Weekend Reading - November 12, 2011

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Nov 12, 2011
Another week and another roller coaster ride in the markets. The euro zone debt woes continue to monger fear among investors, there are government shakeups going on in Greece and Italy and it seems good news and bad news see more flip flops than my local beach.

DJIA.png
Can you spot the buying opportunity?


The chart above is the Dow Jones Industrial Average over the last five days, starting on Monday, November 7. That gaping hole in the middle of the chart has nothing to do with long-term fundamentals, but rather short-term noise. That big hole is called "opportunity". As they say...buy on the dips. And buy I did. I'll discuss what I added to the Freedom Fund this week!

Here are some excellent articles from fellow dividend growth investors, frugalists and personal finance bloggers from the past week.

Exxon Mobil Corporation (XOM, Financial) Dividend Stock Analysis

Dividend Monk continues to amaze with his stock analysis reports. Here, he analyzed Exxon Mobil (XOM) and found he's bullish on it and buying below $80. I initiated my position with XOM last summer at around $60 and haven't added to it since. I like the company and am long, but wish they'd spend less on share buybacks and more on dividends. A solid long-term play here, however.

Telus T Dividend Stocks Analysis

The Dividend Guy analyzes Telus, the Canadian (T), which is traded under stock ticker (TU) on the New York Stock Exchange. He is long on this company and I can see why. It offers a solid entry yield backed by pretty consistent growth.

What does smarter living mean to you?

My Own Advisor asks readers a good question. To me, smarter living means setting up a long-term, sustainable plan of action that makes my life better. My life currently revolves around working hard and living frugally, which will one day allow my money to work for me. Dividend growth investing can be considered "sustainable", especially if your dividends alone more than pay for your living expenses. That way, you never touch the principle and this will be a sustainable and ever-growing source of income which provides you freedom to enrich your life.

Lockheed Martin Dividend Stock Analysis

The Dividend Pig analyzed Lockheed Martin (LMT, Financial) and found he's not a buyer. I'm a bit concerned about the non-existent growth in this company, the high debt load and the pension fund issues. They make products that certainly have demand, and the F-35 contract provides a sure source of revenue. The entry yield is also high. So...this one has some benefits and drawbacks to be sure. I recently initiated a position in a similar company instead, and will talk about that this week.

Four important dates for dividend investors

DGI discusses four very important dates that dividend investors should always keep in mind. It's definitely important to keep your eye to the calender and be aware of which companies pay when.

It’s only money...

Jacob gives you many reasons why money is definitely not only money. Anytime someone tells you to start wasting it, as you only live once, take a look at this list and remind yourself what money represents.

Dividend Income Progress Update - October 2011

D4L provides us an update on his dividend income and how far he's progressing. Huge numbers, as always and definitely a moving target to keep aiming for. I know it'll be many years before I get to these levels, but I'm definitely looking forward to that day! He also lists some recent purchases!

When The Facts Change...

Henry discusses his recent purchase of Exxon Mobil (XOM) and some of the reasons behind it. I like XOM, but the low yield and excess share repurchases are concerning as I stated earlier. I'm long XOM, but as energy currently makes up just under a quarter of my portfolio I'm looking to diversify away from this sector.

Why You Should Consider Dividend Aristocrats

DSO discusses why a dividend growth investor should definitely consider dividend aristocrats, which are companies that have paid and increased dividends for the last 25 years.

Thanks for reading.