AOL Money & Finance

Mercury General posts

Feed

Dividends are VERY SEXY-- no joke

Everyone knows that sex sells. That does not take much convincing. Why? Because we have a built-in mechanism that compels us every day, and through every week, month and year to at least take notice. The word in the blog title is a case in point. It probably piqued your interest in reading this, and I took advantage of that. Year in and year out sex sells. Well, the same can be said about stock dividends.

Dividends assure some return on your investment day by day, year after year, in up and down markets. The compounding of these dividends over time adds a burst of upside that is significant in the long run and this has been well documented. The Motley Fool talks about how dividends are powerful and that Wharton finance guru Jeremy Siegel agrees.

So following up on the importance of making a return on capital investments I thought I would add another historic consideration in value investing with a personal example. In my Roth IRA I am conducting a non-scientific experiment.

Continue reading Dividends are VERY SEXY-- no joke

What will Buffet buy?

If you are a true stock fanatic (like me), your question about every investment is a take-off on the sin-avoidance question asked by Christians everywhere: WWBB? What would Buffett buy?

If investing is a religion, Warren Buffett is prophet, high priest, saint and lesser diety, all rolled into one. The way he goes, so goes the world's best and brightest (and for good reason. He's smart). The big news on everyone's lips, today, is that Buffett is once again in the market for some juicy acquisition; perhaps in the energy sector. Here are some leading suggestions:
  • PG&E, San Francisco's utility. Worth $13 billion, this company is seen as a solid local utility that successfully weathered the energy crisis of the last several years. The stock is up $1.29 today to $40.75 on the rumors.
  • Mercury General Corp., Los Angeles-based automotive insurer. Worth $3 billion, the company has a 16% ROE and a low debt balance. Warren Buffett loves his insurance companies, and the company's stock is up $2.35 to $57.90 in intraday trading on the speculation.
  • Les Schwab Tires, a Prineville, Oregon-based tire store chain. Founder Les Schwab has retreated following the recent death of his daughter, and the company fits into Buffett's love for innovative and well-run companies.

Symbol Lookup
IndexesChangePrice
DJIA-54.3410,236.92
NASDAQ-9.282,157.62
S&P 500-6.541,091.97

Last updated: November 12, 2009: 11:57 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance