Two and twenty… that’s the typical fees that hedge funds charge. With this fee structure, it means that they charge a flat 2% of total assets as a management fee and an additional 20% of any profits earned. There’s a good reason that hedge funds can charge this much, and that’s because they usually earn outsized returns for their investors. Of course, that’s not always the case. Just as with us regular investors, hedge funds go through rough patches.  For instance, Bill Ackman’s Pershing Square Holdings has lost money in the previous three years (he’s since turned that around and… Read More

Two and twenty… that’s the typical fees that hedge funds charge. With this fee structure, it means that they charge a flat 2% of total assets as a management fee and an additional 20% of any profits earned. There’s a good reason that hedge funds can charge this much, and that’s because they usually earn outsized returns for their investors. Of course, that’s not always the case. Just as with us regular investors, hedge funds go through rough patches.  For instance, Bill Ackman’s Pershing Square Holdings has lost money in the previous three years (he’s since turned that around and is doing quite well so far this year). And David Einhorn’s Greenlight Capital (Nasdaq: GLRE) has greatly underperformed over the last three years. The investing environment hasn’t been easy on hedge funds over the last couple of years. Since 2017, more than 16 hedge funds have returned money to investors and closed their doors. One such hedge funder, Whitney Tilson, who folded his fund in September 2017, talked about the biggest mistakes that lead him to close his doors.  And I was shocked by what he said… #-ad_banner-#First, you must understand that Tilson ran a long/short hedge fund, with an… Read More

You may not like what I’m about to say, but the fact of the matter is that if you want a “true” retirement… The kind where you sleep well at night, travel freely and still have money left over to help out your kids and grandkids… It’s very unlikely that you’ll be able to generate enough income for that lifestyle through simply stocks and bonds. Consider this… —Recommended Link— These three companies are about to beat cancer It isn’t a new drug. It isn’t a pill, cream, spray, ointment, or any other medical treatment you’ve have heard of. Instead,… Read More

You may not like what I’m about to say, but the fact of the matter is that if you want a “true” retirement… The kind where you sleep well at night, travel freely and still have money left over to help out your kids and grandkids… It’s very unlikely that you’ll be able to generate enough income for that lifestyle through simply stocks and bonds. Consider this… —Recommended Link— These three companies are about to beat cancer It isn’t a new drug. It isn’t a pill, cream, spray, ointment, or any other medical treatment you’ve have heard of. Instead, it’s a new class of blood cells that could be all you’ll need to cure 12 types of cancer… to eradicate heart disease… diabetes… arthritis… Alzheimer’s… and extend your life by another 50 vibrant years. You can get the full details here. Let’s say you collect Social Security, but you estimate that you’ll need an additional $45,000 a year in income to maintain a comfortable standard of living in your golden years. That means, with a $250,000 portfolio, you’d need to generate around 18% annual returns just to pay yourself without losing any capital. With a $500,000 portfolio, you’d need… Read More

In the most recent issue of my premium trading service, Income Trader, I didn’t make a trade recommendation.  Not a single one. I’ll admit, it’s a little strange. I’ve rarely done this since beginning the newsletter more than six years ago. It’s not what my premium subscribers are used to. At all. They’re used to getting at least one trade every week, along with a host of “bonus” trades sprinkled in throughout. Add that up over the years and, well, you get the idea. (And through it all, thanks to our system, we’ve been successful on over 90% of our trades.) So why… Read More

In the most recent issue of my premium trading service, Income Trader, I didn’t make a trade recommendation.  Not a single one. I’ll admit, it’s a little strange. I’ve rarely done this since beginning the newsletter more than six years ago. It’s not what my premium subscribers are used to. At all. They’re used to getting at least one trade every week, along with a host of “bonus” trades sprinkled in throughout. Add that up over the years and, well, you get the idea. (And through it all, thanks to our system, we’ve been successful on over 90% of our trades.) So why no trade last week? The problem in this market is safety.  —Recommended Link— Would you let yourself be injected with MiracleBlood? It cures 12 types of cancer… eradicates heart disease… diabetes… arthritis… Alzheimer’s… and extends your life by another 50 vibrant years… without side effects. Click here for the full details. It’s earnings season, and by this past Friday less than 10% of the companies in the S&P 500 have delivered quarterly results. So far, some reports were better than expected while others were worse than expected. It’s been almost random, and I want to see a trend in… Read More

Robust job creation and rising take-home pay are good for just about every business (except maybe pawn shops and loan sharks). But this company benefits more than most…  In fact, that’s what led us to recommend this stock to our Daily Paycheck subscribers back in 2012. And all it’s done since then is reward readers with one of the fastest-growing dividends you’ll find in the market — and a total return of 253% at last count. Paychex (Nasdaq: PAYX) handles the payroll for 650,000 clients, mostly small businesses with 10 to 50 employees — the economy’s growth engine. These payroll… Read More

Robust job creation and rising take-home pay are good for just about every business (except maybe pawn shops and loan sharks). But this company benefits more than most…  In fact, that’s what led us to recommend this stock to our Daily Paycheck subscribers back in 2012. And all it’s done since then is reward readers with one of the fastest-growing dividends you’ll find in the market — and a total return of 253% at last count. Paychex (Nasdaq: PAYX) handles the payroll for 650,000 clients, mostly small businesses with 10 to 50 employees — the economy’s growth engine. These payroll customers generally pay a flat service fee, as well as an additional fee for each worker enrolled. Thus, Paychex likes to see businesses hiring new employees. And after a soft February report, the labor market is roaring once again. There were 196,000 new jobs created in March, about 20,000 more than expected. Meanwhile, the number of unemployment claims fell to the lowest level since 1969 (and the workforce is much larger today than it was 50 years ago). #-ad_banner-#Payroll administration is a lucrative business. Paychex produced $1.1 billion in revenues last quarter, a healthy increase of 14%. Half of that… Read More

Blink and you missed it. One day there’s a “telecommunication sector,” the next day — thanks to the people who run the stock indices — it morphs into “communication services.”  Why should we care? With major S&P 500 companies from Facebook (Nasdaq: FB) to Netflix (Nasdaq: NFLX) now reassigned, the change is simply too big to be ignored. That goes for passive investors — ones who rely on an index-tracking approach — and active investors like us who frequently screen sectors and indices for ideas.  That’s because we all need to be aware that some of the most innovative and… Read More

Blink and you missed it. One day there’s a “telecommunication sector,” the next day — thanks to the people who run the stock indices — it morphs into “communication services.”  Why should we care? With major S&P 500 companies from Facebook (Nasdaq: FB) to Netflix (Nasdaq: NFLX) now reassigned, the change is simply too big to be ignored. That goes for passive investors — ones who rely on an index-tracking approach — and active investors like us who frequently screen sectors and indices for ideas.  That’s because we all need to be aware that some of the most innovative and fastest-growing companies of today no longer resign in the tech or consumer sectors. When we search for the next investment, whether it’s an index fund or a stock, we need to know where to look.  —Recommended Link— 3 Minutes to Collect 12 Times More Money Than Social Security Just make this simple little 3-minute call and you can get set up to start collecting your checks. All told, your checks can add up to $225,326 over the next 25 years. Imagine that! And these checks are supported by $1.75 billion in new money every year. Read More

One of the main strategies employed by my premium newsletter, The Daily Paycheck, is dividend reinvestment.  Thanks to the power of compounding, every dollar of income we reinvest back into the securities that pay them accumulates our money faster. Even one reinvested dividend makes your position bigger and its income generation potential larger.  In the simplest terms, dividend reinvestment can make you richer quicker.  The beauty of this strategy is in its simplicity. When you reinvest dividends, you put more money into the security, and this larger position pays you more the next time its dividend is due. This cycle continues… Read More

One of the main strategies employed by my premium newsletter, The Daily Paycheck, is dividend reinvestment.  Thanks to the power of compounding, every dollar of income we reinvest back into the securities that pay them accumulates our money faster. Even one reinvested dividend makes your position bigger and its income generation potential larger.  In the simplest terms, dividend reinvestment can make you richer quicker.  The beauty of this strategy is in its simplicity. When you reinvest dividends, you put more money into the security, and this larger position pays you more the next time its dividend is due. This cycle continues for as long as you are willing to hold the security and delay pocketing the income.  Easy enough, right?   But there is more to this strategy than you might realize at first. For instance, when you reinvest dividends, the frequency of the payments matters.  Let me explain… —Recommended Link— This $1,003-a-Month Income Boost Is Available to Everyone There’s a way for you to collect extra government cash. And it isn’t some “file and suspend” Social Security trick that only makes sense for a few people. This obscure opportunity allows you to collect government cash no… Read More

As many of you know, I make it a regular habit to pinpoint three or four stocks that are primed for a dividend hike in the coming month.  #-ad_banner-#Keep in mind, I’m not projecting these hikes within the next 6 to 12 months, but often within the next 6 to 12 days — so this is information you can act on immediately if you so choose. Even still, my premium High-Yield Investing readers get this information even sooner than when you’re reading this, giving them an extra jump.  Why do I point this out? Well, I have profiled 16 candidates… Read More

As many of you know, I make it a regular habit to pinpoint three or four stocks that are primed for a dividend hike in the coming month.  #-ad_banner-#Keep in mind, I’m not projecting these hikes within the next 6 to 12 months, but often within the next 6 to 12 days — so this is information you can act on immediately if you so choose. Even still, my premium High-Yield Investing readers get this information even sooner than when you’re reading this, giving them an extra jump.  Why do I point this out? Well, I have profiled 16 candidates so far this year. And as expected, nearly all of them have lifted their distributions.  Most have delivered sizeable gains as well. Genuine Parts (NYSE: GPC) (profiled here) is up 18.3% for the year; Air Products & Chemicals (NYSE: APD) has rallied 21.9%; and Best Buy (NYSE: BBY) (profiled here) has surged an impressive 39.3%.  Let’s keep that streak going.  Here are three more dividend payers to watch in the coming weeks…  1. American Water Works (NYSE: AWK) — Founded more than a century ago, American Water Works is the nation’s largest publicly-traded water utility. The company owns 600 treatment plants,… Read More