Wednesday, February 29, 2012
In some of my posts I have referenced how money invested over a certain period of time growing at a percentage can grow to a large sum of money. Some you have asked how I got this number... basically you want me to show my work. I think this is a good idea, and probably something I should have done awhile ago. Instead of showing you though I'm going to provide you with my Excel calculators that I use.
Hopefully you'll have "fun" playing with the inputs too so you can see how your own investments can grow if you stick with a dividend growth investment plan.
Tuesday, February 21, 2012
In my last article I discussed how I am going to help my son get a head start in investing and how to keep him interested in dividend growth stocks as he gets older. I am excited about the potential of this plan; the only problem is that the government is going to get their share of it as well. If you are reading this then I assume you are not a Communist that enjoys paying taxes, so I'd like to show how you can grow a small amount of money for your child into a very large sum without having to worry about a politician getting their hands on one cent.
For those of you not familiar with a Roth, shame on you, please read this article. Roth IRA's are a powerful retirement tool that is not utilized enough by individuals who have the opportunity to do so. What is utilized even less - and likely unknown to many - is funding a Roth IRA for a child. READ MORE
Wednesday, February 8, 2012
This past September I had a major financial impact that occurred in my life, my son was born. Like most Dads I have since envisioned teaching my son about sports, girls, and of course dividend stocks. What's that? Most Dads don't teach their sons about dividends stocks? Well that's a shame, consider my son a leg up then.
Within a couple of days of receiving his SSN I had opened a 529 plan and custodial brokerage account and set up automatic deposits for each. As I contemplated what his first DRIP stock would be I realized I was approaching this choice as if it was my own portfolio. Or course I wanted to buy a solid dividend growth stock that we could reinvest dividends into for the next 60 years, but I also wanted this to be a great teaching tool for my son. Sure the ALFAC (AFL) duck is funny, but I'm not sure demonstrating DRIP investing to him with a supplemental insurance company was going to grab his attention and get him excited about investing (although I do think it would be a good dividend growth stock to own). READ MORE
Tags: [MCD] [YUM] [INTC] [XOM] [KMB] [TGT] [PEP]
Friday, February 3, 2012
This term was popularized by Peter Lynch, a very successful investor that works for Fidelity Investments. Peter stated in his 1989 book One Up on Wall Street that "The P/E ratio of any company that's fairly priced will equal its growth rate". So a fairly valued company will have its PEG equal to 1. The lower the PEG the more undervalued a stock is based on future estimated growth.