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This Fund’s Yield has Never Been Higher

By Dividend Ladder On August 2, 2015 · Add Comment
I published a call on energy stocks in early April, highlighting the sector as a rare buying opportunity on the 50% drop in oil prices. The price of oil looked like it was stabilizing and long-term fundamentals pointed to strong returns on top of higher yield. Oil prices continued higher, shooting up 22% to [...]
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Catching the Falling Dividend Knife

By Dividend Ladder On July 27, 2015 · Add Comment
The yield on shares of the Energy Select SPDR ETF (NYSE: XLE) have increased to 2.8% from 1.7% this time last year. That puts it over my 2% minimum for dividend stocks but is there more to the surge in dividends than just a higher payout? The payout on the fund has increased to $1.99 [...]
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Best States to Live in for Dividend Taxes

By Dividend Ladder On July 20, 2015 · Add Comment
The passing of the Affordable Care Act added a 3.8% net investment tax to a growing list of reasons to pay closer attention to the taxes you pay on dividends. Beyond the 20% marginal tax rate you could pay on your federal tax return, state tax rates can eat into the income you collect from [...]
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Is the Stock Market Expensive?

By Dividend Ladder On July 12, 2015 · Add Comment
Six years into the bull market and investors are getting worried about stock market valuations. Are stocks too expensive? Since its closing low of 676 in March 2009 the S&P 500 has jumped 208% with hardly a hiccup along the way. That puts the current bull market at just over 76 months, well over the [...]
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Is Apple a Dividend Stock or Not?

By Dividend Ladder On July 6, 2015 · 4 Comments
Apple Company Investment Highlights The company has expanded its cash return policy but doesn’t quite pass my smell test for a ‘dividend’ stock Reliance on iPhone sales means each year must impress on a new launch or upgrade, something that could be difficult this year and next Shares are not particularly expensive at 15.7 times [...]
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Becton, Dickinson and Company: Did this Leader just Overextend Itself?

By Dividend Ladder On June 25, 2015 · Add Comment
BDX Company Investment Highlights Strong growth ahead from merger of Carefusion products through Becton distribution in international markets High debt load will impede shareholder cash return for years Shares are fully-valued and significant risks to acquisition integration and debt lead to a hold recommendeation Becton, Dickinson and Company (NYSE: BDX) is the world’s largest manufacturer [...]
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Automatic Data Processing: Investors Content to Pay for Future Growth

By Dividend Ladder On May 31, 2015 · 2 Comments
ADP Investment Highlights ADP is the market leader in an industry with reliable growth, leading to stable cash flows into the future An eventual downturn in the U.S. economy will affect shares as companies look to cut costs in HCM and other services Shares trade for 30 times trailing earnings, well above the historical average. [...]
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Pentair: Good Upside with a Lottery Ticket

By Dividend Ladder On May 27, 2015 · Add Comment
Pentair Plc Investment Highlights A dividend yield of 2% is augmented by a buyback yield of between 4% and 6% Shares have fallen on weakness in the energy sector and currency impact but could offer a good entry price to long-term investors The company’s position in water purification could be a lottery ticket for investors [...]
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A Picks and Shovels Play on American Manufacturing

By Dividend Ladder On May 10, 2015 · 1 Comment
Grainger Investment Highlights Grainger is the leader in a highly fragmented market and may be able to acquire smaller rivals to improve pricing power More than a third of sales are from online, giving it a strong position for future growth as more retail goes virtual The company has committed to repurchasing 18% of outstanding [...]
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Illinois Tool Works: Moving in Right Direction but Hurdles Await

By Dividend Ladder On May 7, 2015 · Add Comment
Illinois Tool Works Investment Highlights Nearly a fifth of the shares outstanding have been repurchased over the last five years, boosting total cash yield Progress on restructuring and profitability is impressive but sales losses may be greater than estimated over the next year At a buy target of $85.40 the shares would be 17.5 times [...]
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