Comments on: 5 Reasons Why Dividend Investing Rocks

By: Carnival of Financial Planning – Money Management Edition #235 | Cult Of Money

Fri, 04 May 2012 06:00:42 +0000

[...] presents 5 Reasons Why Dividend Investing Rocks posted at Intelligent Speculator, saying, “Why you need to get into the dividend [...]

By: Curious Cat Investing, Economics and Personal Finance Carnival #30 at Curious Cat Investing and Economics Blog

Wed, 02 May 2012 03:13:10 +0000

[...] 5 Reasons Why Dividend Investing Rocks – “Dividend investors always look for high and sustainable dividend growth and any stock that decides to slow that down or even stop growing the dividend entirely raises red flags.” [...]

By: John Hunter

John Hunter — Wed, 02 May 2012 02:27:49 +0000

I agree that stopping historical trends to raise dividend or even cutting dividends give investors a good point to question the dividend stock. I would say though, that often the price is down before that announcement is made. The companies normally stretch to not do those things – so you will likely see the payout ratio increase. If the payout ratio increases and the stock hasn’t fallen yet, that may be your signal (especially if you are super risk averse). You can also see borrowing increase (which would be a worrying sign that cash flow may not be good enough – but it may also just be a decision that rates are so low that borrowing just to have the case is worth it (to deal with bad news in the future or take advantage of opportunities for the company to invest).

Of course there are plenty good reasons for the payout ratio to increase (including just increasing the dividend). Very little in investing is super easy. But I do agree dividends give you a tangible measure that is more difficult to manipulate.

By: Dana

Dana — Sat, 28 Apr 2012 14:49:10 +0000

I am a growth investing which means I try to search the stock from growth company that give a big gain. However, after read this article, I may consider to do dividend investing in future. Growth investing surely need more energy so may be not good for me in future anymore.

By: Dividend Links

Dividend Links — Fri, 27 Apr 2012 10:00:42 +0000

[...] 3. 5 Reasons Why Dividend Investing Rocks @ IS. [...]