Analyst Articles

Dividend investing is one of the most popular themes among investors — and rightfully so. Multiple studies have confirmed the market-busting returns of dividend stocks. Ned Davis Research found that over the four decades through 2014, dividend-paying stocks returned 7.6% on an annualized basis versus just 2.6% from stocks that paid no dividend. And that’s just the companies that kept their payouts consistent. Companies that regularly increased their dividend payouts returned 10.1% annually. #-ad_banner-#Not only do dividend stocks often outperform their non-dividend peers but they do it with less risk. Over the five years through 2015,… Read More

Dividend investing is one of the most popular themes among investors — and rightfully so. Multiple studies have confirmed the market-busting returns of dividend stocks. Ned Davis Research found that over the four decades through 2014, dividend-paying stocks returned 7.6% on an annualized basis versus just 2.6% from stocks that paid no dividend. And that’s just the companies that kept their payouts consistent. Companies that regularly increased their dividend payouts returned 10.1% annually. #-ad_banner-#Not only do dividend stocks often outperform their non-dividend peers but they do it with less risk. Over the five years through 2015, dividend stocks recorded a standard deviation (a measure of risk in returns) of just 10.0 versus 14.3 for non-dividend payers. But historically-low interest rates have forced investors out of bonds and into dividend stocks for yield. Valuations look stretched and the U.S. economy just recorded its slowest growth in three years. While there’s no reason to believe that dividend stocks won’t continue to outperform the market going forward, investors can’t ignore record-high valuations after eight years of surging stock prices. It does little good to grab a hefty 3% dividend if valuations collapse and prices fall 10% or more. But… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say 80% — should go into these types of investments. But the other 20%? That’s different. Invest that other 20% of your money into big ideas that are changing the world. —Recommended Link— Leaked: Stock Indicator Predicts Market Crash This indicator avoided the 2008 market crash… and got you back into the market just four days after the bottom. To use it, click here. Why? Well, to put it simply, these are the companies that stand the best chance of dramatically increasing your profit potential. That special 20% is important. In fact, it’s the entire focus of y premium newsletter,… Read More

2017 may well go down in history as the best year the stock market has ever witnessed. But it could also be remembered as the year the roaring bull market ended and the economy plunges into dark days. While no one knows which outcome the rest of the year will bring, investors can prepare for any situation by investing in the major themes of this year. #-ad_banner-#The biggest theme dictating which stocks to watch in 2017 is uncertainty. Despite the massive bull market of 2016, many investors believe the major index ceiling has been set. Should this prove to be… Read More

2017 may well go down in history as the best year the stock market has ever witnessed. But it could also be remembered as the year the roaring bull market ended and the economy plunges into dark days. While no one knows which outcome the rest of the year will bring, investors can prepare for any situation by investing in the major themes of this year. #-ad_banner-#The biggest theme dictating which stocks to watch in 2017 is uncertainty. Despite the massive bull market of 2016, many investors believe the major index ceiling has been set. Should this prove to be the case, consumer staple stocks make sense. Even if the market continues higher, these stocks can make a great addition to your portfolio. Next, regulatory changes are on the forefront. 2017 has proven to be a year of transition, both in the world of taxation and the social space. One of the most dramatic changes is the acceptance of and decriminalization of marijuana in the medical sector, and some places for recreational use. An ongoing megatrend that will very likely to continue in 2017 is pet ownership. Not only do consumers own more pets, but they are also spending more… Read More

From humble beginnings as an online book retailer, few companies have had more of an effect on the retail sector — indeed, the daily lives of all of us — than Amazon (Nasdaq: AMZN). Today, it’s a $438 billion behemoth, selling just about any product imaginable. That’s the cover story. But Amazon is much more than an online retailer. #-ad_banner-#We’re talking about a company with the analytical capabilities to know what its customers likely want even before they begin searching its website. We’re talking about warehouses strategically placed across the country, carefully stocked with inventory based on its vast databases… Read More

From humble beginnings as an online book retailer, few companies have had more of an effect on the retail sector — indeed, the daily lives of all of us — than Amazon (Nasdaq: AMZN). Today, it’s a $438 billion behemoth, selling just about any product imaginable. That’s the cover story. But Amazon is much more than an online retailer. #-ad_banner-#We’re talking about a company with the analytical capabilities to know what its customers likely want even before they begin searching its website. We’re talking about warehouses strategically placed across the country, carefully stocked with inventory based on its vast databases — with workers increasingly replaced by more efficient robots — to ensure rapid fulfilment. (Soon, drones may replace delivery drivers.) Its innovations in logistics alone are enough to fill a doctoral thesis. And that’s just half the story. Amazon is also a game-changer in the media business… The advertising business… The cloud business… The list goes on and on. It’s for this reason I call Amazon one of the “World’s Greatest Businesses.” There’s just one problem. For years, Amazon has defied traditional investing logic. Think about it… It’s one of the few “internet” companies that survived the dot-com crash relatively… Read More

The French are funny. They smoke cigarettes while riding bicycles. They hail Jerry Lewis as a filmmaking genius. My favorite scene in Monty Python and the Holy Grail is when King Arthur and his men encounter the insulting French knight. And throughout the rise of western civilization, they’ve ALWAYS been a lynchpin in global affairs where continental Europe is concerned. #-ad_banner-#We’ve been reminded of that for the last few weeks as the world and markets have been biting their collective nails over the French presidential election. And it’s no surprise; the nervousness follows the UK Brexit vote and Donald Trump’s… Read More

The French are funny. They smoke cigarettes while riding bicycles. They hail Jerry Lewis as a filmmaking genius. My favorite scene in Monty Python and the Holy Grail is when King Arthur and his men encounter the insulting French knight. And throughout the rise of western civilization, they’ve ALWAYS been a lynchpin in global affairs where continental Europe is concerned. #-ad_banner-#We’ve been reminded of that for the last few weeks as the world and markets have been biting their collective nails over the French presidential election. And it’s no surprise; the nervousness follows the UK Brexit vote and Donald Trump’s populist-tilted upset in the 2016 U.S. presidential election. In France, the contest has pitted ultra-right wing, anti-EU Marine Le Pen versus, basically, everyone else, but mainly center-left candidate, pro-EU Emmanuel Macron. After the first round, Macron has emerged as the frontrunner and, although he faces Le Pen in the run-off, indications tell us that the French are leaning towards the more moderate Macron. Markets have breathed a sigh of relief with encouraging rallies and pundit-talk of, at long last, real growth in European equities. Here are three growth stocks for 2017 investors should look at. 1. Royal Dutch Shell (NYSE:… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful dividend hikes in the near future. According to FactSet Research, dividend distributions among S&P 500 companies have increased for 11 straight quarters. Over the past year, aggregate payments are up 4.8% to $431 billion. That’s the good news. The bad news is that many companies have reached the upper limits of what they can afford to distribute relative to current profits. #-ad_banner-#In fact, 44 members of the S&P (almost 10%) have unsustainable payout ratios above 100%, meaning they aren’t earning enough to cover their dividend payments. Many of these companies may have trouble maintaining their current… Read More

Anyone who knows me knows that one of my favorite investing techniques is to find a trend to follow. Once found, I stay with it as long as possible. Of course it helps to find the trend early, too. But finding an early trend can be difficult. For example, finding an actionable trend in natural gas seems almost impossible. As you can see from the chart below, the median price of natural gas has trended around the $2.50 range for the past 18-months. And this lack of positive momentum in the price of natural gas makes gas stocks… Read More

Anyone who knows me knows that one of my favorite investing techniques is to find a trend to follow. Once found, I stay with it as long as possible. Of course it helps to find the trend early, too. But finding an early trend can be difficult. For example, finding an actionable trend in natural gas seems almost impossible. As you can see from the chart below, the median price of natural gas has trended around the $2.50 range for the past 18-months. And this lack of positive momentum in the price of natural gas makes gas stocks unattractive. But here’s the thing: Natural gas prices are at the beginning stages of a long-term trend that will prevent them from staying this way. Here’s Why While natural gas averaged $2.51 in 2016, the U.S. Energy Information Administration (EIA) estimates average prices will rise to $3.55 in 2017. This bodes well for natural gas companies as well as companies moving product across the United States and the globe. EIA predicts that commercial use of natural gas will rise by 6 percent in 2017. Even so, those kinds of numbers are not a trend that… Read More