What is an S&P 500 Dividend Aristocrat?

In a previous post I reviewed my quick checklist for buying dividend paying stocks. One of the parameters was they had to be a Dividend Aristocrat. I received e-mails asking me to define Dividend Aristocrat. Aristocracy comes from the Greek wordἀριστοκρατία aristokratía, from ἄριστος aristos “excellent,” and κράτος kratos “power”. It´s a form of government […]

Checklist for picking dividend stocks

Imagine that you won $50MM from the lottery last night. What would you do with your winnings? Wouldn’t it be nice to own companies that generate consistent profits and that distribute dividends regularly to their shareholders? Suppose you took the $50MM in winnings and bought shares in dividend paying companies like McDonalds, Chevron, Microsoft, Johnson […]

How to sleep well when holding an overbought stock?

Ever wonder why some investors sleep well at night when markets are at all-time highs while others can’t? The eclectic investor is one of them; he sleeps well while the average investor worries. The reason is that the eclectic investor knows how to use insurance strategies in his portfolio. At some point in your investing […]

Investing for dividends vs. capital gains

You have probably heard the investment analogy of milk vs. beef. As an investor, do you want to own a dairy cow that produces milk every day or do you want to own cattle that you slaughter for beef. Dividends are the milk for the investor and capital gains are the beef. The investment world […]

Identifying Key Profit Drivers of Your Investment

In order to analyze investments, an eclectic investor needs to be able to identify the key drivers of a business. Understanding how an investment makes money is essential to be successful at investing. If you are going to participate in any business, whether it is a small or large, you should understand how it makes […]

“‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

Warren Buffett