A REALLY Overlooked Source for Great Dividend Stocks.

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• Welcome to Dividend Stocks Research Your premier
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  dividends stocks around. For more info on
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• Hi, My name is Aaron and Im with Dividend Stocks
  Research. Today were reviewing our recently
  published article

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A REALLY Overlooked Source for Great Dividend
Stocks.
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• The NASDAQ usually isnt the first place that
  comes to mind wend looking for a great dividend
  stock. After all, we think about NASDAQ as the
  home of growth stocks and upstart tech companies.
  

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• Its where we figure well run into young firms
  reinvesting their profits in future growth and
  companies that arent quite mature enough to pay
  dividends.
•  

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• But like most generalities about investing, some
  companies are exceptions to the rule.
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• Consider these three companies theyre probably
  in your neighborhood, and also listed on the
  NASDAQ.

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Costco (COST)

• Costco is a NASDAQ-listed company that has been
  paying growing dividends for ten years.

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Costco (COST)
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Starbucks (SBUX)

• Starbucks has been paying dividends since 2011.

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Starbucks (SBUX)
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Apple (AAPL)

• And theres probably an Apple store at the mall.
  Apple turned a historic page when it comes to
  paying dividends, restarting their dividend
  payouts in mid 2012.
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Apple (AAPL)
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• So when you look at the companies listed on the
  NASDAQ, you see well known firms making the shift
  from young, exuberant growth companies to more
  established organizations.

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• So when you look at the companies listed on the
  NASDAQ, you see well known firms making the shift
  from young, exuberant growth companies to more
  established organizations.

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• Because theyre transitioning into a more mature
  phase of their business cycle, they are building
  the financial ability to reward shareholders with
  dividends.

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•  So you dont have to look far for NASDAQ stocks
  that pay good dividends, do you?
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• But heres something you do need to look for.

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• The Challenge for NASDAQ Dividend Investors

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• Even though some of these maturing companies are
  in a position to pay a dividend, many dont.
  This is common practice in the technology sector.
  
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• Google (GOOGL, GOOG), Adobe Systems (ADBE),
  Amazon (AMZN), eBay, (EBAY) and Netflix (NFLX)
  dont pay dividends.

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Google (GOOGL)
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Adobe Systems (ADBE)
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eBay (EBAY)
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Amazon (AMZN)
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Netflix (NFLX)
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• What should a NASDAQ dividend stock investor do
  when you see strong profits and a strong balance
  sheet... but no dividends?
•  

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• The big challenge is to sift through the data and
  decide when a company will start to pay
  dividends.

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There are good clues to watch for. Key
benchmarks to keep an eye on

• A healthy profit margin, 15 or higher, so it can
  produce solid cash flow.
• Low debt with a debt-to-equity ratio below 1.
• Revenue growth, with a track record of 10 sales
  growth going back 5 years.

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• But even when you have these three benchmarks in
  place, a company might decide not to pay a
  dividend. Youre still rolling the dice. The
  organizations strategy and its culture could
  influence this. Its just not the way they
  operate.

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• Whatever the situation, when we look at these
  NASDAQ stocks we keep running into the history
  lessons. The problem with NASDAQ is theres just
  not a lot of history to bank on.
•  The NASDAQ isnt a senior living community.

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• Why Long Track Records Are Hard To Find

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• When you look at all the brief histories of
  relatively young companies on the NASDAQ, you
  discover that theres strength in numbers.
  However, the big dividend numbers are really
  generated by big companies.

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• NASDAQs large cap companies are the stocks
  likely to pay dividends... For example
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• Intel (INTC)
• Microsoft (MSFT)
• CME Group (CME)
• Cisco (CSCO)
• Teva Pharmaceutical (TEVA)

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• But a long track record of dividend growth is
  hard to find.
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• Why?
•  Its just the nature of the neighborhood. Its
  a great reminder of one of the big differences
  between the NASDAQ and the New York Stock
  Exchange.

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• Keep in mind that many of these NASDAQ listed
  stocks are not the hundred year old firms we find
  on the NYSE.
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• Heres an example

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• Intel was founded in 1968. But theyve only been
  really growing their dividend since 2010.
  Microsoft is another NASDAQ stock that has only
  been able to provide four years of dividend
  growth.

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• These two technology companies, both leaders,
  compete in a business defined by warp speed
  change. It wasnt long ago we couldnt even
  imagine an operating system other than Windows,
  or chips other than Intel.

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• What year did you buy your first desktop
  computer? What year did you buy your first cell
  phone?
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• Did you ever think your cell-phone would do the
  job of your computer?

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• This kind of innovation is what we see with
  companies on the NASDAQ.
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• Innovation is a must. Its essential for
  technology firms to grow their profits and it
  comes with a hefty price. And as a result many
  companies forgo a dividend payout to focus their
  reinvestment dollars on growth!

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• But there are lots of companies that dont have
  this costly competitive challenge. There are all
  sorts of NASDAQ stocks where the innovation
  expense doesnt get in the way of dividends.

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• Want To Check Out NASDAQ Stocks That Arent In
  Tech?
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• There are plenty of them, and Starbucks and
  Costco are probably the best known.

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• But youll also find quite a few ETFs trading on
  the NASDAQ, and many of these pay nice dividends.
  
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• There are also opportunities to invest in real
  estate, through REITs, and energy, through
  trusts.

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• But heres the thing.
•  No matter what sector youre exploring, its
  important to identify companies that can be
  counted on for profitability that is strong and
  stable. You also want to see the opportunity for
  strong earnings growth, and a low valuation
  compared with similar companies.

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• What happens when you see a high yield?
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• Whats the best way to get your arms around the
  risks and the rewards?
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• Proceed With Caution When You Find Higher Yields

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• Just like any stock with an above average yield,
  a careful look at the balance sheet is a good
  idea, and the payout ratio should also be
  checked.

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• In the spring of 2014, Vodaphone Group (VOD)
  paid a dividend yield of 7.93. On the surface,
  very attractive. But behind the scenes, the
  company may have been struggling to achieve this,
  by directing an unhealthy share of its revenues
  to pay the dividend. The Vodaphone payout ratio
  was 68.1.

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Vodaphone Group (VOD)
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• By comparison, Intel (INTC) offered a yield of
  3.38 and a payout ratio of 47.6.
•  A safer route to take when you explore the
  NASDAQ for dividend stocks is to drive down a
  more familiar road. One of them is the road that
  leads to a group of stocks with a track record of
  dividend growth.

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Intel (INTC)
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• NASDAQ Dividend Achievers

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• The NASDAQ Dividend Achievers are stocks that
  have increased their dividend payout each year
  for the past ten years. In 1979, Moody's
  Investor Service built a model to identify strong
  dividend-paying stocks. This model is now owned
  and marketed by NASDAQ OMX, and there are ten
  different sets of achievers.

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• These different indexes are specialized, focusing
  on different types of dividend paying stocks such
  as UK stocks, Canadian stocks, or preferred
  stocks. Each one is an index and is tracked by
  an ETF.

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• How can you invest in the NASDAQ Dividend
  Achievers?
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• These two ETFs reflect two of the broader
  indexes.

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• NASDAQ Dividend Achievers (DIVQ)
• NASDAQ US Dividend Achievers Select Index (DVG)

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• Keep in mind that a stock doesnt have to
  actually be listed on the NASDAQ to be a Dividend
  Achiever. But it does need a track record of
  growing annual regular dividends for at least the
  past 10 years.

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• Dont forget about the built-in benefits of
  investing in NASDAQ dividend stocks. Theres an
  additional advantage youll capture.
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• The Extra Upside Of A NASDAQ Dividend Stock

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• Investing in a NASDAQ stock that pays dividends
  can provide your portfolio with some built in
  diversity. Its a way to position your portfolio
  for capital appreciation in the growth of the
  actual share price, along with the opportunity to
  collect income from dividends.

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  here
• DividendStocksResearch.com

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