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Dividend Alerts Christmas Gift No 1
November 27, 2012

November 27th, 2012

  • Dividend Alerts Christmas Gift Number 1

Dear subscriber

Many people increasingly find that the income generated by their money held in bank accounts is insufficient to meet their needs, or to keep up with the long-term effects of inflation. Although inflation has gone up and down sharply, the last few years, interest rates have remained very low.

The combination of occasional periods of high inflation, combined with very low interest rates can significantly reduce the purchasing power of savers’ money. Holders of fixed interest bearing government and company bonds are facing similar difficulties.

In this environment, savers and investors are increasingly recognising the appeal of regular inflation-beating dividend payments to provide them with an income in the medium to long-term - perpetual income -perhaps for example to supplement their pensions.

The gift that keeps on giving

Generally investors have the choice of many companies in which they could purchase shares.

Often, once companies have started paying a regular dividend, they will often go to considerable lengths to maintain its size, even if they suffer a setback to their profitability or when stock market conditions have become tough with share prices moving up and down, as the cancellation, cut or freeze of a regular dividend is usually viewed negatively by investors.

Historically, the ability to maintain the size of their dividend payments, or, indeed, increase them, has come about because some companies have been able to increase the prices they charge for their goods and services while keeping their costs in check, helping them to maintain and increase their profits and allowing them therefore to pay increasing dividends.

While long-term dividend income investors are usually drawn to the most profitable companies or to those companies that pay out a high dividend yield they have not necessarily purchased these shares at the right moment.

The gift of paying the right price

Generally many investors are not paying enough attention to the prices of the shares they buy.

Instead they get seduced by reports in the media regarding companies with a low price earnings ratio and 'high' dividend yields. Always remember that earnings and any metrics with an ‘earnings’ element in it do not provide you with any information whether a company is truly 'profitable', i.e. cash rich, and, therefore whether they are able to maintain or, even, increase their dividends on a regular basis.

Truly successful long-term dividend income investing is very much depended on the price at which you buy your dividend paying shares rather than always being ‘fully invested’. This means: you may not invest at all in dividend paying companies during periods when there are no high quality dividend paying companies that are historically undervalued.

Unfortunately, many investors buy shares when they are regarded 'safe' and therefore by definition 'expensive'. Generally, when you invest in dividend paying shares when they are not priced at the 'right' share price (based on our long-term historical undervaluation investment methodology) the end result is that you are unlikely to generate good long-term returns.

The gift of long term returns

A truly long-term investor has a time horizon of several decades if not more before drawing returns from his or her investments.

When you invest in historically undervalued dividend paying companies you have the choice to cash in your dividends or to re-invest the dividends in order to boost the value of your share portfolio by the purchase of additional shares in the same or similar historically undervalued high quality dividend paying companies (at the time of purchase).

Using your dividends to buy more shares – with those shares producing more dividends – to buy more shares, and so on, and so forth, allow you to grow your perpetual income exponentially from your income generating share portfolio until the time you start drawing an income.

Christmas gift from Dividend Income

As a long term dividend income investor, I invest in high quality dividend paying companies but only when they are historically undervalued as well as when they are financially strong based on our in-house developed dividend share valuation and financial strength investment methodology.

With the potential to provide a regular, increasing, and perpetual income, as well as to capital growth over the long term, investing in dividend paying shares when they are historically undervalued is the gift that keeps on giving which I want to share with you.

Maximise your long-term returns: Enter and exit high quality dividend paying shares at the right time while receiving increasing dividends from companies that have been paying dividends for decades and are financially strong.

Our 25% Christmas and New Year gift to you

As our Christmas and New Year gift to you, but only as from now till the end of 2012, I am happy to offer you, your family and friends our already discounted two year subscription service at an additional 25% discount.

Subscribe Now

AND remember our life time guarantee!

Once you are a subscriber you will never pay more for your subscription!

Please include the discount code A11 when you sign up for a two year subscription of our dividend share valuation and financial strength service, here.

I hope you will make use of our Christmas and New Year gift. And, don't hesitate to use it yourself, give it to one or more family members or even your friends.

Many thanks!

Steven Dotsch
Managing editor
EMAR Publishers
Dividend Income
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Dividend Alerts Archives and Dividend Investing Blog have merged.

Access our November Commentaries on high quality dividend paying companies and results and dividend announcements Here, including:

21 November Commentaries on:

  • National Grid
Results and dividend announcements on:
  • SSE
  • Sainsbury
  • British Land
  • ICAP
14 November Commentaries on:
  • Vodafone
Results and dividend announcements on:
  • First Group
  • Land Securities
7 November Commentaries on:
  • Royal Dutch Shell
  • BP
Results and dividend announcements on:
  • Unilever
  • British Sky Broadcasting Group
6 November Commentaries on:
  • AstraZeneca
  • GSK

Dividend Alerts is an unregulated product published by EMAR Publishing, publishers of Early Retirement and Dividend Income

EMAR Publishing is not registered as an investment advisor or financial advisor. We do not and will not provide personalised investment or financial advice, or individually advocate the purchase or sale of any security or investment. We publish opinionated information about the stock market and companies that we believe our subscribers may be interested in.

There is no guarantee that dividends will be paid. Figures are calculated using the closing prices. All gains are gross, and returns will be affected by dividend payments, dealing costs and taxes. Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. Editors or contributors may have an interest in shares featured.

Past performance and forecasts are not reliable indicators of future performance. Shares are by their nature speculative and can be volatile. Your capital is at risk so you should never invest more than you can safely afford to lose.

Information in Dividend Alerts is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment or financial decisions. Appropriate independent advice should be obtained before making any such decision.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein.

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