

 

Lowell Miller’s Best Dividend Screen

A low-interest-rate environment has helped to fuel a run-up in the prices of dividend-paying stocks. Lowell Miller, founder of Miller/Howard Investments Inc., outlined his dividend-focused investment strategies in his book “The Single Best Investment: Creating Wealth with Dividend Growth.” With the run-up in dividend-paying stocks, it is important to have a system in place to keep your emotions in check and have an analytical framework to select and manage your portfolio. In this article, we provide a more detailed examination of the investment approach presented by Lowell Miller in his book.

Our Member Question for this week is:

What is your impression of annuities?

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Vote to answer this week’s Special Question: What do you see as the biggest advantages AND disadvantages of investing in annuities?

Last Week’s Results:

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AAII Readers Look to Hold Line on Spending This Holiday Season

special-question

Now that the holiday shopping season is upon us, many of us are budgeting how much we will spend. With this in mind, we asked our readers last week whether they intend to spend more, less or roughly the same as they did last year. In addition, our weekly special question asked about the one thing our readers would like to give or receive this holiday season.

Guide to Direct Purchase and Dividend Reinvestment Plans

Dividend reinvestment plans have long been popular among shareholders interested in reinvesting dividends at a low cost. There are several advantages for investors who participate in these plans: Dividend payments are put to work, transaction costs are eliminated or held to a minimum, and the additional shares are purchased gradually over time. This guide to direct purchase and dividend reinvestment plans, available exclusively to AAII members, highlights some of the best AAII has to offer. It highlights two different types of dividend reinvestment plans and how they work.

 

 

 

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.

 

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