A Fund that Focuses on High Dividend Stocks

Tweedy, Browne Inc. is a company that specializes in value investing topics, and has done some great research on high dividend stocks. In a recent article on the Kiplinger site, they speak about a new fund that Tweedy, Browne has introduced. Here is what they have said about the fund:

Tweedy, Browne Worldwide High Dividend Yield Value is the firm's first new fund in 14 years. Like other Tweedy, Browne products, the fund, which opened for business on September 5, follows Graham's value-investing principles: hunting for companies with shares selling at a discount to what knowledgeable buyers would pay in an acquisition or buyout. To that, the new fund layers on a requirement for stocks with above-average dividend yields.

Although stocks with the highest yields tend to be concentrated in sectors such as finance and energy, the managers say they'll strive to diversify the fund's holdings by country and sector. "We're going to own some bank stocks, which are trading at attractive price-earnings multiples and have attractive dividend yields," says manager Bob Wyckoff. "But you'll also see some pharmaceutical, food and beverage, insurance, media, and industrial companies." The fund, which will likely hold 35 to 40 stocks (a relatively small number), will avoid companies in cyclical industries, such as steel and chemicals.

If you are not comfortable investing in individual stocks, or are just looking for some high dividend stocks investment ideas then be sure to check this fund out.

Six Signs of a Winning Stock: High Dividend Stocks is one of them

There recently was an article by the Motley Fool that listed six signs that a stock is a good one - high dividend stocks happened to be one of them:

4. Dandy dividends
In our research, we're constantly studying past big winners to find the common ties that bind them. Retailer Family Dollar Stores (NYSE: FDO) and consumer products giant Procter & Gamble have different business models. Both, however, have trounced the market over the years, and both have paid a dividend ever since they were small companies -- in P&G's case, since 1890!

Just because a company is small and pays a dividend, though, that does not mean it is destined for greatness. But a dividend is a positive indicator, a telling sign of both financial strength and management's confidence that the company will continue to be solid through good times and bad. Progressive began paying its dividend back in 1986, when it was still capitalized at around $250 million.


Interesting perspective on the high dividend stocks strategy.

When to Sell a a High Dividend Stock

Selling stock is tough, especially if you are the holder of high dividend stocks. These stocks provide a high level of income to an investor so unloading them can be a difficult thing to do - you lose that cash flow! However, there may be times when it may be a good idea to sell. Here is an list from About.com with some reasons to sell a stock:

Personal Reasons to Sell High Dividend Stocks:

• Risk Tolerance Reached
• You Need some Cash
• Moral, Ethical Conflicts
• The Grass is Greener
• You’ve Reached your Goal

Market Reasons to Sell High Dividend Stocks:

• The Stock Drops by x%
• The Company Flounders
• When a Stock is Over Valued
• Rebalancing Your Portfolio

These are all things to consider when looking at your high dividend stocks. I typically do not like to sell but these may be some reasons that I would consider while examining my portfolio.