These Buckeyes Don’t Play College Football - PowerPoint PPT Presentation

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These Buckeyes Don’t Play College Football

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Want to avoid the nightmares that come when the highest yielding dividend stocks cut their dividends? Here’s how. – PowerPoint PPT presentation

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Title: These Buckeyes Don’t Play College Football


1
Dividend Stocks Research
These Buckeyes Dont Play College Football
2
Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
3
  • Get Your Free Report On What You MUST Do to Never
    Run Out of MONEY in Retirement!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

4
  • Hi, My name is Aaron and Im with Dividend Stocks
    Research, today were reviewing our recently
    published article

5
  • These Buckeyes Dont Play College Football

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  • You wake up in a cold sweat.
  • Its a nightmare that haunts you and hammers you
    with the raw hurt of hindsight. Hindsight is more
    than 20/20. For investors its both painful and
    helpful.

7
  • When we look back on an investment that didnt
    work out, its way too easy to see what went
    wrong. Whats not so easy is looking ahead. Any
    kind of forecasting we do is going to be flawed.
    Just ask a weather forecaster.

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  • And when it comes to investing in the best
    dividend stocks, the highest yielding ones are
    usually stormy. The skies might seem clear the
    day you invest in them, but you can usually bank
    on unsettled weather ahead.

9
  • Are there signals to watch out for? Anything you
    can look for like high-pressure systems and low
    pressure systems? Definitely. The very first is
    high yield.

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  • Theres typically a reason why yield is high. The
    higher the yield, the higher your risk. Theres
    no way around it. So heres what to do. Set
    yourself a limit. Give yourself a number and
    stick to it.

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  • Refuse to invest in a dividend stock that pays
    more than a certain percentage yield. Dont fall
    into the trap of telling yourself, Well, its
    different this time. This is an exception.

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  • Id suggest making 10 your limit, and thats
    stretching it. You usually dont find a
    dependable, safe dividend stock paying more than
    a 5 yield. What about the dividend stocks in
    between?

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  • Should you even think about a stock that pays a
    7 or 8 yield? Sometimes. Let me show you a few
    ways to figure this out.

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  • Invest In Dividend Stocks Where The Dividend Grows

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  • Here are 3 stocks that have been growing their
    dividends...
  • -Senior Housing Properties Trust SNH
  • -Vector Group VGR
  • -Buckeye Partners Ltd. BPL

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  • The simple fact that dividends have been growing
    makes each stock a contender. The question we
    need to ask is, Can the dividend growth keep
    going? To find out, we start off with a look at
    the competitive environment for each stock.

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  • Our challenge is to determine how hard its going
    to be for these companies to make money in the
    years ahead. Senior Housing Properties Trust
    looks like it has a rosy future.

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  • Its a REIT, a real estate investment trust, and
    it owns a portfolio of senior living communities.
    Demographics are on its side because of Americas
    aging population. Chalk one up in the win column
    for SNH.

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  • Vector Group is tougher to figure out, because
    its in two different businesses that have
    nothing to do with each other...mortgages and
    cigarettes. Theres no well-defined future for
    either business.

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  • Sure, fewer people are smoking, but can Vector do
    well with e-Cigarettes? Tough to say. Mortgages?
    Theyll probably never go away, but how will they
    change, and how well can Vector do with them?

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  • Chalk one up for undecided. Buckeye Partners Ltd.
    BPL performs almost as well as Ohio States
    football team. Revenues and earnings at this MLP
    (Master Limited Partnership) in the pipeline
    business have been trending up.

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  • You could find worse segments of the energy
    business to invest in than pipelines. Even when
    natural gas and oil prices are low, the stuffs
    got to flow. So we have these three dividend
    stocks.

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  • We need to get a sense if the dividend can keep
    growing. Heres what we know. Senior Housing
    Properties Trust SNH pays a 10.2 dividend.
    Its been growing the dividend for the past 5
    years.

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  • Vector Group VGR pays a 6.5 dividend. Its
    been growing the dividend for the past 4 years.
    Buckeye Partners Ltd. BPL pays a 6.8 dividend.
    Its been growing the dividend for the past 12
    years.

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  • Which one of these stocks is a nightmare, which
    one is nothing to get excited about, and which
    one deserves your attention?

26
  • Playing It Safe With The Highest Yielding
    Dividend Stocks

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  • Finding the highest yielding dividend stocks
    isnt hard. The trick is to find one where high
    yield can be counted on to grow. You can make a
    case for each one of the 3 high yield dividend
    stocks weve looked at.

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  • And theres not one that is a clear-cut clubhouse
    leader. If you were to pin me down, Id probably
    toss Vector Group off the list of suspects
    because of the strange combination of businesses.

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  • Cigarettes and mortgages might be fine as solo
    businesses where theres a single strategic
    focus, but together they seem as strange as a
    spoonful of mustard in a cup of coffee. Id pass
    on Vector.

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  • Your tax considerations come into play when you
    invest in a stock like Buckeye, because the MLP
    income is taxed in a special way. Get some
    feedback from your accountant first.

31
  • If youre OK with investing in an MLP, keep in
    mind that the dividend could shrink if the stock
    price grows. With growing demand for Buckeyes
    pipelines, and revenue growth, this could easily
    happen.

32
  • Not a bad problem to have. And dont forget,
    Buckeye has been growing its dividend for the
    past 12 years. Safety? Because its in the
    pipeline business, the stock price has held up
    wellwhile most energy stocks have been
    brutalized...

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  • That leaves us with Senior Housing Properties
    Trust SNH and its 10.2 dividend. A little rich
    for my blood. You cant help but wonder how many
    things have to go right for this kind of yield to
    hold up for the long haul.

35
  • Yes, the stock is a REIT, a Real Estate
    Investment Trust, so its a machine built to
    deliver income. You expect a higher yield with a
    REIT. But 10? If you go into this high yield
    dividend stock with eyes wide open...

36
  • If you keep in mind that for the past few years
    REITs have been on a roll and you could be paying
    a premium... Youll be able to make a decision
    that makes sense for your portfolio, so you can
    find the highest yielding stocks for safety.

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  • Youll be able to avoid the nightmares. No
    waking up in a cold sweat.

38
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39
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40
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