Retirees searching for income have been forced to make an uncomfortable compromise. With bond yields trading near a record low for most of the last eight years because of the financial crisis, many retirees were forced to shift out of bonds and into dividend stocks. This solved the problem in the short run. But in the long run stock dividends are much less reliable than bond yields. Depressions, world wars, and recessions have forced even the best companies to cut their dividend payments. That’s why I want to share one of the most reliable dividend payers in the history of… Read More

Retirees searching for income have been forced to make an uncomfortable compromise. With bond yields trading near a record low for most of the last eight years because of the financial crisis, many retirees were forced to shift out of bonds and into dividend stocks. This solved the problem in the short run. But in the long run stock dividends are much less reliable than bond yields. Depressions, world wars, and recessions have forced even the best companies to cut their dividend payments. That’s why I want to share one of the most reliable dividend payers in the history of the stock market. This S&P 500 leader has been paying a dividend for 132 years, surviving all the traumatic global events of the last century and then some.  If you’re looking for one of the most reliable dividends on the planet, this is a good place to start. Consolidated Edison (NYSE: ED) is one of the oldest utility companies in the United States, founded all the way back in 1823 — almost 200 years ago. Since then, Con Ed has evolved into one of the largest energy companies in the country, reporting revenue of $13 billion in 2016 and assets… Read More

The much-heralded “Trump Trade” has started to unravel. Despite our new President’s best efforts, the economic reality of implementing policies has begun to weigh on market sentiment.  Despite 2017 being a successful year for the stock market so far, investors are scrambling to locate the next hot sector and stock. It seems new highs in the major indexes are being hit on an almost daily basis without a significant pull back. At this point, professional investors are asking just how much more upside the market can offer. The small-cap sector, however, has not kept up with the rest of the… Read More

The much-heralded “Trump Trade” has started to unravel. Despite our new President’s best efforts, the economic reality of implementing policies has begun to weigh on market sentiment.  Despite 2017 being a successful year for the stock market so far, investors are scrambling to locate the next hot sector and stock. It seems new highs in the major indexes are being hit on an almost daily basis without a significant pull back. At this point, professional investors are asking just how much more upside the market can offer. The small-cap sector, however, has not kept up with the rest of the market this year. While the S&P 500 is higher by 9%, the small-cap-based Russell 2000 is only higher by about 1%. Small caps with solid fundamentals riding on developing trends may represent an untapped bastion of upside potential. 5 Small-Caps Poised For Gains 1. MACOM Technology Solutions (Nasdaq: MTSI) Shares of this analog semiconductor company plunged into the deep value zone on a third-quarter miss, setting up an ideal buying opportunity for forward-looking investors. Boasting a market cap of just under $3 billion, this Lowell, Massachusetts-based technology company specializes in telecom optical components and data centers. MACOM’s primary… Read More

One type of investment that’s typically shunned in a rising interest rate environment is real estate investment trusts, or REITs. That’s because higher rates mean higher borrowing costs — literally the price of doing business for REITs — which can weigh on returns for investors. Also, as rates move higher, lower-risk fixed-income investments, including Treasuries, become attractive again. But not all REITs are created equal. Many can withstand the higher rates because the rising rates usually accompany an improving economy, which in turn is good for business.  And lest you think real estate is only condos and office buildings, say… Read More

One type of investment that’s typically shunned in a rising interest rate environment is real estate investment trusts, or REITs. That’s because higher rates mean higher borrowing costs — literally the price of doing business for REITs — which can weigh on returns for investors. Also, as rates move higher, lower-risk fixed-income investments, including Treasuries, become attractive again. But not all REITs are created equal. Many can withstand the higher rates because the rising rates usually accompany an improving economy, which in turn is good for business.  And lest you think real estate is only condos and office buildings, say hello to Crown Castle International Corp. (NYSE: CCI), the largest provider of shared wireless infrastructure in the United States. Crown Castle is dominant in a sector where barriers to entry are high and the threat of excessive supply is minimal. It’s also in a position to improve its business standing because demand for its properties is growing.  And the good news for investors is that Crown Castle recently committed to increase its dividend — good news in any kind of market, but especially in this dividend-starved one.  And because it’s a REIT, which means it has to distribute at least… Read More

The president’s call for a $1 trillion increase in infrastructure spending seems to have been put on hold, depressing investor sentiment for construction and infrastructure stocks this year.  While we wait for the legislative agenda to clear the way for increased fiscal stimulus, Mother Nature may soon be sending a natural force to boost spending. The National Oceanic and Atmospheric Administration (NOAA) recently upgraded its forecast for this year’s hurricane season — and it could be one of the worst in more than a decade. Weather patterns in the Atlantic continue to build, and all the… Read More

The president’s call for a $1 trillion increase in infrastructure spending seems to have been put on hold, depressing investor sentiment for construction and infrastructure stocks this year.  While we wait for the legislative agenda to clear the way for increased fiscal stimulus, Mother Nature may soon be sending a natural force to boost spending. The National Oceanic and Atmospheric Administration (NOAA) recently upgraded its forecast for this year’s hurricane season — and it could be one of the worst in more than a decade. Weather patterns in the Atlantic continue to build, and all the ingredients are there for another superstorm. #-ad_banner-#When Superstorm Sandy hit the east coast in October 2012, the S&P 500 tumbled 4% over two weeks and it took the rest of the year to recover as the nation assessed the damage. But I’ve found five infrastructure and power companies that have continuously outperformed the market during high-activity hurricane years. Not only have these five stocks outperformed the S&P 500 by an average of 18% during the worst four hurricane seasons of the past decade, but they also outperformed during the six-weeks after hurricane season when higher sales started showing through in… Read More

On February 6, a group of 653 men and women from the U.S., Canada and the United Kingdom gathered in a private conference room in Boca Raton, Florida. But this wasn’t just any conference. The average person’s net worth in this room was $75 million. All these rich people were there for the same reason: They were sick and tired of walking around with a bullseye on their backs. You see, banks, private equity firms, hedge funds, and brokerage firms see the wealthy as “easy targets”. These are people they can siphon fees off of — and make a… Read More

On February 6, a group of 653 men and women from the U.S., Canada and the United Kingdom gathered in a private conference room in Boca Raton, Florida. But this wasn’t just any conference. The average person’s net worth in this room was $75 million. All these rich people were there for the same reason: They were sick and tired of walking around with a bullseye on their backs. You see, banks, private equity firms, hedge funds, and brokerage firms see the wealthy as “easy targets”. These are people they can siphon fees off of — and make a killing. As one attendee — a former executive in five different companies — put it, “I felt the advice I was getting was always tainted.” Two others discovered they were using the same investment advisor, but one of them was paying more for the exact same service. Another one called stock brokers and wealth managers a “den of thieves” who want to “make themselves money first, then their clients.” So… with nowhere to go, and nobody they could trust with their money, they turned to each other. —Recommended Link— $1.3 Trillion In Cash For Folks Who Do Not Trust Wall… Read More

When it comes to stock picking, there are two primary schools of thought. The first, and by far most popular, school believes in selecting stocks based on strength. These investors buy breakouts, bullish signals, and uptrends. The second school teaches to look for price weakness when selecting stocks. Following the age-old mantra of buying weakness and selling strength, these investors love finding stable stocks that have been pushed lower.  Both these strategies have their place in a successful investor’s quiver of tactics. However, one beats the other when it comes to stock selection for the long term.  Buying weakness, not… Read More

When it comes to stock picking, there are two primary schools of thought. The first, and by far most popular, school believes in selecting stocks based on strength. These investors buy breakouts, bullish signals, and uptrends. The second school teaches to look for price weakness when selecting stocks. Following the age-old mantra of buying weakness and selling strength, these investors love finding stable stocks that have been pushed lower.  Both these strategies have their place in a successful investor’s quiver of tactics. However, one beats the other when it comes to stock selection for the long term.  Buying weakness, not strength, is the key to success for long-term investors. It all goes back to buying long-term value that is created when a solid stock dips in price. Remember, value and price are two different things, and when the price falls, it can create an opportunity to buy value at a discount. A Winning Value-Finding Tactic My favorite way to buy weakness is to scan for stocks with “gap downs” on the daily chart.  #-ad_banner-#Gap downs, which occur in a stock’s price chart when the price jumps down with no trading between, are usually caused by investors dumping shares on… Read More

When it comes to legislation and its effects on society, I try to forget about “party lines” and partisanship… You could almost say I’m agnostic to that kind of thing. That’s especially true of hotly debated healthcare issues. The Affordable Care Act (ACA) — better known as “Obamacare” — is, unfortunately, one act that’s divided many Americans. As we try to improve on its framework, I find it humorous that pundits on both sides get the argument wrong over and over again. No matter what you think about the ACA, I think it’s fair to say that all of us… Read More

When it comes to legislation and its effects on society, I try to forget about “party lines” and partisanship… You could almost say I’m agnostic to that kind of thing. That’s especially true of hotly debated healthcare issues. The Affordable Care Act (ACA) — better known as “Obamacare” — is, unfortunately, one act that’s divided many Americans. As we try to improve on its framework, I find it humorous that pundits on both sides get the argument wrong over and over again. No matter what you think about the ACA, I think it’s fair to say that all of us want quality healthcare that’s truly affordable — both insurance premiums and the cost of treatment. Lawmakers seem to think throwing money at the growing problem of uninsured Americans and soaring costs would help, but the biggest issue isn’t with the premiums themselves… it’s something totally different. The good news is that the part of the healthcare puzzle that’s missing is going to be found, even if part or all of the legislation is repealed — the best part is that we can profit from it! —Sponsored Link— Bill Gates’ Prediction Will Give You Goosebumps One… Read More

The classic buy-and-hold strategy is in decline. That’s too bad, because the strategy is a good one. So what explains the lack of support from investors and financial writers for the strategy that arguably set Warren Buffet apart from almost every other investor in history? Personally, I think it owes to a fundamental misunderstanding of the strategy. You see, buy and hold is a strategy that still works for stocks purchased at a discount to their intrinsic values. That means an investor must buy the stock at the right price. And if the investor does this correctly, a portfolio will… Read More

The classic buy-and-hold strategy is in decline. That’s too bad, because the strategy is a good one. So what explains the lack of support from investors and financial writers for the strategy that arguably set Warren Buffet apart from almost every other investor in history? Personally, I think it owes to a fundamental misunderstanding of the strategy. You see, buy and hold is a strategy that still works for stocks purchased at a discount to their intrinsic values. That means an investor must buy the stock at the right price. And if the investor does this correctly, a portfolio will contain stocks that will be held for a very long time.  You see, a long holding period is just a natural result of prudent stock picking.  For sure, the hardest part of this process is resisting the temptation to sell — especially in times of economic distress. But significant gains can be had when investors hold stocks for the long term.  And this isn’t just an academic exercise, either… Below is a brief overview of three stocks I own which I will likely never sell. The High-Tech Darling The first is Nvidia (Nasdaq: NVDA). For readers familiar with… Read More

Let me ask you a question. Do you like heavy, clunky cell phones whose batteries lose their charge quickly? Of course not. Nobody does. And that’s why manufacturers are constantly seeking battery designs that are more compact and powerful.  In the old days, the best we could do was nickel-cadmium chemistries. You can still find them in ancient cordless phones built in the early 1990s. But then lithium-ion made its breakthrough, and the world has never looked back.  Lithium has more uses than duct tape. You’ll find it in fireworks, airplanes, glass cookware, and medicine cabinets. It’s even a key… Read More

Let me ask you a question. Do you like heavy, clunky cell phones whose batteries lose their charge quickly? Of course not. Nobody does. And that’s why manufacturers are constantly seeking battery designs that are more compact and powerful.  In the old days, the best we could do was nickel-cadmium chemistries. You can still find them in ancient cordless phones built in the early 1990s. But then lithium-ion made its breakthrough, and the world has never looked back.  Lithium has more uses than duct tape. You’ll find it in fireworks, airplanes, glass cookware, and medicine cabinets. It’s even a key raw material for rocket fuel propellant and nuclear reactor coolant.  But that’s not why I like it. These are just niche applications.  The true utility comes from the fact that lithium is endowed with some curious properties. It is the lightest of all metals (it can actually float on water) and has twice the energy storage density of previous materials. That’s an ideal combination, which is why lithium is coveted by battery makers.  Last quarter alone, approximately 307 million smartphones were produced worldwide (about 140,000 per hour), most of which were outfitted with lithium batteries. And it’s not just phones. Read More