[easyazon-image-link asin=”0965175081″ alt=”The Single Best Investment: Creating Wealth with Dividend Growth” src=”http://ecx.images-amazon.com/images/I/514aHF5BDrL._SL500_.jpg” align=”left” width=”200″ height=303″]This week markets continued their meteoric rise, after a recent slump in May. As I mentioned in my last post, with cash to invest it was getting difficult to find stocks that were attractively priced. In the end I simply decided to top-up current holdings, and keep the cogs in the dividend and bond machine moving. I’m pretty confident with my buys of BNS, RY and topping up on CLF.
Coca-Cola (KO) split their shares in a 2:1 for stock split last week, putting a smile on the face of many long-term dividend investors! For new investors it makes KO much more affordable per share as well – though watch for a possible post-split-bounce. Cisco Systems (CSCO) exceeded analysts’ expectations, and the price surged nearly 10% from Thursday lows of $17.35 to close Friday at $19.06 per share. Cisco (CSCO) now has a dividend yield close to 2% with some great potential for future growth. After holding this puppy for over 20 months, I let it go in early August fearing another recurrence of missed earnings as in May. OOPS! – forgot why I was value investing in the first place!
The Weekly Lineup
Here are some great posts I really enjoyed from around the web:
My Own Advisor (not really my advisor) had a great post on, How many dividend stocks are enough? This is one of those questions that really comes to light for those investors with substantial portfolios. In The Single Best Investment, Lowell Miller suggests 30 to 40 stocks is the magic number (see pg. 172). He points out anything less does not give you enough diversification, and above that leads to over diversification. Miller found that portfolio performance dropped substantially from over diversification, and while dampening volatility was more likely to simply follow the index.
If you missed it in my last post, check out Andrew’s write-up on the Canadian banks, in Portfolio Update – Buying TD Bank. He gives some interesting data on the ten-year returns.
The Dividend Monk wrote a great post on the American Lifecos, in his post Three Insurance Stocks Quietly Raising Dividends Year After Year.
A new blogger I’ve really enjoyed following is Dividends For The Long Run. In his recent post, he looks at one of the pitfalls of deep-value investing, in Would You Accept a 50% Loss? What do you do when your position loses 50%? Do you buy or do you hold? This is a nice article on this age old question of value investing.
The Web Ninja $200 Amazon Giveaway
In case you missed it, I’m doing a $200 Amazon Giveaway over on my other website The Web Ninja, to help get the word out! You have to jump through at least one hoop to enter. I’m giving away one $100 Amazon gift certificate to one lucky winner! I’m also going to give away 2 more $50 Amazon gift certificates, for a total of three prizes to be won! This is turning out to be a popular giveaway.
The Draw ends on Wednesday August 29th, so be sure to enter!
Did I miss your great dividend post for the week? If so drop me a message and I’ll be glad to include you in next time around!
Enjoy the rest of your weekend!