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Those of you who believe that buying individual stocks is speculating and not investing can can hit the back button now and skip this thread. This post is for the rest of us who believe that doing your own research and conducting your own due diligence is the way to invest. This week's issue of Barrons had an informative article on selecting dividend-paying stocks for those close to retirement. They've selected their choice for the ten best dividend-paying companies in the world, as well as ten additional companies that you should consider. The article also is posted on-line. Here is the link:
And here is an interesting statistic from the article:
"Over 20 years -- the period most retirees are concerned with -- high-quality, large-cap dividend stocks often outpace the market on a risk-adjusted basis. They don't rise as much in whiplash rallies, like the one we're in, but they go down less when the market buckles. "
I don't recommend taking the article strictly at face value, but it is a good starting point for your own dd.
It may be me, but although I can access all the comments on the article, I can't access the article beyond the first two paragraphs. This appears to be a for-fee subscription website, yes?
WAIT, im looking for my back button..... ooops there it is....... hope they pick better than DVY did, the little darling of wall street before they got killed.
Great! The anti-buy-and-hold naysayers are leaving and we can discuss, calmly, intelligently, without having to defend our choice of retirement investments.
I like Chevron and have owned it for nearly five years. It has a 12.8% dividend growth rate over that period, and I bought more last spring when the price was lower than it is currently. Holding over a several-year period means that we hold when the Talking Heads are saying "Buy buy buy" and then later when they are saying "Sell sell sell".
I also hold JNJ from that Barron's list. Banco Santander is on my radar, knowing that it is a large banking corporation in Europe and the Americas (not USA), but I am holding still on financial firms at this point until I start to see dividends returning.
i like NOV national oil varco, only 1% dividenD but up 42%total return last 3 years... they are my favorite oil play. at last look i think chevron is around 18% total return over the last 3... chevron has a good long term track record , i think since 1996 its averaged about 11% a year thru some pretty crappy market years. thats pretty damn good. i dont really follow chevron so i may be off a little
Last edited by mathjak107; 11-24-2009 at 05:36 PM..
i like NOV national oil varco, only 1% dividenD but up 42%total return last 3 years... they are my favorite oil play. at last look i think chevron is around 18% total return over the last 3... chevron has a good long term track record , i think since 1996 its averaged about 11% a year thru some pretty crappy market years. thats pretty damn good. i dont really follow chevron so i may be off a little
I thought you were looking for the back button?? Haha....
Okay, so you look at Total Return; I look at Dividend Growth Rate. For Total Return to work, you have to SELL. I want to HOLD and receive dividends until they drop the Big Curtain, then my children get the stocks.
When I chose between Exxon and Chevron, I went with CVX's higher dividend yield at the time, and the fact that they are also moving into the renewable energy space. Time will tell which investment was better, but I am satisfied with my investment in CVX to date.
in my taxable account i prefer non dividend paying stocks when i buy them or minimal.. bought nov at 20 bucks 6 months ago.i liked them at 80 too but that was to high to buy. i dont need the tax liability of the dividends, nor the income so just give me plain old share price appreciation...
if i sell it i get my profits or i can sell a small part each year and create my own dividdend. but if i keep them when they drop the big curtain on me my kids inherit it all totaly tax free with either no or almost noooooooooooooo taxes ever paid.
all a means to the same end.
if the dividend paying stock was 10 bucks and gained 5% that year then you have 1 share at 10 bucks and a .50 cent dividend at years end.
if i a non dividend paying stock is 10 bucks and rises 5% i have 1 share at 10.50 so i sell 5% worth of shares and i have a little less than 1 share at a higher price per share ........... its all the same...
Last edited by mathjak107; 11-25-2009 at 04:13 AM..
My favorite dividend play in the oil and gas sector has been Kinder Morgan Energy Partners (KMP). When I was buying it in the past year I was getting almost 10% on new money. Even though it has gone from the low $40s to the high $50s, it is still yielding about 7 1/2% on new money. And they just decided to raise the annual dividend **again** from $4.20 to $4.40 for 2010.
Sorry.. I had to remove the article due to copyright violation. You can post a snippet (meaning no more than 2-3 sentences) and a link.
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