The Dividend Payout Ratio is a Starting Point, not a Conclusion

By Flippie of Intrinsiqq

This article presents a practical framework for looking at earnings coverage, free cash flow, and dividend growth together.

The dividend payout ratio is a useful metric, but it can hide important differences between reported earnings, cash generation, and long-term dividend capacity. 

This article outlines a practical three-part starting point: check earnings payout, free cash flow payout, and dividend-growth history, then place those results in the context of the wider business. The aim is not certainty, but better questions before relying on yield alone.

Is Selling Options Risky?

By Derek of Positively Passive Income

Whether you’ve been investing in stocks for a while or are just getting started, you’ve probably heard about options. And most likely, you’ve heard at least one story about an investor losing their shirt over an options trade gone wrong.

These kinds of stories lead investors to think that options are too risky, so they stay away from them and just focus on regular stocks or ETFs instead.

But what are options all about, and are they really as risky as people believe they are?  This post will explain how some types of options can be incredibly risky, and others, not so much.

Exxon Mobil: This High-Yield Dividend Aristocrat Is Undervalued

By Bob Ciura of Sure Dividend

At Sure Dividend, we are big fans of investing in strong dividend stocks over the long run. In our view, buy-and-hold investors should consider the Dividend Aristocrats, a group of 64 stocks in the S&P 500 Index with at least 25 consecutive years of dividend increases.

The Dividend Aristocrats have a number of shared qualities that make them excellent long-term investments. They widely have growth potential, pay high dividend yields, and generate consistent cash flow each year. The Dividend Aristocrats even have the ability to continue raising dividends in a recession.

Aflac: Japan’s Largest Cancer Insurer

By Peter Bosworth of www.wealthyretirement.com.

Until recently, cancer was a taboo word in Japan.

In 1987 Emperor Hirohito underwent surgery for internal hemorrhaging due to a cancerous small intestine. Japanese officials stoutly denied there were any signs of cancer, though to the Japanese public the writing was on the wall.

It was common then for cancer patients to be denied the right to know their diagnosis. Later on, instead of outright denial, doctors would dance around the issue, and give certain nonverbal hints to patients. A 1988 piece on the subject from the Los Angeles Time quotes Hiroshi Wagatsuma, an anthropologist who researched this tacit communication: “Even if the doctor says nothing, the patient knows that he has cancer; and though nothing is said, the doctor knows that the patient knows.”

Selling Cash Secured Puts for Additional Income

By Nero Nguyen of www.financeoholic.com

There has been a rise in the use of options to complement traditional portfolio strategies. As an investor, one can use options to enhance and amplify portfolio returns.

As a seller of options, one can use the power of having time on your side while reducing the overall risk of investing.

Here is a description of how to use put options to enhance the strategy of dividend investment.

My Dividend Growth Stock Selection Criteria

By Sneha Shah of Greenworldinvestor

Dividends are preferred by investors as they provide actual solid cash rewards for holding a particular stock. What is even more exciting is to see these dividends grow year on year. While it seems very easy, a lot of research is involved in selecting the stocks for creating a successful dividend growth portfolio.

Dividend growth investing is both an art and a science and your portfolio needs a lot of patience and attention in order to grow.

Here are the five most important factors to consider before selecting your dividend growth stocks.

Why Diversification Matters!

By James Pattersenn Jr

Regardless of whether you consider yourself a value investor, dividend investor (income), growth investor, or dividend growth investor, diversification should be an integral part of your investment program because it does matter.

Here’s why.

Relieving the Pain of Dividend Growth Investors

By Torsten Tiedt

Dividend growth investing is a pain, because it is much more difficult to find solid dividend growth stocks than it should be.

In this guest article, I'll explain why I think finding solid dividend growth stocks is harder than it should be and how I tackled this problem for me (and for you!).

Make Financial Freedom A Strategic Goal

By Charles Fournier

In 1987, I realized nobody else would have the level of interest in our financial well-being that I have. So I decided to manage our financial affairs myself and have been doing so ever since.

Shortly after graduating, my wife and I set Financial Freedom as our primary goal.

We decided to accumulate investments that would generate an income stream and would allow us to maintain our standard of living once we retired.

To help us achieve this goal, we chose to create a well-diversified portfolio of blue chip, dividend-paying companies with a track record of steady dividend increases. Along the way, we added real estate investment properties to reduce our risk.

Market Implied DGR - A Quick and Dirty Stock Valuation Method

By Catfishwizard

Coming up with a fair value of an individual stock is really hard, and can be as complicated as you want it to be.

I don’t like complicated, so I came up with a metric that I call Market Implied DGR to quickly give me a baseline of fair value from a dividend growth investing perspective.

I’d like to share that metric and my reasoning behind using it with you.

How To Invest $100,000 In Dividend Growth Stocks

By Mike McNeil

I recently decided to quit my job and to build my own business. Having contributed to a defined pension plan, I’m soon going to receive more than $100,000. With the markets trading at all-time highs, the question is: How should I invest the $100,000?

I decided to invest the full amount in dividend growth stocks. This article explains my decision and presents the step-by-step methods I intend to use.

LTC: A Monthly Dividend Offering a Growing Payout

By Gaurav Sharma

There's a famous saying in the investment world: The greater the risk, the greater the return.

Greater risk requires more information: Can the business survive? Is the business model easy to understand? Being a higher-risk investment, does it need to be assessed on a more frequent basis?

These are all valid questions when investing.

Selling Puts Makes Sense For Dividend Growth Investors

By Amber Tree Leaves

If you're a dividend growth investor, you buy a stock and capture the dividend for reinvestment.

Did you know that selling puts could boost your income?

Yes, there are horror stories about options. But selling puts is useful if done wisely.

Investing Lesson: Why Buying Netflix In 2012 Made Me Foolish

By Stockles

It's hard to imagine that it has been five years since I bought my first stock, Netflix (NFLX). When I look back and think about the mistakes, lessons, and experiences over these years, I am quite humbled.

Investing is something special and, somehow, it makes life a bit more profound and enjoyable.

Now Inviting Guest Posts

Last month I surveyed readers to determine if DivGro should publish guest posts. Most respondents supported the idea and I decided to start hosting guest posts in July 2017.

I added a Guest Posts page with guidelines for prospective guest authors and to explain the submission process. The page briefly explains the review process and lists some ideas for article topics.

 If you're interested in writing a guest post for DivGro, please contact me.

Results of My Guest Posts Survey

Earlier this month I asked readers to express their thoughts on whether DivGro should publish guest posts.

I posed questions like Would adding guest posts be helpful? and Would other dividend growth (DG) bloggers want to write guest posts for DivGro?

Today's post answers these questions and provides a summary of the survey results.

Guess Posts on DivGro?

Today's post posts a question to you, my DivGro readers. And the question is one that requires some action if you want to help guide the future of DivGro.

I founded DivGro in January 2013 and joined a growing community of dividend growth (DG) bloggers tracking their portfolios online.

By interacting with like-minded investors, I've become a better DG investor. I've learned a tremendous amount about DG investing, how to value dividend stocks, and, frankly, the benefits of blogging.