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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (10635)	12/26/2011 4:43:45 PM
From: chowder	3 Recommendations Read Replies (1) \| Respond to of 34328

My 20 year old daughter has a small account. She is a full time college student. Her account balance at the end of 2010 was $5985.93. She contributed a total of $329 during 2011. Her account has grown from investing 20% of birthday money, 20% of her Xmas money and 20% of her allowance. Since she is a full time college student and responsible for her own car insurance and other expenses, she no longer is contributing to the account. Back in January, she sold 300 shares of C before the reverse split. At the time, the proceeds were $1442.28 and represented a capital gain of 23.47%. The timing was good. If she still had those shares, they would be down <42.84%> from her selling point. With the cash above, and the proceeds from the C sale, she purchased MCD and PG. No other transactions have taken place in the account this year other than reinvesting the dividends. She received $291.89 in dividends this year. Ha! Ha! ... That was up 95.95% from last year. The impressive thing though, is that her portfolio is up 27.2% in 2011. ... Shocked me! Total value as of today is $7614.14. Listed below are her holdings and the number of shares: D - 26.574 EPD - 24.059 MCD - 13.392 MO - 40.901 O - 37.624 PG - 17.42 Cash - $62.55 I think that would make a good portfolio for Cramer's, "Am I Diversified?" Ha!

To: chowder who wrote (10635)	2/6/2012 2:29:21 PM
From: Bocor	Respond to of 34328

nice pullback on SYY for those interested: fool.com Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable. Let's examine how Sysco stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Sysco is a dividend dynamo or a disaster in the making. 1. Yield First and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield. Sysco yields a healthy 3.6%, considerably higher than the S&P 500's 2.1%. 2. Payout ratio The payout ratio might be the most important metric for judging dividend sustainability. It compares the amount of money a company paid out in dividends last year to the earnings it generated. A ratio that's too high -- say, greater than 80% of earnings -- indicates that the company may be stretching to make payouts it can't afford, even when its dividend yield doesn't seem particularly high. Sysco has a moderate payout ratio of 52%. .............................................