401k

In 1985 took my first job as a staff accountant with a $21,000 annual salary. Now I am over the same department that I was hired into and entry level staff accountants earn $56,500 per year. That equates to a 4.2% annual increase. Just as employees expect an annual raise, so do dividend investors.

When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared alternative “safe” investments.

In sports after a player or team scores there is a celebration. Sometimes the celebration is extreme and designed to focus attention on the individual. As a kid our coaches would say, “Act like you been there before.” The Dividend Aristocrats have been there before and they have the track record.

United Technologies Corp. is an aerospace-industrial conglomerate with a portfolio including Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators and Carrier air conditioners, among other products. Linked here is a detailed analysis and commentary.

Have you ever read something then paused and said well that’s stating the obvious? Then upon further reflection realize what is obvious to you may not be obvious to others. This happened to me recently as I was scanning some retirement headlines.

The last thing you want to see is a letter from the government. It is never good news. Either you are being drafted, they want more money from you or you are under investigation. In the case of Manulife Financial Corp. (MFC), Canada’s largest insurance company, it was the latter.

Cardinal Health Inc. is one of the leading wholesale distributors of pharmaceuticals, medical/surgical supplies and related products to a broad range of health care customers. Linked here is a detailed analysis and commentary.

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to increase dividends during the tough times.

If the goal of dividend investing is to find and buy dividend stocks that will continue to raise their dividends, it is not enough to only look at a company’s free cash flow . Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt.

Vanguard Group founder Jack Bogle has not changed his tune as a result of the economic downturn. At the ripe age of 80, he is still preaching buying-and-holding domestic stocks and bonds, cheaply, in an asset allocation that’s appropriate for your age.

Emerson Electric Co. primarily makes backup power equipment for telecom and Internet providers and users, climate control components, and electric motors. Linked here is a detailed analysis and commentary.

What do you do when the economy tanks and the stock market follows suit, but you are still generating a lot of cash? Many people would look for bargains in the market. Wal-Mart (WMT) [analysis] has done just that.

The main focus of dividend investing is finding and buying dividend stocks that will will likely continue to raise their dividends in the future. In making this determination there are many factors to consider. One of the more important metrics to consider is the Dividend Payout Ratio.

Some of my fellow dividend investors have accused Warren Buffett of being a closet dividend investor. I won’t quite go that far, but there is significant common ground between dividend and value investors. With that said, let’s take a close look at Mr. Buffett’s most recent 13-F filing with the SEC.

SYSCO Corporation, through its subsidiaries, engages in the marketing and distribution of a range of food and related products primarily for food service industry in the United States and Canada. Linked here is a detailed analysis and commentary.