When to Avoid Investing In Dividend Stocks

If you are seeking to tame volatility in today's volatile markets, dividend paying stocks can help you smooth out the price swings. Dividend stocks typically have low volatility and provide a steady stream of income. In a more unpredictable market, however, even some of the stalwart dividend payers may be less reliable. While you are shopping for dividend income, watch out for these eight red herrings.

When To Avoid Dividend Stocks

1. A High Yield to Compensate for a Low Stock Price

Companies offer dividends to entice and keep investors. When a stock price is low, it is important to question why. If it is a momentum stock that has had a reversal of fortune, then stay away. If the stock passes the value investment test of an undervalued stock with good long-term fundamentals, then it may be a chance to buy a good stock at a discount, and enjoy a dividend income stream.

Some growth investors will decide to move on. As oil prices tumble below $50 a barrel in the fall of 2015, major oil companies such as Exxon Mobil Corp. and Chevron Corp. have raised dividends to keep investors happy during tough times. Some of these companies will be re-allocated in investment portfolios from growth to income stocks. Other investors will find the stock no longer meets their investment requirement. Warren Buffet recently sold his stake in Exxon, in which he had invested $3.5 billion, and invested $4.5 billion in oil refiner Phillips 66, citing its diversification into the chemical business.

2. Dividends Are Paid at the Expense of Growth

A company experiencing lower performance may need to pump cash back into the business and invest in growth. Diverting this money to dividends instead could lead to static or negative growth. Singapore's SembMarine, a consistent dividend payer, made the tough but prudent choice to cut dividends this year in the face of lower revenues and earnings. The marine and offshore engineering group has diverted the cash to pay down debt and invest in a new shipyard. The move puts the company in tip-top shape to deliver on a $1 billion offshore energy contract it received three months after the first dividend cut.

Read: How to Invest In Dividend Stocks.

3. Slowing Dividend Growth

When a grandfather of dividend payments with a reliable payment history slows its dividend growth, investors are more forgiving. Investors have been weathering recessions with Proctor & Gamble since it started paying dividends in 1890. The consumer products company has recently lowered its dividend to 3%, down from its five-year average of 6.6%.

Asian banks are also grappling with dividend growth. This summer, HSBC chopped 50,000 jobs so it could restore dividend growth after a lull. Investors enjoyed steady dividend growth from 1991 until the financial crisis in 2008. Standard Charter, meanwhile, halved its dividend to shore up its capital position. Timing may be everything. With a new chief executive coming in the door, disgruntled investors may wait and see how he performs.

4. Too Much Debt is Assumed to Pay for the Dividend

When cash reserves are low, a company may turn to loans and take on debt to pay for dividends. In these cases, review the company's debt ratios and cash flow. Will the company be able to sustain the dividend or will it have to cut it to meet its debt obligations?

5. High Stock Price, Low Dividend

It is easy to overpay for a dividend stream today due to high price to earnings (P/E) ratios. Even some of the most reliable dividend payers have high P/Es compared to historical norms. In these cases, you have to ask, is the dividend worth the high stock price?

Apple's $100 stock is paying a dividend of $0.52 a share, a nice bonus for those who already own the stock. From 1987-1995, Apple paid a dividend for a short time, which at times was as low as 6 cents a share. The share price would not have justified buying the stock if you were only seeking an income stream. For those who were seeking a growth stock, though, they were handsomely rewarded by the stock price appreciation.

6. No Dividend Growth

Exxon Mobil may be in a temporary rough patch but by consistently raising its dividend each year it has attracted loyal dividend seekers. A worst case scenario would be to lose income investors due to no dividend growth.

Let's say you bought 10,000 shares of Coca-Cola in 1995 when the dividend was $0.22, so you paid $2,200. To maintain your purchasing power, you would need to earn $3,434.90 in dividend payments in 2015 to keep up with inflation. Coca-Cola, which paid its first dividend in 1920, pays a dividend of $0.33 (or $0.66 before the stock split. In 2012, Coke's dividend was adjusted from $0.51 to $0.255 after a 2-for-1 stock split.) Outpacing inflation makes the soft drink makers' long-time investors very happy.

7. High Interest Rates

Interest rates have been very low for the past several years. Investors could easily find higher yields in dividends. When interest rates are higher than average dividend rates, however, a savings bank or even higher earning interest bearing securities would be the better choice.

8. Rate Sensitive Stock

After missing the expected September interest rate hike, the US Federal Reserve says it is committed to raising interest rates in December.  Interest-sensitive securities such as mortgages-backed REITs are sure to see profit margins squeezed. These securities profit from the difference in the interest income on the mortgages securities they own and the borrowing costs to purchase them.

The rate rise will also put pressure on utilities and other steady dividend income payers. This may add more risk to dividend paying equity funds, reports Reuters, as funds invest in emerging market dividend stocks to boost yields.

Dividends are an income vs growth trade off.  High growth stocks do not need to offer dividends to attract growth investors. Investors who want steady income buy dividend stocks. If you are a young investor, you can absorb a higher allocation in growth stocks. As you get closer to retirement, your stock weighting should shift from growth stocks to income generating dividend stocks and bonds. Dividend payments can be cut or cancelled but companies will try and cut expenses elsewhere first before risking the loss of investors.

Equities 101: How to Invest in the Stock Market

Whether you're saving your hard-earned dough for a future holiday, to protect your family's future or even planning for your retirement, we all want our money to go further. Investing your money can seem overwhelming but the truth is, sometimes, making your money work for you doesn't have to be so daunting.

You may have casually overheard about equities, or you may actually have started reading in hopes to delve deeper into the subject of equity investing. Buying and selling equities is not as complicated as it appears – with a few simple tips and jargon busting you can be on your way to making your first equity investment and more!

What are equities?

An equity is part ownership of a company; the more equity you have, the greater your ownership you have in the business. Owning equities gives you access to the company's profits and assets.  When you own equity in a company, you are known as a shareholder in that company.  The terms stocks, shares and equities all mean the same thing – the word used varies depending on geographic location.

How does it work?

When you buy an equity you will receive an equity certificate – this is a simple piece of paper that shows you own a part of the company. It legally and officially indicates that you have agreed to buy a share of a company, at a specified price and amount.  These equity holdings will be stored within an electronic system for your convenience and security. You are able to buy and sell the equities easily and quickly through your computer or over the phone.

Why do people invest in equities?

People invest in equities to share the company profits. Often, this leads to positive returns on money invested. Equities are alternatives to saving your money in a savings account and they provide higher returns historically. As equities have the potential to provide higher returns than other investments, investors tend to favour them as an investment tool.

Shareholders make profit when the value of their equity appreciates, selling it a higher price than at which they bought. Certain equities pay dividends to shareholders – giving out a share of profits through the year, instead of putting those profits back into the company.

How can it benefit you?

Equities can give you a good return on your money. Another plus point is that shareholders get voting rights in the company – which means you get a say in some important decisions for that business. At annual shareholder meetings you can vote on key matters – such as selecting a board of directors. Or you might use your vote to steer the business in a certain ethical or environmentally friendly direction. Another benefit is that you have "limited liability" – you can invest knowing you will not lose any more money than you put in. Even if that company goes under, no one will come after your money or your home. This is a great benefit. You get to own part of a business but debt collectors can never touch your personal property.

What are the common risks?

Remember that equity prices go two ways – they can go up and also go down.

Equities don't always give a positive return.  If the company goes out of business you could lose all the money you put in.  Because of this risk investors are rewarded with a higher rate of return compared to other types of investment.  You should also keep in mind that if the company does go bankrupt shareholders are low down in the queue when it comes to getting their money back.

Things to look out for before investing in equities?

Equities can be great investment if you understand the risks. Don't put money into equities without thinking through when you might need that money again as equity investments need some time to generate a good return for you. Also remember that you will have to pay tax on the returns you makeon equities.

Equity investing can give you a good return on your money over the long term. It really isn't very complicated or tricky. After going through these few simple points you are ready to go!

Check out @YuceeLanda's Tweet: https://twitter.com/YuceeLanda/status/707655330084343808?s=09

Nigerians complaining of hardship are PDP loyalists –Ngige

Minister of Labor and Employment, Chris Ngige, says Nigerians who are complaining of hardship in this present administration are PDP loyalists. According to Ngige, this government which will be marking it's first anniversary on May 29th, is working towards the betterment of Nigerians. He said this in a recent interview with The Sun ‎

"I don't know what you mean by hardship and those you call Nigerians. Are they the federal civil servants getting their monthly salaries as and when due? We don't owe them, not even allowances and there is no reason they should be unhappy with the APC govern­ment. 

Are the okada riders among those complaining when they are making brisk businesses or the gradu­ates we will soon address their problem of unemploy­ment after the passage of the budget? 

Unemployment is the harbinger of Boko Haramism, harbinger of IPO­Bism, OPCism and militancy in the Niger Delta. It is a scourge and serious disease condition that we must fight and that is why we are in this ministry and government. We have job creation programmes under the supervision of the Vice President and other inter-ministerial ones that will be rolled out very soon. 

By the time we roll out, more funds will be put into the economy. Let us warn that the funds are not for stealing. The only difference between APC and PDP is the stealing of the lots of floating funds. Many of the elite were grabbing these floating funds and they are the ones protesting that they are not happy with the present government. 

Those complaining especially the elite are members or loyalists of the PDP. We are not bothered because we are going to continue with our common-people's programme and I want to assure that the tide will soon change. So, we are waiting for the budget. Don't forget that we are not the ones that appropriate funds but the National Assembly. 

We have given them budget, done some alterations and amendments as needs be in areas where some people try to mutilate and we are waiting for now. Once they approve the budget as proposed, we roll out our programmes"he said.

8 Personal Traits That Will Make You Indestructible

Tough minded people are made of pure steel, and have a certain grit about them. They don't go down without a fight and they don't give up, ever. Other's look on and wish they knew the secret, they wish they knew why that person is such a badass.

Well the fact is that it's not a secret. 90% of people know what they need to do, but they simply don't do what needs to be done because it's 'too hard'.

Well that's going to change. It's 2016 and you're worth it. Let's do this.

1. History Is Your Best Teacher

The past is an incredible source of information. There is a wealth of knowledge to be tapped into, and it's open for anyone to do so. Once you harness the power of both your own past and the past experiences of others,you will become indestructible.

So you've gone through pain, and you've been hurt. You've made mistakes and you've been burned. Get over it and stop bringing it up, either in your mind or in conversation. All of your past experiences have molded you into what you are today, and you're a god dam masterpiece. We must all understand this, that even though we didn't play Superman in Man of Steel, we are still pretty damn incredible as a result of what we can and have done thus far.

You can literally learn from thousands upon thousands of different people about their trials and tribulations. Take Walt Disney for example. Before his career took off he was told that he 'lacked creativity' and that he should think seriously about a career change. Michael Jordan was once cut from his high school basketball team. If history has taught us anything, it's that you should never throw in the towel just because somebody thinks your not good enough. After all, success is the best form of revenge.

2. You're In Charge Of Your Success

You must never forget that success is always within your reach. Whether success means making 10 million dollars, or helping 10 million people in poverty, it's within your grasp to achieve your goal and always will be.

The fact is, success is rarely determined by one's luck alone. Success is the culmination of 1000 hours (at least) of grinding on your goals. Consistently working towards a target, being completely dedicated and relentless optimism are the core traits that will allow you to reach that target.

You will eventually achieve what you have always wanted if you work hard, keep the faith and follow the above principles. And while doing so there is no harm in helping those around you & learning as much as can along the way.

Your in control of your own success and if you fail… well pick yourself the hell up and try again.

3. Prioritize Like There Is No Tomorrow

It vitally important that you always prioritize. Prioritize your goals, prioritize your tasks at work, prioritize what your going to eat. We're given an unending amount of choices in our everyday lives. So much so that we always need to make decisions as to which choice is best for us, and there is no better way to do this that to prioritize those choices to ensure we are making educated decisions.

So how do we actually do this? Well it's quite simple really. Take a pen and paper and make several lists.These lists will vary for every person, but for arguments sake lets take the above examples. One list each for your goals (short term i.e. within on year), work tasks and meals during they week.

For your goals write down absolutely everything you would like to achieve this year. Say you have 20 goals written down now, assign traits like how great the accomplishment will make you feel, rolling momentum effect, monetary gain and inspiration spread among others to each goal. Measure which traits mean the most to you and choose your goals accordingly.

Eventually this will become second nature, and simply listing your goals and reviewing those goals will be enough for you to ascertain which ones are ultimately most important.

4. Support The Success of Others

One of the greatest abilities of human beings in our world today is the ability to support others. It's not all about you, and there are always, always people in your life that you should support. Not because you have to, but because you love doing so. Because their success means a lot to you.

"Knowing that you are strong enough to support other people in their endeavors as well as chase your own dreams, is incredibly empowering and is a win-win situation for all involved."

Be excited for their success, and when it comes be there to congratulate them. The power of positivity is an incredible trait, they will never forget how you stuck with them through thick and thin, and they will be eternally grateful.

5. Speak The Language of Success

Strong people never complain or whine about anything. They simply see an opportunity to grow in their own abilities to overcome that particular obstacle.

Again, the power of positivity plays an important role here. If you truly believe that you can achieve it, you eventually will. It's inevitable. Whether you realize is or not, once you firmly believe in what your are doing, you will subconsciously do everything in your power to reach the pinnacle of what you believe.

The bottom line is complaining has never got someone to a place of sustainable success. The fruits of ones labor has always been achieved through grit, dedication, consistency and faith that they will eventually reach their goal.

6. Always Compete With Yourself

As human beings we sometimes focus too much on other peoples lives & their successes instead of focusing on our own. As a result we naturally compete with them for different reasons. One thing is for sure, we should not be competing with them at all. We don't know what paths they took to get to where they are today and sohow can we really compete with them if we don't even understand what they are doing?

You must always compete with yourself. Each and every day look at yourself in the mirror and think what are you going to do today that will make you a better person? What can you expand on from a previous day that will help you move forward? Or what are you not going to do or improve on today, that you didn't do so well in the past?

Every day, focus on being the best version of yourself. You will soon find that it's much harder than competing with somebody else.

7. Constantly Re-Evaluate Your Goals

There is no greater feeling in this world than to achieve a goal that once seemed as if it were an impassable mountain. You've done great before and you know exactly what it feels like.

With this in mind its important to constantly ensure that the goals your are working towards are crystal clear. You need to know exactly what you need to do in order to drive yourself in the direction of that goal and above all else you need to have an unquestionable reason as to why you are chasing that dream in the first place.

8. Be Thankful

Successful people are always grateful for their current situation. While their desire for more success is never truly quenched, they still focus on what gifts they already have, such as the power to move forward, their consistency, their positivty and they people around them are all prime example.

Never loose sight of what you have already achieved in your life and how amazing those achievements truly are. Take pride in the fact that you are not done yet, and that being & feeling grateful will light a fire of success as whether your realize it or not, you always want more to be grateful for.

7 Attributes of Extremely Powerful People

In our world, there are tens of thousands of people whose strengths are limitless.

They walk among us everyday. The achieve great things. They are focused and they never show weakness. They motivate and inspire us.

We wonder exactly how do they do this? Without rest, without complaints, and without a second thought they push the boundaries on what we think is impossible.

Each of these powerful individuals are successful (not all success revolves around money, fame & power) in a completely unique way. However there are several core attributes which are more certainly characteristics they all possess.

Let's find out how we can be just like them.

1. They Are Strong Minded

We all know somebody who cannot be knocked down and who never let's anything get in their way. While we sometimes complain that there are just too many things not going our way, they are literally fighting the current and winning. They are seeing obstacles, not problems. They are becoming stronger with each and every apparent problem that dares to come their way, and you know what? They welcome it.

2. They Don't Feel Pain

Some of us consciously decide to give up when we think something has become too difficult for us. This kind of attitude can spill over into many other areas of our lives and while we are deciding that we can't do it, our powerful friends have already committed themselves, made a plan, and began executing it. And so I got a question, how the hell are we ever going to grow, if we just give up when the going gets tough?

3. They Live By A Code

No matter whats going on around them, powerful people do not buckle under pressure. They know their values and their beliefs are just, and so they will not let anyone sway them to make a bad decision. They know that if someone falls down and cannot pick themselves back up, that we should help them. They believe that if you are strong enough to help, then you should do just that. They will not join in the conversation, which is aimed at picking on somebody (in fact 9 out of 10 times they will stand up for that person). They do not follow. They lead.

4. They Are Focused

There are always lots of distractions in our everyday lives. We have a million and one things to do, and that's on a good day. This distracts us and we sometimes don't get as much done as we hoped. The killing thing is that we can get as many tasks as we want completed in a single day, if we can just find our own way of becoming focused. For some it's music or lighting a candle, for others it's a trip to the gym before hand or cooking your favourite meal afterwards. We all can reach levels of focus we never thought possible.

5. They Don't Care What Other People Think

Powerful people don't give a f*** about what others think. They do what they believe is right, and fully commit to it. They make things happen, instead of making sure everybody is ok with it. Bottom line is they don't care if something may be perceived as right or wrong, because if someone is judging them, they know that judgemental person would never have become a friend anyway.

"Whoever is not with me is against me, and whoever does not gather with me scatters." – Matthew 12:30

6. They Are Optimistic

Who doesn't like an optimistic person? The truth is that it's really difficult to actually not like a person who see's the positive side to a situation. A person who is the voice of reason no matter what, and who won't let the cards they have been dealt at any given time, determine how they feel. In fact, they don't even see it the same way that we sometime do. Powerful people don't take cards but deal them out instead, and anytime theres a problem, no matter how unlikely it is they will win, they go ahead and drop a straight flush.

7. They Don't Waste Time

Every day we have so many tasks that we want to get done. But sometimes we fall short and only complete some of our daily quota. It's normal, and it happens a lot. Thing is, failing should should not be considered normal to us. Even so, we can avoid this problem all together by simply not wasting our time in the first place. Say no more often, and get some work done!

"When you're out there partying & horsing around, someone out there at the same time is is working hard, someone is getting smarter, & someone is winning. Just remember that." – Arnold Schwarzenegger

Conclusion

The single mother taking care of her two kids, working a job and taking care of the house. The teenager financially supporting her parents, while going to school. The old couple struggling to pay their mortgage, but still buy their grandson those new shoes he's always wanted. We don't see these people, even though sometimes they are the strongest of all the rest.

Next time you see people like the above, stop and offer them your help.

Take 5 minutes out of your day and make theirs.

You have the power to do that in 5 minutes, and anything in the world that you can believe, you can accomplish in the remaining 23 hours & 55 minutes.

Forget the norm. Go out and work for what you deserve.

Tonto Dikeh shares more pregnancy photos

Should I tell my husband that I did it with his brother?

I am not proud to say this but I have been dying with this for the past few months now. When I was pregnant few months back my husband traveled for a course and asked his younger brother to come stay with me so that I can at least have someone to send errand .

He was very nice and humble, he will gist with me ,cook for me and drive me to the hospital for anti natal, I started getting use to him , sometimes we will gist and dose off in my room , or in the sitting room.

 He will take me out and make me feel loved, the boy was everything my husband was not , so I started lusting after him, I wanted more, I wanted a man to hold me in my condition, make love to me and make me happy. 

When ever I call my husband he will never pick or claim he is busy . So I taught of what to do, so one day I went into Emeka's room when I knew he would be coming out of the bath, so immediately he came out, I stripped naked and went on my knees, begging him to touch me. He quickly dragged the bed sheet and covered me up, but I was crying and begging him. 

He cried with me also and was begging me to stop, I started touching him, he was trying to be careful with me cause of my condition, but I was forcing myself on him, until he finally gave in. 

As he did it he was crying, but I was enjoying it, until I got to orgasm but he did not cum , so he jumped out and ran off the house. 

I did not see him for one week, so when he got back, I noticed his room was locked, so I knocked and knocked but no response, for 2 days, then I got worried and asked a neighbor to break the door, this boy had attempted killing him self with expired drugs. 

So we rushed him to the hospital. Am glad his getting better but he insisted we tell his brother my husband, so that he can have his peace of mind. Please I am dying inside, should I confess to my husband or just die with my secret, my marriage or his peace of mind?

Yours anonymous