Geez, if it weren't Valentine's Day, I'd think it was Groundhog Day ... ACAS announced yet another dividend hike yesterday. Talk about a sweetheart deal for shareholders!
The company now expects to pay out $4.19 in dividends for '08. That puts the stock's indicated yield around 12% right now. Am I glad this stock is in the high-yield portfolio in Dividend Superstars? You bet!
Thursday, February 14, 2008
Thursday, February 7, 2008
Why Dividend Stocks Are a No-Brainer
Given that so many people need income right now, I just wanted to post a little excerpt from my recent Money & Markets column. I think it sums up just why dividend stocks are the absolute best choice for income investors right now ...
"Just in the last two weeks, Ben Bernanke has slashed rates by a full 125 basis points. And he's not done cutting.
"That may be welcome news for some house flippers with adjustable-rate mortgages and credit card borrowers with outrageous balances (provided those rates also come down) ... but it's horrible for anyone with the foresight and discipline to save and invest!
"Take a look at what the latest round of rate cuts have done to the major income investment categories:
"Ten-year U.S. Treasury bonds were recently yielding 3.6%, near their lowest level EVER!
"Meanwhile, the Wall Street Journal reported that the average seven-day money market account was yielding just 3.4% vs. 4.7% last September.
"And according to Bankrate.com, the national average for a one-year CD was 2.75%, while a five-year CD was yielding just 3.09%.
"You know it's a very sorry state of affairs when income investors are actually wishing they could still get 4% a year!"
Meanwhile, conservative stocks like Pfizer, Altria, and Consolidated Edison ARE yielding 4% - 6%.
I think the choice is obvious.
"Just in the last two weeks, Ben Bernanke has slashed rates by a full 125 basis points. And he's not done cutting.
"That may be welcome news for some house flippers with adjustable-rate mortgages and credit card borrowers with outrageous balances (provided those rates also come down) ... but it's horrible for anyone with the foresight and discipline to save and invest!
"Take a look at what the latest round of rate cuts have done to the major income investment categories:
"Ten-year U.S. Treasury bonds were recently yielding 3.6%, near their lowest level EVER!
"Meanwhile, the Wall Street Journal reported that the average seven-day money market account was yielding just 3.4% vs. 4.7% last September.
"And according to Bankrate.com, the national average for a one-year CD was 2.75%, while a five-year CD was yielding just 3.09%.
"You know it's a very sorry state of affairs when income investors are actually wishing they could still get 4% a year!"
Meanwhile, conservative stocks like Pfizer, Altria, and Consolidated Edison ARE yielding 4% - 6%.
I think the choice is obvious.
Subscribe to:
Posts (Atom)
Posts
