Investing Secrets: Four Ways To Overcome Fear
One of my general goals for writing finance articles, which I am going to focus on specifically in 2017, is to point out that fear arising from a stock price drop in a profitable business is one of the most self-destructive emotions that you can carry with you as you go through your investing life.
The good news is that there are four ways you can overrule those worst instincts that act as the devil sitting on your shoulder telling you to sell low. I discuss them below.
According to a recent white paper published by The Northern Trust, a risk assessment survey indicated that investment portfolios with 15% cash only has a one in ten chance of experiencing a 25% or greater decline in net worth between now and 2025. A back-test indicated that such an investor would have seen … Read the rest of this article!
I wanted to provide a list of factors to consider when searching for the best companies that grow their dividends over the long haul. I recommend placing a primary emphasis on per share earnings growth and sales growth, and also examining debt, share count dilution, and payout ratios as part of your analysi
It is not a requirement, but companies that grow their dividends over long periods of time tend to belong to non-cyclical industries that don’t experience many dips in profit.
The pharmaceutical giant Johnson & Johnson has grown its dividend annually since 1963, and has never quit its payout to shareholders at any point in its publicly traded history. What makes this possible? Earnings never collapse to force a dividend cut.
Are you ready for a crazy impressive fact about Johnson & Johnson? In the past thirty-five years, there has only been one year in which Johnson … Read the rest of this article!
Dividend investing for intermediate and serious investors has been the topic of my blog since I started it in 2013. I love the slowness during the last week of the year because it lets you step back and get philosophical about the big picture of what you’re trying to accomplish. As a service to new readers, I thought I would create a seven-step guide to dividend investing to offer as much of my condensed investing philosophy in a short period of time as I can.
Step 1: Determine whether dividend investing best fits your circumstances.
One of the most important things you need to recognize is that wealth gets created by finding the greatest amount of net-of-tax returns. This makes dividend investing a poor fit for high earnings in taxable accounts, particularly those in high-tax states like California. A lawyer in California has no business buying AT&T stock so that … Read the rest of this article!
According to FINRA’s margin statistics posted at the end of the month, American investors now have $1 trillion in margin debt (roughly $800 billion is allocated towards securities and about $200 billion not yet spent). The purported justification for margin debt is that interest rates are low (particularly at a place like Interactive Brokers) and the valuation of the entire stock market is much higher so it is logical that the overall allotment to margin debt would be higher. In that regard, it is true that only about 2% of the stock market right now is reportable margin which is in line with levels over the past 25 years.
Last year, there was $479 billion in margin debt outstanding. What I find troublesome is that the number of small investors, defined as those with under $1 million in investable assets employing margin, has tripled in number over the past year … Read the rest of this article!
If you are looking for something that will throw off large amounts of income over the next decade, the possibility of stuffing your IRA with shares of the real estate investment trust W.P. Carey (WPC) seems like one of the smartest decisions you can make to get some passive income flowing. There is also the psychic reward of knowing those cash dividends would require taxation at ordinary income rates if held in a taxable brokerage account but can build up undisturbed if held in an individual retirement account. Theis ability to elide taxation is a reason why I consider attractive REITs to be an ideal retirement holding–a good chunk of the total return comes from cash dividends, and the gusher really opens up when you let the share count increase for years and years.
Right now, W.P. Carey pays out a $3.96 dividend. The payout goes up about half a … Read the rest of this article!