dividend paying stocks

Off-the-Radar Company Delivering Attractive Earnings

By Monday, October 13, 2014

One Off-the-Radar Company with Attractive ResultsOn the day that the DOW, S&P 500, and NASDAQ Composite dropped two percent on global growth worries, once again, several companies reported very good numbers.

But investors are paying less attention to corporate results and more attention to economic news from around the world that suggests that the only mature economic engine running at any positive speed currently is the U.S. economy.

PepsiCo, Inc. (PEP) had another good quarter. … Read More

Best Stocks Going Into 2015

By Monday, September 29, 2014

Stocks Going Into 2015A lot of good companies with solid investment prospects going into 2015 are pushing new highs in an otherwise trendless stock market before the end of another reporting period.

Market leaders have kept their momentum the last few years and are likely to keep doing so as earnings reliability and dividends keep investors buying.

Microsoft Corporation (MSFT) continues to tick higher in this market. The position was $35.00 a share … Read More

Why a Full-Blown Market Correction Should Be Expected

By Friday, August 8, 2014

Investors Can't Overlook to Succeed in This MarketThe monetary environment is still highly favorable to stocks and should continue to be so well into 2015. However, while this market can handle higher interest rates, stocks can only advance in a higher interest rate environment if gross domestic product (GDP) growth is there to back it up.

Because of the capital gains over the last few years and the across-the-board record-highs in many indices, investment risk in stocks … Read More

Simple Wealth-Creating Strategy for Long-Term Investors

By Monday, July 14, 2014

Compounding Strategy Every Investor Should ConsiderAs a strong believer in the wealth-creating effects of large-cap, dividend paying stocks, I’m also an advocate of dividend reinvestment, which is the purchasing of a company’s shares using the cash dividends paid.

This can be done commission-free from your broker and/or through the company itself if it offers such a program.

Dividend reinvestment is a powerful wealth creator if you do not require the income paid out by a … Read More

Flight to Safety Rewarding These Top Stocks

By Friday, June 13, 2014

Investors' Flight to Safety Putting These Stocks on TopMy dad is earning a few percentage points on his fixed-income yields. Fortunately for him, that’s sufficient to live on when combined with his monthly pension and savings. He has no mortgage and lives a pretty normal, but somewhat frugal life.

In fact, Dad has always favored the fixed-income market for his investments as he doesn’t like risk. But for many Americans, the need for an ample flow of income … Read More

Why the Old Adage “Sell in May, Buy Back in October” Could Make Extra Sense This Year

By Friday, May 30, 2014

How to Make Use of Your Holdings if Stocks Drift SidewaysAfter some bouts of selling in May, the stock market appears to be edging higher again as we are at the end of the trading month today.

As I said in January, it will not be easy to make money this year, given the cuts in easy money flowing into the capital markets. The S&P 500 is leading the pack with a 3.46% gain as of Tuesday. If you annualized … Read More

Top Stocks Poised for More Gains in Slow-Growth Market?

By Wednesday, May 21, 2014

Best Stocks World Slow GrowthThe thing about large-cap investing—and most stock market investing, in general—is that periods of capital gains are often met with long periods of non-performance.

A great investment with a long history of making money for stockholders is Johnson & Johnson (JNJ). But even this blue chip pharmaceutical/consumer products company has experienced long periods with nearly no capital gains (1975 to 1985 and 2002 to 2012, in recent history).

Action in … Read More

What Makes This Confectionary So Attractive for Long-Term Investors

By Wednesday, May 14, 2014

Chocolate Better Investment Might ThinkIn my mind, portfolio safety and consistency of equity market returns are paramount. This is a basic portfolio management principle, and I like to see consistent earners as core positions in any equity market portfolio.

This doesn’t mean there isn’t room for more speculative stocks, but investing is different than risk-capital speculating.

Consistent earnings growers and dividend paying stocks should be the foundation of an equity market portfolio geared for … Read More

Top Stocks for the Coming Correction

By Thursday, May 8, 2014

The stock market is getting soft quickly, but it’s to be expected. Even days when the main indices open positive, action turns down regularly; it’s a sign of things to come.  I wouldn’t be surprised if stocks stay soft until the fourth quarter. In an environment of mixed economic data and modest corporate earnings, that’s just something for which investors should be prepared.  Plenty of companies reported a solid first quarter and reiterated their outlooks for the year. But current action isn’t about corporate earnings or monetary policy. Stocks are in need of a break. A prolonged consolidation, if not a full-blown correction, is perfectly normal in the context of a secular bull market.  Leadership in technology stocks is breaking as evidenced by the performance of the NASDAQ Composite. It’s also evident in the Russell 2000 index of smaller-cap companies and the NASDAQ Biotechnology index.  For stocks to really rollover, the Dow Jones Transportation Average will have to retreat as well; so far, it’s still holding up due to the strong price action in airlines and most railway companies.  But while transportation stocks have consistently been at the forefront of market leadership, the whole group is due for a break as well.  I still see the best opportunities with large-caps and dividend paying stocks, especially, even though there’s not a lot of buying at this particular point in time. And this takes into consideration investment risk as well. Portfolio risk becomes much more important when stocks stop performing, and this is what I expect to happen over the next several months. (See “How Past Investment Trends Predicted This Stock Market Action.”)  Given current information, with a meaningful price retrenchment in the main stock market indices, it should be a buying opportunity.  Corporate balance sheets are mostly in excellent condition and the cost of capital remains low. Companies are still reticent to make major new investments, so the prospects for rising dividends going into 2015 are very good.  Since the beginning of this year, speculative fervor has come out of the biotechnology stocks and initial public offering (IPOs), which is a classic signal that the market is gearing up for a change in trend.  But it’s all normal in what was an exceptional year for stocks in 2013. The system, in a sense, is still trying to balance itself out after those exceptional capital gains.  Near-term, price consolidation in the main market indices is a good time to re-evaluate portfolios and to make lists of those stocks you might like to own if they were better priced.  Some of the stocks I like that would be worthy of consideration if there is an upcoming price consolidation/correction include: Johnson & Johnson (JNJ), 3M Company (MMM), Union Pacific Corporation (UNP), PepsiCo, Inc. (PEP), The Walt Disney Company (DIS), NIKE, Inc. (NKE), Kinder Morgan Energy Partners, L.P. (KMP), and Colgate-Palmolive Company (CL).  The investment theme remains blue chip, with economies of scale to boost earnings and excess cash to boost dividends.  Anything can happen in a stock market still under the influence of pronounced monetary stimulus. Potential near-term shocks to the system include geopolitical events, more currency troubles in Latin America, and/or another surprise in the banking system.  Corporate results and their outlooks are holding up. But a tired market for stocks is just that—tired. The prospects for capital gains near-term are diminishing significantly.The stock market is getting soft quickly, but it’s to be expected. Even days when the main indices open positive, action turns down regularly; it’s a sign of things to come.

I wouldn’t be surprised if stocks stay soft until the fourth quarter. In an environment of mixed economic data and modest corporate earnings, that’s just something for which investors should be prepared.

Plenty of companies reported a solid first … Read More

How Past Investment Trends Predicted This Stock Market Action

By Wednesday, April 30, 2014

Speculative Fervor Declines on Growing RiskIt’s just the same old story with stocks. One day they’re up; the next day they’re not.

If 2013 was a breakout year from the previous long-run recovery cycle, 2014 is a year of choppiness.

Stocks just can’t seem to latch onto any particular trend. A convolution of influences from earnings results to geopolitical events continue to beat down what positive sentiment sprouts from the data.

It’s no surprise to … Read More