When I saw the announcement that Bank of America (BAC) would acquire Merrill Lynch, I was concerned about the combined company's ability to sustain its dividend. Unfortunately, my concerns were validated with an after the market announcement that BAC would cut its dividend to $0.32/share, down from $0.64/share. Below are excepts from the news release:

Chevron is a dividend achiever as well as a component of the S&P 500 and Dow Jones Industrials indexes. It has been increasing its dividends for the past 20 consecutive years. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 11.10 % to its shareholders. The stock has lost about four percent of its value so far in 2008.

The past several months have been characterized by tremendous volatility and a lot of negative news regarding the state of the economy as a whole. Given the uncertainties in the global economy, investors are wondering whether they should cash out their portfolios and simply wait for the storm to end.

My Money Blog originally reported this, and a recent e-mail from Zecco confirmed it. Here's more information, directly from the announcement:

October will be a 100% unlimited free trading month for current Zecco Trading customers

Nordic American Tanker is not a dividend achiever but a component of the NYSE Composite and Zacks Yield Hog index. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 29.10 % to its shareholders. The stock gained 19 % value so far in 2008.

The Toronto-Dominion Bank is an international dividend achiever as well as a component of the TSX 300 index. It has been increasing its dividends for the past 14 consecutive years. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 17.90 % to its shareholders. The stock has lost 10 % of its value so far in 2008.

You can be a stock market genius!

One of the criticisms we constantly hear of Graham and Dodd's Security Analysis is that it's too old and it no longer applies. Information is too readily available nowadays, critics say, and therefore inefficiencies in the market no longer exist. We disagree. As examples, we've discussed here some very recent inefficiencies that offered great profits for investors.

Recently I received an interesting book on dividend investing, titled “The top 40 Dividend Stocks for 2008 – how and why to build a cash machine of Dividend Stocks”, written by David P. Van Knapp. The author, who also maintains the site sensiblestocks.com, decided to skip the publishers altogether and has his book available to readers online in a PDF format.

Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:

I recently stumbled a NY Times article, which summarized the candidates’ views on dividend taxation. Most of you might remember that prior to the 2003 tax law change, which made qualified dividends taxable at the top rate of 15%, dividend income was taxed at the top marginal rate for ordinary income. The current preferential treatment of dividends is set to expire at the end of 2010.

Nokia is an international dividend achiever. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 5.00 % to its shareholders. Nokia’s share price has not recovered yet form its all time highs in the early 2000. The stock has lost over 45% of its value so far in 2008.

Archer Daniels Midland is a dividend aristocrat as well as a component of the S&P 500 index. It has been increasing its dividends for the past 33 consecutive years. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 6.50 % to its shareholders. The stock has lost over half its value so far in 2008.

The typical dividend aristocrat is a mature company with wide moat that has weathered the storms of many boom and bust cycles while continuing to increase dividend payments to shareholders. These companies as well as the dividend champions are the cornerstone to my dividend strategy.

BP is an international dividend achiever as well as a component of the British FTSE 100 index. It has been increasing its dividends for the past 9 consecutive years. From the end of 1997 up until August 2008 this dividend stock has delivered an annual average total return of 6.90 % to its shareholders.