It’s been more than a year since the financial market crisis began. Over those twelve horrendous months financial stocks have been the worst sector to be invested in. Record losses, coupled with more expectations of write-offs coupled with dividend cuts that made headlines surprised many investors who logically went straight for the exits.
On Friday FNM reported more than 2.3 billion in losses for 2Q 2008. At the same time the struggling housing lender cut their dividends, following the dividend cuts of Freddie Mac. Based off these news some gurus will tell you that dividend investing was a fad to begin with and that the best stocks to own are AAPL and RIMM.
That’s very far from the truth. Out of the 60 dividend aristocrats, which are companies that have increased their dividend payments to shareholders for more than 25 consecutive years, more than 40 have announced changes in their annual dividend rates. And guess what; only three out of 40 have actually cut their dividends – KEY, FITB and RF. Two other companies, GCI and BAC have so far frozen their dividend payments.
You could view the announced changes in annual dividends so far this year, courtesy of Standard & Poors.
Based off the above mentioned list, I would say that dividend investors haven’t been affected that badly by the financial turmoil that’s been capturing the markets in recent months as the dividend income has increased by over 7% in over year if an investor held a single share in each of the above mentioned dividend aristocrats.
What’s better than having the ability to buy more shares at depressed prices while you get an increasing stream of dividend income? You get to reinvest your dividends at deflated prices and you could also dollar cost average by taking full advantage of the fear on Wall Street,
Full Disclosure: The author is long US stocks.
Relevant Articles:
- Selected Dividend Increases in July
- My Dividend Growth Plan - Diversification
- I got a 10% raise from CSL (Carlisle Companies)
- Realty Income (O) Dividend Analisys
Popular Posts
-
The US stock market has been turbulent recently. As a Dividend Growth Investor, I usually ignore stock price fluctuations, unless I am looki...
-
The past month has been difficult for many investors. It is during times like these that you see who really is a long-term investor , and w...
-
Over the past year, inflation has been on the increase. A popular meme on the internet is the saying that if you didn't receive an 8.60%...
-
Dividend investing is as sexy as watching paint dry on the wall. Defining an entry criteria that selects quality dividend stocks with risi...
-
A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatme...
-
Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and servic...
-
Stanley Black & Decker, Inc. (SWK) engages in the tools and storage, industrial, and security businesses worldwide. The company raised i...
-
I review the list of dividend increases each week as part of my monitoring process. This exercise pushes me to review existing holdings, and...
-
Janus Henderson is a money manager, which has shared some interesting data reports in the past. I recently read their 33rd Global Dividend I...
-
Coca-Cola (KO) is a dividend king , which has managed to increase dividends to shareholders for 57 years in a row. The company has paid divi...