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
-
As part of my monitoring process, I review the list of dividend increases every week. This process is helpful in observing how my investmen...
-
I review the list of dividend increases every single week as part of my portfolio monitoring process. It is helpful to see dividend growth i...
-
Have you ever held a stock that eventually cut its dividend ? Or do you worry that a company you own might have to reduce its dividend...
-
The following is a guest post from Mike, a former private banker and passionate investor blogging at The Dividend Guy Blog and founder of ...
-
As part of my monitoring process I review the list of dividend increases every week. I filter out the companies that have not reached divide...
-
Johnson & Johnson (JNJ), together with its subsidiaries, is engaged in the research and development, manufacture, and sale of various pr...
-
A famous saying goes that there are two things certain in this world: death and taxes. While I am pretty sure I can’t escape death, I know t...
-
Kimberly-Clark Corporation (KMB), manufactures and markets personal care, consumer tissue, and health care products worldwide. The company o...
-
Church & Dwight Co., Inc. (CHD) develops, manufactures, and markets household, personal care, and specialty products. The company operat...
-
For your reading enjoyment, I have highlighted several articles that the readers found of particular interest this month. I have included th...
