JNJ

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.

To ensure a retirement that is free from financial concerns, there are certain things that must be done today. For many people this is not a desirable task. However, building a secure future by investing in quality dividend stocks is neither complicated nor overly burdensome.

Though many dividend stocks are now trading in excess of their calculated fair value, capital appreciation is not the primary reason for investing in dividend stocks. Dividend fundamentals are what drive my purchase decision, and if I could only look at one metric it would be...

When selecting a dividend growth stock there is really only one factor that is important – sustainability. As we evaluate many aspects of a company, what we are really trying to determine is if the company can continue to raise its dividend indefinitely into the future.

’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.

There are certainly many ways to categorize the different styles of investing in dividend stocks, including yield, risk, growth, etc. Over the years, I have found that most dividend investing styles fall into one of the three major categories listed below:

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).

We all want to succeed in everything that we do, including investing in the stock market. Though I have no analytical data to back it up, I am convinced that most people will lose money in the stock market over their lifetime. So why do so few people succeed at investing?

Driven by sophisticated computers, the investment markets move at light speed. What chance does a small individual investor have when trying to compete?

Those that have read this space for any period of time are well aware of my enthusiasm for using dividend growth stocks as a vehicle for building long-term wealth and income. However, not all dividend stocks are created equal – there is a discipline to selecting good dividend growth stocks.

Johnson & Johnson engages in the manufacture and sale of various products in the health care field worldwide. Linked here is a detailed analysis and commentary.

What makes a good dividend stock? Every dividend growth investor is looking for a stock that will increase its dividend every year I have found that stocks that are able to do this share some common characteristics.

Johnson & Johnson (NYSE: JNJ) announced diluted earnings per share were $1.20, representing increases 2.6%, as compared to the same period in 2008 of $1.17. Analysts average 1.13. JNJ beats by $0.07.

Net earnings for the third quarter of 2009 were $3.3 billion representing an increase of 1.1% as compared to the same period in 2008.