Tag Archives: dividends

Standing at the Close of 2011

This has been a chaotic year in the financial world.  In this latest article, I will take a look at what happened in 2011 and give my personal views on where things are going for 2012.

Many Happy Returns?

The biggest news of the year would have to be Europe.  As I write this, the EAFE index of international developed-market stocks has returned -12% for the trailing 1-year period and an annualized -4.7% per year over the last five years.  The EAFE index has a 15-year annualized return of 3.3% per year.

The S&P 500 Index has delivered 2.8% for the trailing 1-year and stands at almost exactly 0% total annualized returns (including dividends) for the trailing three years.  On the other hand, Continue reading

Tax Loss Harvesting Season is Here

Believe it or not, year-end is right around the corner which means that it’s time for investors to start thinking about their tax implications. In order to help you make sense of it all, we wanted to share this article originally published last year by guest blogger Steve Thorpe. Enjoy–

Would you invest a few short hours to reduce this year’s taxes by $1,000 or more? For investors with taxable investment accounts, this is often possible by taking advantage of tax loss harvesting (TLH). This perfectly legal strategy makes lemonade from lemons, allowing Uncle Sam to share part of the pain of the losses inevitably experienced by investors at some points during their investing career

Between now and the end of the year is a good time to review your portfolio to see if any of your holdings are in the red. If so, you might be able to use those losses to help lower your 2010 tax bill.

In this article I’ll review:

  1. How to harvest a tax loss and under what circumstances you might want to.
  2. Why you need to keep track of what your investments cost in the first place.
  3. How to properly rebalance your portfolio after a sale, without triggering undesirable tax consequences.
  4. The way investments look from a tax perspective: short-term losses can be more valuable than long-term losses. But hold onto gains at least a year and a day.

Continue reading

Investing in Dividend Stocks Now

With events in the Middle East and Africa boosting oil prices, some economic watchers are beginning to talk about the possibility of stagflation: a period in which both inflation and unemployment are high. Like the 1970s in the U.S., the time of “malaise,” lines at the gas pump, and strong performance of dividend stocks.  According to John Schloegel,  portfolio manager at CORDA Investment Management, during the stagflation of the 1970s, 70% of the total stock market return for the decade came from dividends, only 30% from price appreciation. Even without that bad brew, dividends pack a punch, he says: Over the longer run 40-45% of total stock returns can be attributed to dividends. Continue reading

Long Term Evolution in S&P500 Dividends

I came across a nice site for looking at the long-term dividend yield for the S&P500. Going back to the late 1800’s, we are currently near historic lows for the dividend yield for the S&P500. Sometimes a picture really is worth one thousand words, and that is the case here.

There are two major reasons why yields could be very low. Continue reading

John Bogle on Morningstar and Costly Funds

John C. Bogle is without a doubt one of the most listened-to experts on mutual funds in the world. And he should be.  Having created the massive Vanguard fund complex and written eight books on the topic, the depth of his knowledge is unmatched.

Bogle was maybe the first, and has consistently remained for decades, a staunch advocate for low cost mutual fund investing.  Friday in the Wall Street Journal, he weighed in on Morningstar’s recent findings that low cost is the best predictor of a mutual fund’s outperformance, better than its own star system. Continue reading