Daily Gains Letter

Dividend Reinvestment

Highest Dividend Reinvestment Stocks to Invest in 2015

Dividend reinvestment is the process by which equity investors take monthly, quarterly, or annual dividend income from a corporation and reinvest those dividends into new shares of the company. Doing so creates a compounding effect as a greater number of shares owned results in a greater amount of dividends paid.

One of the Best Ways to Create Wealth: Dividend Reinvestment

Dividend ReinvestmentRight now we have a stock market that isn’t doing anything. Earnings outlooks are modest and so are investor expectations for capital gains. In fact, 2013 is shaping up to be a tough year for stocks and return on investment is likely to be very modest. This is why dividend income is so crucial to your savings and financial planning. For our beginner investors, a dividend is the payment that a company distributes to its shareholders as a percent of earnings. Management can decide whether to pay a dividend, how much it is, and the frequency of payments. Dividends are often distributed quarterly and are quoted as the amount of dividend per share. Companies that are growing fast tend not to issue a dividend, a ... Read More

Avoid the Eurozone Mess: How to Profit Domestically

280313_DL_clarkMost investors will consider utility stocks in saving for retirement, or when looking for regular stock market income while in retirement. This is a group that has a better track record on the stock market than you might think. Old economy stocks can still generate solid investment returns, even if they are well-established utilities. The Dow Jones Utility Average has a good long-term track record of wealth creation, but it has not been without volatility. Clearly this is a group that is less volatile than many other stock market sectors and these stocks experience waves of enthusiasm from institutional investors. Utility stocks are not for everyone. A lot of investors feel that they would be better off in f ... Read More

Where to Find Certainty in the Stock Market with Cyprus on the Edge

270313_DL_clarkThere are a lot of great stocks out there with proven track records for making money. These are retirement stocks—brand-name stocks that pay dividends to create wealth. With dividend reinvestment, you can effectively compound this wealth in an easy, costless manner. One blue chip company that I’d like to highlight is Johnson & Johnson (NYSE/JNJ), which has an outstanding track record of increasing its dividends to shareholders and achieving capital gains on the stock market. I couldn’t get data for before 1972, but Johnson & Johnson has increased its annual dividends every year since then. Since 1972, the company’s stock has split three-for-one on two occasions, and two-for-one on four occasi ... Read More

Great Dividend Stock Could Be Ready for Breakout

270213_DL_clarkThere are a lot of great dividend paying stocks out there, but a good number are trading right at their 52-week or all-time highs on the stock market. Equity investors know that it’s tough to buy a stock trading right at its high. Among dividend paying stocks, E. I. du Pont de Nemours and Company (NYSE/DD), otherwise known as DuPont, is a higher-yielding stock that’s worth having on your radar screen right now. The company’s last two earnings reports weren’t the greatest, and the stock hasn’t participated like other successful dividend paying stocks in the Dow Jones Industrials. DuPont has been in a stock market downtrend for the last two years, and it really hasn’t done much over the last dozen ... Read More

One Way the Rich Are Getting Richer

Couple in living room toasting champagne and smilingFor the most part, the rich keep getting richer, even when there’s a recession. Once you accumulate enough money, your money starts working for you; and the key to getting richer with your investments is dividend reinvestment. About 40% of the S&P 500’s total return over the last 70 years has come from dividends. And here’s the best part, you don’t have to go looking for highfliers or risky technology plays; boring blue chips compound wealth the fastest through dividend reinvestment. Before the stock market got really popular (and when interest rates were higher), investors used compound interest to keep making money. The same concept is employed today thro ... Read More