May 16, 2017

Kimco Realty: Retail Worries Are Overblown, The 5% Dividend Yield Is Safe



The rumored “death of the shopping mall” is not only wreaking havoc among retail stocks, but it is also dragging down REITs that own retail properties. Take, for example, Kimco Realty (KIM). Shares of Kimco have declined 25% so far in 2017. The stock is sitting at lows not seen in the past five years.

The biggest reason for the decline is that investors are concerned about the ripple-effects of the decline of brick-and-mortar retailers eventually spreading to the REITs that own the real estate. However, Kimco’s fundamentals have held up so far this year. The prolonged decline in the share price has pushed up Kimco’s dividend yield to 5.7% Kimco is one of 295 stocks with a 5%+ dividend yield.

This article will discuss why investors should not assume Kimco will suffer alongside the retail industry. If anything, its huge share price decline presents a compelling buying opportunity for income investors.




May 15, 2017

5 Blue Chips That Everyone Owns... And Shouldn't



When blue chips get too popular – like the five I’m going to show you today – these “safe stocks” can actually be dangerous to continue holding in your portfolio.

The problem with blue-chip stocks? Call it the “Curse of the Dow.” The Curse says a stock that joins the Dow Jones Industrial Average will essentially hit a wall, underperforming in the ensuing months compared to how it performed before ascension. It’s not perfect, but it’s close – since 1999, 15 of 16 stocks that have joined the Dow have averaged 1% gains over the next six months, but averaged 11% gains in the six months before inclusion.

Why? There are a few factors, but one of the most prevailing is that by the point a stock has joined the Dow, it’s typically nearing the end of its growth ramp and reaching the slower-growth “mature” part of the business cycle.

The same reasoning can be applied to many blue-chip stocks. A stock typically starts to be considered a blue chip after a long period of sustained growth, even if that growth begins to slow – and after that, a company never really loses the blue chip designation as long as the business doesn’t crumble.

The following five stocks are the worst kind of blue chips. They’re not crumbling, but it’d be better if they were -- because then the decision to leave them would be far more obvious. Instead, these large-caps tantalize investors with their stability and slightly above-average dividends, keeping investors just long enough to weigh them down with underperformance.

Make no mistake: Keeping your money invested in these blue-chip losers is a sure way to set your retirement plans back.




May 14, 2017

10 Dividend Aristocrats That Are Ready to Rally


These longtime dividend growers still have a boatload of fundamental quality. Expect them to flip the switch over the rest of 2017.



The year 2016 was marked by geopolitical unrest, volatile commodity prices and strong currency fluctuations, which resulted in many companies underperforming the S&P 500 over the past year. However, a number of Dividend Aristocrats that trailed the market over the past year are still excellent businesses that are only temporarily out of favor.

Dividend Aristocrats are S&P 500 companies that have raised their dividends for at least 25 years.

Today, we’re looking at 10 Dividend Aristocrats that have a favorable long-term outlook despite trailing the S&P 500’s return by at least 10% over the past year. In fact, nine of these 10 stocks have seen their stock prices decline while the S&P 500 has gained more than 15%. But we believe this recent underperformance and declines have made them “buy the dip” opportunities for long-term dividend growth investors.

Some of these companies are in our list of the best high dividend stocks, and all of them still have a lot of fundamental strength to offer. We expect each one of these to flip from underperformance to outperformance over the next year.




May 13, 2017

3 Cash-Rich Tech Stocks to Buy and Hold Forever


These tech stocks should deliver double-digit total returns every year



Fresh off reaching the 6,000 mark milestone since its inception 46 years ago, the Nasdaq Composite index — home to some of the world’s largest technology companies — is trading near all-time highs. So, good luck finding tech stocks that are trading at discount prices.

The current bull market, now in its eighth year and counting, has invited tons of new investors to the market. Indeed, there are tons of reasons to remain optimistic. Corporate earnings are on the rise and unemployment continues to fall. And not only is the housing market still booming, President Trump’s pro-growth policies have yet to kick in.

Nevertheless, all of these scenarios also mean that the next bear market is inching much closer.

To that end, protecting current gains is paramount. And how you construct your portfolio from this point forward matters. But you don’t have to sacrifice growth for protection, if you know where to look.

Today, we’re going to look at three tech stocks that you can buy now and forget about for the next decade, in large part because of their ability to generate and stash large piles of cash. Big war chests and high cash flow give these companies seemingly infinite options for game-changing acquisitions, as well as the ability to improve their dividends over time.




May 12, 2017

10 Dividend Growth Stocks For May 2017



David Fish maintains a list of stocks with at least five consecutive years of paying higher dividends. Colloquially called the CCC list, it contains more than 800 dividend growth stocks trading on U.S. exchanges. The CCC list and the accompanying spreadsheet is a wonderful source for dividend growth investors and I've been using it for years.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.