value

The income statement is where you find all the metrics that The Street loves. It therefore must be the most important financial statement. Not! That title goes to the lowly cash flow statement. Ultimately cash flow is what drives the value of any financial asset, including dividend stocks.

This is the second installment in a multi-part series that looks at various options used by income investors to boost their yield while waiting for dividend growth to lift their portfolio’s overall yield-on-cost. Last week we looked at Utilities. This week we are looking at Real Estate Investment Trusts (REITs).

Meridian Bioscience Inc. develops, makes and sells disposable diagnostic test kits and related products used for the rapid diagnosis of infectious diseases. Linked here is a detailed analysis and commentary.

What is the primary reason you invest in dividend stocks?

This is the first installment in a multi-part series that looks at various options used by income investors to boost their yield while waiting for dividend growth to lift their portfolio’s overall yield-on-cost. This week we are looking at Utilities – those investments long considered as a safe harbor for “orphans and widows.”

The Coca-Cola Company is the world's largest soft drink company. It engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates, fruit juices and syrups worldwide. linked here is a detailed analysis and commentary.

For dividend growth investors, there are certain attributes of investments that are more relevant than others, such as yield and dividend growth. To illustrate the power of dividend growth consider that an investment’s yield-on-cost will double every 5 years if they grow their dividend by 15%/year or 7 years at 10%/year or 14 years at 5%/year.

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:

Walgreen Co is the largest U.S. retail drug chain in terms of revenues. It sells prescription and non-prescription drugs, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience foods. Linked here is a detailed analysis and commentary.

You expect your employer to give you a salary increase periodically. Why wouldn’t you expect the same from your investments? One of the most important aspects of a dividend stock is its ability to consistency raise dividends over time.

RLI Corp, based in Peoria, IL, provides selected property, casualty and surety insurance. Linked here is a detailed analysis and commentary.

What a difference a year makes. This time last year we were looking at big-name dividend cuts and very few increases. Last week’s 16 increases set the stage for this week’s flood of companies, large and small, raising cash dividends paid to their shareholders.

The primary focus of my income portfolio is to create ever-increasing income by investing in dividend growth securities. This means that often I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. However, I will also invest in some high yield securities. Here are some of the better performers, along with my life-to-date return:

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.

There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions.