40percent 20years - All About Dividends

The main disadvantage of Dividend Investing

2009-11-06T09:21:00.000-08:00

I have quite a long time have said almost positive things for the supply of investment but now starting to realize that it has a big disadvantage when compared with the more traditional investments.
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I've noticed that most who become interested in the strategy are those who are between 20-30 years. And there's a good explanation for it. I do not think the majority of 40-50 + is directly interested in dividend policy, since many are not willing to wait 10-20 years before they begin to live comfortably on the dividends.
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I can obviously understand how fun it is to begin to live when you are 60-70 years?
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Perhaps because they are about 20, it is pretty interesting because you can take advantage of the investment, even at the age of 40, which is pretty moderate! How much total dividend to be expected after 20 years of investment?
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Depends on how much you start with and much to invest each month!
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If we say that you start with SEK 0 and instead choose to save 5 000 SEK each month in 20 years!
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Then grow the annual dividend after tax to: 128 286 SEK! The total dividend for tax as you get over 20 years are: 885 775 SEK

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Then I calculated the 10% annual dividend growth + reinvestment of dividends and an average yield of 4%.

By contrast, if you manage to save 10 000 SEK during the same time, so the result would be:

256 576 SEK! The total dividend for tax as you get over 20 years are: 1 771 549 kr Which is much better!!

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However, if we manage to begin with tex: SEK 200 000 the first year and at monthly savings of 5 000 SEK during 20 years would reach to:

180 777 SEK! The total dividend will be: 1 313 395 SEK

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And as it grows from 10% - 12% if you still choose to reinvest, so double digit between 5-7 years. In other words, between 300 000 - 400 000 SEK in total dividends for about: 25 years .

But that is what is the big disadvantage of dividends investment! That it takes so long to rate-of-interest to work. The first thing 10 years felt not much difference, but the big growth will, in fact, between 15-20, where the growth will be enormous on shareholders' equity.

It is probably because very few are really interested in the dividend policy. Instead, and other strategies such as: high risk / growth or oil-and råvaro shares become more popular due to the short-term profit opportunity. But while those who are looking for higher returns risk losing more and even if it comes to dividend investment. If direct returns are higher than 7-10%, so you should be extra careful.
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When is a dividend investment can be interesting if you can not wait long?
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Yes! When you have the right amount of money and at the same time want to take small risks and get a hyligt yields between 3-5% annually, which also grows rapidly with inflation.

But it requires quite a lot of money! If we say that many would be satisfied with an annual total dividend of £ 200 000 after tax. How much money is needed if you get a yield of 4%? 7 1420 000 kr

There are quite a lot of money! They are probably what the portfolio will be worth about 20 years for them to start investing Eg: 6000-7000 SEK / month in 20 years.

(So you thought about who will buy a house where the monthly cost will be £ 7 000 more a month due to the hypothecation. Which makes you probably lose 7 000 000 SEK over 20 years. Then husköpet not as interesting and even if husvärdet double. Therefore it becomes very important to try to find the house / apartment at almost the same level as before housing costs. It is certainly very difficult task for many)

Then the amount of 200 000 and £ 7 million worth of 20 years is another matter! While it is very important to say that I have assumed an average growth of 12.5% including reinvestment and to ensure the growth you have to be very careful which company you buy and what risks you take.

Furthermore, I must add that the average dividend growth for the better dividend shares have been between 15-20% in the last 10 years and then I have not counted on reinvestment.

Those who think I'm too optimistic, so they may expect an annual growth of 10% (including re-investment, which means that the annual growth rate of dividends is approximately 7.5%)

But if you can not wait 20 years and have too little money, what are the alternatives? How fun is it to get a yield of 2.8 - 3.5% (in dividends, after taxes of 4-5% yield). Not at all fun when there are other investments outside the stock exchange that can provide significantly higher return on equity and a lower risk, then I think of particular real estate.

There you can get 10-20% return or higher on equity if you have a mortgage of 70-80% of the purchase price. But it's definitely much harder than shares, because it requires much more dedication and time from the investor and knowledge. There is absolutely no easy business. You have to take into account many things. But let's say that you still manage to get a yield of 10% on equity with very low risk.

Would it be a better investment when compared to dividends? Maybe if you compare with the next 10 years. But what about the 20 years? Probably not, because the dividends are growing much faster than rental income.

If we say that the dividends are growing 10% annually as rental income should grow in line with inflation 4%.

What will be the highest growth?

Rental income = yield of 10% + 4%

annual growth Dividends = yield of 4% + 10%

annual growth Results: After 20 years:

Rental income = 21%

Dividends = 24%

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Those who are knowledgeable in real estate think that certainly it is not at all true, which I can agree with because I have only taken into account the dividend / rental income.

I have not taken account of the overall yield, nor the value of the property. Then capital investment does not have a chance with because of, the high level of hypothecation on the properties. Finally, I would say that the distribution of investment is not for those who can not wait a long time and have too little money. If I am being honest, they should be many other investment opportunities that generate significantly more than 4%. BUT:

Then there is also adding a lot more time and having to work full time with the investment for it to make ends meet. While the risk is probably much higher, too. Higher risk??

Or it depends on who you ask. Many probably feel the risk is much lower for example: buildings to be self-determining of the activity and not dependent on the stock market nor the risk of the listed companies' management do stupid things.

While those are betting hard on other kinds of entrepreneurship seems likely that they take too big risks.

What makes the stock market is unique:

* You can start immediately and with very little money.

* Highly liquid investment, go and say and buy when you want.

* Probably the best thing about the stock / dividends is that they are growing faster than for example: other traditional investments for example.: Bond, bank and fixed incomes in the form of rents.

* And most important is perhaps that it is one of the best and most stable passive income sources where you need to build up again, in the form of capital and time!

Conclusion: Dividend Investing is a fundamental great alternative to traditional retirement savings but would not wait too long, so it should be combined with a self-employment or business. The best combination would be if you had a profitable company or business, where you move profits to long-term dividend investment. Which would reduce the investment period 20 years to perhaps 10 years or less! And for those of you who can not wait that long and want to focus on other things that produce results more quickly, I can only say: That you do not need to pick off one or the other. Bet like the rapid investment options but do not forget dividend investment because even with very little money for a long time, you can generate quite a lot! Tex: if you only choose to save 1 000 kr / month for 20 years with a normal growth + is probably the value of the investment portfolio to be worth around 1 million SEK!

Weekly Tips #13

2009-11-05T09:18:00.000-08:00

Weekly Bok
An unknown but interesting book – Double Your Money in America´s Finest Companies – The Unbeatable Power of Rising Dividends.

Double Your Money in America´s Finest Companies
– The Unbeatable Power of Rising Dividends

Weekly Movie
To buy or not buy shares? - Urban Bäckström, CEO of Swedish Enterprise. Finally a Swedish movie clip. Now, TV4 has begun to link / share opportunities in their film clips, hoping that more will do the same! Here we learn that it is time to buy stocks and not funds, and also squeeze out URBAN his new book. This is a wise man who will listen!

Exchange data is finally done!

2009-11-03T09:41:00.000-08:00

Now I am clear with which one might call the first phase. To a simple page where you can get some of those most important key figures for as many shares as possible and where foreign companies like the U.S. and other Nordic countries is to.

The idea of listing data was to replace the previous FA images that I had. Moreover, a combination of 10-year history, charts and tables that make it much easier to see differences between different stocks.

Exchange data is mainly done for dividend investors where you should be able to quickly view historical distributions, and parameters dividend growth, Yield on Cost and Yield and Dividend Share

Now the first phase is ready and hopefully I will try to improve the website later.

The new companies are mainly in the U.S. and also the Nordic countries. Unfortunately, it was very difficult to find useful information for those other countries and it was therefore very small number of companies than I hoped for. Maybe something that I can improve on later?

* USA
* Finland
* Norway
* Danmark

and I have also tried to add Charts of some key figures which I think is interesting. Tex: Dividend Growth; them 50th best company which has had the highest annual dividend growth over 10 years.

The list for Toplists:

There are some exciting companies who have found:

* Merimekko: - Known Status Design.
Famous Finnish textile design company for home products. In particular, women's favorite brand. What is interesting is that the company has a very good totalutdelnings if you had bought it early, but maybe not as good dividend growth. But what impresses is the high direct yield and profit margin and Return on EK.

* Statoil: - Stable and important activities.
Now, I have now had time to check on the company key figures and history. Has actually meant to buy the company but chose Fortum before. But I would like to buy it later. What deterred me was the low profit margin, but now when you look at the big picture to see it much better. Return on equity is fully approved and is due to the low equity ratio of around 20%. As long as you can expect a stable circulation and stable profit margins as the company attractive dividend stock. Since the yield is rather high and fairly good dividend growth than those last 2 years.

* Carlsberg: - Beer selling Always
Has long been thought to buy companies, but now the key as it is disappointing. Extremely low yield in combination with low or no dividend growth. When you watch the profit margin and the decrease in yield on EK, so it is understandable that the profits could not develop so well.

* Rapala – Do you like fishing?
Then you know what Rapala stands for. Unusually good growth on the dividend where the annual growth of 25% over 10 years, sounds really good view of the industry. Unfortunately, so have not managed to get a return ratios.

* Colgate-Palmolive – Toothpaste giant!
Naturally I use both Colgate toothpaste, and I think I have used Palmolive as detergents and fabric softeners. Very stable and simple activity is a little like Procter & Old. I'm not directly yield as exciting as it.

* Pepsi – an interesting competitor to Coca-Cola.
Have more products in the form of Chipper and snacks. Where both dividend growth and the stable development is approved. Unfortunately, the direct yield is as low as other U.S. shares.

* IBM & Microsoft! – two IT giants!
Who manage to get an exceptional development of the distribution. Where dividend growth is 22% for Microsoft over 5 years and 15% for IBM for 10 years and 22% over 5 years. Both companies have managed to get reasonably good growth in turnover and profits, which Microsoft has succeeded best. What makes both IBM and Microsoft exciting is the high return on equity and return directly to nearly 2%, which has never been before. With such growth, so it may be interesting to watch it. Did not that IT companies were so profitable

Weekly Tips #12

2009-11-02T09:07:00.000-08:00

Weekly Bok

The ClassicThe Crowd - A study of the Popular Mind, Gustav Le Bon, which was written 1895 and is one of those books that describe past stock crashes and group psychology. A must of you who want to learn about the stock market and in particular group psychology

Quotes from the book!

"Little adapted to reasoning, crowds are quick to act... How powerless they are to hold any opinions other than those which are imposed upon them.... [They are led] by seeking what produces an impression on them and what seduces them."

The Crowd – A study of The Popular Mind

Weeckly Movies

Historical retrospect on past increases after stock market crash and perhaps it facilitates the exchange and development can we expect in the future and at the same time maybe we can expect a prolonged period of decline, which is very good news for us who want to buy cheap!

Weekly Tips #11

2009-10-30T09:03:00.000-07:00

Weekly Bok
Value Investing from Graham to Buffett and Beyond, interesting book about the value of investment.

Value Investing from Graham to Buffett

Weekly Movie
Interestingly, but perhaps a bit controversial subject, to invest Pengane rather than just rely on the house as a single investment. In other words, let money work and how important it is to have the capital, liquidity and the house is perhaps not an investment.

Swedish Banks

2009-10-28T09:10:00.000-07:00

Time to compare the total return for the various banks.

The banks that I have with:

* Swedbank
* Nordea
* SEB
* SHB

The first - Course Development:

Result:

Stocks….…..........Index

1. Nordea ….……..105
2. SHB ……....….…73
3. SEB……........…. 50
4. Swedbank……...-40

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The second - Total Payout

The return for 10 000 SEK invested over 10 years, from 1999 to 2008:
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Result:

Srocks…...........…Total Dividends

1. Swedbank… ….……4 440
2. Nordea……...………5 370
3. SEB…………………5 110
4. SHB….……………..6 070

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If one takes into account both the expected results so it becomes: (ie, if you had reinvested the dividends over 10 years and takes account of sharesprice)

Reinvesting – 10years:
Nordea…………144%
SHB……………134%
SEB…………….36%
Swedbank…..….-45%

A very unexpected result, which Nordea proved to be better than the SHB in the Total Return over the next 10 years. SHB had the best total dividend but Nordea shares development had a greater impact on total return.

So now begins Nordea share be interesting! Perhaps we will have to have both Nordea and SHB?

Weekly Tips #10

2009-10-27T08:52:00.000-07:00

Weekly Bok
A famous book from a classical investor who is more or less as famous as Warren Buffett. Learn to Earn - Peter Lynch. There is always something värdeful to learn from lycnh.

Learn to Earn – Peter Lynch

Weekly Movie
A little old, from October 2008 but still insightful as many had certainly been good if they had listened to his advice during autumn 2008. About why it is better to invest long term in equities rather than bonds for.

New Top List: Dividends Aristocrat!

2009-10-25T08:56:00.000-07:00

Now that the stock market data for the Large Cap is ready to begin to see results for their various shares and could compare easily to one another. It will be even more interesting when I'm clear with the entire Swedish stock exchange + some foreign companies, in a way you can compare better with each other. But I begin with the Large Cap, as long.

The first thing I thought of as a dividend investor is:

Which company has managed to raise their dividends over the next 10 years without lowering the single year?

Therefore, I thought creating a custom list called "Dividend Atristocrats" (the list is the S & P's best dividend shares) for the Swedish company. But I do not know what to call the list. Swedish DividendsElit perhaps??

List of Swedish elite Pay tough demands are:

* That the companies managed to increase their dividends over the past 10 years without reducing its dividend in the single year (or at least maintain the dividend in some years). In addition, they have shared the last 10 years. There are some companies that have not reduced their dividends, but that is not because they have only distributed example: last 5 years only.

* Meanwhile, ranked after the shares have been the highest dividend growth.

The shares that are not reduced their dividends, 10 years (1999-2008) for Large Cap is:

H&M.................... .28%
Assa Abloy.............17%
Atlas Copco............17%
Securitas.................17%

Ratos......................16%
Swedish Match.......13%
Castellum................11%
Getinge...................11%

This list will grow eventually, when I finished the Mid and Small Cap.

While it does not feel that it really fair because there are many other very good distribution company that has just lowered its dividend last few years but have had very good dividend growth.

Other good examples, but that will not end up in the list is utdelningseliteAstra Zeneca and SCA. What is interesting about these companies is that they have a payout ratio below 50%, while a yield around 5%.

Then there's a second good example of Axfood who have shared great. It had received 12 160 SEK back in dividends if you had invested 10 000 SEK in 1999/2000. There are only a few numbers other companies have been better and it is:

Ratos:........17 750 SEK
Fabege:......13 320 SEK
Axfood:......12 160 SEK.

Weekly Tips #9

2009-09-30T12:06:00.000-07:00

Weekly Book

Now that I have so much messages about money and behavior so I thought, tell about one of the world's best-known books on the subject. Think and Grow Rich. By Napoleon Hill. A must for those not familiar with the book. Those who will not bother to read the whole book so you can check out the short video clips!

Think And Grow Rich

Weeckly Film
Perhaps the best movie I have in the current situation found on Dividend Investing. One of the lectures which dealt with the benefits of dividend investment in a good way. Where to get tips about a Swedish company. Are you hesitant to dividends? Look at this when!

Apartment or Shares? Response to a question

2009-09-28T11:55:00.000-07:00

A difficult and important issue that I believe many others think of! I have therefore chosen to present it as a new post!!

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Hello 40% 20year! Found your blog for 5 days ago and has now harrows me through all the posts until today. Very useful as I have just received a bit of it in my head so it will probably do well this!

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I'm 23år and has about 300tusen in shares / funds / liquid assets. Been thinking about buying a house / apartment within the next year. Which is better? To take my money and not having to borrow as much (or perhaps none at all) or to keep my money in investments and take a loan? A variable loan at Swedbank is currently at 1.7%, I believe, and because my depot hopefully rise more than it should it be better to borrow? However, I was a bit confused when I searched on google when most of the miscellaneous forum believe that one should pay the loan so therefore I turn now to the expertise! I will of course have enough money to pay so that the loan does not increase (and as long as the interest rate does not exceed 5.5%.
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/funai

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Hello! Funai!

There is no easy matter to set! And you will not have easy answers:)

I've had similar problems and ideas. But because of the low stock market valuation and the high real estate prices, I have chosen to focus on stocks with good dividends! At the same time, I have come to realize that there are other important things in life such as housing, so it is no easy matter.

Sen also depends what your goals are?

One advantage of shares is that you can get a stable and growing dividends, ie cash flow over time, while the apartment / villa generate nothing and also costs money.

( But of course you have to have somewhere to stay and if we can manage to get an apartment that costs as much in housing costs as a normal tenancy, it will be economically viable long-term )

But the important question is!

If it is more profitable to invest 300K in shares, rather than put everything in the apartment?

I think it was more profitable to invest in shares! But as long as you do it right, ie, buying diversified in many good shares, etc. ... You've probably read a lot in the blog!

Investments in general are more profitable than savings. Buying the apartment is = a kind of savings under me. The reason "to buy the apartment and Villa" I call for savings is that it generates nothing. The only thing you can count on is the increase in value when you choose to sell the apartment. Many would disagree with me. Anyway, savings or investment

Another thing that is very important to keep in mind is "You can not just buy everything at once, because you are taking a big risk, you still have to save / invest for 1 year or I would recommend at least 1.5 years, ie you buy 15 000/20 000 each month, thus reducing your risks considerably! (But must take account of stock prices, too. Sure you can buy more if you can find for buy) But the important thing is the longer the track time, the lower the risk!

While those who say that you should try to pay off the loans are entitled to a certain extent. Because too many borrowed more than they can handle and oftas is excessive loans so it will be too high housing costs or bad private loans car loans or holiday loans.

But like everything else, it should be a balance. You can not just try to pay off everything and believe that you should live a good life financially. I believe strongly that we must invest and try to build something that generates stable cash flow that is reinvested on. It is the foundation of economic freedom. To do so requires low costs and that in turn creates the opportunity for savings and investments.

Moreover, inflation means that the loans are eaten up, so it is perhaps not the best way to try and pay off everything! As long as you have loans that can handle even if interest rates rise, so you should not try to pay everything! (But I'm talking about housing loans and personal loans where no interest is 8-15% )

Weekly Tips #8

2009-09-23T12:14:00.000-07:00

Weekly Book
Not a classic book written by Rothschild, A Fool and His Money: The Odyssey of an Average Investor, where the author tells the story of his first investment experience during the 1980s. It is pretty funny book and very informative book where you learn why the ordinary investor loses his money!

A Fool and His Money: The Odyssey of an Average Investor

Weekly Movie
Now, here, Warren Buffett as cartoon characters, which has been helping young people with finance and investment. I do not think it's just young people who will watch the series, but also many who are interested in learning more about investment and especially Warren Buffett's strategies can now make it easily!

My New Entrepreneur Adventure

2009-09-08T11:28:00.000-07:00

I have previously talked about that I will remove all financial ratios photos. Previously, the thought that I would make dividend history of a number of companies.

But now I have thought about and will bet on almost all indicators and all companies in the Stockholm Stock Exchange. And now while I have thought about enough, and I've decided to get started with my own way! A disadvantage is that I will not be able to create the 20 years history, as now I realize I can not guarantee the right information because, divisive and do not have access to the right share price and so on. But I will focus on 10 years of history, where I know it can find the reliable information on the companies' websites.

Now that I have read previous articles that I recommended on the failure and the like, so I think now that there is almost always something positive with setbacks and failure. Then apply it to find the positives and take it to their advantage. Therefore, I intend to take this opportunity to thank the Shareholders' Association, otherwise I would never have started if I had not been given NO.

What do I mean by that, I have started

Yes! New domain names are fixed, and worked long with the format and there is much left before it is finished. Much information to fit on an A-4 paper. And plans and partial plans for how to go about it is almost done. That we have to work hard, for a very very long time.

The idea is that I'll try to create a completely unique style and many more key figures, or rather, new ideas and are particularly useful for us to think long-term investing and dividend investment and want to compare shares on very easy and fast way.

Some unique ideas that I am trying to develop.

* If it does, so I will create the possibility to calculate the "Reinvestment", how much it affects the final yield for each company, in different years

*Able to calculate all the company's total dividend and Dividend Growth.

* Yield on costs, how much yield has increased in relation to investment.

* Comparing the share price on the OMX index annually.

* The total development and simultaneously to ensure effective yield (dividend + share price).

* Able to see the relationship between Sales, Earnings and Dividend

* EK returns, profit margin and Solidity.

* and many other important indicators for 5 coutries, Sweden, Norway, Danmark, Finland, US.

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Here is The Home Page:

Visit the new website

New Invesment Clips

2009-08-31T14:59:00.000-07:00

New Invesment Movies

3 new Investment Documentary!

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* Betting on the Market – 1997 – (Before the dot.com crisis, when everyone would be rich if only you buy IT shares. Very interesting and informative documentary 4 parts)

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* The Birth of the Speculator – (Britisk documentary, which is a bit on various speculations and historical mistakes in financial risk taking. 6 parts)

* Stock Market Made Easy – Nice ladies who explains and teaches the FA, TA and stock options. I myself am not so fond of either TA or stock options, but for those who are interested.

Dividend Growth & Yield - Important to remember

2009-08-25T15:55:00.000-07:00

Now when I think about investing a bit more on the U.S. shares have more even distributions during the year, so I started to check on foreign dividend investors. Where I've been checking out:

* What are their objectives and strategy with dividend investment?

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* How much future dividends and dividend growth, expect them to?

The idea is to compare my own goals and expectations with other investors.

At the same time, I thought talking about how important it is with good yield. But when you need to be looking for the right yield! Since it is not just buying to have quarterly dividends. It also watch directly yields!

Quite interesting to see that thanks to the high yield which I have today, 5.1% so I need an annual dividend growth of approximately: 10-11%. Additional monthly savings and reinvestment would almost guarantee me to get an annual return of 10%, the next 20 years.

But if I had started with a yield of 3%, so I would have an annual dividend growth of around 14%

If you make a table which dividend growth is needed to reach 40% for 20 years, if directly yield the first year were::

Yield %.. ...............DDDividendGrowth %

1…….................................…...20,25
2 …….................................…..16,16
3…….................................…...13,83

4….................................……...12,20
5………....................................10,96
6…….......................................…9,59
7……...................................……9,11
8……...................................……8,38
9……...................................……7,74
10…….........................................7,18

Perhaps because I was more interested in the Swedish stock market before. Yield here in Sweden is almost more than double when compared with the U.S. Dow Jones shares. But simultaneously, I am willing to have a small part, maybe max, 20-30% of denominated shares, where I know I will get stable dividends and dividend growth near 10%. But that applies also to have at least 3% or higher in yield. Otherwise it is not interesting anymore.

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What is a good yield?

It depends on how much dividends are growing or you think it will grow. You should not pay too poorly yield just because you think you will get a good growth. A good rule is: A yield of 4% if you can expect a dividend growth of 10% per year is pretty moderate. Then of course there are other aspects that matter and then you might just be prepared to compromise, 1% up or down if it is really good and stable company.

The various compromises that I made!

* Purchased Cola-Cola with a yield of 3-3.5%, where the company's steady sales and future, slowly but sure, growth that spoke of.

* Purchased Fortum, which I expect slower growth in the future, but a yield of between 6 - 8% was attractive and also where I know that the risk of future dividend cuts is very small and also last payout ratio was 57%.

When you're watching a higher yield so you should also think of:

The better yield from the beginning, the lower the dividend growth is needed. But remember that the higher the yield the greater the risk that the company can not do a good dividend growth, and also a high risk that the dividend is reduced. There is usually a reason why the share price has plummeted so much for the shares tend to have high yield. Then it is not enough just look at the share dividends and profits for the near future. Even if the company is able to distribute dividends throughout the first year, so there may be considerable risk to them is too poor prospects. Then the high dividend is very poor compensation for the high risk.

When is it most interesting look at the high direct yield?

When a quality shares raging sharply because of the stock market in general. Where shares have been very abandoned because of the low direct yield and payout ratio. These companies usually have a good balance sheet and good history of increasing profits / dividends. That's when you can get yield between 4-7% solid historical directly yield companies have been around 1.5-3%.

Weekly Tips #7

2009-08-06T13:41:00.000-07:00

Book Tip
The classic book, The millionaire Mind, by Thomas J. Stanley, the same author who wrote the book - The Millioniare Next Door. As is the biggest difference between the Andes that is rich, or rather the financial independence, which they do not have to work!

The Millionaire Mind

Movie Tip
Last but not lost, perhaps one of the best films that I have found that shows the long-term benefit of the dividend investment! - By FT Short View! Very good clip that must be seen!

Autumn-99 Just before the IT-crash

2009-08-05T06:19:00.000-07:00

Personally I remember it very well. That was when people started look at the stock exchange. They could hear stories about how family and others who served with the big money as long as you bought the shares that had the name Internet / IT or involved in something exciting. And when the party ended in connection with the negative news that Microsoft's prosecution and H&M's sharp decline of 20% in one days

A diagram of the OMX autumn 1999. The steep rise looked like it would continue for long.

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I have now come across a list of shares in 1999 were listed. A bit of fun to see which company is left and which companies are no longer on the list. When you look a little closer we see an unusually large number of shipping and engineering company that no longer exists. Most companies that no longer exists, there were times when the O-list, the SBI-list and the OTC-list. In other words, many small companies have not done or that they have bought from the stock exchange.. Another thought for you who intend to invest too much of the total portfolio in small companies

Here's a small list of some IT and Consulting company that existed in 1999. I have not taken any account of whether the companies went bankrupt, was bought or changed their name.

Adera
Arete
Connava Group
Daydream
Drax holding

Entra
Framtidsfabriken
Frongo
Frontec
Gandalf

Guide konsult
ICON
IMS Data
Inac Industri
Infinicom

Infocast
Information highway
Intentia
Iquity systems
Jaakko Pönry

Jacobson&Widm.
KM
Konftel
Lap Power
Linne group

Måldata
Oftosof
Pronyx
Proctect Data
Resco

RKS
Target Games
Telelogic
Teligent
Turnit

I have also included companies from other activities

Raw materials
Aurex
Forcenergy
North Atlantic res.
Riddarhyttan
Scanmining

Real Estate
Asticus
Celtica
Columna
Evidentia
Piren
Platzer
Realia

Commerce
Daydream
Folkebolagen
Lifco
PC express

Investment Company

Atle
Custos
Trustor

Shipping
B&N Nordsjöfrakt
Gotlandsbolaget
ICB shipping
N&T Argonaut
Svenska Orient Linien

Forest

C F Berg
Klippan
Fagerlid
Munksjö

Industry
Alcatel
Allgon
Arkivator
Autodiagnos
Autofill
Binär Elektronic
Bulten
Iro
Meto
Kalmar ind
Segerst&Svens
Zeteco

Chemistry
Nordifa
Norditube
Perstorp
Reculture

Consumer
Aqua
Monark stiga
Santa monica

Medicine
Althin Medical
Artema Medical
Minidoc
Qualisys

In addition, there are big companies that remain today, but probably have bought, modified or new name that no longer exists on the stock exchange. They are:

Diligentia
Fjällräven
Hemköpskedjan
Naturkompaniet
WM-data
Stena Line
Assidomän
Modo
Avesta Sheffield
Spendrups
Sydkraft
Pharmacia & Upjohn
TV-4
Scandic Hotels
Esselte

In other words, there is a risk that many companies especially the smaller will be on the stock exchange on 10 years. Fast likelihood increases that bolgan left if you buy the large stable ownership tex: Lundbergs and H&M.

Quarterly Dividends - YES PLEASE

2009-08-04T06:27:00.000-07:00

In connection with the Investor's CEO Börje Ekholm. early spring, so was the discussion on the subject very short. It appears that the proposal was not popular and mixed too much with the quarterly report the short-term thinking and the current financial crisis makes it even more sensitive.

Thought argue why it is useful for development of companies and should benefit the long-term ownership!

In connection with the statements from Investors CEO as did Peter Malmqvist to

”Over one quarter, it is after all, gain all watching. The dividend is incidental to forecast surface”

The first is the actual profit focus that creates short-term thinking and sometimes have nothing to do with the actual business valuation. A classic example is the Property, in which all of the profit comes from the actual increase in property value while the company may have negative cash flow, which is less after all financial costs as interest and amortization. Cash flow and return on equity is more important indicators, but has too little space in a quarterly report. Then to comment on the dividend has a secondary role is simply wrong.

Then there is others who have raised disadvantages short-term thinking and believe that it would create too much focus on the quick dividends after only a short-term ownership and it would enhance the short-term trend.

I think it is a bit misleading. If we say that the dividend is distributed 4 times, ie a yield of text: 6%, it would instead receive a quarterly dividend of 1.5%.

Only it does to short-term thinking would not benefit those who think short term. Since it would "cost more than it tasted" if you only intend to take the company for the dividend sake. But today, when the dividend is between 6-7% in many companies, we still pretty strong, just a few months and even weeks before delivery time. So in the current situation, it is more profitable to serve 6% dividend than 1.5%.

The major advantages of quarterly dividends would be:
.
* The companies can better manage dividends and adapt to the way it goes during the year.

* I think that it would reduce the negative impact that the company distributes more than what they have earned, that is, a dividend share more than 100%, which is not good long-term.

* The sharp up and downs in connection with the delivery times would be reduced.

* It would easily be the long term because the company would provide more regular cash flow which would increase the interest to own shares for a long time.

* And, above that we are a dividend investor would get much more even distributions during the year.
.
.
At the same time, I look more closely and analyze my dividends and which months they usually get. Have received the idea from, Bombad av utdelningar - Portföljanalys av Utdelningsbombad

So here are my undelningar during the year, divided by months!

Click To Enlarge

In other words, very uneven distributions. Where April and May months tops while the rest of the year, ticking up very little dividends. The small dividends that I receive during the remainder of the year, Jan, Feb, March, June, June, .. ect, are from the United States shares with its quarterly dividends.

To do to get a more even distribution curves?

* Purchasing of Shares which have different delivery times of the year. Tex: Axfood awarding of March month and Skistar in December. Then there is also AstraZeneca awarding 2 times per year, during February and August.

* Investing in Sustainable U.S. shares and with their quarterly reports to get more even distributions during the year. Have but a sufficient number of shares so you can get dividends every month. So-called Utdelningsbombads effect

* Last and not least, we have also Month Award companies, as Canada Trust. But because of the high risk, I have not invested in them. But there are lliknande companies in the U.S. and is a bit safer than the trusts and the Reality Income, (O), which is property and awarding months dividends..

Then I tried to follow my dividends I received in the spring. Has received a positive sense of cash flow. I made a simple chart in Excel and in that way I have the total dividend. Got the tip from, Tracking Your Dividend Income, by The Dividend Guy. The only diagramet not go down, but the only direction the follow up. It is a little nice feeling to be able to see how the distribution of "ticking" and it is a really stable cash flow to build for the future by,.

Dividend revenue for the spring!

Click To Enlarge

Weekly Tips #6

2009-08-03T13:39:00.000-07:00

Book Tip
A Classic from Jeremy J Siegel, Stock For The Long Run. A Professor be showing very good and the dividend reinvestment is the best investment option long term.

Stock For The Long Run

Movie Tip
Of course, I have chosen to take a förläsning by Jeremy Siegel, who says little about the book and the historical rate of return which is the best investment long term. Storytelling and even how bad investment of gold long term.

Investing in your consumption

2009-08-02T06:15:00.000-07:00

By the article, I have written, Investing in your bills, which seek to invest in companies that receive their largest accounts, such as: rent and electricity. Now, I write more about the usual consumption, which may not cost the same but is nevertheless important. The areas:

* Food & Beverage

* Supermarkets

* Hygiene

* Pharmaceutical

* Clothes

* Tools and Miscellaneous

Here, it is also important to note that many companies usually have many different products and therefore a particular product / brand will not make much difference.

Food & Beverage :
* Möllarens vetemjöl – (Skåne-möllan)

* Kex-choklad, Polly, Popp – (Cloetta B)

* Snus – (Swedish Match)

* Öl -Pripps Blå, Falcon, Carlsberg- (Carlsberg -Dansk)

* Marabou, Daim, Aladdin, Philadelphia, O´Boy, Gevalia, Maxwell, Blå Mocca, ( Kraft food –US )

* Zoegas, Nescafe, Nestle Barnmat, Kitkat, Lion, Hemglass, - ( Nestle – Schweiziska )

* Fanta, Sprite, Cola, Iste-Nestea, Bonaqua, Powertrade – (Coca-cola – US )

* Zingo, 7UP, Pepsi – ( Pepsi – US )

* Extra tuggummi, orbit – (Wrigleys – USA )

* Mcdonals (USA)

* Heins Cetchup (US)

* Kellogg´s (US)

Supermarkets:
Axfood
Hakon Invest ( äger en stor del av ICA )

Hygiene
* Libro, Libress, Edet, Tork, – (SCA)

* Colgate, Ajax, Palmolive, Sofflan, Klorin – (Colgate –US)

* Always, Ariel, Head& Shoulders, Ajax, Olay, Pampers, Pringles, Shockwaves, Wella, Yes, Gillette, Vicks, Gilette, Braun, - (Procter & Gramble – US)

* Duni

Pharmaceutical

* AstraZeneca
* Pfizer ( US)

Clothes
* H&M
* Björn Borg
* KappAhl
* Fenix Outdoor

Tools and Miscellaneous
* Clas Ohlson
* Swedol
* Mekonomen
* Wal Mart (US)

Must admit that I was a little interested companies:

* Kraft foods

* Pepsi

* Colgate

* Nestle

* Wigleys

* Wal-Mart

* Procter & Gamble ( and, above all, buy more of the PG, given the known products they have, of course, I already use many of their products as Gilette, Head and Shoulders, Shockswaves, diskmedelet Yes och Tvättmedelet Ariel. )

Weekly Tip #5

2009-08-01T13:37:00.000-07:00

Book Tip
All About dividend Investing. Pretty good book on investment dividends.

All About Dividend Investing

Movie Tip!
Have you thought about why so many young men who agree with the TA-analysis? Well maybe this movie can explain why!

.

Weekly Tips #4

2009-07-31T13:35:00.000-07:00

Book Tip
A well-known book, particularly in the USA, which describes how to invest simply and wisely! The author of the book, John Bogle, one of the world's first to have created the index fund! So some interesting tips should be found in the book

The litte book of Common Sens Investing

Movie Tip!
Pretty funny clip about long-term investment! Remember also that the film made of an index fund organization that is more or less academic who still believe in efficient markets, and the like. That was a little critical of the tips you get in the movie! But there is a part of both fun and useful comments..

Investing in Your Bills

2009-07-30T06:08:00.000-07:00

I read an interesting article on how to invest in their own bills that you get as an example electricity and telephone bills. Got idea from blogs Canadian Dream: Free at 45 – Investing by your Bills.

When I quickly look at the bills that I paid last time, it will produce, in the order of:

* Rent

* Electricity

* Cellphone
* Internet

As is my main account! And these bills can not opt out if you want to live somewhat normally lunda today. Almost completely vital services that you need.

How can you invest in them?

Tex: If you receive bills from TeliaSonera for mobile phone, you can invest in itself and so you can serve to be both consumers and shareholders. (though in fact it will not make much difference or no difference at all) but it will in any case feel a little nicer to know that you are a shareholder, the company that you pay your bills for.

In other words, you get added value and even if there is very little. At the same time will help you to pay yours. But it should not mean that you should consume more because you are shareholders, since it makes little difference for TeliaSonera if you are a customer with them or not. But it makes a big difference for your private economy.

Therefore, one should simultaneously take into account to try to find cheaper subscription (then also depends on what services you get of course) and even if it means that you can not invest in the company. But while there are enough who are customers of Telia, so you'll earn for others!

Which companies are there in those sectors which are necessary?

Rental: (Property )
The single largest bill for many. What should be an obvious long-term investment, though perhaps in the current situation a little "risky", but still something you should start to look at if it is a long-term investors. Maybe it will good opportunity when the real estate bubble that everyone talks about cracking. Then have the cash.
The interesting company:
Wallenstam
Lundbergs

Private Loan: (Banks )
The reason I have taken with the banks because they earn on lending rate for housing. In the current situation, it is perhaps not so safe to own bank shares but I would still recommend the bank shares when eventually we get from the financial crisis. (Although perhaps less in% portfolio value.) Moreover, many of you have taken small loans and short-term credits, which would fit that bill..
The interesting company:
SHB
Swedbank
Nordea
SEB

Electricity
They are probably the second largest bill and unfortunately there are not many to choose from on the Swedish stock exchange. Then we begin to look at the Nordic Exchange and the rest of the world

The interesting company:
Fortum

Hafslund
E.ON
Great Lake Hydro

Telefon/Mobil ( TeleCommunication)
It also includes broadband services in most companies. Given the large number of users of mobile and broad band services so you can say that the law necessary service that we currently can not be without. But while there is high competition for customers.
The interesting company:
TeliaSonera
Tele2
Millicom
3-TRE
Telenor

Next article, Investing in your consumption, I will write more on consumption shares of food, clothing and other important

Weekly Tips #3

2009-07-29T13:32:00.000-07:00

Bok Tip - Free Online readable through Google!

One of my favorite authors, Brian Tracy, on the subject of how to become rich. (Most are pretty common sense and the most Hadler more about how to try to change their behavior! But there are some good and simple tips on Investment and money. Although many of the tips may not be optimal from the investment point of view. Tex: funds. But the good book for those who want to start)

Getting Rich Your Own Way!

Movie Tip

Footage from one of the leading author Jason Zweig in "behavioral finance" for Investors. Since the majority of which usually called "behavioral finance" is for trading or technical analysis. Here he tells us some common mistakes many investors tend to do. Very good clip!

Stop looking for - Acres Of Diamonds

2009-07-28T05:58:00.000-07:00

For a while, I was reading an article - by Rich Together. Where he payed 350 000 SEK for a NLP course in 2 years with them to learn "The Fast Track" some sort of NLP / Inspiration Course. As a matter of how to become rich and personal development, etc.. If you just want to go to an introduction so it cost between 9 000 - 13 000 SEK.

I hope all the best for Jan who is behind the website Rika together and hope that the investment pays off many times over. But I do not understand that you can pay as much.

( The idea is not to try to criticize him, but just want to give tips for those who intend to do similar )

Personally, I would never think of paying for information already available in books, libraries, and especially on the Internet. I chose to and not to go to Brain Tracy lecture only because it would cost a total 4 000 SEK and then I realized that it was better if I invest money instead

I do not think there are quick ways to get rich and do not believe that there are new things and ideas that are not already available almost for free. What is the point of becoming rich at the same time, of itself with 350 000 SEK, it's really a lot of money even for me. If I were to try to save money it would take about 3-5 years. The only thing I think about what the best investments you could do with the money.

But at the same time, I have tried to encourage the investor to herself. But I do not mean that you should try to go on the most exclusive courses or buy books and other things. Without it you need to do is to add is their time and efforts to begin to learn without having to look for too long gone or that it will cost money.

(I try to even add new books for free every week via Google Books, totally free and legal. Why pay money? At the same time and make the author a very good advertising for their books. Since I assume that Google has been the authors' approval. Many of the books I can find and choose to add are usually among the best in the subject. The cheapest is not always the best but in this case the best tips and ideas are completely free)

Här kommer en mycket berättelse på vad jag menar:

Acres Of Diamonds
History has been very important for me and the idea is quite poignant. "Acres of Diamonds" has origins been a speech by Russell H. Conwell delivered over 1,000 times around the world, it was eventually published as a book. The book wrote in the early 1900s so it's classic of motivation industry!

The story is based on a story about an Arab guide, which tells the story of "a peasant" who sell their farm and everything he owns to search for diamonds in the world. Some say that the story is true, perhaps it is so but I do not know. Otherwise, it would be pretty awesome!

Here comes little short version of the story:

.... / An African farmer who heard different stories about other farmers who have become rich by discovering diamond mines. These stories make African farmers so fascinated to choose to end sell their farm and going out to prospect for diamonds completely self.

After he has sold the farm so he spent the rest of his life wandering in the African continent, and searches without success for the shiny gems that will make him rich. Finally, after many years of candidates, he is worn out, poor and desperate, so he throws in a river and drown. Farmer dies in poverty and misery far from their home.

While the man who had bought the farm from the farmer, who drowned after the diamond candidates, find a dazzling big stone on his farm and of admiration as he stone as an ornamental in the in the house. Several weeks later, the new owner of a visitor who discovers that the stone is one of the largest diamond that he has seen in his life. The farm, which had been sold by the farmer, proved to be a diamond mine and one of the most productive diamond mines throughout Africa ...../

The moral of the story is that you do not have to look elsewhere for wealth and opportunities as there are still sufficient resources which are already in order to achieve the objective. It is easy to think that big things are in other places but we all can achieve already where we are. If can not perform with the same so we can at least get off the mud and us as much as we can on the subject.

The first farmer had sold the farm for almost nothing just to look elsewhere. If he had only taken the time to study and prepare to learn about how diamonds looked like in nature. So he had to begin to examine his own farm before he began to look elsewhere and so would his achieve their dreams.

So before you start looking for your own "Acros of Diamonds" so try to investigate already where you are if you can start to get started and try to achieve what you want.

Remember to be grateful for what you already have, family, friends and other What is the point if you strive to become rich and happy if you do not try to be today!

In other words, the grass is not always greener on the other side!

Also the link to the book, Acres Of Diamonds for those who want to read the whole story, via Google Books, as I said, absolutely free.

Acres Of Diamonds

Weekly Tips #2

2009-07-27T13:29:00.000-07:00

Book Tips
* I have tried to find the book "A Thousand Ways to make $ 1,000" without results. The only thing I found other books that have copied the title. But I found another classic that are more about creating passive income in different ways. Multiple Streams Of Income.

Multiple Streams Of Income

Finally, very good tips from Warren Buffett. It is not only good but also easy. Where he in an interview explaining why you should not try to "guess" the market. "If it goes down so BUY - SAVE AND INVEST IN MORE SHARES!" - From CNNMoney