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… Read More

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… Read More

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%… Read More

Looking For Imperfection In Stocks

If you’re like most investors, you gravitate toward popular, hot stocks. But John Buckingham of Al Frank Asset Management and The Prudent Speculator newsletter says you’re better off keying on stocks that are “priced for imperfection”.

Buckingham on Growth, Value, and Expectations

While stocks have had a great year and growth stocks have had a long run of success, John Buckingham says to be careful of chasing performance. “I caution you … to tread carefully before being swept away by the current of the market, as it is important to stay grounded in performance measures and valuations as opposed to excitement and popularity,” Buckingham writes in a recent Forbes column. He notes that, over the long term,… Read More

Fear and Greed Are Your Friends

In his latest Forbes column, John Buckingham of Al Frank Asset Management says that fear and greed are providing some opportunities for investors right now. “Fear and greed are in constant flux in the financial world. That’s fine by me, since temporary bouts of market irrationality allow patient investors to buy low and sell high.,” Buckingham says. “[Currently], the fear-greed pendulum has clearly swung toward fear in fixed income and also in gold.” Buckingham says… Read More

Contrarian Indicators Flashing Buy Signals

John Buckingham of Al Frank Asset Management and The Prudent Speculator newsletter says that, as a contrarian, he’s been seeing a number of encouraging signs recently. “Our market outlook as we head into 2013 remains one of cautious optimism for the prospects of our broadly diversified portfolios of undervalued stocks,” Buckingham writes in his latest column. “True, investor sentiment has improved somewhat … but bargains remain plentiful.” Buckingham says that a number of good… Read More