Showing posts with label bonds. Show all posts
Showing posts with label bonds. Show all posts

Tuesday, June 25, 2013

Rising interest rates affect all businesses, not just dividend paying ones

Ever since the “correction” in dividend paying stocks began five weeks ago, I keep learning that the so-called dividend craze is over. The argument goes that dividend paying stocks are less attractive for investors today, because rising interest rates will make them less appealing.

Before I address this argument on rising interest rates affecting the appeal of dividend paying stocks, I am going to quote Charlie Munger, who has been Warren Buffett’s business partner for half a century.

“I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.”

Unfortunately, I find that people arguing against dividend investing never get their facts straight, and usually resort to manipulating their examples in order to prove their point. Whether this is based on reality or not, is not important for them.

Over the past 3 months, the yield on the benchmark 10 year US treasuries has increased by 50%. While the term 50% seems like a lot, in reality it is used to describe the fact that yields increased from a low of 1.60% in April to a high of 2.50% in June. To put it in perspective, if you were a retiree with $1 million in cash, who purchased ten year treasuries in April 2013, you would be entitled to receive $16,000 in annual interest income for ten years. If you had waited to invest the money today, you would be entitled to receive a little over $25,000 in annual interest income for ten years. In other words, you went from a situation where your money is not earning too much, to a situation where your money is still not earning enough.

The worst part is that investors in US treasuries are still not earning enough to compensate them for inflation, taxes and to earn a decent livable return. At the end of their maturities in 2023, investors would get their $100 back, but it would likely have the purchasing power of about $74 today, assuming a 3% inflation rate per year. If our enterprising investor instead decides to purchase dividend paying stocks, they would be able to generate distributions which grow at or above the rate of inflation, can also protect principal from inflation, while enjoying a preferential tax treatment. As a result, a a portfolio of dividend growth stocks yielding 2.50% today which grows dividends at 10%/year will generate $25,000 in income today based on a $1,000,000 portfolio. In seven years however, this dividend portfolio will generate an annual dividend stream of $50,000.

As you can see, investors who argue that rising interest rates are bad for dividend growth stocks forget that they are not bonds, and therefore can increase dividend checks to compensate for holding the security. Of course, selecting a quality dividend stock does take some effort, which requires screening, analysis of underlying business prospects and purchasing the security at attractive valuations.

In reality, I think that rising interest rates are really bad for fixed income securities such as treasuries and preferred stocks. The fixed coupons provide an illusory safety that income cannot be cut or eliminated. In reality, the purchasing power of these coupons is decreasing every single year. Dividend stocks are not bonds however, as the underlying business behind the security provides a built in inflation protection in aggregate.

When I invest however, I view shares of dividend paying companies as partial ownership stakes in businesses. I try to invest in those quality companies which I would be happy to hold through several cycles of rising and falling interest rates, economic expansions and recessions and stock market volatility. My holding period is essentially forever. This could range from 20 years all the way to over 50 years ( if I am particularly lucky). As a result, any data point less than one year is viewed as noise in my book.

I have outlined below a few dividend growth stocks which are attractively valued, and have exciting prospects ahead:

McDonald’s Corporation (MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. This dividend champion has managed to boost distributions for 36 years in a row, and has a five year dividend growth rate of 13.90%/year. Currently, the stock is trading at 18 times earnings, yields 3.10% and has an adequately covered dividend. Earnings per share are projected to increase by % over the next five years. Check my analysis of McDonald’s.

Philip Morris International Inc. (PM), through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The company has managed to boost dividends for 5 years in a row, and has a five year dividend growth rate of 13.10%/year. Currently, the stock is trading at 16.80 times earnings, yields 3.90% and has an adequately covered dividend. Earnings per share are projected to increase by % over the next five years. Check my analysis of PMI.

Chevron Corporation (CVX), through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. This dividend champion has managed to boost distribution payments for 26 years in a row, and has a ten year dividend growth rate of 9.20%/year. Currently, the stock is trading at 9 times earnings, yields 3.30% and has an adequately covered dividend. Earnings per share are projected to increase by % over the next five years. Check my analysis of Chevron.

Aflac Incorporated (AFL) provides supplemental health and life insurance products in Japan and US. The company has managed to boost dividends for 30 years in a row, and has a ten year dividend growth rate of 10.90%/year. Currently, the stock is trading at 9 times earnings, yields 2.50% and has an adequately covered dividend. Earnings per share are projected to increase by % over the next five years. Check my analysis of Aflac

To be perfectly clear however, rising yields on treasuries do signal that cost of capital will be higher over time. This does affect corporate profits, as many companies borrow extensively to finance their daily operating needs. The sad part that many anti-dividend arguments miss is that rising interest rates are not good for businesses in general, not just dividend paying ones. However, because the economy is doing better, companies will be able to sell more goods and services, which would offset rising interest rates. However, companies with strong competitive advantages will be able to generate rising profits over time. They can deal with the cost of higher interest rates by passing higher costs to customers who want the products, making operations more efficient by reducing duplicate functions, or working ways to reduce the need for borrowing to finance short-term operations.

Full Disclosure: Long MCD, PM, CVX,  AFL

You might also like:

Check Out the complete Archive of Articles
Does Fixed Income Allocation Make Sense for Dividend Investors Today?
How to crush the market with dividend growth investing
Diversified Dividend Portfolios – Don’t forget about quality
Are dividend investors concentrating too much on consumer staples?

Wednesday, October 13, 2010

Why dividend investing beats US Treasuries today?

With yields on 10 year and 30 year US Treasuries reaching their lowest levels since 2008, investors are left with one less potential source of income in retirement. Currently, investors who purchase a $1000 bond that matures in 30 years are expected to receive an annual yield of $38. Investors who lock their money in a 10 year Treasury bond will receive $24. The reason for the low yields is low expected inflation for the near future, and the fear of a double dip recession which could even lead to deflation. The risk behind investing in treasuries today is that the low yields would not compensate investors even for a small inflation of 3% per year until maturity. In other words, the purchasing power of the interest income from an investment in fixed income will be much lower five, ten or thirty years from now. So how can investors manage to generate income from their nest eggs, which they have worked so hard and for so long to accumulate?

What investors need, is an instrument, or an asset class, that not only provides decent current yields, but also generates an income stream that meets or exceeds inflation over time. One such class is dividend paying stocks. Stocks in general have been mostly flat over the past decade, with the majority of returns coming from dividends. One of the reasons why stocks didn’t perform so well over the past decade is because they were grossly overvalued in 2000. Investors who want to generate income in retirement however should focus only on a select number of companies which have the following characteristics:

1) A history of consistent dividend increases. I prefer companies which have raised dividends for at least ten consecutive years.

2) An adequately covered dividend from earnings. I search for companies where annual earnings per share are at least twice the amount of annual dividends

3) A low price earnings ratio and at least some earnings growth. Overpaying for stocks could turn costly, and lead to low returns over time. I prefer stocks which have a P/E of less than 20.

4) A current yield of at least 2.50%. While some investors see this yield as “low”, they tend to forget that with regular dividend increases, the yield on cost would increase over time. By stacking companies with varying yield and dividend growth characteristics it is possible to create a portfolio yielding 4% where dividend increases match or exceed the rate of inflation.

There are only 300 or so stocks trading on US exchanges that have a history of growing their distributions for at least ten years. By applying a simple screen where P/E ratio is less than 20, the current yield is 2.50% or more and where the dividend is sustainable, investors could end up with a manageable list of stocks for further research.

A sample of seven dividend growth stocks which met these criteria include:

Chevron Corporation (CVX) operates as an integrated energy company worldwide. The company is a dividend achiever, and has consistently raised its dividends for 23 years in a row. Annual dividend payments have increased by an average of 8.30% annually since 2000. Yield: 3.40% (analysis)

The Clorox Company (CLX) engages in the production, marketing, and sales of consumer products in the United States and internationally. The company operates through four segments: Cleaning, Lifestyle, Household, and International. Clorox has paid uninterrupted dividends on its common stock since it was spun out of Procter and Gamble (PG) in 1968 and increased payments to common shareholders every year for 32 years. The company is a member of the elite S&P Dividend Aristocrats Index.Annual dividends have increased by an average of 13% annually since 1999. Yield: 3.20% (analysis)

McDonald’s Corporation (MCD), together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonalds restaurants that offer various food items, soft drinks, coffee, and other beverages. The company is also a dividend aristocrat, which has been consistently increasing its dividends for 33 consecutive years. Annual dividend payments have increased by an average of 28.20% annually since 2000. Yield: 3.20% (Analysis)

Medtronic, Inc. (MDT) develops, manufactures, and sells device-based medical therapies worldwide. The company operates in the following segments:Cardiac Rhythm Disease Management , Spinal, CardioVascular, Neuromodulation, Diabetes, Surgical Technologies and Physio-Control. This dividend champion has raised distributions for 33 years in a row. The annual dividend payment has increased by 17% per year since 2000. Yield: 2.70% (analysis)

PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia. The company is a member of the S&P Dividend Aristocrat index, after raising distributions for 38 years in a row. Annual dividend payments have increased by 13.60% on average since 2000. Yield: 2.90% (Analysis)

Sysco Corporation (SYY), through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice industry in the United States. SYSCO Corporation is a dividend champion as well as a component of the S&P 500 index. It has been increasing its dividends for the past 40 consecutive years. Annual dividend payments have increased by an average of 17% annually over the past 10 years. Yield: 3.50% (Analysis)

United Technologies Corporation (UTX) provides technology products and services to the building systems and aerospace industries worldwide. The company is a dividend achiever, and has been consistently increasing its dividends for 16 consecutive years. Annual dividends have increased by an average of 15.80% annually since 2000. Yield: 2.30% (analysis)

It is important to also hold a diversified portfolio of dividend stocks, in order to avoid concentration to particular segments, which could jeopardize dividend income in retirement. As a result holding at least 30 individual stocks representative of the ten industry groups of the S&P 500 makes sense.

Last but not least, while investing in dividend stocks would likely lead to a higher income stream in ten or thirty years, which would be much better than the fixed income from US Treasuries, dividend investing still has its risks. One of the biggest risks for dividend investors is that companies could cut or eliminate dividend payments. A diversified portfolio of stocks would soften the blow to total dividend income of course. However there have been times like during the Great Depression, when most companies cut dividends substantially. During those times investments in government bonds produced not only decent income, but also decent total returns as well. In addition to that, investors in Japan in the 1990’s were also faced with low yields on the long term government bonds. However this was a much wiser investment than buying Japanese stocks as represented by the Nikkei 225 index.

While dividend stocks would likely do much better than US Treasuries, investors should understand risks of dividend paying stocks before investing. This could provide them with the edge against investors who chase unsustainable yields and overpay for income streams.

Full Disclosure:

Relevant Articles:

- Living off dividends in retirement
- Four Percent Rule for Dividend Investing in Retirement
- Inflation Proof your income in retirement with Dividend Stocks
- The case for dividend investing in retirement

Wednesday, August 18, 2010

Eight Dividend Stocks Yielding More than Fixed Income

Over the past two years, the yields on most investment grade fixed income securities have declined substantially. Investors who need to generate income in retirement are running out of options. For example back in 2006 and 2007 the yield on US 10 year Treasury note was almost 5%. Currently the yield on US 10 Year Treasury note is less than 3%. As a result many investors are focusing their attention to blue chip dividend stocks these days.

There are many solid Blue chip stocks which yield more than fixed income. In addition to that solid dividend stocks could also afford to increase the dividend payment, which offers protection against inflation. Thus, investors could either tie up their money for a prolonged period of time in bonds or they could purchase dividend stocks which provide a higher yield as well as the possibility of dividend growth to outrun inflation.

Finding the best dividend stocks does require some research however. Investors should evaluate whether the company researched has the ability to raise earnings for the foreseeable future. Investors should then make sure that they are not overpaying for the shares. The sustainability of the dividend payment is important as well, since a well covered dividend could withstand short-term earnings fluctuations much more easily than a not so well covered payment. In addition to that, by focusing on companies with a strong culture of paying higher dividends for at least ten consecutive years, investors would be increasing their chances of generating income in retirement that at least keeps up with inflation overtime.

Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company has managed to deliver a 11.10% average annual increase in its EPS since 2000. Analysts expect a 9.80% increase in EPS to $4.83 in 2010, followed by an 8% increase to $5.23 in 2011. Yield: 3.60% (Analysis)

Chevron Corporation (CVX) operates as an integrated energy company worldwide. The company has managed to deliver a 3.10% average annual increase in its EPS since 2000. For fiscal year 2010 analysts expect earnings to increase by 53% to $8/share. Analysts also expect earnings per share to rise 25% from there to $10/share by FY 2011. Yield: 3.60% (analysis)

Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of health care products worldwide. It operates in four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products. The company has managed to increase earnings per share by 8.40% on average since the year 2000. For fiscal years 2010 and 2011, analysts expect EPS to increase from 3.69 in FY 2009 to $4.24 and $4.77. Yield: 3.40% (Analysis)

Kimberly-Clark Corporation (KMB), together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. Yield: 4.00% (Analysis)

The Procter & Gamble Company (PG) engages in the manufacture and sale of consumer goods worldwide. The company operates in three global business units (GBUs): Beauty, Health and Well-Being, and Household Care. Earnings per share have grown at an average pace of 12.50% per annum. For FY 2010, analysts expect the company to earn $4.15/share, which is higher than 2009’s EPS of $3.58. For FY 2011 analysts expect Procter & Gamble to earn $4.10/share. Yield: 3.20% (Analysis)

The Coca-Cola Company (KO) manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. The company has managed to deliver a 14.30% average annual increase in its EPS over the past decade. Analysts are expecting a 17% increase in EPS to $3.45 for 2010 and $3.76 by 2011. Yield: 3.10% (Analysis)

Universal Corporation (UVV), together with its subsidiaries, operates as the leaf tobacco merchants and processors worldwide. It engages in selecting, procuring, buying, processing, packing, storing, supplying, shipping, and financing leaf tobacco for sale. Earnings per share have grown by 1.50% on average since 2000. Analysts expect UVV to earn $5.25/share in 2010 and $5.63/share in 2011. This is an increase over the $4.32/share Universal earned in 2009. Yield: 5% (Analysis)

Sysco Corporation (SYY), through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice industry in the United States. The company has managed to deliver an 11.20% average annual increase in its EPS since 2000 to 1.80/share. For the next two years analysts expect EPS to increase to $1.81 and $1.92 respectively. Yield: 3.20% (Analysis)

While dividend stocks would likely produce total returns that are higher than purchasing fixed income today, bonds still should have a place in a retirement portfolio. An allocation to US Treasuries would have protected one’s portfolio during the Great Depression or during the most recent financial crisis. Ensuring that your portfolio lasts a lifetime should be much more important than focusing on one asset class. Blue Chip dividend stocks would provide inflation adjusted stream of income over time, while even a modest 25% allocation to bonds purchased over time would provide payout stability in the event of a deflation or during an economic recession coupled with low inflation. In addition to that stocks are inherently riskier than government bonds, and as such there is a possibility of losing principal invested.

Full Disclosure: Long all stocks mentioned

This article was included in the Carnival of Personal Finance #272 – Yogi Berra Edition!

Relevant Articles:

- Inflation Proof your income in retirement with Dividend Stocks
- Living off dividends in retirement
- Fixed Income for dividend investors
- Dividends Stocks versus Fixed Income

Thursday, April 29, 2010

Fixed Income for dividend investors

Over the past century stocks outperformed bonds rather handsomely. One dollar invested in the S&P 500 in 1802 with reinvested dividends would have turned into $12.70 million by 2006; a similar investment in fixed income would have only grown to $18,235. Most investors have far shorter investing periods than two centuries however.

Source: Stocks for the Long Run, 4th Edition: The Definitive Guide to Financial Market Returns & Long Term Investment Strategies

While US stocks have always produced positive total returns over any 30 year periods, this has come with tremendous volatility in total returns. Bonds on the other hand could also experience volatility in total returns, since they are particularly sensitive to changes in interest rates. The one thing which is helpful is that the coupons are fixed, which at least provides some stability of nominal income.

As mentioned earlier, bonds are sensitive to changes in interest rates. Bonds have been in a bull market for almost three decades now, fueled by a decrease in yields in the 30 year Treasrury Bond from 15% in the 1980's to 4.50% now. Most investments in bonds can hardly keep up with inflation. Only the TIPS ( Treasury Inflation Protection Securities) offer some inflation protection, as their principal and interest payments adjust to annual changes in the Consumer Price Index. Other than TIPS, fixed income securities typically do not do very well during inflation.

Furthermore most Corporate Bonds also have added risk, since there is always the possibility of default. Many prominent companies which were once regarded as solid blue chips have fallen on hard times and have had to go bankrupt, wiping out both shareholders and leading to huge losses of principal by bondholders. Municipalities, which lure investors with their tax exempt securities, are also prone to defaults. As a result I tend to concentrate my fixed income efforts only to US Treasury Bonds or FDIC insured Certificates of Deposit.

In a previous article I mentioned that a dividend portfolio in retirement must have at least a 25% allocation to fixed income. Despite the fact that I believe dividend growth stocks are a much better investment than fixed income, I still believe that bonds could offer some comfort for diversification purposes. While a bond portion of a portfolio would certainly lose purchasing power due to inflation, it would provide a portfolio with a cushion during market turmoil and during deflationary periods. If we were to experience higher inflation in the future, the dividend stock allocation should do its magic by lifting incomes and stock prices. If we have a repeat of the Great Depression or the Lost two decades for Japan, investors with a bond allocation should sleep better at night.

The way to actually invest in Treasuries is either by directly buying bonds or by investing through a bond fund or ETF. One way to purchase bonds is either directly by participating in Treasury Auctions or by buying bonds through your broker. While some brokers charge a small fee for bond transactions, others do not charge anything. If you decide to purchase your fixed income directly and hold to maturity, then you might consider laddering your bonds. Bond laddering means purchasing bonds with varying maturities, so that one is not overly exposed to interest rate fluctuations. Bond ladders could also be set up in a way that you can have bonds maturing at predetermined intervals of time. This allows investors to allocate bond proceeds to new bonds with the same maturities but different interest rates as the bonds which matured.


The advantage of holding onto individual bond issues is that investors could decide whether to hold to maturity or sell before that. Even if interest rates went to 10% and bonds with 4% yields were trading at steep discounts to par, investors holding to maturity will get their principal back. In addition to that investors would keep receiving the coupon payments every six months. Proceeds could also be reinvested back at the higher interest rates.


Investing in bonds should be done only as a long term investment. There has been a lot of speculation about interest rates rising since at least late 2008, claiming that bond investors would surely lose money over the long term. If one had $1000 in cash and invested in a ten year Treasury bond, they would lock in a 3.80% yield for 10 years. If one were to wait for three or four years however until rates on ten year bonds rose to 6%, then they would receive much lower returns.

The other method to buy bonds is by purchasing a bond mutual fund or a bond ETF. Some of the most active bond ETFs include:

iShares Barclays 20+ Year Treasury Bond (TLT )
Vanguard Long-Term Bond ETF (BLV)
iShares Barclays 7-10 Year Treasury (IEF )
iShares Barclays 1-3 Year Treasury Bond (SHY)
iShares Barclays TIPS Bond (TIP)

The issue with bond funds is that investors are charged annual management fees for them, which lower returns. Some bond mutual funds also tend to sell bonds, which triggers capital gains liabilities.

At the end of the day, dividend growth investing is a superior investing strategy. Adding another low correlated asset class such as fixed income however can smooth volatility in income in times of recessions and deflations. The goal is reducing risk as much as possible and providing a floor to the amount of sustainable income in retirement. Investors need to eat even during recessions. Thus, an allocation to fixed income should provide investors with a peace of mind and reduce long-term risk, without sacrificing long term growth for the rest of the portfolio.

Full Disclosure: Long US Government Bonds


Relevant Articles:


- Dividend Reinvestment is important
- Dividends Stocks versus Fixed Income
- The case for dividend investing in retirement
- Living off dividends in retirement

Wednesday, September 23, 2009

Dividends Stocks versus Fixed Income

Many retirees who are seeking current income from their assets invest in fixed income securities, most of which provide a stable stream of income. Fixed income investments do have some disadvantages relative to stocks that pay dividends, and thus retirees which fail to account for these, could end up with no income at the worst time possible .

First, while typical fixed income securities provide a dependable income stream, its purchasing power is typically eroded by inflation. Even at 3% per annum, the purchasing power of one dollar decreases by 50% in 24 years. Double that inflation rate to 6% annually and now the purchasing power of one dollar is down by 50% in 12 years and by 75% in 24 years. Stocks that pay rising dividends provide the best inflation proof source of income. Dividend based distributions can grow, interest based distributions usually don't. Unless interest income is reinvested, the interest income cannot grow over time to compensate for the eroding value of inflation.

Second, right now qualified dividend income is taxes at 15% for the highest tax bracket in the US, which is almost half the top tax for interest income in the States. In Canada dividend income also received a preferential treatment relative to fixed income.

Third, bonds typically don’t increase their interest payments if the business is doing well. Stocks, which represent partial ownership of companies, tend to share higher profits with shareholders either through dividend increases or through stock buybacks. Thus stocks tend to provide higher total returns over time as they could provide higher capital gains and higher dividend incomes.

Stocks have disadvantages as well however.

First, if a company goes under and declared bankruptcy, fixed income holders are the only ones that get at least some return of their investment. Stockholders on the other hand typically receive nothing when the company emerges from bankruptcy.

Second if a company faces financial difficulties it could easily afford to cut or eliminate its dividends, but it would have to go through huge hurdles before it could get bondholders to agree to reduce or eliminate their interest payments.

Fixed income securities guarantee a return of your investment some time in the future, whereas stocks don’t provide that.

That being said I do believe that the best strategy for long-term investors is to have an allocation to both stocks and bonds. Fixed income tends to provide dependable income even in the worst bear markets. In addition to that fixed income investments provide diversification in bear markets and are the only asset to provide returns to investors during deflationary periods.

Stocks are great vehicles to own during average and high inflationary periods, and they could provide investors with rising inflation adjusted streams of dividend income over time. There are companies which have long records of raising their distributions. The possibility of receiving rising dividends from stocks, make equities a preferred method of investment for many investors. Some early holders of stocks like Johnson & Johnson (JNJ), Exxon Mobil (XOM), and Altria (MO) are now enjoying double or even triple digit yields on cost on their original investments, even without reinvesting their dividends. Similar investments even in the safest highest yielding fixed income securities would still be generating the same incomes, provided that they have not matured.

Currently I like several dividend stocks, which have the best prospects to grow their distributions over time.

Johnson & Johnson (JNJ) has increased dividends for 47 consecutive years. Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Check my analysis of the stock.

Mcdonald’s (MCD) has increased dividends for 32 consecutive years. McDonald’s Corporation, together with its subsidiaries, franchises and operates McDonald’s restaurants in the food service industry worldwide. Check my analysis of Mcdonald’s.

Chevron (CVX) has increased dividends for 22 consecutive years. Chevron Corporation operates as an integrated energy company worldwide. Check my analysis of Chevron.

Abott Labs (ABT) has increased dividends for 37 consecutive years. Abbott Laboratories manufactures and sells health care products worldwide Check my analysis of the company.

Clorox (CLX) has increased dividends for 32 consecutive years. The Clorox Company manufactures and markets a range of consumer products Check my analysis of the stock.

Full Disclosure: Long ABT, CLX, CVX, JNJ, MCD, MO

This post was featured on the Carnival of Personal Finance #225- Planning Winter Edition

Relevant Articles:

- The case for dividend investing in retirement
- High yield stocks for current income
- Dividend Cuts - the worst nightmare for dividend investors
- Determining Withdrawal Rates Using Historical Data

Popular Posts