I’m betting that sometime today, a shipping container will fall into the sea. That’s what the odds tell us, anyway. According to a survey by the World Shipping Council, an average of 612 containers go overboard each year. Some even wash up on distant shores, disgorging their soaked cargo. Scavengers on Dutch islands recently picked through furniture, clothing and televisions that had broken free after a ship was battered by 30-foot waves and fierce winds. In the grand scheme of things, though, such events are rare. About 99.999% of these sturdy steel boxes make it safely to their destinations. There… Read More

I’m betting that sometime today, a shipping container will fall into the sea. That’s what the odds tell us, anyway. According to a survey by the World Shipping Council, an average of 612 containers go overboard each year. Some even wash up on distant shores, disgorging their soaked cargo. Scavengers on Dutch islands recently picked through furniture, clothing and televisions that had broken free after a ship was battered by 30-foot waves and fierce winds. In the grand scheme of things, though, such events are rare. About 99.999% of these sturdy steel boxes make it safely to their destinations. There are approximately 30 million shipping containers in use worldwide, and most make several transits annually. Built to be nearly indestructible, these stackable twenty-by-eight foot containers can safely hold up to 25 tons of cargo. Pry one open, and you might find tennis shoes inside… or kitchen appliances, sporting goods or lawn mowers. There are even refrigerated units for frozen foods and other perishable cargo. Consumers give little thought to how merchandise arrives on store shelves at their local Wal-Mart or Target. We don’t even notice until items are out of stock (or prices creep higher). But think how empty those… Read More

Last month, I brought you up to speed on Occidental Petroleum (NYSE: OXY) (a High-Yield Investing portfolio holding) and its bold plan to steal Anadarko Petroleum (NYSE: APC) away from Chevron (NYSE: CVX).  Chevron had already signed a deal to take over Anadarko’s prized Permian Basin assets for $33 billion in cash and stock, but Occidental swooped in with a superior $38 billion bid, thanks largely to timely financial assistance from Warren Buffett’s Berkshire Hathaway.  As usual, Buffett drove a hard bargain and exacted great terms for his shareholders. In exchange for $10 billion in upfront financing, Berkshire will… Read More

Last month, I brought you up to speed on Occidental Petroleum (NYSE: OXY) (a High-Yield Investing portfolio holding) and its bold plan to steal Anadarko Petroleum (NYSE: APC) away from Chevron (NYSE: CVX).  Chevron had already signed a deal to take over Anadarko’s prized Permian Basin assets for $33 billion in cash and stock, but Occidental swooped in with a superior $38 billion bid, thanks largely to timely financial assistance from Warren Buffett’s Berkshire Hathaway.  As usual, Buffett drove a hard bargain and exacted great terms for his shareholders. In exchange for $10 billion in upfront financing, Berkshire will walk away with a stack of preferred shares with an 8% coupon that will generate $800 million in annual dividends.  Behind The Numbers The total price tag for this purchase comes to $57 billion including the assumption of debt. Before the bidding war started, APC had an enterprise value of around $40 billion. While it’s common for acquirers to offer a nice premium, some of Occidental’s largest shareholders feel that the $76 per share bid was far too generous. Asset manager T. Rowe Price and shareholder activist Carl Icahn have both publicly expressed their disapproval.  Occidental is paying an Enterprise… Read More

The first quarter proved to be challenging for many retailers (especially in the apparel sector), and it was no exception for Nordstrom (NYSE: JWN), a holding in my Daily Paycheck premium newsletter portfolio. #-ad_banner-#Sales for the period slipped 3.3% to $3.44 billion, driven largely by weakness in the full-price division (the off-price Nordstrom Rack stores performed in line with last year). It wasn’t an egregious top-line miss, but with operating margins contracting, earnings were cut in half to just $0.23 per share — well short of expectations. With the slow start, Nordstrom trimmed back its full-year 2019 outlook and is now… Read More

The first quarter proved to be challenging for many retailers (especially in the apparel sector), and it was no exception for Nordstrom (NYSE: JWN), a holding in my Daily Paycheck premium newsletter portfolio. #-ad_banner-#Sales for the period slipped 3.3% to $3.44 billion, driven largely by weakness in the full-price division (the off-price Nordstrom Rack stores performed in line with last year). It wasn’t an egregious top-line miss, but with operating margins contracting, earnings were cut in half to just $0.23 per share — well short of expectations. With the slow start, Nordstrom trimmed back its full-year 2019 outlook and is now forecasting earnings between $3.25 and $3.65 per share, versus a prior range of $3.65 to $3.90 per share. In other words, the previous worst-case scenario ($3.65) is now the best case. While the industry, in general, is fighting against headwinds, Nordstrom has hobbled its own turnaround efforts with operational miscues. Changes to the firm’s well-regarded loyalty club program didn’t go over well (failure to send out promotional sale flyers was cited as a contributing factor). Merchandising strategies were also off the mark. The Bright Side Fashion is fickle, and it’s never easy to predict what customers will want from… Read More

Regardless of the industry, it’s usually smart to listen to your customers.  Enterprise Products (NYSE: EPD) — a longtime holding in my High-Yield Investing premium newsletter — has been getting requests from oil producers to build a new crude pipeline from the Permian Basin to Houston — the gateway to Gulf Coast refineries and export terminals. On May 2, the master limited partnership (MLP) filed the necessary permits. The size and scope of this new project haven’t yet been finalized, but the company should have little trouble finding commitments and signing contracts when the time comes. While raw material costs… Read More

Regardless of the industry, it’s usually smart to listen to your customers.  Enterprise Products (NYSE: EPD) — a longtime holding in my High-Yield Investing premium newsletter — has been getting requests from oil producers to build a new crude pipeline from the Permian Basin to Houston — the gateway to Gulf Coast refineries and export terminals. On May 2, the master limited partnership (MLP) filed the necessary permits. The size and scope of this new project haven’t yet been finalized, but the company should have little trouble finding commitments and signing contracts when the time comes. While raw material costs have been escalating (steel tariffs don’t help), Enterprise has shrewdly locked in prices for steel pipe. This new pipeline will allow the MLP to repurpose an existing line running a similar route from Midland to Houston to capitalize on the demand for natural gas liquids (NGLs) takeaway capacity. It will add to an ambitious $5.0 billion backlog of growth projects that are currently under construction. Over half of these projects will be placed into service (and start earning fees) by the end of the year. #-ad_banner-#In the meantime, we can already see the financial impact of previous spending. The volume… Read More

One of my kids recently stumbled across my brokerage statement and asked if the balance was enough for me to retire.  I assured him it wasn’t. But it was a good learning opportunity, so I further explained that bank accounts, 401(K)s and other assets were only half the picture. You need to deduct car loans, credit card debt and other liabilities to determine net worth.  Of course, the same is true for any business.  —Recommended Link— Ignoring This Event Could Cost You A 6-Figure Payday. In 2014, three different pot stocks exploded by 1,180%… 1,957%… and 2,067%… jamming wads… Read More

One of my kids recently stumbled across my brokerage statement and asked if the balance was enough for me to retire.  I assured him it wasn’t. But it was a good learning opportunity, so I further explained that bank accounts, 401(K)s and other assets were only half the picture. You need to deduct car loans, credit card debt and other liabilities to determine net worth.  Of course, the same is true for any business.  —Recommended Link— Ignoring This Event Could Cost You A 6-Figure Payday. In 2014, three different pot stocks exploded by 1,180%… 1,957%… and 2,067%… jamming wads of cash into the accounts of smart investors. Vocal opponents of marijuana legalization were suddenly quiet… “Something” had changed their minds. Now, two senators are working to get it legalized federally. That could easily hand you a 2,146% return in the next twelve months. Inside this free report, I reveal three stocks you need to own. Plus. the event that could push them into the stratosphere. Click here for the full details. Take Coca-Cola (NYSE: KO). The beverage giant currently owns $8.8 billion in property and equipment, $7.2 billion in cash and equivalents and $3.2 billion in inventory, among other assets. Read More

As many of you know, each month I dedicate an article to informing you about stocks that are poised to put more cash in stockholders’ pockets.  #-ad_banner-#I scan the market for noteworthy special distributions on the horizon, as well as potential dividend hikes on the way over the next four to six weeks. I give special attention to outsized double-digit increases and reliable dividend-payers that have been steadily growing payouts for a decade or more.  I flag these stocks before the official announcements are made, not after, giving you a head-start. (And my High-Yield Investing readers get an even bigger… Read More

As many of you know, each month I dedicate an article to informing you about stocks that are poised to put more cash in stockholders’ pockets.  #-ad_banner-#I scan the market for noteworthy special distributions on the horizon, as well as potential dividend hikes on the way over the next four to six weeks. I give special attention to outsized double-digit increases and reliable dividend-payers that have been steadily growing payouts for a decade or more.  I flag these stocks before the official announcements are made, not after, giving you a head-start. (And my High-Yield Investing readers get an even bigger lead on this information, as you hopefully understand.) If you read last month’s article, then you know our track record on predicting these dividend increases is pretty good — and so are the subsequent gains posted by the stocks we’ve covered. So you’ll want to pay particular attention to this month’s candidates. Here they are… 1. Discover Financial (NYSE: DFS) — This credit-card issuer doesn’t just offer cash back to cardholders — but investors, too. Over the past two years, per-share quarterly distributions have marched from $0.30 to $0.35 to $0.40 — an increase of 33%.  Annual step-ups have been… Read More