John Kingham

Bag a premium income from the insurance majors

Bag a premium income from the insurance majors

1 mins. to read

As dividend stocks go, life insurance companies have a mixed track record. On the one hand, they operate in a sector which is relatively immune to the economic cycle (people don’t typically cancel their life insurance just because there’s a recession). On the other hand, dividend cuts are fairly common within the sector, despite its…

What you need to know to avoid the next Carillion

What you need to know to avoid the next Carillion

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Following its demerger from Tarmac Group in 1999, Carillion has given its shareholders fantastic returns year after year. Perhaps the best example of this is its dividend, which grew every single year, going from 2.7p in 1999 to 18.4p in 2016. That’s equivalent to a growth rate of 12% per year, every year, for 17…

Was Woodford right to sell Glaxo and hold AstraZeneca?

Was Woodford right to sell Glaxo and hold AstraZeneca?

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AstraZeneca (LON:AZN) and GlaxoSmithKline (LON:GSK) are the two pharmaceutical giants of the FTSE 100. They are also both high yield dividend stocks with yields of more than 4%. Another notable fact is that both companies have been long-term holdings of a certain Mr Neil Woodford. But no more. Following a 15-year holding period, Woodford sold…

How to avoid yield traps – Part 1

How to avoid yield traps – Part 1

1 mins. to read

As a dividend-focused investor I’m always on the lookout for high yield shares, whether that yield is high relative to the market average or high relative to the company’s peers. However, as most yield-seeking investors soon discover, high yield stocks do not always deliver the yield you were hoping for. That’s because dividends can be…

Is this the ultimate low-risk dividend stock?

Is this the ultimate low-risk dividend stock?

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National Grid PLC (LON:NG.) has been in the news recently after announcing an agreement to sell most of its UK gas distribution business. For some inexplicable reason I was watching CNBC that morning and the presenter said something along the lines of “surely income investors can’t go far wrong with National Grid’s 4.7% dividend yield”.…

How I find long-term dividend growth stocks

How I find long-term dividend growth stocks

1 mins. to read

One major difference between investors who focus primarily on dividends and investors who focus primarily on capital gains is their time horizon. Companies that pay dividends usually do so every six months, so a dividend investor who buys into a company will often have to wait several months before their first dividend appears. Capital gains,…

Super-high yield investing: Only for the brave

Super-high yield investing: Only for the brave

1 mins. to read

In recent months I’ve written about a range of dividend stocks from the high quality end of the spectrum: from Buffett-style stocks to consumer staples and consistent inflation-beaters. But being a dividend-focused investor is not only about buying into these high quality dividend growth companies. There is another side to the search for income –…

Five stocks to beat inflation

Five stocks to beat inflation

1 mins. to read

One of the things I like most about dividend investing is that there’s a good chance the income will grow faster than inflation. Take the FTSE 100’s dividend as an example. CPI inflation since 1986 has run at an annualised rate of 2.6% per year, whereas the FTSE 100’s dividend has grown by an annualised…

Is L&G the best dividend stock in the FTSE right now?

Is L&G the best dividend stock in the FTSE right now?

1 mins. to read

Most of the time, when a stock has a dividend yield which is significantly higher than the market average there’s a good chance the dividend is about to be cut or suspended. It happened recently to BHP Billiton and Rio Tinto, although perhaps that is understandable since both are highly cyclical companies. It can also…