Top AAII Articles

  • Maria Crawford Scott

    Maria Crawford Scott

    Dividend Safety Signs and Warning Flags

    Many investors seek shelter from stock market storms in more mature dividend-paying companies, since the income from these firms provides at least some positive return in an otherwise bleak environment. But the last economic downturn tested even the most mature and stable firms, with some forced to cut dividend payments. What signs can you look for that indicate the safety of a company’s dividend payment stream?

  • Rod Greenshields

    Rod Greenshields

    Chasing Dividend Yield for Income: Three Reasons to Be Wary

    Financial advisers use a variety of investment strategies to replace retiree employment salaries or business income. But one of the most common approaches is the dividend yield strategy. Relying on dividends for income is a strategy that has served investors well in the past. The dividend yield strategy has been so attractive because it professes to meet the “golden three” outcomes for retirement-oriented investing—income, capital preservation/growth and liquidity. But as markets have evolved and the retirement investing landscape has shifted, is there anything about this strategy that should concern investors?

  • AAII Dividend Investing

    AAII Dividend Investing

    Beating the Street With the Buyback Yield

    As companies strive to return excess cash to shareholders, they can pay out dividends as well as repurchase outstanding shares that have been issued to the public. When a company reduces the number of outstanding shares, remaining shares gain a slighter larger proportional claim to the company and its profits. This allows earnings per share to expand more quickly than net income. A share buyback is also a signal to the market that management thinks that the stock is undervalued and the company is repurchasing shares at a discount.

  • Wayne A. Thorp, CFA

    Wayne A. Thorp, CFA

    The Power of Compounded Growth and Reinvested Dividends

    What's the allure of dividend-paying stocks? Dividends provide a segment of return that is always positive. Increases in dividends provide an increased positive cash return and, consequently, increase the value of the instrument producing that return. Positive fluctuations are normal in the world of cash payments to shareholders; negative fluctuations are a rarity. Over time, reinvesting income that increases can result in yield from income alone that’s far higher than anyone can reasonably expect from the total return in the equity market.

AAII Member Question

Previous Week’s Results
If you prefer mutual funds or exchange-traded funds (ETFs) over individual stocks, what is your primary reason?
Easier diversification:
41%
Lower costs:
8%
It is easier to research a mutual fund than it is an individual stock:
8%
Easier asset allocation:
13%
I prefer investing in individual stocks instead of mutual funds or ETFs:
31%



This Week's Question
AAII Member Question What is your view of activist investing?


A) Activist investors are a short-term nuisance and have little long-term impact on a company’s performance
B) Activist investors are harmful to the system, often motivated by short-term profit at the expense of long-term investors
C) Activist investors are good for the system and improve the quality of the firms they invest in, thereby benefiting long-term investors
Login to answer! »

Sentiment Survey

The AAII Investor Sentiment Survey measures members who are bullish, bearish, and neutral for the next six months.

AAII Sentiment Survey
Are you BULLISH?
AAII members are:

(as of 5/25/2016)
   Bullish: 17.75%
   Neutral: 52.86%
   Bearish: 29.39%
Submit your vote! »

Markets »

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AAII Model Portfolios

Throughout the year, AAII updates you on the holdings, performance and investment strategy behind our research portfolios.

Model Portfolio
(For Members Only)
Annualized Return
3-Year Return 5-Year Return 10-Year Return
Shadow Stock 2.3% 11.8% 9.9%
Fund 7.2% 7.1% 5.3%
Data as of 4/30/2016.

Learn more »

AAII Stock Screens

Current Top Return (2016):
Est Rev: Lowest 30 Down
32.0%

Sign Up to Receive Local Chapter Meeting Invites

AAII Local Chapters offer investment education to members in a "person to person" social setting located in your own community.

Recent meetings have included:

"Nest-Egg Survival: Investing and Spending in Retirement"
Maria Crawford Scott, Former editor, AAII Journal
"Today's Investment Outlook"
Sam Stovall, Chief investment strategist, S&P Equity Research Services

"The Importance of Tax Diversification: What You Need to Know"
Christine Fahlund, senior financial planner, T. Rowe Price, Inc.


Find a Chapter Near You »