Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

Rollins Corp, aka, Orkin Pest Control

Wednesday, October 18, 8:38 am EST. This just came my way, and has been one of my very favorite safe-dividend growing stocks.

THIS PEST-CONTROL LEADER IS ALWAYS IN DEMAND

Today’s chart highlights one of our favorite strategies at work… buying companies that sell simple products.

 You don’t need to sell flashy or innovative products to have a successful business. “Boring” products like cigarettes, soda, coffee, and pet food are always in demand. These staples are the cornerstones of steady, profitable businesses that generate good cash flows for investors. For proof, we’ll look at a pest-control company…
Rollins (ROL) is a world leader in pest control. Its leading brand – Orkin – helps more than 2 million customers fight off termites, ants, and bedbugs. Pest control isn’t the most exciting business, but it’s stable. Rollins’ earnings have grown for 18 years… And it has raised its dividend by 12% per year for 14 years. This steady growth is reflected in the company’s rising share price…
As you can see below, Rollins shares have soared over the past five years. They’re up more than 210%… And they just hit a new all-time high. Pest control may be a boring – and unappealing – line of work, but Rollins shows it can lead to big profits…

 

My own search brought Rollins to me some time ago, and even during hard times, everyone who knows bug issues are going to continue to maintain their homes and business properties from pests. It’s a great business. I own some, perhaps you should, too! Their most recent “pay raise” dividend increase to me was back in February, when they raised from $.40 to $.46 a share, for a real honest-to-goodness 15% increase. That’ll double your income in under 5 years.

I have to be away for about the next 2 weeks, with no internet access. I will not be posting during that time, but I will resume in November, after I have returned. May God bless you all!

Here’s to your successful investing!
Harold F Crowell

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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

Silence…….

Saturday, October 14, 12:31 pm EST. I haven’t posted here since 10/4. The reason is simple. I am an investor. When the market’s are rallying, as they have been since shortly before mid-July, I don’t do anything. My Third Principle of Successful Stock Market Investing is to Know When to Buy. I was a buyer when my timing indicators said that market risk was low. I am a buyer during Lo-Risk Market Entry Opportunities. These always arise after a period of market declines, when sellers predominate over buyers. It happens at least once a year, and sometimes as many as 4 times! This is not one of those times.

I updated our portfolio dividend income, and saw that we just got 2 more “Pay Raises.” AFG raised us from $1.25 a share to $1.40. That $.15 a share dividend increase is 12%, and perfectly in keeping with our strategy here. We want safe-dividend growers that grow those dividends to us fast! AFG is well within the top 10% of safe-dividend growers, and at a 12% annual clip of dividend growth, doubles our “pay” to us every 6 years! That beats inflation all to pieces!!! OZRK also just raised by another $.02 again this quarter! That’s the 4th $.02 raise this year, for a 12.12% increase. All our holdings have been raised over the past 12 months for a total of a 21.62% increase in our portfolio dividend income. At that rate, our “pay” doubles in 3 years and 4 months!!! Are you kidding me?!?!? That is totally awesome! And, best of all, we are in control. We MAKE our income to only go up, quarter-over-quarter, year-over-year. Calculating again, we are 31% of the way to our retirement income goal, in keeping with my 5th Principle of Successful Stock Market Investing of Always Have a Goal. Our goal is to replace all our working life income with a portfolio dividend retirement income… All of it!

But, we are actively accelerating the rate of our portfolio dividend income growth. And, how do we do that? We don’t take the income yet, but let it accrue, and we add money to our accounts, as we are able. With this cash, we add more shares around each lo-risk market entry opportunity, and that amplifies and accelerates our income growth exponentially, or on a compounding growth basis. That’s what you want to do, harness the miraculous power of compounding growth!

So, I’ve been silent. I’ve had little to say, but what I do have to say is all good! Our dividends are being increased! Our portfolio dividend income continues to grow.

I must drop out from Thursday the 19th until at least the end of the month. It cannot be helped. I’m told I’ll have no internet access, and so, do not expect any more posts after the 18th, until November commences. I’ll explain some later, after I return.

Here’s to your successful investing!
Harold F Crowell

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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

5 Essential Principles of Successful Investing

Wednesday, October 4, 7:29 am EST. I taught my semi-annual class on The 5 Essential Principles of Successful Stock Market Investing again last night. Class size wasn’t half what it usually was. No matter.

The 5 Principles of Successful Stock market Investing are: 1.) Always know what kind of a market you are in, and there are 3. There is the upwardly trending Bull market, the downwardly trending Bear Market, and the transitioning market between the two. Always know what market you are in. We are presently in a raging Bull market, and have been since Monday, March 9, 2009. When it will end, nobody can say with any degree of certainty.

2.) Know what to buy. I am an advocate and devotee of shopping within that 12%, or so, of stock issues that could be said to be prudent. Typically, these are smaller companies that are still capable of growing their earnings, year-over-year, at a rate in the high single, to low double digits. These grow at an 8 or 9%, to mid-teen, 15, 16, 17%, rate. This growth is both reasonable and sustainable. They all pay a safe-dividend from out of less than 40% of their earnings to shareholders, and they raise their dividend annually, at a rate that is commensurate with their growth. Hence, the term, safe-dividend growers!

3. Know when to buy. Don’t let Wall Street fool you. You CAN time the market. Identifying lo-risk market entry opportunities is not all that difficult, at all. You can time your purchases to coincide with technical market measures of stock market risk. Whenever some, most, or even all of these measures, get to extremes in their measure of market risk as having been largely “wrung out,” it’s a perfectly good time to be a buyer… especially if it ever appears that everyone is selling! If your time horizon is decades long, perhaps even multi-generational, this principle becomes optional, but because we are buying for the safe dividend growth, understand that during market declines, as prices get lower… that means that a stock’s dividend yield is getting higher, and, you may even be able to accumulate a few extra shares, because of their lower price.

4. Know when to sell. I’m not meaning, know when to sell everything, but rather, know when to sell a particular stock. When it is no longer treating you as you expect, and for the reason you bought it in the first place; it may be time to sell. What do I mean? Well, if I am buying for the safe-dividend growth of my portfolio dividend income, and some company is not delivering on that promise to me, like it used to. I can sell it, and I will always have other candidates available from which to choose, to replace it. I find eligible candidates every time I run my search.

5. Have a goal! Know when to stop the process of accumulating shares and of growing your portfolio dividend income. My wife and I have established an investment income goal. Our retirement income goal is to replace all of our present income, 100%, of what we are presently bringing in, so that in retirement, we won’t have to cut back a thing. We have the added plus of monthly measuring our progress toward our retirement income goal. And, I find it actually fun to do! We’re 30% of the way there now, and compounding is doing its thing, so that it is now growing ever faster, propelling us toward our goal. We’ll know when we have enough, and have met our goal, and we measure our progress toward it every month. Talk about security and peace of mind!

Only last night, I saw and learned that we had just received another dividend increase “pay raise” during my presentation. That’s right, SNX just raised my “pay” from $1.00 a share to $1.20 a share, for a 20% pay increase. Where else can you get your pay raised for you like that? What this means is that the average dividend increase among all 18 of our current holdings, for these past 12 months, has now been, from an average of $1.06 a share, to the new average of $1.33 a share, or an average of $.27 a share, for a real increase of 25.47% all by themselves, had we done nothing. But, we add shares at every good opportunity, resulting in a compounding of our income growth!

I promised my students a live link to The Single Best Investment by Lowell Miller, and instructed them to read the Introduction, and first 4 chapters, at the very least, as these make the case for this manner of investing. here it is:

http://www.mhinvest.com/files/pdf/SBI_Single_Best_Investment_Miller.pdf

It’s a PDF file, and you can access it online anytime from anywhere, and, you can also download it, and save it on your computer. I have it on mine.

Our portfolio has been attaining unto new all-time highs in value, along with the market, but, by far more importantly, we have taken charge of this thing, and we are causing our portfolio dividend income, that which we want to live on in our retirement, and we are making it to only go UP, quarter-over-quarter, year-after-year, at a rate that very handily beats inflation. Isn’t that what you want? Come on along. You can do it, too!

For the lowest cost brokerage expenses that I know of, I trade thru eOption, at only $3 commission per transaction. Is anybody charging less than that?

Here’s to your successful investing!
Harold F Crowell

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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

It’s Christmas in October!

Tuesday, October 3, 8:32 am EST. Monthly brokerage statements for September are now available online! I get to see who paid us how much, and run the calculations concerning our portfolio dividend income growth. It happens 12 times a year, and I always feel like a kid at Christmas!

Our income is way up! I had said that I had added some high-income issues, for the purpose of re-investing that income into more shares, so as to harness compounding. Well, that is truly kicking-in in a huge way. I’m almost embarrassed to report the math of my findings, but here it is: September’s portfolio dividend income has grown by 40.74% over June, three months ago. September is ahead of March by… 190.24%, 6 months ago. It even beats last December’s, when many special dividends get paid out, by 139.35%, and, get this… This September’s income grew over last September’s income… by 413.39%!!! That’s better than a 5-fold increase!

Now, all of our safe-dividend growers raised their dividend payouts to us over the past 12 months, and they are presently these 18 issues: AFG, AOS, AVGO, CHD, CVS, FDS, HRL, JKHY, KINS, MA, OZRK, ROL, ROST, SNX, SYK, TJX, UGI and UNH. Average dividend increases for all of these has been $.26 a share, for an honest-to-goodness, get this now… 24.53% increase in income growth from those 18 holdings. At such a rate, income would double in less than 3 year’s time, were it to continue! And, by the way, as the market makes new all-time highs in price, so too, has the average price of all 18 of these stocks… they closed yesterday at a new all-time average high in price, as well.

I’ve also added high-yielding issues, some CEFs and ETFs, these funds pay safe high-yields, and I’m putting the income back to work into more shares of whatever issues I think best to acquire. These are ideas I derived from Contrarian Outlook editor Brett Owens, and they are: BXMT, CLDT, CLNS, DSL, MIC, MPW, OHI and RA. Not all these are doing too terribly well at this time, pricewise, but I would tell anyone to look into this man’s work, and consider taking his letter.

Perhaps, best of all. My wife and I have a retirement income goal that we have arrived at. It is 100% of our current income, not 80%, 75%, or anything less… and, we are now, as of this point in our effort to create that portfolio dividend income stream, 30% of the way there, with some 5 more years to go. Will we get there? I sure do think that we will.

Stay tuned. Keep following, and consider adopting a safe-dividend income growth investment strategy, rather than the typical Wall Street capital growth treadmill and rat race. You want INCOME in your retirement, not to spend down a nest egg you took all your life to grow.

Here’s to your successful investing!
Harold F Crowell

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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

Some Great High Yield Ideas!

Wednesday, September 27, 8:17 am EST. Hey, listen… there’s a relatively new letter, or letters, out there that I have become acquainted with. I was sufficiently impressed by them, that I took a subscription to the lower priced one, and am likely to step up and take the higher priced one as well. The editor’s name is Brett Owens. His letters are Contrarian Outlook and Hidden Yields. Reading of his strategy, and how he employs it, I am impressed. I haven’t set aside my own work for his, by I have set apart a portion of those assets my wife and I have, and have begun to implement the strategy and recommendations from his Contrarian Outlook letter, and  may well do the same with his Hidden Yield letter, as well.

Here is what he does: Brett screens Closed End Funds… aw, I’ll just let him tell it!

“Most financial advisors are quick to encourage retired (and near-retired) clients to invest in a handful of well-known dividend payers for 2% or 3% income, and then withdraw 4% of capital each year to supplement living expenses.

 It’s a cookie cutter approach might be fine for some, but there’s no reason you should settle for mediocre returns and a dwindling nest egg. There are plenty of bigger, safer yields out there; you simply need to know where to look.
Brett Owens’ Contrarian Income Report takes a “No Withdrawal” approach to income investing delivering safe, under-the-radar dividends of 7%, 8%, even 9% or more!
For example, two of his favorite funds right now pay 7.1% and 7.4% respectively. They’re excellent bargains and sell at huge discounts to net asset value (NAV).
Investors irrationally sold any and all funds of this type down to silly bargain prices in recent months, thanks to overblown Fed rate hike worries. Some deservedly so, but these two high quality plays – with excellent management teams and track records – were swept away by the hysteria.
Low prices mean higher yields, along with great upside as these funds gradually close their discount windows. And these 7% and 7.5% yields net us 27% more income than their ETF counterparts.
Why rely on stock price appreciation in an inflated market when there are secure, high paying dividends you can simply live off of and keep your capital intact?
Most investors know this is the right approach to retirement. Problem is, they don’t know how to find 8% and 9% yields to fund their lives.
The Contrarian Income Report is laser-focused on stable, high-income opportunities so you never have to worry about outliving your principal.”
I like the idea that I can generate high income now, though I have no present intention of taking any of it yet, and just reinvest the currently generated income right back into more shares, so as to compound the income growth. It employs a trade concept whereby, when his sell criteria is met, typically with appreciation, he’ll move from one high paying asset into another that shows promise of appreciating. I honestly suspect it may be a better concept than my own, and only entail a minimum of effort to watch and to enter transactions. I say that for this reason, when I have to sell, and a yield had taken some years to get pretty high… I have to start over again with another very high-quality, safe-dividend grower, that will be paying a low yield, and has to be held a long time to become relatively high again.
All I’m saying is, take a look… and, if there’s any place with this publisher to say who sent you, please mention my name. If there’s anything to be gained by sending referrals, like an extra free month, or something, I’d like to receive that.
I’ll be back with more on his other letter, and its special twist, that I find particularly intriguing.
Here’s to your more successful investing!
Harold F Crowell
I do not know why the paragraph spacing above has failed. I cannot get spaces between the paragraphs in the finished post above. I apologize for the mess that it is.
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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

Running the Search

Saturday, September 23. I will write of some great high-yield investments soon, but before I do, I want to run my search, and see what’s looking good.

I will put up all those having a great 10-year forward-looking EPS line. These are the smoothest upwardly trending lines, so as to capably support a stair-step pattern of safe-dividend growth. Those EPS lines have also at least tripled over these past 10 years besides. In the order they popped up: CTSH, ROL, ACN, AOS, SWKS, TSM, LEA, NVO, ROST, UNH, AVGO, TXRH, KWR, CMCSA, NTES, AFG, APH, OZRK, SHW, CHD, DPZ, ICE, KINS, LOGM, CBOE, G, TSN, EVR, EXPE, SNX, STZ, VAC, HII, SYK, FDX, LII, and PRI. There are some real gems among these! Those in bold, I hold a position in.

Going through the same search I will now note those having the best historical dividend payout pattern, or is just getting one on. Take a look into these: CTSH has just begun a dividend. ROL, AOS, LEA, ROST, UNH, AVGO, CMCSA, AFG, APH, OZRK, DPZ, ICE, KINS, LOGM just started a dividend, G just started their dividend too, TSN, EXPE, SNX, STZ, VAC, HII, SYK, FDX, LII and PRI. I own shares of those in bold. If anyone were to take a position in those just listed, they’d have one heck of a portfolio! I’ve got 9 of ’em. Remember, yields seem low, because the safety and quality of them is so high. And, the annual increases are big, causing our income to grow fast. Reinvesting that income harnesses compounding, and only accelerates the entire process toward our retirement income goal.

The end of the month is coming soon. You know what that means! It’s Christmas in October! I’ll be seeing who has paid me what, and calculating our dividend growth again.

More high-yield ideas coming again soon.

Harold

 

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Dividend Growth Investing, Retirement Income, Stock Market Investing, Stock Market Timing, Uncategorized

High-Yield Investments

Friday, September 22, 7:56 am EST. I’m the guy always touting safe-dividend growth stocks, and I have a portfolio of about 20 of ’em. It’s a very smart thing to do. What I say little about is that I also have some high-yielding issues, which I have added in more recent times. One of them is the following:

Lock in an 8% yield with this mortgage REIT…
“It’s good for an 8% yield and a share price that’s protected against rising interest rates,” Dave writes in a recent issue of his Income Intelligence newsletter.
Earning an 8% dividend in our zero-percent world can be a great way to grow your wealth. And Dave recommends taking advantage of today’s opportunity through this mortgage REIT…
Blackstone Mortgage Trust (BXMT) is a mortgage real estate investment trust (“MREIT”) owned and operated by Blackstone…
MREITs lend money for real estate investments and collect interest on them. To generate funds to invest, an MREIT will raise capital by selling shares or borrowing cash…
So as long as the MREIT’s interest income outweighs its cost of capital, it can generate dividends for shareholders. In the case of BXMT, that amounts to a yield of 8%.
Not only does Blackstone Mortgage Trust pay a hefty dividend, but it also won’t be hurt by rising interest rates. Dave continues…
A full 91% of BXMT’s portfolio consists of floating-rate loans. That means BXMT receives a specific rate of interest tied to a benchmark rate.
If rates rise, the book value of BXMT will hold its value, unlike fixed-rate mortgage securities.
In short, BXMT is a great way to earn dividend income, even if interest rates rise. This is just one reason why Dave rates shares of BXMT a buy today. Check it out.
– Steve Sjuggerud with Brett Eversole

 

I have some other high-yielding securities besides my large core holding of safe-dividend growers. I’ll share more about them soon.

Here’s to your successful investing!

Harold F Crowell

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