Update: For the Dividend Growth Index – sold position in Staples Inc. (SPLS) on missed earnings and low margins, and purchased a position in Johnson & Johnson (JNJ). The Office Sector Slump While stock markets are on a tear since their declines in May this year, the office supplies retail sector has not been doing so well. Sales, profits and revenues have been declining , leaving the office supply retail sector in a bind. Take the smaller player in the industry Office Depot (ODP), with a 450 million market cap, which last June closed all its Canadian retail locations. Office Depot has a razor thin profit margin of only 1.01%. When I looked at the office supply sector back in May 2011, Office Depot was worth over 1.1 billion dollars. Then there’s OfficeMax Inc. (OMX) with a market cap of 476 million dollars and a 1.5% dividend yield. It now has a profit margin of only 0.59% and a massive debt-to-equity ratio of 272%. In other words, the company is worth 476 million, but carries ...

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For those readers who are new to the Dividend Ninja, this is a regular series on the Dividend Growth Index (DGI). Rather than a stock picking contest, the DGI is a collaborative effort among eight dividend investors choosing three stocks each, and following these companies over the long term. For those who are already following, this is the third quarterly update for the 9 month period, since the project was launched last September. If you’re unfamiliar with the DGI, then these two introductory posts as well as my quarterly updates, will give you an excellent background to the project: Introducing the Dividend Growth Index Stock Picks for the Dividend Growth Index The Dividend Growth Index – Q4 2011 The Dividend Growth Index – Q1 2012     Benchmarking: How Are We Doing? Since the Canadian and U.S. dollar spread is within 2% for the year, I’ve given the following returns in local currency. Since inception (9 months), the Dividend Growth Index has returned 18.09% ...

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For those readers who are new to the Dividend Ninja, I wanted to introduce you to the Dividend Growth Index (DGI). For those who are already following, this is the second quarterly update (for the 6 month period) since we launched the project back in September 2011. A Quick Recap Here are my previous posts on the Dividend Growth Index, including a detailed introductory post and my three stock picks. If you are unfamiliar with the DGI, then these three posts will give you an excellent background: Introducing the Dividend Growth Index  Stock Picks for the Dividend Growth Index The Dividend Growth Index – Q4 2011 Back in September 2010, the Dividend Guy came up with the brilliant idea to setup a dividend index created by eight dividend investors, from the blogging community. The idea was that each of us would pick three stocks to contribute to the index. We would keep track of our companies and the index over the long term, and at the end of each quarter we would update readers ...

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For those readers who are new to the Dividend Ninja, I wanted to introduce you to the Dividend Growth Index (DGI). For those who are already following, this is the first quarterly update since we launched the project in September 2011. What is the Dividend Growth Index? Back in September 2011, the Dividend Guy came up with an excellent idea. Rather than his usual stock picking contest, which he did anyway, he decided to setup a dividend index created by eight dividend investors. The idea was that eight dividend investors, who happen to write dividend investing blogs, would pick three stocks each. We would keep track of our companies and the index over the long term. At the end of each quarter we would update readers on our companies, and provide a brief report on the DGI. The value of following an index over a long term period and comparing to benchmarks, in my opinion far outweighs the results of a short-term stock picking contest. While no prizes are to be won,  and the Dividend Guy ...

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In my last post I introduced readers to the Dividend Growth Index, a project created by Mike at the Dividend Guy Blog. With the Divided Growth Index (DGI), we’ve received a lot of comments and feedback about the project. Readers are getting involved, selecting their picks, and finding value in following the project. My Own Advisor and The Wealthy Canadian have also created some controversy (dare I say) with their picks of Daylight Energy (DAY-T) and CML Healthcare (CML-T). These are both high-yield stocks that could be at risk of dividend cuts! When you think about it, it is quite amazing to see seven (now eight) dividend investors contributing their expertise, following their selected companies, and collaborating together.  The long term value from this project in my opinion is to see how the DGI performs in comparison to the benchmarks, and how the dividend income will compound over time. Andrew Hallam left an interesting comment on my previous post about the DGI. He states you really ...

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