Be Wise Steward of everything God gives

One of the key principles in the Bible is that people should be wise stewards of everything God gives them, including their time, talent and treasure. 

Throughout the Bible, we are constantly reminded that our hope is in God alone, not money, power, or position:

"Everything is permissible for me but not everything is beneficial. Everything is permissible for me but I will not be mastered by anything." (1 Corinthians 6:12, NIV)

Added to that, God doesn't just want us not to sin, but he gives us an even higher goal. Adults should act responsibly. 

Dividend stocks US DOW

Stocks of the Dow

Now that we've explained why a company might offer shareholders a high dividend yield, let's take a closer look at the yields of some blue chip stocks.  We used a stock screener to pull a list of companies that are members of the Dow Jones Industrials that are paying dividends in excess of 3.50% (November 2012).

Stock Symbol	Company Name	Dividend Yield
VZ	Verizon Communications	6.40%
T	AT&T Inc.	6.20%
PFE	Pfizer Inc.	4.50%
MRK	Merck & Company	4.30%
DD	E.I. du Pont	4.00%
CVX	Chevron Corporation	3.80%
JNJ	Johnson & Johnson	3.80%

If we look at the smaller set of the Dow Jones Utilities, those stocks paying dividends in excess of 3.50% include:

Stock Symbol	Company Name	Dividend Yield
EXC	Exelon Corporation	6.95%
FE	FirstEnergy Corp.	5.18%
DUK	Duke Energy Corp	4.79%
PEG	Public Service Enterprise Group Inc.	4.72%
SO	The Southern Company	4.50%
AEP	American Electric Power Co., Inc.	4.45%
PCG	PG&E Corporation	4.44%
ED	Consolidated Edison, Inc.	4.34%
D	Dominion Resources, Inc.	4.13%
CNP	CenterPoint Energy, Inc.	4.10%
WMB	Williams Companies, Inc.	3.99%
NI	NiSource Inc.	3.94%
NEE	NextEra Energy, Inc.	3.51%

Analyzing the above information reveals that seven of the thirty stocks (23.3%) in the Dow Jones industrials were paying dividends of 3.50% or higher.  Of the 15 stocks in the Utility Index, thirteen of these (86.7%) were paying dividends in excess of 3.50%.  The theory behind utilities paying relatively high dividends holds true in the data.

Dividends and Taxes

Changes to tax code make the payment of dividends to investors even more attractive.  That's because qualified dividends are taxed at a lower rate than ordinary dividends as explained below.  This has resulted in even higher payouts from companies already providing investors with good yields.

Read it from here. 

http://www.money-zine.com/investing/stocks/dividend-paying-stocks/

Selecting Stocks

Benjamin Graham Formula

When choosing stocks, the following formula was used to initially screen companies.  The intrinsic value was calculated, and then compared with the last price of the stock.  Companies were ranked according to their intrinsic value to last price ratio, where intrinsic value was calculated as:

Intrinsic Value = (EPS x (8.5 + 2G) x 4.4) / Y

Where:

• EPS = the company's earnings per share over the last 12 months
• 8.5 = the value Benjamin Graham proposed as the price to earnings ratio for a zero growth company
• G = the company's five year growth rate
• 4.4 = the average yield of AAA rated corporate bonds back in 1962, when the model was initially developed
• Y = the current yield of AAA corporate bonds

In the above example, the value of Y was based on the 20-year composite AAA yield of 2.25%

Earnings per Share

Another important measure of a company's financial strength is their earnings per share.  This measure tells the investor how much money a company earned in a given time period, stated in terms of each share of common stock issued.  Industry analysts often project earnings per share into the future.  This projection is based on guidance they receive from the company they're analyzing.  The future earnings of a company are the key to deriving an estimate of a stock's future price.

Excellent Stocks

The last screen involves choosing excellent stocks.  This eliminates from consideration companies that sell commodity-type products.  It's important to find companies that command a price premium in the marketplace because they have either strong brand recognition and / or loyal customers.

Five Good Stocks

The above stock screening resulted in roughly 370 candidate companies from a universe of around 2,000 stocks.  The five good stocks to buy in 2013 were selected because of their strong financial performance and widespread brand recognition.

Five Good Stocks to Buy in 2013

Ticker	Company	Industry
INTC	Intel Corporation	Semiconductor - Broad Line
STX	Seagate Technology PLC	Data Storage Devices
WU	The Western Union Company	Business Services
TRW	TRW Automotive Holdings Corp.	Auto Parts
YHOO	Yahoo! Inc.	Internet Information Providers

Rationale for Stock Picks

All of the above stocks satisfied the requirements of the process, and show strength in the following three areas:

• Excellent Companies:  these companies have strong brand recognition, and none sell commodity-type products.

http://www.money-zine.com/investing/stocks/five-good-stocks-to-buy-in-2013/

I want to buy 10 T stock at $34.80. Dividend at $1.8/annum. Ex-dividend date is 21 Oct 2013. 

GE is at mid point of the good run so it may come down. Sell 10 GE at $24.25. Track everyday the charts. 

Used Bolingerbands 

Macd 

EMA 50 

RSI

PFE buy 10 that is over $29.25. Short run up so have to monitor. 3% dividend. $0.96/annum.

Analysis of charts from yahoo

http://sg.finance.yahoo.com/q/ta?s=PFE&t=1y&l=off&z=l&q=l&p=e50%2Cb%2Ce20&a=m26-12-9%2Cr14%2Css&c=