Long-term Dividend Companies and How to Find Them

Many correctly believe that investing in dividend stocks is one of the best investment options. Many market analysts recommend this for those who do not want to take great risks. However, you have to understand one very important point. When investing in dividend companies, you have two options- short and long-term dividend stocks.

By this we mean choosing between firms that have very generous dividends at present and firms that will have generous dividends in the future. Without exception, it is beneficial to give some weight to future dividends and to try to identify those firms that promise to increase their dividends vigorously and reliably.

Here are two ways to get useful information about these investment options and to learn in which stocks you should invest.

Do Your Homework

Analyzing stocks and finding the best ones is surprisingly straightforward and logical if you keep in mind a few basic principles. If you just put in the time to uncover the best stocks, you will uncover the best stocks. Even if you do not have great success at first, you will find that in time (as you learn) your performance will improve and you will eventually be rewarded for your time and effort. Do your homework.

Check the Credible Stock Research Websites

Stock research websites can be of great assistance to you in obtaining insight about your stock investment options. But you should make certain to utilize the most credible sites. The very best sites will not only provide you with the names of currently outstanding stocks, but they will also explain how you can find the best stocks for yourself. Also, they will back up their words with a guarantee.

We are biased, but we feel our website is the best website you can find, especially if you prefer a fundamental approach to stock investing. To see all the information we make available to the public, visit our website at www.Vershire.com.

Long-term Dividend Companies and How to Find Them

High Yield Dividend Stocks – A Smart Investment Option

When it comes to investing your heard-earned money somewhere for additional income, you should not make an emotional decision. A decision based on emotion can lead you to questionable and unsafe stocks.

If you want a safe investment, we advise you to consider high yield dividend stocks. High yield divided stocks are a reliable source of income for long-term returns. Generally, the companies that pay dividends are larger and well-established companies.

Here are some points that you must keep in mind when investing in the high yield dividend stocks.

Earnings Reports:

By the time a firm becomes popularly known as a good investment, it is usually too late for it to still be considered a good investment. If you want to capture the lion’s share of a firm’s outperformance, you must be willing to do some primary research. You must study financial reports directly or obtain primary research from sources who do study financial reports.

And the first place to start is the earnings reports. Ultimately, it is the dividends that really matter. But dividends do not arise from nothing. Try to determine each firm’s true (what we call core) earnings and you will have a powerful tool in determining a firm’s ability to pay and grow its dividend in the future.

Payout Ratio

Another important feature to keep in mind is the dividend payout ratio. The dividend paid by the company must not be above 100% of the earnings the firm earns. Moreover, if you notice a big change in the ratio, this may be a red flag to at least dig a little deeper.

Industry Trends

Poorly run companies can sometimes be pulled up only because the industry they are in is doing well. You should consider the context in which a company is conducting business. If the industry is growing and the company in which you are planning to invest does not seem to be getting the benefit of the growth in the industry, this is something to look into. If a firm cannot do that well when the wind is at its back, what will happen when the wind is at its front?

High Yield Dividend Stocks – A Smart Investment Option

Dividend Stocks – can also be Growth Stocks

Many investors consider dividend paying stocks to be a boring investment option, as they are the safest investment option – once you invest in dividend paying stocks of any company, the company pays you the divided monthly or quarterly, depending on its policy. Regular dividend payments are usually safe. And safe is boring.

People think of slow-growth businesses like utility companies when it comes to high divided providers. Why do these slow-growth businesses come to mind first? They come to mind first because most people put too much emphasis on a high dividend yield. But if the emphasis on the dividend yield is lowered, dividend stocks can also become dynamic growth stocks.

A rising dividend is just as important as a generous dividend. And a low dividend-yield company does have the ability to raise that dividend in the future. Several indicators signal if the dividend is likely to be increased in the future.

Financial Flexibility

Look for companies that are financially flexible. They should have solid balance sheets (i.e. low debt and plenty of cash). If a firm has to take a loan to maintain the dividend, this is an extremely bad sign. Look for companies that have a high retention rate. Incidentally, it is possible for a firm to have a high dividend yield and a high retention rate.

Organic Growth

Earnings growth is not the only growth you should be concerned with. Look for firms that can grow their sales, cash flows and equity as well. And if they can do these things while maintaining their margins and not sacrificing other measures of efficiency, then that is even better. All of these things signal organic growth that is likely to continue.

The dividend is important, but it is not the only thing. And if you accentuate a high dividend yield with other characteristics, you can enhance your performance immensely.

Dividend Stocks – can also be Growth Stocks

Top Stocks Paying Monthly Dividends

Are you looking for safe investment options wherein you receive a monthly return? If yes, we have a great idea for you – monthly dividend stocks. Many companies distribute benefits to their shareholders on monthly basis. You can invest your hard-earned money in any such company and enjoy monthly ROI.

How can you make the right decisions regarding monthly dividend stocks? You have two options – seek assistance from either stock research sites or a stock market professional. They will provide you valuable ideas and guidance to help you make the right decisions.

Here are the basics of some monthly dividend stocks. If you do not have much time to check the stock research sites or consult a reliable stock market professional, you can consider these briefs on these monthly divided options.

However, it would benefit you to do a complete analysis or consult our Vershire team before making an investment in these stocks. We will provide you comprehensive information regarding these investment options, and let you know several others as well.

LTC Properties-

LTC Properties has a strong portfolio of almost 200 properties focused on seniors housing and health care. Interestingly, both of these fields are generally considered to be safe investment options. The company has been paying uninterrupted dividends since 2002.

Realty Income-

An equity real estate investment trust, Realty Income is a quite popular name amongst the dividend payers. Interestingly, this is not the member of S&P Dividend Aristocrats Index. However, this has been rewarding its shareholders with dividends for over 45 years.

Shaw Communications-

This is a telecom company providing broadband internet, Wi-Fi, digital phone, and video products and services to more than 3 million customers. Shaw has been paying uninterrupted dividends for more than 2 decades. The company has been increasing its dividend payouts time to time as well.

We do not have “Sell” recommendations on any of these companies. However, we have a “Strong Buy” recommendation on only one of them, Shaw Communications. Contact us if you would like information on other outstanding monthly dividend stocks.

Top Stocks Paying Monthly Dividends

How to Become Financially Independent

What makes one almost more fearful than one’s own death is financial trouble. Nothing is more unpleasant for a person than not being able to fulfill the basic needs of themselves and their families.  For this reason, most people desire financial independence just slightly less than they desire a longer life.

However, it is one thing to desire it; it is something else to achieve it. A person with high labor income has many options to eventually become financially independent; but what about a person with modest income?

Nothing is impossible in this world if an individual is smart and determined. With a smart strategy, a person with a modest income can also become financially independent.

A smart strategy starts by investing in the stock market. Start with the best cheap stocks. While learning to ride a bike, it is best to start with training wheels. By favoring cheap stocks, if you misstep, you will not fall too far.

However, you will learn that cheap stocks tend to be little junky. When you are skilled enough to recognize good and bad companies you will want to make longer-term decisions by buying quality companies that will do the best over the longer run. These companies tend to be a little more expensive up front, but more lucrative over the long run on a risk-adjusted return basis.

Once you are skilled investor, you should seek out and buy the best high yield dividend stocks. No single characteristic is more indicative of a quality company than a generous, steady, and growing dividend. The fact that these firms also tend to be safe firms is icing on the cake.

Of course, it takes time and effort to find these outstanding companies. But you may be surprised how finding them is a straightforward endeavor. Basic fundamental analysis will uncover these exceptional companies. Basic fundamental analysis is time-consuming, labor-intensive, and it works by just a little bit. But it works. It is simple and dependable.

If you doubt this, do a search on the web for the best stock research sites. The best sites will not only tell which are the best stocks to buy, but they will also give you guidance on how you can find the best ones for yourself.

How to Become Financially Independent

Types of Retirement Plans to Consider

Do you feel sleepless when you think of how you would manage your life post retirement? Are you thinking over how you could make your post retirement life more pleasant? If yes, all you need to do is develop a retirement plan. A slight course correction now can have profoundly beneficial effects eventually.

Here are some retirement plans to consider. Read them, study them, and then make your choice.

401(k) plan:

This is a retirement savings plan sponsored by employers. This is really a simple way to go.  You have to deposit a part of your income into a 401(k) plan account that is tax-free. When you make a deposit in the account, you have the freedom to choose how that money will be invested.

403(b):-

This is a U.S. tax-advantaged retirement savings plan. This has a similar tax treatment as the 401(k) after the Economic Growth and Tax Relief Reconciliation Act of 2001. This is for educational institutions, non-profit organizations, corporative hospital service organizations, and self-employed ministers.

Defined Benefit Pension:-

This retirement plan is sponsored by employers. Under this plan, employers have to provide a specified monthly benefit to their employee on their retirement. That benefit is predetermined and based on employee’s tenure of service and age and earnings history.

Life Insurance Plans-

Making regular contributions to a life insurance policy is an excellent way to safeguard a person’s way of life in case a loved one (and possibly the main breadwinner) should die unexpectedly. And it can be viewed as a form of saving that kicks in precisely when you need it to.

Dividends Stocks-

Investing in the best long term dividend stocks can be another great option to consider. You can invest a portion of your income in the best dividend paying stocks every month and you will receive dividends monthly, quarterly, or half-yearly. If you do not have any specific needs at the present, you can reinvest that amount; you will be putting the powers of dollar-cost-averaging and compounding to work for you. These are two of the most powerful principles in all of investing. And when paired in this fashion, the eventual results are astounding.

Now, it is up to you to decide which option appears to you most suitable. However, we would strongly suggest that any plan involve investing in the best long-term dividend stocks. This option requires the most amount of effort on your part, but it is also the one that usually results in the greatest rewards.

Types of Retirement Plans to Consider

Looking for a Safe Investment Option

Would you like to invest your hard-earning money in a safe option with which you can still make an excellent profit? If yes, you can hardly do better than gold. Gold has never been worth zero, it is virtually impossible for it not to go up in price over the very long run, and it has outlasted (and will outlast) even the most credit-worthy currencies.

You can buy physical gold as well as gold stocks. However, we recommend investors buy gold stocks.

When you buy physical gold, you have to endure the loss of money from buying at a retail price but selling at a wholesale price. And you have to pay the cost of safeguarding that gold while it is in your possession. Owning actual gold can be more trouble than it is worth.

You are much better off investing in those firms that mine, distribute, and invest in gold and gold properties. They are the specialists who have the knowledge and size to invest in this industry skillfully and effectively. By buying shares in their firms, you are effectively hiring them to be your gold buying agents.

Furthermore, the market for these firms is huge and they tend to be very liquid. Therefore, you do not have to endure burdensome transaction costs to invest in them. In general, they are much easier and less costly to invest in.

You will want to invest in the very best and avoid the worst. Stock research sites will be of great help in this regard. They can point you towards the best and away from the worst. And the very best sites will even inform you how to analyze the companies for yourself.

Looking for a Safe Investment Option