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.