CLX

Last year I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Here are some highlights on this year’s changes:

I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.

While the strategy is most popular for finding attractively priced small-cap stocks, Magic Formula Investing can also dig up the best and cheapest of the blue chips. Here are 5 interesting large-caps currently making the cut.

’Tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind the picks and sometimes there is a gem to be found.

The S&P 500 Dividend Aristocrats is the most prestigious list of dividend stocks. It is designed to measure the performance of S&P 500 stocks that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years.

I have set aside 15% in my asset allocation for small and mid-cap equities. Generally, smaller cap securities are more volatile, but often offer a higher rate of return over the long-term. Most of this allocation is covered by small cap mutual funds in my 401(k).

I am a firm believer in keeping things simple. However, you can simplify things to the point they no longer have value. In my opinion, a lot of the commonly used financial metrics can be very misleading unless you understand what is behind them. Let’s take a closer look at Dividend Payout.

Product demand for household and personal care products is generally stable and not affected by changes in the economy or geopolitical factors. Since the end of the year, many non-cyclical companies have seen dramatic increases, with one notable exception, Procter & Gamble (PG).

When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is how you allocate your assets. I recently stepped back and looked at my asset allocation with an eye toward how it will change as I approach retirement.

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.

The Clorox Company manufactures and markets a range of consumer products. The company is also member of the S&P Dividend Aristocrats index. This diversified maker of household cleaning, grocery and specialty food products is also a top manufacturer of natural personal care products.