May 7, 2016

Jefferies Has 4 Top Value Stocks to Buy With Solid Upside Potential

More and more you can see that the rest of 2016 could be absolutely crazy from a volatility aspect. With the match-up for the president looking to be Hillary Clinton versus Donald Trump, you can count on some big swings in the market as opinion shifts back and forth and the rhetoric gets ratcheted up. One thing that makes sense is to shift portfolios toward more conservative stocks that have value characteristics.

A recent research report from Jefferies focuses on stocks that not only have very solid franchises but remain priced at a level that puts them into a value category. Again, with the potential for volatility to spike over the remainder of this year, shifting to stocks that are a touch more stable makes good sense. All four of the Jefferies value stocks are rated Buy.

Let's look closer those four...

Source: 24/7 Wall St.

8 Great Stocks to Buy Now to Trump the Summer Slump

June-August is normally a time for hiding in cash, but this handful of stocks tends to beat the summer slowdown

Don’t spy for stocks to buy — sell in May and go away! This mantra has been chanted by investors and media alike for weeks — especially this week, as the S&P 500Dow Jones Industrial Average and other major indices have suffered from selling pressure.

But is it really that easy? Can you beat the market simply by putting your investments into cash for the summer?

Believe it or not, the answer is yes. For the past 25 years, the S&P 500 has struggled through the summer months. The average monthly return for the months of June through September is -0.2% — far less than the average for any month of the year, which is historically about +1% per month.

However, while the market is difficult to navigate over the summer, it doesn’t mean you should give up on finding any stocks to buy for upside. There are always opportunities out there — you just have to know where to look.

We scanned our database models to find stocks that usually bulk up during the summer months, and we found 10 from the S&P 500 that have moved higher in each of the past five years. In fact, the average return from this group from the period of May through the end of August is 10% — not bad for the summer doldrums...

Source: InvestorPlace

A Close Look at IBM's Dividend Potential

Big Blue's dividend growth has slowed as the company works to transform itself, but the stock is still extremely attractive for dividend investors.

For 100 consecutive years, International Business Machines (NYSE:IBM) has paid shareholders a dividend, and for 21 consecutive years, the company has increased that dividend. The latest dividend increase came in April, boosting IBM's quarterly payout by 7.7% to $1.40 per share. It was a smaller increase than IBM investors have enjoyed in recent years, but given the company's ongoing transformation, which has put pressure on earnings, a smaller dividend hike shouldn't be too surprising.

With IBM stock already offering an enticing 3.9% yield, and with the company suffering from a decline in profits, what kind of dividend growth should investors expect going forward? 

Let's dive in and find out...

Source: The Motley Fool

A Defensive, Low-Cost Dividend Growth ETF

This dividend strategy has shone during market downturns by favoring companies with durable competitive advantages. 

Vanguard Dividend Appreciation ETF (VIG) has several merits. The fund is backed by Vanguard's massive indexing operation, which is topnotch in the industry. Like most Vanguard funds, it benefits from low fees. With an expense ratio of 0.10%, this exchange-traded fund is priced competitively relative to other strategic-beta offerings, which are typically a little pricier than standard index funds.

The fund tracks the Nasdaq U.S. Dividend Achievers Select Index, which includes stocks that have increased their dividend for at least 10 consecutive years but excludes REITs and other companies that have low potential for dividend growth. Unsurprisingly, the fund has seen a drop in its energy exposure as oil prices have slid, from almost 10% of assets in March 2014 to 1% in March 2016. 

The fund's focus on firms that are financially healthy enough to grow their payouts favors highly profitable companies with durable competitive advantages. Relative to the S&P 500, the fund sports higher returns on equity, assets, and invested capital. Those traits can come at a premium, and the fund does look pricier than the S&P 500 on traditional metrics such as price/earnings and price/book as of April 2016...

Source: Morningstar

4 Very Safe Dividend Stocks to Buy to Ride Out the 2016 Political Cycle

With the probable feature card set for the fight for the presidency, one thing is for sure. Americans will be blitzed again from now until November with political rhetoric that likely will prove to be mind-numbing. While historically candidates from both parties have tended to tack more toward the center after they secure the nomination, that won’t stop them from saying bombastic things that could prompt market volatility.

With interest rates remaining low, and the odds for an interest rate hike in June only 10%, there is a good chance that the Federal Reserve will try to remain cautious until after the election. The probability of a hike in September is only 35%, so there is a fair chance they won’t raise until December, after things have been settled.

We screened the Merrill Lynch research database for safe stocks rated Buy that pay solid dividends and that likely wouldn’t be affected regardless of who wins the election. We found four that make good sense for investors to consider now.

Let's look closer those four...

Source: 24/7 Wall St.

May 5, 2016

Can Exxon Mobil And Chevron Corporation Sustain Their Dividends?

Exxon Mobil and Chevron have recently reported one of their worst quarterly results ever, thanks to weak oil prices.

The two, however, have stuck with their dividend policies, and the decision actually makes sense considering the improvement in the outlook for oil.

But remember, we are not out of the woods yet.

Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), the two leading US oil companies, have recently reported one of their worst quarterly results in years. Both have seen their revenues, earnings and cash flows plunge as oil prices dipped to their lowest levels in more than 10 years. The two companies, however, have moved to allay investor concerns regarding dividends.

Are dividends really safe? For this, we’ll need to dig a little deeper...

Source: Amigobulls

4 RBC US Equity Top Pick Stocks That Also Pay Solid Dividend

We have seen it the past two days, and as the first-quarter earnings parade wraps up, we are very likely to see it again. Volatility is creeping back into the markets, and the “Sell in May and go away” mantra is starting to quietly be chanted across Wall Street. The problem with going away is there is no place to go. Cash deposits pay nothing, and with inflation and taxes it becomes a negative return instrument.

Stocks remain the place to be, and more conservative companies that pay dividends are probably the best arena for investors to consider. We recently screened the RBC Capital Markets U.S. Equity Top Picks list for companies that not only have solid upside potential, but also pay good dividends. We found four that look good for growth and income accounts...

Source: 24/7 Wall St.

Archer-Daniels-Midland: Get 3.1% Dividend Yield While Waiting For Commodity Prices To Recover

In my view, despite another quarter with disappointing results, Archer-Daniels-Midland’s (ADM) stock, is still attractive.
Archer-Daniels-Midland, one of the world’s largest agricultural processors and food ingredient providers, is an excellent candidate to be included in diversified large-cap dividend stock portfolio.
While waiting for a significant rebound in the price of agriculture commodities, investors can enjoy the generous dividend yielding 3.1% a year.
Despite continued low agriculture commodities prices, ADM raised its dividend by 7% on February 2. The company has increased its annual dividend payment to shareholders for 32 consecutive years. This makes Archer-Daniels-Midland one of 50 Dividend Aristocrats.  Even during the global economic crisis of the years 2008-2009, ADM continued to grow its dividend.

Let's take a closer look...

Source: TalkMarkets

This Is Why Intel Corporation Is a Top Dividend Stock

One Reason to Love Intel Stock

Intel Corporation (NASDAQ:INTC) has a long history of returning cold, hard cash to investors. That’s what makes INTC stock such a valuable investment.

The company has paid a regular dividend since 1993. That’s 94 straight quarters of payouts. It didn’t matter if the economy was booming or in recession, Intel still paid those dividends.

Consider the late 1990s. Thousands of technology companies lived and died in those short years. Their stock prices soared during the Dotcom Boom, and Intel paid out dividends.

Then investors realized those companies were hollow, and their share prices crashed. But Intel continued to pay dividends...

Source: Profit Confidential

3 Warren Buffett Stocks to Buy in May

These three stocks from the Oracle of Omaha's portfolio are attractive enough to buy right now.

The stock market has performed quite well lately. In fact, since the February lows, the S&P 500 has rallied by more than 14%. While the market might look like it's getting a little expensive, that doesn't mean you need to stay on the sidelines. There are still some great stocks you can buy and hold for the long term. In fact, here are three from Warren Buffett's portfolio.

Continue to read to find out those three...

Source: The Motley Fool

10 Stocks to Own for a Decade

With the bull market having halted on a seven-year rise, investors are wondering which stocks they should be comfortable with and which ones they might be worried about. The reality is that investors hear over and over which stocks they should buy and when they should buy them, but when to sell is a different case. Even the great Warren Buffett sells many stocks way too soon.

24/7 Wall St. is revisiting a strategy that was first published in late 2010, and then again refreshed in 2015. This is the 10 stocks to own for the decade! Buying and holding forever is too long and boring for most of us. A holding period of a decade is more realistic.

In November of 2010, the recession was over, but the public had no idea that the bull market was going to run for more than six years. Despite some intermittent market shocks, the decade from 2010 to 2020 is proving to, at least so far, come with much less turbulence than the prior decade.

The 24/7 Wall St. stock list included the following companies:...

Source: 24/7 Wall St.

7 Good Utility Stocks Paying Steady Dividends

Utility stocks, best-known as safe havens for dividend-conscious retirees, have been on a tear. In the year’s first three months, the Dow Jones utility average returned 16.7% (including dividends), making it the quarter’s third-best performing asset category, behind only lean hogs (35.2%) and gold (16.5%).

But the surge in utility shares means many of the stocks are now richly valued and vulnerable to a broad market correction or to a rise in interest rates. The average utility in Standard & Poor’s 500-stock index trades at 18 times estimated 2016 earnings, compared with an average price-earnings ratio of 16 over the past two years and with 17 for the S&P 500 itself, according to FactSet Research Systems. “Dividends are secure and should grow, but prices could rise and fall sharply in this environment” of ultra-low interest rates and elevated valuations, says Morningstar analyst Travis Miller.

Here are seven utility stocks worth considering...

Source: Kiplinger 

These 5 Big Dividend Stocks Want to Pay You More Money in 2016

If you don't think of yourself as an "income investor," you'd better think again. That's because, long-term, dividends add up to an immense share of your portfolio's ability to generate total returns.

For instance, just over the last ten years, dividends have accounted for almost half of the S&P 500's performance, handing investors the difference between 57.5% gains and 95.9% gains when reinvested dividends are factored in. Put simply, ignore dividends at your own peril.

So even though the Fed still has its finger on the trigger for rate hikes in 2016 (a fact that's normally negative for big dividend paying stocks), keeping dividend exposure in your portfolio remains an important strategy right now. And it's only getting more important as the Fed prolongs its timeline for raising interest rates, driving more investors into the same income stocks that they were avoiding back at the start of the year.

To find the biggest benefit from dividends, it's not enough to simply buy names with big payouts today -- you've got to think about which names are going to be paying more tomorrow too.

So instead of chasing yield, we'll try to step in front of the next round of stock payout hikes...

Source: TheStreet

4 High-Performance Stocks to Buy for Their Special Dividends

Don't just look at these stocks' one-time payouts; consider their index-beating results as well

Successful investing is all about searching for those few good ideas that over time turn into 10-baggers or more. However, you need the patience to find these gems. Recently, I came up with the brilliant idea of finding a few stocks to buy that have paid one or more special dividends in the past 12 months.

In my opinion, special dividends are one of the best examples of efficient capital allocation because it shows me that management understands the ebb and flow of its own cash flows and is more than willing to reward shareholders when the coffers are flush and to hold back when they’re not.

But I wasn’t just looking for stocks to buy that paid a special dividend — I was after those that don’t pay a regular dividend and no formal dividend policy.

So, after an exhaustive search, here are high-performing four stocks to buy for their special dividends...

Source: InvestorPlace

3 Financial Stocks You Don't Have to Babysit

These three financial companies are stable enough to buy for the long term.

Many investors associate the financial industry with risk, and after the financial crisis and ensuing series of multibillion-dollar legal settlements, who could blame them? However, just like with any other industry, there are high-risk financial stocks as well as low-risk ones. For those who prefer to keep their risk level low, here are three examples of financial stocks you won't have to check every day or even every month to know that your investment is in good shape.

Let's look closer to those three...

Source: The Motley Fool

May 4, 2016

3 Dividend-Growth Stocks With Yields Over 5% for Income-Hungry Investors

Dividend investing is one of the easiest ways to achieve investing success. Investors are able to generate an ever-growing income stream. Nonetheless, not all dividends are the same; the sustainability of many are vulnerable to downturns in the economic cycle or slumps in the prices of commodities. With that in mind, here are three sustainable dividends yielding over 5% that every income investor should have in their portfolio.

Let's see what are the Matt Smith's recommendations ...

Source: The Motley Fool

The 10 Best Growth Stocks to Buy for Retirement

The longer you live, the more growth you'll need from your portfolio

When you think about prepping for retirement, you might not instantly say to yourself: “Hmm, okay … what are some of the best growth stocks to buy right now?”

But maybe you should.

After all, with people living longer than ever, retirement nest eggs need to be bigger than they were 20 or 40 years ago. Not only does a longer life mean you’ll need more access to capital, it means you’ll have more time to recover from market downturns.

Translation: Retirement portfolios can and should be more aggressive than they used to be. With that in mind, here are the top 10 growth stocks to buy for the long haul.

Let's check what is John Divine's opinion...

Source: InvestorPlace

3 Cheap Dividend Stocks You Can Buy Right Now

If you're searching for yield and dividend growth, here are three undervalued options.

The start to 2016 has been a bit of a roller coaster. Investors were expecting interest rates to climb this year, which led to a big 10% dip at the beginning of the year. But since interest rates have fallen still further (10-year Treasury yields are down about 40 basis points), investors have piled back into stocks, putting the S&P 500 back in the black.
Dividend stocks have performed exceedingly well as investors search for yield, which makes finding undervalued and high-yielding dividend stocks more difficult today than it was just a few months ago. If you dig deep enough, there are still some undervalued dividends that you can buy right now. Here are three stocks that I think represent a good opportunity for both dividend growth and price appreciation.
If interested, continue to read...

5 Growth Stocks That Are Better Than Apple

With AAPL showing weakness, maybe it's time to consider other places for your money

Apple Inc. (NASDAQ:AAPL) has fallen from grace in many ways recently.

For starters, there is the obvious double-digit decline suffered by AAPL stock after disappointing earnings. There’s also the first-ever quarter-over-quarter revenue decline, the fact that Carl Icahn has announced he’s selling the stock and other general headlines about Apple being past its prime.

But rather than trot out another tired story about what is wrong with Apple, it’s worth exploring what investors should do with their money if the tech giant is not a viable investment for the time being.

After all, kicking AAPL when it’s down doesn’t get your portfolio anywhere. The real thing you should be doing is moving your money into better investments, with bright growth prospects and a chance of outperformance in 2016 and beyond.

That’s exactly what these five stocks offer. Unlike Apple, the fundamentals are looking good and investors can have confidence buying these picks now.

Continue reading to see Jeff Reeves's recommendations ...

Source: InvestorPlace

This Is Why Microsoft Corporation Is a Top Dividend Stock

MSFT Stock Should Be on Top of Your Watch List

If you’re an income investor, you probably had to choose between two sets of stocks: 1) ones that offer stable dividends but not much growth potential, or 2) ones with huge upside but no steady yields. But what if there was one company that offers both? Well, there is—Microsoft Corporation (NASDAQ:MSFT) stock.

Of course, the technology sector is not the usual shopping place for income investors. The tech stocks that may make it to a dividend investor’s watch list are more likely to be hardware companies with predictable performance. But in this day and age, technology is changing so rapidly that many tech companies can lose their competitive edge very quickly. Why on earth would an income investor put money in the software-focused Microsoft stock?

Well, as it turns out, the company has the prefect ingredients for a great dividend play.
Let me explain…

3 Great Dividend Stocks for Retirees

Looking for solid dividend stocks with growing yields? Look no further.

Investment strategies change with age. While a younger investor with a longer time horizon may seek out high-risk, high-growth stocks, older folks, especially those in retirement, will want investments that provide safety and a solid source of income. As a retiree, you'll want to make sure the stocks you choose will protect your initial investment, offer some growth, and have the ability to pay a growing dividend.
The S&P 500's Dividend Aristocrat list, which contains stocks on the index that have raised their dividends for at least 25 years straight, may be a good place to start, but bear in mind that past performance does not necessarily predict future returns. For stocks with bright dividend growth ahead, retirees may want to consider the three picks below.
Let's take a closer look...