August 22, 2017

Teva Stock Is Getting Destroyed. Is Now The Time To Buy?



Teva (ADR: TEVA) has been a darling for investors in the generic drug sector. Even as recently as last year, investors were eager to see the growth of the company and along with it, the stock price. But then second quarter earnings were reported and Teva stock price hit the fan as they say.

Teva stock price has since cratered 45% since earnings were released and there is no sign of the price coming back. So should investors, particularly value investors take a look at Teva?

In this post, we will look at Teva stock and see whether or not there is a value play here or if you are better served putting your investing dollars elsewhere.



August 20, 2017

This Week's Most Significant Insider Trades: August 14-18, 2017


Disposals:



Apple Inc. (NASDAQ:AAPL) SVP Johny Srouji sold 10,469 shares of Apple stock in a transaction that occurred on Wednesday, August 16th. The stock was sold at an average price of $162.20, for a total value of $1,698,071.80. Following the completion of the sale, the senior vice president now directly owns 76,250 shares in the company, valued at $12,367,750. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Read More …



Bank Of New York Mellon Corporation (The) (NYSE:BK) Vice Chairman Brian T. Shea sold 44,250 shares of the stock in a transaction on Wednesday, August 16th. The stock was sold at an average price of $52.90, for a total value of $2,340,825.00. Following the transaction, the insider now directly owns 204,043 shares in the company, valued at approximately $10,793,874.70. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Read More …

CVS Health Corporation (NYSE:CVS) Director Richard J. Swift sold 2,500 shares of the firm’s stock in a transaction on Wednesday, August 16th. The shares were sold at an average price of $79.62, for a total value of $199,050.00. Following the transaction, the director now owns 3,258 shares of the company’s stock, valued at $259,401.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Read More …

General Motors Company (NYSE:GM) (TSE:GMM.U) insider Alan S. Batey sold 8,144 shares of General Motors stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $35.57, for a total transaction of $289,682.08. Following the sale, the insider now owns 66,748 shares of the company’s stock, valued at approximately $2,374,226.36. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Read More …

Lockheed Martin Corporation (NYSE:LMT) insider Orlando D. Carvalho sold 8,870 shares of the firm’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $307.95, for a total transaction of $2,731,516.50. Following the transaction, the insider now directly owns 27,728 shares of the company’s stock, valued at $8,538,837.60. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Read More …

Advanced Micro Devices, Inc. (NASDAQ:AMD) insider Mark D. Papermaster sold 38,819 shares of the company’s stock in a transaction on Monday, August 14th. The shares were sold at an average price of $12.70, for a total value of $493,001.30. Following the completion of the transaction, the insider now directly owns 930,839 shares in the company, valued at approximately $11,821,655.30. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Read More …

Fastenal Company (NASDAQ:FAST) Director Michael John Dolan sold 8,000 shares of Fastenal stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $43.01, for a total transaction of $344,080.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Read More …



Duke Energy Corporation (NYSE:DUK) EVP Douglas F. Esamann sold 5,000 shares of the stock in a transaction that occurred on Monday, August 14th. The shares were sold at an average price of $86.22, for a total value of $431,100.00. Following the transaction, the executive vice president now directly owns 50,316 shares of the company’s stock, valued at $4,338,245.52. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Read More …


Raytheon Company (NYSE:RTN) Director Vernon E. Clark sold 829 shares of the firm’s stock in a transaction that occurred on Monday, August 14th. The shares were sold at an average price of $180.19, for a total transaction of $149,377.51. Following the completion of the sale, the director now owns 7,588 shares in the company, valued at approximately $1,367,281.72. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Read More …


The Travelers Companies, Inc. (NYSE:TRV) EVP Kenneth Franklin Spence III sold 4,800 shares of the stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $128.73, for a total value of $617,904.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Read More …




3M Company (NYSE:MMM) insider Paul A. Keel sold 4,965 shares of 3M stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $206.16, for a total value of $1,023,584.40. Following the transaction, the insider now directly owns 5,503 shares in the company, valued at $1,134,498.48. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Read More …



Altria Group (NYSE:MO) CEO Martin J. Barrington sold 15,300 shares of the business’s stock in a transaction that occurred on Thursday, August 10th. The stock was sold at an average price of $65.03, for a total value of $994,959.00. Following the sale, the chief executive officer now owns 701,074 shares of the company’s stock, valued at $45,590,842.22. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Read More …





Acquisitions:



Kansas City Southern (NYSE:KSU) Director Henry J. Maier acquired 3,000 shares of the stock in a transaction on Thursday, August 17th. The stock was acquired at an average cost of $106.19 per share, for a total transaction of $318,570.00. Following the acquisition, the director now directly owns 4,159 shares in the company, valued at approximately $441,644.21. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Read More …



Two Harbors Investments Corp (NYSE:TWO) Director Brian Taylor bought 32,000 shares of the firm’s stock in a transaction on Tuesday, August 15th. The shares were purchased at an average cost of $10.06 per share, with a total value of $321,920.00. Following the transaction, the director now directly owns 51,865 shares in the company, valued at approximately $521,761.90. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Read More …




Schlumberger N.V. (NYSE:SLB) Director Michael E. Marks purchased 8,000 shares of the stock in a transaction that occurred on Friday, August 11th. The stock was acquired at an average cost of $64.20 per share, with a total value of $513,600.00. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Read More …





Tyson Foods, Inc. (NYSE:TSN) Director Mikel A. Durham bought 2,809 shares of Tyson Foods stock in a transaction on Monday, August 14th. The shares were acquired at an average cost of $65.77 per share, for a total transaction of $184,747.93. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Read More …





August 19, 2017

Notable Analyst Upgrades and Downgrades for Week of August 14, 2017



Upgrades:


Paychex, Inc. (NASDAQ:PAYX) was upgraded by investment analysts at Morgan Stanley from an “underweight” rating to an “equal weight” rating in a research note issued to investors on Wednesday. The brokerage currently has a $55.00 price objective on the business services provider’s stock. Morgan Stanley’s price objective suggests a potential upside of 0.04% from the stock’s previous close. The analysts noted that the move was a valuation call. Continue reading …


Downgrades:


Deere & Company (NYSE:DE) was downgraded by Bank of America Corporation from a “buy” rating to a “neutral” rating in a research note issued on Tuesday, The Fly reports. Continue reading …

Rio Tinto PLC (NYSE:RIO) was downgraded by Royal Bank Of Canada from a “top pick” rating to an “outperform” rating in a research report issued on Tuesday, Marketbeat reports. Continue reading …

Teva Pharmaceutical Industries Limited (NYSE:TEVA) was downgraded by equities research analysts at Citigroup Inc. from a “buy” rating to a “neutral” rating in a research note issued to investors on Wednesday, The Fly reports. Continue reading …

Eaton Corporation, PLC (NYSE:ETN) was downgraded by analysts at J P Morgan Chase & Co from a “neutral” rating to an “underweight” rating in a research note issued to investors on Thursday, The Fly reports. Continue reading …

Illinois Tool Works Inc. (NYSE:ITW) was downgraded by J P Morgan Chase & Co from a “neutral” rating to an “underweight” rating in a note issued to investors on Thursday, Marketbeat Ratings reports. They presently have a $132.00 target price on the industrial products company’s stock. J P Morgan Chase & Co’s price objective would suggest a potential downside of 3.08% from the stock’s current price. Continue reading …

Foot Locker, Inc. (NYSE:FL) was downgraded by stock analysts at Bank of America Corporation from a “neutral” rating to an “underperform” rating in a report released on Friday, The Fly reports. Continue reading …


August 18, 2017

McCormick: A Dividend Aristocrat With Double-Digit Total Return Potential



Dividend aristocrats, S&P 500 companies that have proven to have stable and resilient enough business models to raise dividends for 25+ consecutive years, can be a great place to go looking for new income growth ideas.

Let’s take a look at McCormick (MKC), a dividend aristocrat whose wide moat business has allowed it to raise its dividend by 11% annually for the last 31 years.

Even more impressively, the company has paid an uninterrupted quarterly dividend for the past 91 years, proving its dedication to rewarding dividend investors.

Specifically, let’s find out what makes McCormick such a stable blue chip and more importantly if it’s likely to be able to continue its impressive growth record in the coming years.

Finally, learn if the company’s valuation seems reasonable enough to make McCormick a potentially solid addition to a diversified dividend growth portfolio today.




August 17, 2017

Can Kinder Morgan Deliver on Promised Dividend Hikes?


After a year and a half of suppressed dividend payments, Kinder Morgan shareholders are given some light at the end of the tunnel. But is it realistic?



In the summer of 2017, Kinder Morgan Inc. (NYSE:KMI) announced huge dividend increases, representing a 60% increase for 2018 and 25% after that. That sounds very generous! But, for long-term shareholders, those who have stuck with KMI, it is welcome news as it shows the company is trying to make up for its 75% payout cut in 2016. The plan is to raise the dividend to $0.80 in 2018, $1.00 in 2019, and $1.20 in 2020.

So the question is, are these dividends safe? And is this growth possible?




August 16, 2017

Time to Buy General Electric Company (GE) Stock After Massive Decline?


GE stock could be a long-term buy



It has not been a good year for General Electric Company (NYSE:GE). GE stock has taken a tumble, falling over 19% in 2017. With a new CEO and near-4% yield, is it time to buy?

General Electric had been talking up the benefits of spinning off its financial business. It said doing so would allow the company to get back to its industrial roots. It would use excess capital to drive growth and get back on track.

Unfortunately, that didn’t turn out to be the case.

Execution of GE’s industrial businesses hasn’t gone well. Last quarter, industrial revenues fell by 2% year-over-year. Its fiscal year-to-date performance (two quarters) has industrial revenues down 1%. Profits are down 4% and up 2%, respectively, in the same time periods.



August 14, 2017

There's Smoke Coming From This Dividend Champion And It's Time To Evacuate



-Dividend Growth Investing is a great strategy, but many people forget to include the "growth" aspect in their analysis.

-Changes in secular trends, consumer habits, regulation, debt and other factors can set companies, and your portfolio, way back.

-Here is a formerly great investment with big headwinds making it mediocre that you should sell and replace.

Before I put out a bearish call on a company that I know many people have done well with, arousing their suspicion and emotions, I want to point out that I have a 4-step process for picking stocks that has been tracked and shown to be generally successful. It includes watching secular trends, analyzing government and central bank influence, learning company fundamentals and respecting price trends.

The company I cover below is not a "going to zero" candidate anytime soon. But it is at risk for no dividend growth, future dividend cuts and a dramatic drop in share price. While this company was once great for dividend growth and really any investors (even if it was a bit evil), it is clearly mediocre now. I believe that investors should sell now, as the company has problems in all four categories I monitor and I don't believe there is much relief on the horizon.



Continue reading…

August 13, 2017

Notable Analyst Upgrades and Downgrades for Week of August 7, 2017



Upgrades:


Chevron Corporation (NYSE:CVX) was upgraded by investment analysts at BNP Paribas from an “underperform” rating to a “neutral” rating in a report released on Monday. The brokerage currently has a $105.00 price target on the oil and gas company’s stock. BNP Paribas’ price objective indicates a potential downside of 4.35% from the stock’s current price. Continue reading…

Deere & Company (NYSE:DE) was upgraded by stock analysts at Goldman Sachs Group, Inc. (The) from a “buy” rating to a “conviction-buy” rating in a note issued to investors on Monday. The firm currently has a $129.75 price objective on the industrial products company’s stock. Goldman Sachs Group, Inc. (The)’s price objective indicates a potential downside of 2.01% from the stock’s current price. Continue reading…

Citigroup Inc. upgraded shares of United Parcel Service, Inc. (NYSE:UPS) from a neutral rating to a buy rating in a research report released on Tuesday morning. The brokerage currently has $128.00 target price on the transportation company’s stock, up from their prior target price of $115.00. Continue reading…

Foot Locker, Inc. (NYSE:FL) was upgraded by stock analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research report issued on Tuesday. The firm currently has a $65.00 price target on the athletic footwear retailer’s stock, down from their prior price target of $70.00. Morgan Stanley’s price target suggests a potential upside of 30.52% from the company’s current price. Continue reading…

Merck & Company, Inc. (NYSE:MRK) was upgraded by equities researchers at HSBC Holdings plc from a “reduce” rating to a “hold” rating in a research report issued to clients and investors on Wednesday. Continue reading…

Vodafone Group PLC (NASDAQ:VOD) was upgraded by Bank of America Corporation from a “neutral” rating to a “buy” rating in a research report issued on Wednesday. The brokerage currently has a $32.56 target price on the cell phone carrier’s stock. Bank of America Corporation’s target price indicates a potential upside of 9.93% from the company’s previous close. Continue reading…

Kohl’s Corporation (NYSE:KSS) was upgraded by research analysts at Credit Suisse Group from an “underperform” rating to a “neutral” rating in a note issued to investors on Thursday, The Fly reports. Continue reading…

Downgrades:


Cummins Inc. (NYSE:CMI) was downgraded by research analysts at Goldman Sachs Group, Inc. (The) from a “conviction-buy” rating to a “buy” rating in a report released on Monday, The Fly reports. Continue reading…

BMO Capital Markets downgraded shares of Starbucks Corporation (NASDAQ:SBUX) from an outperform rating to a market perform rating in a report released on Wednesday morning. The brokerage currently has $64.00 price objective on the coffee company’s stock, up from their previous price objective of $54.52. Continue reading…

Unilever PLC (NYSE:UL) was downgraded by investment analysts at Royal Bank Of Canada from a “sector perform” rating to an “underperform” rating in a report issued on Friday. Continue reading…


August 12, 2017

Disney Leaves Netflix: A Big Mistake



-The music industry tried to cling to an obsolete business model far too long and suffered gravely for it.

-Spotify finally dragged the labels into a new era and revitalized the industry.

-Disney - and the other media companies - didn't learn their lesson from their adjacent industry's troubles.

-Netflix is the movie industry's Spotify. Cripple it, and you'll unleash a crushing wave of piracy.

-Almost all media stocks fell Wednesday; this is a lose-lose decision for Disney, Netflix, and third parties.


Shares of both Disney (DIS) and Netflix (NFLX) fell in after-hours trading on Tuesday, and those losses extended into Wednesday's trading. That followed Disney's decision to pull its movies from Netflix going forward and greatly expanding its own digital distribution ambitions.


And, let's get it out of the way right at the beginning of this article. I think this is a bad decision, and the market is correct to be sending shares of both firms downward. Here's why - let's examine the parallel of what happened with music in the digital era.



August 11, 2017

10 Best Canadian Dividend Stocks To Buy and Hold



Investing in any of the 10 best Canadian dividend stocks to buy and hold is the perfect way to gain exposure to the Canadian market and the country’s bountiful natural resources, which many Canadian stocks owe thanks to.

Canada has its own robust stock market, the Toronto Stock Exchange, which has over 3,000 companies listed on it, making it one of the most populated exchanges in the world. Canada also ranks fifth overall in terms of listed companies by country, trailing only India, the U.S, Japan, and Spain.

Nonetheless, many of the largest Canadian companies are listed on both the TSX and U.S exchanges, so as to reach a larger pool of investors. Some Canadian companies eschew the TSX entirely and are listed solely on U.S exchanges, so it’s quite easy for Americans to invest in the Canadian market. There are 176 Canadian companies listed in the U.S according to Nasdaq.com, with precious metals and energy companies accounting for a disproportionate amount of those stocks.




August 7, 2017

Starbucks: Brewing Up A Solid Third Quarter Earnings Report



Starbucks has been a solid dividend growth stock since it paid its first dividend in 2010.

Over the past 7 years, Starbucks has compounded its per-share dividend at a rate of 25.8% per year.

Starbucks’ short dividend history means that it does not qualify to be a Dividend Aristocrat (stocks with 25+ years of consecutive dividend increases) or a Dividend Achiever (stocks with 10+ years of consecutive dividend increases).

However, we continue to like this stock because we believe its future dividend growth will be well-supported by its long international growth runway, particularly in China.

On July 27, Starbucks gave us an update on their business progress in their third quarter earnings release, which covered the 13- and 39-week period ending July 2.

This article will analyze that earnings release in detail, and provide an update on the company’s valuation and dividend growth prospects.




August 5, 2017

Genuine Parts Company: A Dividend King Trading At An 18-Month Low



Many income investors, especially those focused on the best high dividend stocks, often rely on slow but steadily growing companies to make up the core of their diversified dividend portfolios.

And among such companies, certain dividend kings, stocks with 50+ consecutive years of payout growth, represent some of the best time-tested, low risk names you can find on Wall Street.

Let’s take a look at Genuine Parts Company (GPC), a business that’s seen sales and profit growth in 84 and 73 of the past 89 years, respectively, and which has rewarded dividend lovers with an impressive 61 straight years of dividend increases.

Despite the company’s attractive long-term history, Genuine Parts Company’s stock trades at an 18-month low, driven by disappointing auto industry trends and fears over Amazon’s (AMZN) entry into the automotive aftermarket parts industry.

Let’s take a closer look at this dividend king to learn more about the potential headwinds it faces and whether or not the stock’s current weakness could be an opportunity for long-term dividend growth investors.




August 2, 2017

3 Value Stocks Senior Citizens Should Consider Buying Today


These brand-name companies offer income and value potential that can't be ignored.



News flash, seniors: The average American's life expectancy has increased by roughly a decade since you were born, meaning now more than ever, you'll need to ensure you won't outlive your money. This means that even if you retire from your career, you never retire from investing for your future.

Of course, investing as a senior presents its own set of challenges, since income and capital preservation are key. However, you still want a good deal and the opportunity for capital appreciation.

With this in mind, we asked three of our Foolish investors to name a value stock that they thought would speak to senior citizens. Rising to the top of the list were drug giant Pfizer (NYSE:PFE), furniture manufacturer La-Z-Boy (NYSE:LZB), and entertainment powerhouse Walt Disney (NYSE:DIS).




July 31, 2017

10 Best Blue Chip Dividend Stocks in 2017


With half of 2017 already gone, it is high time to watch out for the 10 Best Blue Chip Dividend Stocks in 2017.

A blue chip company is generally considered to be one that has survived the market’s ups and downs, and become a large, well-known company having a long history of sound financial performance. The term ‘Blue Chip’ was coined by Oliver Gingold in 1923.

Blue Chip companies have solid business models that can endure tough conditions. Their stock prices are very high because Mr. Market values these companies based on their brand and good reputation. However, owning blue chip stocks in one’s portfolio does not guarantee total immunity from volatility, as was the case with large companies like General Motors Company (NYSE:GM) and Lehman Brothers during the Financial Crisis.

We have collated a list of the 10 best blue chip dividend stocks in 2017, having a yield greater than 7%, and ranked them based on hedge fund sentiment.




July 28, 2017

10 Best Monthly Dividend Stocks With 5+% Yield


Using our data, we have compiled a list of the 10 best monthly dividend stocks with 5+% yield. In fact, there are just over 30 companies that pay monthly dividends. Generally companies pay quarterly dividends, with some paying annual or even biannual dividends. Paying quarterly dividends doesn’t require companies to keep an eye on their cash flow every month, but rather issue dividends alongside their regularly-scheduled financial reports. On the other hand, for companies that pay monthly dividends, such an arrangement is easier, mainly because it is aligned with their business.

Most companies that pay monthly dividends are real estate investment trusts, which conduct their operations (collect rent, mortgage payments, etc.) on a month-by-month basis. Investing in stocks that pay monthly dividends is a simple way to generate cash flow for people who rely on their portfolios for income, such as retirees. In addition, more frequent dividend payouts allows investors to compound their returns more frequently, which results in better returns over the long-run. However, monthly dividend stocks also carry some risks that should not be overlooked.

Since the majority of companies that pay their dividends each month are REITs and MLPs, they also have very high yields, because all or most of their income is paid out as dividends. On the one hand this is a good thing, because monthly dividend payouts suggests that management is shareholder-friendly and is confident that cash flow is strong enough to sustain the dividends.

Without any further ado, let’s take a closer look at the 10 best monthly dividend stocks with 5+% yield.



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.





May 10, 2017

20 Years In The Coca-Cola DRIP



20 years ago, I started buying Coca-Cola's (NYSE:KO) stock through the dividend reinvestment plan (DRIP) as an aspiring young investor on the notion that if Warren Buffett owned Coca-Cola, so should I.

On top of that, I was a Sprite addict in my youth. As a fan of Peter Lynch's writings, I wanted to own stock in companies I knew well.

Buffett, of course, is the first to advise against buying a stock just because he owns it. He bought Coca-Cola in 1988 after the stock market crash when the valuation was attractive.

Even when the stock was at sky-high levels during the late 1990s, Buffett didn't sell. His favorite holding period is forever.

Buffett holding a stock is not a reason for independent investors to buy a stock.

Two decades wiser, I've learned that just because someone famous and accomplished owns a stock, it doesn't guarantee returns. Coca-Cola has been a positive investment over the past 20 years, but it far underperformed the S&P 500 index.

I've participated in the Coca-Cola DRIP for 20 years now. In this article, I'll share the performance of my personal investment in Coca-Cola from April 1st, 1997, to the latest dividend received on April 3rd, 2017.




May 9, 2017

Stock Valuation Johnson And Johnson



The next stock valuation is about a stock, which is in every DGI portfolio. It will be about Johnson & Johnson one of my first stocks I ever bought and always looking to add more. But let’s have a look if an investment at the current share price makes sense.


Company Overview

Johnson & Johnson (JNJ) is a holding company that researches, develops, and manufactures a diversified range of products in the healthcare field. The company has three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. JNJ was founded in 1887, and is based in New Brunswick, NJ. It is paying dividend since 1963 and has increased the dividends every year. Recently it announced a further increase of 4 Cent per from 0.80 USD to 0.84 USD per quarter.




May 8, 2017

Vodafone Group: A High Dividend Opportunity Or Value Trap?



Telecom stocks such as AT&T (NYSE:T) and Verizon (NYSE:VZ) often serve as core holdings for income investors who have a low tolerance for risk, especially retirees living off dividends.

That makes sense because many telecom companies enjoy large, recurring streams of cash flow that support generous and slowly growing dividend payouts over time.

However, not all telecom giants make for good dividend investments. The industry is increasingly battling slow growth and increased competitive pressures, and some firms are better positioned than others.

Let's take a closer look at Vodafone Group (NASDAQ:VOD), one of the world's largest telecom behemoths, to see if its 5.7% dividend yield is safe and appealing for our Conservative Retirees dividend portfolio, or if the company could be a value trap.




May 7, 2017

A Safe 7.8% Yielding Stock With Fantastic Growth Potential That's Also 46% Undervalued



Omega Healthcare Investors has long been the gold standard of skilled nursing facility REITs.

With 19 consecutive quarters of dividend growth, the REIT remains a favorite of high-yield dividend growth investors.

The latest earnings show the wisdom of management's long-term growth strategy.

That being said, 2017 is likely to be a far slower growth year, as numerous headwinds challenge the company.

However, with shares trading at a 46% discount to fair value and one of the best risk-adjusted total return profiles on Wall Street, Omega Healthcare remains a screaming buy.




May 4, 2017

Microsoft Earnings: Don’t Believe The Disappointment, Cloud Growth Explodes



Tech giant Microsoft Corporation (MSFT) reported fiscal-third quarter earnings on Thursday, April 27th. Judging by the market’s reaction, Microsoft’s quarter was a disappointment. The stock fell 2% after reporting. But, the stock quickly retraced its losses, as investors focused once again on the bigger picture: Microsoft is in growth mode.

The company’s cloud-based offerings like Office 365 and Azure are growing like weeds. These platforms represent the technology of the future, and will fuel Microsoft’s growth for many years ahead. In the meantime, Microsoft is an excellent dividend stock. It is a Dividend Achiever, a group of 265 companies in the S&P 500 Index that have raised their dividends for 10+ years in a row. 

Investors should not be fooled by the market’s initial reaction: Microsoft’s quarterly report was anything but disappointing. Its hardware sales came up slightly short of expectations, but more importantly, its cloud platform continued its explosive growth.




May 3, 2017

Buy Pfizer Inc. (PFE) Stock While Its Dividend Is on Sale


PFE beat earnings estimates, but fell short on revenue



Pfizer Inc. (NYSE:PFE) is slipping in pre-market trading after announcing earnings that beat estimates on the bottom line, but missed on the revenue side. If you’re looking for growth, stay away from PFE stock. But if you’re looking to scoop up a dividend at a discount, Pfizer stock is for you.

Adjusted income was $4.19 billion, 69 cents per share, on revenue of $12.78 billion. This compared with net income of $4.17, 67 cents per share, and revenue of $13.01 billion during the same quarter a year ago.

Earnings beat analyst estimates by 2 cents per share, and even beat the “whisper number” of 68 cents. The revenue number, however, was well below the estimate of $13.05 billion, and even below last year’s figure.

As a result, PFE stock lost 35 cents per share, after dropping another 35 cents in trading on May 1. For those who buy stocks for capital appreciation, Pfizer once again proved a name to avoid.




May 1, 2017

3M Dividend History: The Story Behind an Impressive Growth Streak


The innovative conglomerate has put together an amazing track record of boosting its payouts to shareholders. Can it last?




3M (NYSE:MMM) is a company that most people know about but few fully understand. Going well beyond its most visible products like Post-It Notes and Scotch tape, 3M has its fingers in a huge number of different sectors of the economy, and its innovative spirit has enabled it to get profits from an impressive number of sources.

For dividend investors, 3M has been even more lucrative. With a streak of 59 straight years of dividend increases, 3M numbers among the elite dividend stocks in the entire U.S. stock market. Yet investors want to know if 3M's dividends are sustainable and whether its pace of dividend growth will continue into the future. Let's take a closer look at 3M and its dividend history to get some ideas about what's likely to come down the road.




April 30, 2017

Notable Analyst Upgrades and Downgrades for Week of April 24, 2017



Upgrades:


Stanley Black & Decker, Inc. (NYSE:SWK) was upgraded by stock analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a report issued on Monday. The firm presently has a $152.00 target price on the industrial products company’s stock, up from their previous target price of $140.00. JPMorgan Chase & Co.’s price target indicates a potential upside of 11.05% from the stock’s current price. Continue reading here.

Argus upgraded shares of Travelers Companies Inc (NYSE:TRV) from a hold rating to a buy rating in a research report sent to investors on Monday morning. They currently have $132.00 target price on the insurance provider’s stock. Continue reading here.

American Express Company (NYSE:AXP) was upgraded by equities research analysts at Nomura from a “reduce” rating to a “neutral” rating in a report released on Thursday. The brokerage presently has a $78.00 price target on the payment services company’s stock, up from their previous price target of $63.00. Nomura’s target price indicates a potential downside of 2.90% from the stock’s previous close. Continue reading here.

Cisco Systems, Inc. (NASDAQ:CSCO) was upgraded by equities researchers at Credit Suisse Group AG from an “underperform” rating to an “outperform” rating in a research report issued to clients and investors on Thursday. The firm currently has a $40.00 price objective on the network equipment provider’s stock, up from their prior price objective of $27.00. Credit Suisse Group AG’s price objective points to a potential upside of 18.52% from the company’s previous close. Continue reading here.

McDonald's Co. (NYSE:MCD) was upgraded by analysts at Argus from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday. Continue reading here.

Downgrades:


C R Bard Inc (NYSE:BCR) was downgraded by investment analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued on Monday. Continue reading here.

William Blair downgraded shares of W W Grainger Inc (NYSE:GWW) from an outperform rating to a market perform rating in a report published on Monday. Continue reading here.

Wells Fargo & Co lowered shares of C R Bard Inc (NYSE:BCR) from an outperform rating to a market perform rating in a report released on Tuesday morning. Continue reading here.

Bank of America Corp downgraded shares of General Electric Company (NYSE:GE) from a buy rating to a neutral rating in a research report released on Tuesday morning. The firm currently has $31.00 price objective on the conglomerate’s stock, down from their previous price objective of $35.00. Continue reading here.

Robert W. Baird cut shares of American Water Works Company Inc. (NYSE:AWK) from an outperform rating to a neutral rating in a research report released on Wednesday. They currently have $82.00 price target on the utilities provider’s stock, up from their prior price target of $69.41. Continue reading here.

T. Rowe Price Group Inc (NASDAQ:TROW) was downgraded by stock analysts at Argus from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday. Continue reading here.

Eli Lilly and Co (NYSE:LLY) was downgraded by research analysts at Argus from a “buy” rating to a “hold” rating in a note issued to investors on Thursday. They currently have a $81.00 price objective on the stock, up from their prior price objective of $64.18. Argus’ price objective would indicate a potential upside of 0.05% from the company’s previous close. Continue reading here.

Mattel, Inc. (NASDAQ:MAT) was downgraded by stock analysts at Argus from a “buy” rating to a “hold” rating in a research report issued on Friday. Continue reading here.

April 29, 2017

Starbucks Corporation Delivers Record Earnings, but 1 Important Metric Is Getting All the Attention


The global coffee giant continues to deliver solid growth, but comparable sales in U.S. stores aren't growing as fast as management expected.



Starbucks Corporation (NASDAQ:SBUX) reported its second-quarter financial results on April 27, and it delivered a venti-sized portion of revenue and earnings per share, both of which were the best ever for a single quarter in the company's history.

But there's a problem -- though it's a bit of a "high-class" one -- with the company's growth in recent quarters: Management struggles to produce same-store sales growth in its core U.S. segment that meets expectations. Let's take a closer look at what's happening with Starbucks' business results, and what management says to expect going forward.




April 26, 2017

Qualcomm: 4.3% Dividend Yield, With NXP Acquisition A Major Growth Catalyst



A 4%+ dividend yield is hard to find in the technology sector, which makes Qualcomm (QCOM) that much more appealing.

Qualcomm stock possesses the rare combination of a high dividend yield, along with high dividend growth as well.

It recently raised its dividend by 7.5%, which pushed its dividend yield up to 4.3%.

Qualcomm is a Dividend Achiever, a group of 265 stocks with 10+ years of consecutive dividend increases.

The stock has been dragged down by a negative news flow. It has lost nearly 20% of its value year-to-date.

But long-term investors should not be swayed.

Qualcomm remains a high-quality company, with a strong industry position, high free cash flow, and an excellent balance sheet.

Its sagging share price—which has pushed its dividend yield to 4.3%–could be a great buying opportunity for long-term dividend growth investors.




April 25, 2017

3 Stocks Could Double Their Dividends -- But Shouldn't


A big dividend raise isn't always the right move for a business.



Everybody loves dividends. I mean, seriously, who doesn't love a stock that pays you cash as a thank-you for investing? Additionally, dividends are usually a solid indicator that a company is actually making money -- after all the financial finagling, it still has the cash to schedule payments to investors. Escalating dividends are often taken as a sign that management is particularly bullish on the company's future -- so much so that they're willing to hike how much they pay investors each quarter.

It's understandable, then, that the idea of a company doubling its dividend is exciting. To get paid literally double what you were previously being paid is great on its own, but it also means the company has the wherewithal to sustain all that extra cash going out the door -- a sure sign of its strength as a business.

But there's a big difference between "can" and "should" -- and while these three companies can give income investors a doubled dividend, here's why they shouldn't.




April 24, 2017

10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year


These stocks already generate high annual income, so you need just a little growth to reach 10%-plus in annual returns



Today we’re going to take a look at 10 dividend stocks that look like solid bets to generate double-digit total returns every year, or at least every year on average.

Claiming a stock will deliver a double-digit return every year is a bold statement. After all, the “Siegel constant,” named after Wharton Professor Jeremy Siegel, says the stock market as a whole delivers total returns of around 7% per year after inflation. So, a stock that delivered a double-digit return every year would be one that consistently beat the market.

A 10% annual return is obviously not get-rich-quick money. But at that rate, you’re still doubling your money every seven years, and that’s not too shabby.

You know the old refrain: Past performance is no guarantee of future results. I can’t promise you that every stock on the list will deliver a double-digit return, particularly if we have weakness in the broad market. But I can tell you this: Based on current prices and dividend yields, these stocks are definitely priced well enough to make double-digit returns possible, which is better than what I can say for the vast majority of other stocks.

You’ll notice some common themes among this list of dividend stocks to buy. They all pay dividends, and most a long history of raising those dividends. Also, tech stocks or other companies I see as being at risk of disruption are also mostly left off the list.