Investing in Dividends

August 19, 2008
It’s no secret that I believe a concentrated list of well-chosen dividend payers is the best way to secure healthy income and reap nice capital gains over time.
That’s especially true if you follow a long-term buy-and-hold strategy.
Why? Because you’ll pay only small brokerage commissions the few times you buy or sell, and you’ll [...]

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Unfortunately, the current environment is forcing some firms to pare back their distributions, especially in the financial sector. Fannie Mae’s dismal second-quarter results last week — which included a $2.3 billion loss and a dividend cut from $0.35 to $0.05 — is just one example of the kind of news that’s coming over the wires.
In [...]

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When companies like Pfizer, Philip Morris, and Colgate sell their products in foreign markets, they price them in euros, Japanese yen, Australian dollars or Brazilian reals. But when it comes time to tally those sales and bring the money home, they get translated back into U.S. dollars.
Result: A weaker greenback means these companies collect more [...]

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