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October, 2015

SAFER NEST EGGS WITH RISING DIVIDEND STOCKS
by LARRY

On average, on a risk-adjusted basis stocks with rising earnings and dividends beat other common stock investing categories. When such stocks are also bought at reasonably low price to value, the effect is to significantly improve one's returns over the market as a whole.

The stocks shown in the table meet rising dividend and earnings criteria and have relatively low long-term debt to equity, reasonable price to earnings ratios, plus good financial strength.

They may not be hit-the-ball-out-of-the-park assets, but as a group they are likely to better the market total return in the coming 3-5 year period and with lower risk of long-term losses. In my opinion, when dividends are included these are likely to more than double one's investment by this time in 2020.



Ticker
Symbol
CompanyRecent
Price
YieldP/E5-Year
Dividend
Growth
AGUAgrium, Inc.$94.413.7%16.2111.1%
CECelanese Corp.$66.781.9%16.044.4%
HPHelmerick & Payne, Inc.$56.414.9%10.074.9%
MOSThe Mosaic Company$34.533.2%10.139.1%
NOVNational Oilwell Varco, Inc.$39.394.7%8.623.4%


This is not to say they are perfect stocks. There likely are none of those to be had. Nonetheless, they look to me to be good repositories for one's hard earned cash, even after over six years of a bull market. That said, this appears to me to be a good time to keep significant funds in reserve. At some point, and chances are it will be sooner rather than later, there will be a new downturn, after which one's currently sidelined cash can be handy for scooping up this type dividend stocks when at even better bargain levels, assuring superior profits.


DISCLAIMER

Larry is not a professional. Don't take him seriously!

Actually, the investment article provided here is for general information only and should not be considered as professional advice, a solicitation to buy or sell any security, or the Word of God. Investors are encouraged to do their own research while considering their personal goals and circumstances, or consult their own professional financial advisors, before making investment decisions. Neither Larry nor LARVALBUG will be liable for any losses sustained by any visitor to this site.

(Disclosure statement: Larry and Val have holdings in some of the suggested assets but do not "make a market" in any of them and do not derive any direct benefit from recommending them, except perhaps for a bit of smug self-satisfaction.)



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