Tag Archives: XOM

The Case For A 100% Dividend Stock Portfolio

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This post is aimed at investors who are not at all bothered by volatility and make investments based solely on the long-term earnings power (and dividend potential) of the companies they select. If the thought of experiencing price declines of 30%, 40% or 50% would cause you to abandon the strategy, then I will be the first to say that the construction of a 100% dividend portfolio is not for you, and would possibly erase years and years of hard work and savings if you tried to implement it.

However, if you do make decisions based solely on earnings power, it is possible that you may consider a portfolio that consists exclusively of high-quality companies that pay dividends to shareholders, and have strong records of increasing their payouts to shareholders by growing profits at satisfactory risk-adjusted rates over almost all five-year rolling periods.

A large part of the reason why


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Escape Strategies For When The Stock Market Starts To Burn

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By Eric Parnell:

It was one of the most infamous building fires in U.S. history. The date was November 28, 1942. The place was the Cocoanut Grove, arguably the finest nightclub in all of New England. Up until that fateful day, The Grove was the place to be seen and was frequented by sport stars, celebrities and power elites. It was also, however, a place with dubious ties and there was a tragic accident just waiting to happen. And so it did on the Saturday after Thanksgiving in 1942 when a fire rapidly engulfed the establishment in just 15 minutes, killing 492 guests and severely injuring another 166. The Cocoanut Grove fire resulted in important changes in building code fire safety as well as advancements in the treatment of burn victims. And over 70 years on, it also provides some important lessons about the strategies that should accompany investing in the stock market


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Key Signals To Watch For A Major Stock Market Top

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By Eric Parnell:

It is a question that is on the minds of many investors today. They are watching the stock market relentlessly rising nearly every single trading day, with even the smallest of dips being bought in pushing the stock market to new highs. Yet they stand back and look at the fundamental data and see a complete disconnect between the direction of stock prices and the underlying economic reality. And believing that the rally is being completely fueled by the flood of monetary liquidity that continues to flow into the markets, they remain convinced that this will all end badly just as it has a few times before since the start of the new millennium. But this leads to the key question – exactly when will the market finally reach a major market top and plunge into a sharp correction? Fortunately, the recent past has provided us with some key signposts


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Conservative Dividend Investors Have 3 Options Right Now

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For conservative dividend investors looking to make investments today, there are probably some internal deliberations about which stock to choose due to the valuations in the market at this time. In the current market, you have to choose between finding a “margin of safety” either in the underlying business models or finding your margin of safety in the “price” of a stock that may not have the best-in-breed dependable earnings quality that you desire.

First, let’s talk about “margin of safety” in terms of business model. When I make an investment with long-term intentions, I would ideally want to own the kinds of stocks with business models that are built to stand the test of time. That means companies like high-quality utilities, consumer staples, select large-cap healthcare companies, and certain conglomerates with limited exposure to the financial sector. Those are the ideal “core stocks” of a buy-and-hold dividend portfolio.

Although


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Team Alpha Retirement Portfolio: Impressive Returns Plus Impressive Dividend Hikes

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By Regarded Solutions:

This month’s update for the Team Alpha Retirement Portfolio is unique. Not because the month was wonderful, actually the gains were minor, but because for the month of April, we made no major changes to the portfolio aside from swapping PFF for WFC. When all was said and done, the portfolio continues to show impressive gains.

The Team Alpha portfolio consists of Ford (F) Chevron (CVX) Apple (AAPL), McDonald’s (MCD), Exxon Mobil (XOM), Johnson & Johnson (JNJ), AT&T (T), General Electric (GE), BlackRock Kelso Capital (BKCC), KKR Financial (KFN), Procter & Gamble (PG), CSX Corp. (CSX), Realty Income (O), Coca-Cola (KO), Annaly Capital (NLY), Cisco (CSCO), Bristol-Myers Squibb (BMY), Healthcare Select Sector SPDR (XLV), and Wells Fargo (WFC).

I wrote this article, in which I stated that there are


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A Reminder Of Why You Stick With Dividend Stocks

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One of the unfortunate side effects of buying an overvalued stock is that, almost by definition, there will be a period of time in which the total return rate that the investor enjoys will likely trail the growth rate of the firm (provided prices are rational and do not transition from “overvalued” to “more overvalued”). This fact can make it worthwhile to pose the following question: If I currently own a stock that is trading above a price that I would be willing to pay to purchase additional shares, what is the point of continuing to hold it?

In a bit of fortunate timing, four high-quality blue chips stepped up to answer that question in the past two weeks:

On Monday, April 15th, Procter & Gamble (PG) announced a quarterly dividend raise from $0.562 per share to $0.6015 per share. That’s a 7% increase.

On Wednesday, April 24th, Exxon Mobil


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The Dow Weekly: 5 Cheapest Price-to-Book Stocks

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ByMichael Fu:

This is the second edition of the weekly series called The Weekly Dow (for last week’s article on the Top 5 Dividend Plays, click here). This week, we will look at the 5 cheapest Price-to-Book multiple stocks in the Dow Index Industrials Index (DIA). By the way, please reference my prior article on the pros and cons of looking at book value, specifically as it applies to bank and insurance stocks.

The 5 Cheapest P/B Stocks

As of April 9, 2013, the 5 cheapest P/B stocks in the Dow are Alcoa (AA) at 0.7x, Bank of America (BAC) at 0.9x, JP Morgan (JPM) at 1.2x, Travelers (TRV) at 1.3x and Verizon (VZ) at 1.7x.

Note that 3 of these stocks (BAC, JPM and TRV) are bank and insurance stocks. Note that bank stocks and insurance stocks are levered, and the financial assets that are held on their balance


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A Flight To Safety Or Crash And Burn?

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By Regarded Solutions:

I have been thinking about what will happen when (if?) the market, and our Team Alpha Retirement Portfolio, corrects (view the latest update here). Make no mistake about this; at some point the market will correct. I say IF, tongue in cheek, because throughout history every bull market corrects. This bull market will be no different.

Actually there is ONE difference, especially for us retired folks. In past market corrections, investors could park portfolio assets into fixed income securities, like Treasury Bonds. Since the equity markets were in a bull mode, interest rates for Treasuries were decent and the actual cost of the bonds were at or below par. A pretty good place for a “flight to safety”. In the very least, our money was just about keeping pace with inflation, and was safe by virtue of the fact that it was backed by the USA.

Now,


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