A Portfolio Of Stocks With A High Domestic Sales Share

A Portfolio Of Stocks With A High Domestic Sales Share (click to enlarge),
Source: Goldman Sach, MarketWatch

How Your Investment Portfolio Grows When You Bet On Dividend Growth Stocks

Each investor needs to balance yield and growth. If you put all your efforts into stocks with a high yield but no growth, you could also buy a high-yield bond. It seems to be much safer because dividends might be cut to satisfy bond holders and to pay debt down.

A growth strategy might work better; just think on Twitter, Facebook or the other unicorns on the market. But do you believe that billions of market valuations in a few years should be sustainable when the corporate has nothing to sell. The only asset unicorns have is a fast growing customer base. Often they have no clue about how they can make with them.

In addition, a company that earns money but did not give anything back to shareholders is also risky. Your wealth depends on high stock prices. I there is a crises, you might get some trouble.

A right way in my view is to find the right mix of growth and dividend payments. Below, you can find a good list of a portfolio that has a solid growth rate and pays a nice dividend per year.

You might see, the higher the growth at a high initial yield, the bigger the final value in the end. If you find investments with a 4% initial yield that grows dividends by 12% yearly, your 100k portfolio will end in USD 1.6 million in 30 years.

How Your Investment Portfolio Grows 
When You Bet On Dividend Growth Stocks 
(click to enlarge)

The results of the spreadsheet are shown above for the value of a portfolio with initial capital $100,000 after 30 years. The initial dividend yield ranges from 1% to 4% while the dividend growth rate ranges from 2% to 12%.

In the following week I like to show you those stocks that have achieved a 12% Growth rate in the past 10 years while paying yields over 4%.

The Most Popular Buyback Champions Of The Year Compiled In 3 Charts

Stock Buybacks are essential for financial engineering. If a company has strong cash flows but only low abilities to grow while their business operates with strong competitor entry barriers, it makes definitely sense to create shareholder value by buying back own shares.

Paying out the whole net income of the company is also a good option but second choice if you compare the tax payments from both sides, the shareholder and corporate.

Today I would like to show you the most important buyback stocks. Apple is definitely the king of them. The smartphone maker bought back own stocks in an amount of nearly USD 40 billion over the past year.

In general, technology is the most represented sector on the list of the best buyback stocks of the past year.

Microsoft, Qualcom, Oracle and Intel also join the exclusive club of the buyback kings.

These are the Top 10 companies by dollar buyback volume of the latest quarter....

Here Is How Commodities Performed Over The Past 10 Years

Don't worry about the big decrease of the commodity prices. The main reason in my view is that the world economy is slowing down while commodity producer have spend billions of money to wide their production. They searched and explored new mines and increased their output.

As a result we see a massive price decline. But if you believe in long-term growth, you should know the cyclic of the commodity sector.

Here you can see the price fluctuations of the past decade...

10 Year Commodity Return (click to enlarge)

16 Stocks With Potential To Double Dividends Soon

Dividend stocks can be the foundation of a great retirement portfolio. Dividend payments not only put money in your pocket, which can help hedge against any downward moves in the stock market, but they're usually a sign of a financially sound company. 

Dividends also give investors a painless opportunity to reinvest in a stock, thus boosting future payouts and compounding gains over time. Yet not all income stocks live up to their full potential. 

Utilizing the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%. 

Here are three income stocks with payout ratios currently below 50% that could potentially double their dividends within the following years.

Each of the results has fulfilled the following criteria:

- Double Digit EPS Growth For The Next Five Years
- Sales Growth Over 5% Over The Recent Half Decade
- Positive Dividend Payments
- Payout Ratio Below 30%
- Debt/Equity Under 0.2


These are the results...