Monday, June 30, 2014

Dividends & Income POT, Potash the next 2014 Dividend Machine

Diversification comes in many flavors.   Some advisers concentrate on percent of bonds versus percent of stocks.   Other advisers suggest some growth and some value.  Then there are advisers who want you to have some small cap stocks and some large cap stocks to achieve diversification.   Another diversification goal is to have some global or international stocks as well as some domestic stocks.

The Dividend Machine I am profiling today is a Canadian Company that trades on both the Toronto stock exchange as well as on the U.S. stock exchange. 

Thursday, June 26, 2014

Should you buy Freeport-McMoRan FCX for income?

With these credentials, it is hard to believe Freeport-McMoRan, symbol FCX, is not a Dividend Machine.

Earnings are $2.45 per year with a dividend payout of $1.25 for a yield of 3.49%.    Moreover, the dividend increases over the past 55 months average 23.6%.   FCX also carries a very manageable amount of debt; D/E (debt to equity ratio) is .9858.   The data are presented in the table below.

Wednesday, June 25, 2014

Compare VIG, SDY and 2014 Dividend Machines

Both low cost and very good dividend ETF's, VIG and SDY declared their latest quarterly dividend.   VIG = $.408  SDY = $.4409.

These dividends translate to income of $1,049 for VIG and $1,168 for SDY.   Folks, we still beat them with the 2014 portfolio which generates $1,975 on the same basis.   See the table below.


Tuesday, June 24, 2014

Teva Pharmaceuticals TEVA boost your income with a call option

Today appears to be covered call day on almost Dividend Machines.   Take a look at TEVA.  Pays over a 2% dividend and you can boost your income with this call.


Another CAT call

If you follow this blog, you know that CAT has been a stock profiled not as a Dividend Machine but as an almost Dividend Machine that provides good income through calls.

The table below shows a call I like.   Use the covered call calculator to enter you own cost basis.   This table uses today's price as the basis.  

 The MoneyMadam

Wednesday, June 18, 2014

The cost of TheMoneyMadam’s Dividend Machine Strategy

What does it cost?

Of the three income investments I write about, my Dividend Machine Strategy is the cornerstone of income investing.  In this post I explore the cost of Dividend Machine investing.

A well known tenant of successful investing is that investors should keep track of what it costs them to invest and they should keep those costs at a minimum.    Costs include fees you may pay an adviser, commissions to the brokerage, mutual fund loads and fees, and ETF fees etc. 

I looked at the costs of my Dividend Machine model portfolios and the costs of two benchmark ETF’s.  I also explored the costs of the typical income investor with fewer restrictions on investing than I impose on the model portfolios.

Monday, June 16, 2014

Dividends & Income Staples SPLS

When I find a Dividend Machine, I have to tell you.   Them’s the rules as they say in old novels.

I have been retired for nearly 5 years.    That has implications.   For instance as an investment advisor, I will be able to shred all those documents an investment professional has to keep for five years. 

It also means I do not shop for office supplies like I did before I retired and I don’t know if one office supply store is better than the next.   That gives you a hint that this post is about a stock that qualifies as a Dividend Machine and is in the office supplies space.

Saturday, June 14, 2014

The Best Dividend EFT's versus Dividend Machines

This table shows this year's results from investing in the two best Dividend ETF's as compared with using a simple, disciplined strategy I call Dividend Machines.   The basis is the same for Dividend Machines, VIG and SDY.