Defining Yield: A Word of Many Meanings

The term “yield” is thrown about often by the financial press and others. The trouble is that yield has many different meanings and implications for investors. This workshop will try and sort out some of the major differences. It will not, however, attempt to present mathematically all of the possible yield calculations created by institutions…

 

12 Characteristics to Look for From a Dividend-Paying Stock

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Dividends Are Still Valuable Though certainly not as sizeable a contributor so far in the 21st century, over time, dividend income and its reinvestment has comprised a significant portion of long-term stock gains. Even better, over the long term, dividend-paying stocks have delivered relatively…

 

Screening With the Big, Safe Dividend Formula

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What’s in a Yield? Yield is a term that is used quite often in the investment universe. But it is also frequently a source of investor confusion. The problem is that “yield” has many different meanings, and thus many different implications for investors. The…

 

Screening With the Big, Safe Dividend Formula

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 investment success: “Find stocks with above-average appreciation potential and safe and growing…

 

Qualified Versus Non-Qualified Dividends and Examining a Dividend’s Safety

For many investors, dividends are an excellent means of generating income for their portfolio. Depending on where you are in your investment lifecycle, you may reinvest those dividends or you use the income on various expenses. AAII Weekly Survey Question However, depending on the type of dividend being paid, you may face different tax considerations….

 

Closed-End Bond Funds Versus Individual Bonds – A Case Study

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What Bond Calls Mean for Your Cash Flow In a falling interest rate environment, or in one where interest rates have fallen in the not-too-distant past, it is especially important for investors to understand bond calls if they own individual bonds, bond funds, annuities…

 

Dividends Are Still Valuable

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Cash Dividend Types, Dates and Taxes Though most investors know that a cash dividend is the distribution of money to shareholders, dividend terminology is not as well-understood. Terminology such as ordinary dividend, special dividend, ex-dividend and record date has unique and important meanings investors…

 

Tech, Dividends & Utilities Seen as Overvalued

This week’s Sentiment Survey special question asked AAII members what sectors, if any, they think are overvalued right now. Technology (10% of respondents), dividend payers (9%) and utilities (8%) were the most-listed sectors and segments. (Some respondents listed more than one sector.) Nearly 15% of respondents said that either all or most sectors are currently…

 

Over Half of Polled Investors Still Preferring Stocks

This week’s Asset Allocation Survey special question asked AAII members what asset class (or classes) they would invest in today if given $50,000. Slightly more than half of all respondents (51%) said stocks. Dividend-paying stocks were particularly mentioned for their quarterly cash distributions. Growth and technology stocks were also favored. A few respondents said that…

 

4 in 10 Surveyed Investors’ Allocations Unaffected by Economy

Last month’s Asset Allocation Survey special question asked AAII members how the current economic environment is effecting their portfolio allocation decisions. More than four out of 10 respondents (42%) said the economy was not influencing their allocation decisions or indicated that they have not otherwise altered their allocations. Many of these respondents described themselves as…