Dividend.com: Dividend University

Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center articles.

The Dividend.com Guide to Finding Underpriced Dividend Stocks

One of the most common pitfalls, much to retail investors' frustration, is their tendency to chase returns in the market; that is to say, many investors are prone to being lured by "hot" names on Wall Street that are making big gains, as opposed to focusing on the "out of favor," high-quality companies that may be due for a rebound. Read More »

The Complete History of the Original Dow Dozen

The original Dow Jones Industrial Average was established for the first time in 1896. When the Dow was originally calculated, it contained just 12 companies, compared to the 30 big-names that are listed today. Out of the 12 companies, General Electric [[GE]] is the only company that remains on the list, although it was removed twice. Similar to the stocks that are listed on the Dow today, the original companies listed below were some of the largest, most well known companies in the United States. Below, we look at the original Dow components and see what happened to these companies. Read More »

A Dividend Investor's Guide to Measuring Risk

As we've said many times before, the key to building a solid portfolio is to determine exactly how much risk you are willing to take on to get a reward. More simply put, investors must define their personal risk/return profile. The means of achieving this "perfect blend," however, can vary from person to person. Read More »

Dividend.com's Cheatsheet to Analyzing Transportation Stocks

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Explaining Corporate Inversions: How Big Companies Save Millions in Taxes

The corporate tax rate in the U.S., which currently sits at 35%, has long been a point of contention among major businesses. With one of the highest corporate tax rates in the world, the U.S. has tried to fill its coffers through corporate revenues, but in reality, most companies only pay about half of that 35% rate (and a handful have paid zero taxes), after intense lobbying has led to the creation of numerous loopholes and write-offs. Read More »

How to Use Dividend.com

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7 Events That Closed the NYSE

Investors are very much used to the New York Stock Exchange closing on weekends and on market holidays, but sometimes the stock market will be forced to close unexpectedly. There have been hundreds of NYSE closings over the years, but there are a few that stand out from the rest. Below are seven of the most well known market closings. Read More »

A Contrarian Approach to Dividend Investing: Low Price-to-Book Strategy

Finding "cheap," yet fundamentally-sound companies is a daunting challenge for any dividend investor. One way to go about finding bargains that also boast long-term potential is to undertake a contrarian approach in your security selection process. Read More »

The 7 Most Famous Product Recalls: How Did Stock Prices React?

In the first half of 2014, General Motors [[GM]] recalled nearly 25 million vehicles of 53 different models in the United States. On average, the company announced a recall every 7 days, flooding the media with its numerous announcements. Below are seven other big-name companies that have been faced with a major product recall.  Read More »

Why Warren Buffett Doesn't Pay a Dividend

Warren Buffett, a man who needs little introduction, is arguably the most famous investor of all time. In the dividend world, he is also highly regarded, as much of his past investing work has been focused around companies that offer strong and rising payouts for their investors. But for a man who covets dividends so much, some are left scratching their heads when they find out that Buffett's company, Berkshire Hathaway, does not pay a dividend for its shareholders - especially since the company's cash pile is worth nearly $50 billion. Read More »

How the Dow 30 Reacts to Major Events

Major events, including natural disasters, political happenings and wars, can have a major effect on the stock market. While some events may seem like they would be tragic for the Dow 30, there are many occurrences in which the Dow was not negatively affected. On the flipside, some of these events have contributed to one of the U.S. recessions. Below is a list of major events and their effects on the Dow. Read More »

Putting Dow 30 CEO Salaries In Perspective

The Dow Jones Industrial Average is comprised of some of the largest and most well-known companies in the world. As such, many investors often wonder exactly how much the individuals responsible for running these companies make. Read More »

Where Does the Name Berkshire Hathaway Come From?

Warren Buffett's Berkshire Hathaway has grown into one of the largest companies in the world, but most people have no idea where it got its roots. Below is a brief history of how Berkshire Hathaway was created. Read More »

Inside the 10 Best Dow Days Since the Great Depression

With the Dow Jones Industrial Average currently above 16,000, there is no denying that the index has certainly come a long way since its tumble during The Great Depression. Though the index has seen its fair share of historic lows and volatile sessions, the DJIA has also experienced several record-breaking one-day gains. Below, we highlight the 10 best Dow single-sessions since The Great Depression. Read More »

What Happens When Stocks Announce Dividends?

Prudent income investors know the importance of a reliable payout track record; after all, the power of compounding returns requires a long-term horizon as well as consistent annual dividend increases. There are, however, dozens of companies out there that might warrant a closer look, but simply do not get onto the radar screens of more conservative investors. Read More »

Market Timing the Best and Worst S&P 500 Trading Days

The merits of market-timing--the ability to correctly anticipate the markets' short-term major reversal points--is a frequently debated topic. Every trader desires to seamlessly navigate the ups and downs on Wall Street, ideally selling right before tops and buying in before bottoms. Read More »

Free Lunch on Wall Street: 21 Ways Investors Can Make (and Keep) More Money

We've all heard it over and over again--there's no such thing as a "free lunch" on Wall Street--and while that may be a harsh reality, there are still dozens of things savvy investors can do to catch a break. Below, we offer a list of the most popular, as well as overlooked, financial tips that are aimed at either saving or making your more money.  Read More »

The History of J.C. Penney's Collapse

J.C. Penney Company, Inc. [[JCP]] has gained a lot of attention in the last couple years as its share price has crumbled. Although some analysts and investors are optimistic that the company's turnaround efforts will be successful, it is still questionable whether this struggling retailer will survive. Read More »

The Complete Guide to REIT Taxes

Real Estate Investment Trusts (REITS) generally have high yields, making them popular choices for dividend investors. Although REITs trade on exchanges like stocks, the tax structure for these investments can be much higher. For a basic guide on REITs, check out The Definitive Guide to REITs (Real Estate Investment Trusts). Read More »

Understanding Sky High P/E Multiples

The price-to-earnings ratio (P/E) is one of the most common metrics used in fundamental analysis. Found by dividing the market price per share by earnings per share, analysts and traders often use this ratio to determine if a stock is over or undervalued relative to its peers and the market as a whole. The majority of P/E ratios fall anywhere from the low double digits to around 50 (the S&P 500 has a current P/E ratio of 19.85), but there are some stocks that see that metric skyrocket, leaving investors scratching their heads. Read More »

5 Big-Name Dividend Stocks That Collapsed

Dividend stocks are thought of as being generally safe and a way to offer investors an extra source of income. Sometimes, however, big-name dividend stocks can collapse and become merely penny stocks. Like all investments, investors should always be cautious. Below, we look at the collapse of five stocks and try to figure out what went wrong. Read More »

Who Are The Top CEOs in the World? A Closer Look at Dow 30 CEOs

The coveted Dow Jones Industrial Average is comprised of well-known "blue chip" stocks that have proven their ability to weather economic downturns while asserting their status as "industry bellwethers" over the long-haul.  Read More »

Dow 30 Dividends: Everything You Need to Know

Dating all the way back to 1896, the Dow Jones Industrial Average is one of the oldest and most widely-followed equity benchmarks in the global investing landscape. The "blue chips" in the Dow 30 have rightfully earned a spot in countless portfolios, as investors have embraced the benchmark's constituents for their impressive track records when it comes to being industry leaders as well as reliable dividend payers.  Read More »

What You Can Buy with JP Morgan's Fines

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Inside the 10 Worst Dow Days Since the Great Depression

October 24, 1929 marked the beginning of The Great Depression, causing the Dow to plunge over 11%. This day would be known as Black Thursday. The following week, on October 29, 1929, the Dow fell over 24% in a single day - the largest drop in history. Over the next two years, the Dow lost 90% of its value. Below are the 10 worst days of the Dow since The Great Depression. Read More »

A Brief History of JP Morgan's Massive Fines (JPM)

Since the collapse of financial markets in the 2008 recession, few entities have been as widely scrutinized and discussed as JP Morgan [[JPM]]. The financial giant has been under the microscope of investors and regulators alike, as the company is still facing litigation from that bear market. As a major institution in the U.S., it is not entirely uncommon to face a number of lawsuits each and every year, but JPM has seen an especially high number of suits, many of which resulted in some hefty penalties. Read More »

A World Without Dividends

Charlie Munger has a great saying that is a very helpful mental tool - invert, always invert. At Dividend.com, we're firm believers in the power of dividend investing, of course. However, rather than simply exposing all the benefits of a sound dividend investment strategy, we thought it would be helpful, and frankly fun, to invert the concept of "why dividends are great" to "what if there were no dividends"? By no means can we actually envision a world where stocks are not "allowed" to pay dividends, but it's interesting to explore just how different investing would be if dividends did not exist. Read More »

Dividend.com's Cheatsheet to Analyzing Retail Stocks

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The Dow 30: A Look Into the Last Five Recessions

Generally speaking, a recession is defined as a decline in GDP for two or more consecutive quarters. This is typically caused by a decline in overall spending, which is often a result of one or more events such as a financial crisis or an economic bubble. Recessions are much more common than depressions, which are defined as a decline in GDP of more than 10%, or a recession that lasts more than two years. Read More »

The Unofficial History of Warren Buffett

Warren Buffett, also known as "The Oracle of Omaha," is one of the most famous investors in the world. Having amassed one of the largest fortunes ever seen, Buffett is an idol for investors and businesses across the globe. We took a look back at the Oracle's life and dissected his ventures and successes. Below, we present the complete history of Warren Buffett and his prolific career. Read More »

The Ten Commandments of Dividend Investing

Dividend investing has taken the world by storm in the past few years, as investors have been looking for yield outside of historically-low interest rates. As such, it is as important as ever to follow the basic rules of dividend investing as well as keeping simple tips and tricks in mind. Below, we present the 10 rules that will make you a more successful dividend investor. Read More »

The Complete History of Apple (AAPL)

It is well known that Apple [[AAPL]] is the largest U.S. corporation in terms of market capitalization, and among the world's largest companies in terms of total revenues. Not only that, but the history of Apple and its co-founder Steve Jobs have been widely covered, with numerous books, TV shows, and even a Hollywood movie about the formation of the company. However, how much is really known about the history of Apple's stock performance? We crunched the numbers to find out. Read More »

14 Executives Getting Rich Off Dividends

In today's low-rate environment, income from dividends has never been more important. Nobody knows more about receiving handsome payouts than the executives working at dividend-paying companies. Below, we aggregated 14 executives raking in substantial amounts in annual dividend payouts. Read More »

The Unofficial Dividend.com Guide To Being An Investor

Investing advice seems to be filled with the same old adages and sayings that have been overused and diluted as time progresses. Since we live in a world dominated by technology and its rapid growth rate, what it means to be an investor today is a lot different than just a few decades ago. Below, we outline how to be an investor in today's fast-paced society: Read More »

How To Spot A Dividend Value Trap

When looking for dividend stocks, it’s tempting to gravitate towards securities with the highest yields. This is not always the best strategy; there’s a lot more to a good dividend stock than a high yield. Dividends are often offered by established companies, but dividends may also be used by new or in-trouble companies attempting to attract investors. A value trap occurs when investors are lured in by a high dividend yield, only to find the underlying company was not such a great buy after all. Read More »

15 Dividend-Friendly Professors

Dividends have been a common feature of equity investing for over a century, and the legendary gurus who embrace this strategy have always held the spotlight. And while these  individuals helped shape and develop the market we know today, there is one group of individuals that is often overlooked, though they have continually played a major role in the world of income investing: professors. Read More »

41 Inspiring And Intelligent Investing Quotes

Investing is by no means a simple process; there are countless considerations that must be paid, and infinite risks along the way. But sometimes the best advice is extremely simple to digest. A few choice words can summarize winning strategies and rules of thumb quite nicely. Below are 41 of the most insightful and useful concise quotes about investing. Read More »

Top 10 Myths About Dividend Investing

There are dozens of myths out there about dividend investing and how it works. If an investor does not fully grasp how to invest in dividend companies, it's hard to know what to believe about dividend stocks. Below, we debunk 10 common myths about dividend stocks. Read More »

9 Things Financial Advisors Need to Know About Dividend Stocks

While dividends have been a common feature of equity investing for over a century, dividend-focused investing continues to build in popularity. Not only do studies indicate long-term outperformance for dividend-paying stocks, but large dividend-oriented portfolios can provide a significant source of income for investors, whether in retirement or not. Here are some of the key things that financial advisors ought to know about dividend stocks. Read More »

6 Signs Of Unsustainable Dividend Yields

Dividend yields are often calculated using historical data, but when you're considering investing in a security for income purposes, it’s much more important to consider what the future might look like. Read More »

Everything Investors Need to Know About Special Dividends

Special dividends are one-time cash payouts to shareholders. Sometimes, when a company has extra cash on the books, rather than reinvest it back into the company, it will pay it out to shareholders on a one-off basis. Read More »

Everything Investors Need to Know About Foreign Dividend Stocks

Investing in foreign dividend stocks is one way to diversify a portfolio. It opens up a whole new area of commerce that can bring excellent returns to an investor’s pockets. However, as with any investment, there are certain risks involved when buying foreign dividend stocks. With a little due diligence, patience, and practice any investor can utilize foreign dividend stocks to add to their investment returns. Read More »

5 Mistakes To Avoid When Buying Dividend Stocks

The great global hunt is on. No, not for some exotic animal in the wild. The hunt is on in the global financial markets for something that has become rare: a decent yield. Thanks to the ZIRP (zero interest rate policy) being followed by nearly all the major central banks, such as the Federal Reserve, it has become harder and harder for individual investors (and institutions too) to find any investment out there that pays a decent yield. Read More »

Everything Investors Need To Know About DRIPs

Dividends do not always have to result in regular cash payments. Many companies offer DRIPs (Dividend ReInvestment Programs) that use the funds from dividends to automatically purchase more shares of stock, at little to no cost to the investor. Sure, investors can do the reinvestment themselves in their brokerage accounts after receiving cash dividends, but the transaction fees associated with share purchases can be a drag on one’s returns. That’s why companies have created DRIP plans: to make reinvestment much cheaper and simpler. Read More »

40 Things Every Dividend Investor Should Know About Dividend Investing

Dividend investing is a great way for investors to see a steady stream of returns on their investments. Though the world of dividend investing can seem conservative and basic on the surface, there is a lot to know in the dividend world that can help investors create long term wealth. Here are 40 things every dividend investor should know about dividend investing: Read More »

The Definitive Guide to REITs (Real Estate Investment Trusts)

A Real Estate Investment Trust (REIT) is a security that trades on exchanges like a normal stock, but conducts its business in various aspects of the real estate market. While most REITs focus on owning properties and renting them out to tenants, others work in financing properties and mortgages. Read More »

Everything Investors Need to Know About Ex-Dividend Dates

When it comes to investing, knowing your dates is important. Although long-term buy-and-hold investing means that investors don’t really need to worry about the quarterly dates tied to dividend payouts, it’s still helpful to be familiar with the terms. Likewise, more aggressive traders can actually use dividend dates as part of an alpha-generating strategy. Read More »

Qualified Vs. Unqualified Dividends

Not all dividends are created equal, and investors need to be aware of this fact. The seemingly minor differences can make a big impact on bottom line returns. Read More »

The Biggest Dividend Stock Disasters Of All Time

Dividend stocks have become popular partially due to the fact that they are viewed as safe investments. Unfortunately in investing, there is always some risk involved. Read More »

The Truth About Dividend Payout Ratio

While dividend investing is a great way for investors to get a steady stream of return through income from their stock purchases, there are still certain signs that need to be examined to make sure an investment is a smart one. One important metric to measure the reliability of a dividend stock is the dividend payout ratio. Read More »

Everything Dividend Investors Need To Know About MLPs

As the Federal Reserve continues with its zero interest rate polices, investors have been having a tough time finding the income they need. Traditional sources of income like money market funds, certificates of deposits and treasury bonds are all paying paltry yields - in some cases they’re yielding less than inflation. To that end, investors have been stuffing their portfolios with a multitude of other asset classes. Securities like preferred stocks, convertible bonds and floating-rate bank loans have become portfolio staples as investors look to get their yield fix. Read More »

5 Common Misconceptions About Dividend Investing

On the surface, the concept of “dividend investing” seems like a very straightforward idea. Invest in companies that make distributions, reinvest those dividends regularly, and slowly accumulate wealth over the long run.In reality, however, implementing a successful dividend income strategy for your portfolio is far from an easy task. Read More »

Dividends vs. Share Buybacks: It’s a No Brainer

Here at Dividend.com, we are dead set against the idea of company stock buybacks. That’s not just simple bias, though — read on to learn why buybacks are a colossal waste of company money and how investors are much better served with higher dividends. Read More »