The Importance of Dividends for the Long Term Investor

Dividend producing stocks are attractive and offer investors compelling values (subscription required) according to this AAII Journal article by John Buckingham, director of research and chief portfolio manager of AFAM Capital and editor of the Prudent Speculator newsletter. Keep in mind, the article was written in mid-2015, but many of the statistics in the article are long term in nature and we believe investors seeking and investing in high dividend paying stocks should take note of this research. There are a number of factors that make Buckingham positive on dividend oriented stocks. First off, Buckingham notes that non-dividend payers have […]

Dividend-paying Stocks Slipping Since Financial Crsis

  From 1928 to 2014, dividend-paying stocks outperformed non-dividend-paying stocks by nearly 2%, but that edge has slipped since 2008. John Buckingham, CIO of Al Frank Asset Management, notes that dividend-paying stocks tend to follow the fortunes of value stocks. Growth companies tend to invest more of their cash flow into their businesses, whereas value companies are often more mature and thus able to pay dividends. While dividend-paying equities are often viewed as bond substitutes and have historically been significantly less volatile, Buckingham says “dividend payers have lagged” recently, “despite the perception that what the Fed has done has inspired […]

Al Frank CIO Buckingham: “It’s a great time to be a value investor”

John Buckingham, CIO of Al Frank Asset Management, says he is concerned over the short-term but optimistic long-term. “We are in for turbulence and volatility,” he said, noting that the funds he manages are holding 5-8% cash rather than the usual 2%. Nonetheless, he said “I don’t see anything on the horizon that suggests a sustained profit recession, which is what you need to sustain a bear market.”  He pointed to 4% nominal growth (2% growth with 2% inflation), increasing company efficiency, debt refinancing, and stock buy backs. Buckingham is known for his value approach and strong stock-picking record, as […]