{"id":43530,"date":"2013-10-29T07:10:23","date_gmt":"2013-10-29T11:10:23","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43530"},"modified":"2013-10-29T07:10:23","modified_gmt":"2013-10-29T11:10:23","slug":"six-favorite-growing-dividend-payers","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/29\/six-favorite-growing-dividend-payers\/","title":{"rendered":"My Six Favorite Growing Dividend Payers"},"content":{"rendered":"

\"291013_PC_clark\"<\/a>By Mitchell Clark, B.Comm.<\/a><\/span><\/p>\n

The stock market typically reacts quite positively when a company beats Wall Street consensus. But in a considerable number of cases, a company\u2019s share price after-earnings bounce isn\u2019t really warranted, considering the run-up in anticipation.<\/p>\n

Many stocks go up in value after beating expectations, but many numbers this quarter actually reveal a contraction in business conditions.<\/p>\n

Western Digital Corporation (WDC) is the Irvine, California-based maker of hard drives and solid-state hybrid drives for desktops and personal computers (PCs). The company beat the Street on earnings, but the company\u2019s numbers actually represented a decline from the comparable quarter last year.<\/p>\n

The company said that in its most recent quarter (fiscal 2014 first quarter), sales dropped six percent to $3.8 billion; earnings fell to $495 million, or $2.05 per share, compared to $519 million, or $2.06 per share, in the same period a year ago; and adjusted earnings came in at $2.12, while Wall Street was looking for a consensus of $2.05.<\/p>\n

Naturally, the position moved higher on the stock market. The company did experience an improved gross margin, but it wasn\u2019t a good quarter. The stock is up about 70% so far this year to an all-time record high.<\/p>\n

There are countless other stories similar to Western\u2019s, and investors have to be very careful with this so-called outperformance by Wall Street standards. Business conditions are not improving for a lot of companies. Earnings are slightly improving, but only through continued pressure on costs and a slight improvement in pricing.<\/p>\n

Of course, the monetary backdrop continues to be very supportive for stocks as we know. The S&P 500 Index has broken out of what looked like the perfect head-and-shoulders pattern. It\u2019s still an ominous-looking chart, but the breakout pattern is significant. It\u2019s as if the index is returning to its modern era mean. The S&P 500\u2019s 35-year chart is featured below:\"\"<\/p>\n

Chart courtesy of www.StockCharts.com<\/p>\n

Investment risk is always high with equities, but there are very few alternative investment classes with interest rates sitting so low, especially for those investors who rely on dividend income.<\/p>\n

Given the monetary situation and the expectation that the Federal Reserve will continue to be highly supportive to equities, this is very much a market that can still tick higher. But there is absolutely no need to chase stocks, or play the momentum gain, especially with companies that aren\u2019t actually growing.<\/p>\n

Wall Street\u2019s expectations for a company are both useful and irrelevant at the same time. Stocks didn\u2019t advance this year on the expectation of better growth rates of revenues and earnings; the marketplace just went all-in with the Federal Reserve\u2019s grand attempt at reflation.<\/p>\n

For investors, I like existing winners that pay growing dividends in an era of very slow real corporate growth. Companies like NIKE, Inc. (NKE), Johnson & Johnson (JNJ), PepsiCo, Inc. (PEP), Canadian National Railway Company (CNI), E. I. du Pont de Nemours and Company (DD), and Colgate-Palmolive Company (CL) are just a few examples of growing dividend payers with excellent long-term track records of wealth creation. (See \u201cEquity Market Super Stock Adding Up to Solid Returns<\/a>.\u201d)<\/p>\n

And energy is not to be excluded as a great income provider. It\u2019s one of the economic bright spots with staying power for the rest of this decade.<\/p>\n

If a company beats the Street, that\u2019s great. But when it beats the Street without actually growing comparatively, it\u2019s not worth chasing.<\/p>\n

This article My Six Favorite Growing Dividend Payer<\/a>s is originally publish at Profitconfidential<\/a><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Mitchell Clark, B.Comm. The stock market typically reacts quite positively when a company beats Wall Street consensus. But in a considerable number of cases, a company\u2019s share price after-earnings bounce isn\u2019t really warranted, considering the run-up in anticipation. Many stocks go up in value after beating expectations, but many numbers this quarter actually reveal … <\/p>\n

Continue reading “My Six Favorite Growing Dividend Payers”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-43530","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=43530"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43530\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=43530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=43530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=43530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}