November 26, 2016

Bank Of America Corp (BAC): A Dividend Growth Stock That Benefits From Rising Interest Rates

Few investors will ever forget the terror of the financial crisis of 2008-2009, when the global financial system was on the verge of complete collapse and many people were convinced we were headed for another depression.

Shareholders of U.S. megabanks such as Bank of America Corp (NYSE:BAC) were especially brutalized, when one of America’s largest banks came within a stone’s throw of complete insolvency and saw its shares fall over 90% from their all-time high.

Understandably, large banks have been incredibly out of favor since then, despite what has been one of the more impressive turnarounds in corporate America. In fact, Bank of America’s efforts allowed it to raise its dividend by 50% earlier this year, and more payout growth could be ahead. Warren Buffett owns a number of banks in his dividend portfolio as well.

Let’s take a look at just how far Bank of America has come since the dark days of the Great Recession and if its shares might represent a solid, if still high-risk, long-term opportunity for dividend growth investors.

November 25, 2016

Walt Disney Co’s Decline Is A Buying Opportunity (DIS)

A recent slide presents a new opportunity to jump into DIS stock

Walt Disney Co (DIS) stock is down 19% from its 52-week high. This may scare investors away from the stock. But investors should look at Disney’s drop as a good buying opportunity.

At one point a few years back, Disney was one of the market’s most beloved growth stocks. It had raced so high that it became overvalued, and unappealing.

Thanks to its share price decline however, Disney stock’s valuation and dividend yield have come back to its historical average since 2000.

The company is currently ranked as a ‘Buy’ and Top 10 dividend stock using The 8 Rules of Dividend Investing.

It appears the market is concerned about Disney’s cable television business, and in particular ESPN. On the other hand, the overall company continues to grow at a high rate, thanks to exceptional growth in its other businesses.

This growth means the company is still generating strong returns for shareholders. As a result, this could be a good time to buy Disney stock.

Source: InvestorPlace

November 24, 2016

Dividend Growth Stocks For A Successful Retirement Plan

The basic steps for getting to and living in retirement look something like this:

 --Save money.

--Invest that money wisely.

--When you have enough money, retire.

--Live comfortably by drawing down on what you have saved and invested over the years.

The conventional wisdom used to be that you could safely draw down about 4% of your portfolio in retirement without worrying about running out of money over a period of 30 years.

That wisdom is no longer conventional. It has fallen out of favor, in large part due to low-interest rates. When short-term treasury bills were yielding more than 4%, guaranteed, it was a lot easier to pull off. Now, at more like 1%, not so much.

Live The Dream

The dream scenario for a retiree is a guaranteed source of passive income, like a salary that you don't have to work for. Something that, through thick and thin, will always kick out monthly or quarterly checks for you. That way, you don't have to worry about low-interest rates or stock market fluctuations.

Now, "guaranteed" is a tough hurdle, and isn't a word you can often use when you're talking about the stock market. In fact, about the only thing that's guaranteed is that stocks will go up and down, and you won't be able to predict when, especially in the short term.

But with some stocks, you can get reasonably close to guaranteed about one other thing: Dividends. There are a lot of blue-chip names out there that have paid dividends--and annually increased their dividends--for many years, and even decades. Past performance is no guarantee of future results, as you may have heard, but dividends from some stocks might be as close to a sure thing as you can expect out of the markets.

Source: TalkMarkets

November 23, 2016

Starbucks Corporation (SBUX) Dividend Stock Analysis

Starbucks Corporation (NASDAQ:SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company initiated its dividend in 2010 and has been growing distributions rapidly since then. While the company has only managed to increase dividends for four years in a row, I believe that it has the potential to reach dividend achiever status, and has the growth story to become as successful for its dividend growth investors.

The most recent dividend increase was in November 2016, when the Board of Directors approved a 25% increase in the quarterly dividend to 25 cents/share. The company’s competitors include McDonald’s Corporation (NYSE:MCD), Nestle SA (ADR) (OTCMKTS:NSRGY) and Dunkin Brands Group Inc (NASDAQ:DNKN).

Since the company initiated a dividend payment in 2010, the stock has returned 315%. Future investment returns will be dependent on growth in earnings and dividend yields obtained by shareholders, as well as the initial valuation (1) locked in at the time of investment.

November 21, 2016

5 Reasons To Be A Dividend Growth Investor

As a dividend growth investor knows, it’s not exactly a secret that the U.S. stock market has been one of the greatest long-term wealth generators in history.

In fact, between 1871 and 2015 the S&P 500 has recorded a compound annual growth rate, or CAGR, of 9.1%, increasing a staggering 285,436.41 times in value.

However, as with most things in life, actually reaping the potential rewards is much harder said than done.

For example, according to BlackRock, Inc. (NYSE:BLK), the world’s largest asset manager with $5 trillion in assets under management, the average retail investor has woefully underperformed the market over the past few decades. As seen below, the average investor generated an annualized return of 2.11% over the last 20 years compared to annualized returns of 8.19% and 5.34% from stocks and bonds, respectively.

Despite the market putting up very solid growth over that time, most investors ended up treading water, after accounting for inflation.

But there is great news for those who seek to harness the incredible power of the stock market to build long-term wealth and achieve financial independence over time.

Learn five ways that being a dividend growth investor can help you reach your financial goals and make you a better long-term investor. By keeping a steady hand and staying disciplined, investing in dividend growth stocks can provide a stable, growing income stream that can fund your needs, desires, and retirement over time.

November 20, 2016

4 Top Dividend Stocks to Buy Now

European Economy Improving Fast:

Between the Brexit and issues like refugees flooding in from war-torn Middle East countries, Europe has had its share of troubles over the past year. The good news for the region is many of the member nations economies are improving, and the recent strengthening of the U.S. dollar at least gives them a window to export goods and services at very reasonable prices.

We have noticed the improvement here at 24/7 Wall Street, and we also noticed that some of the top European companies are offering outstanding dividends to investors, many of which are higher than their U.S. counterparts. We screened the Merrill Lynch research database to find stocks that were rated Buy and also paid solid dividends. We found four that look very tempting now.

Source: WallSt. 24/7