Nobody likes to be early to a party. After all, it can be painfully awkward at times before the rest of the crowd shows up. In fact, you may even wonder why you bothered to come in the first place. That’s what’s happening right now with one of our energy picks over at High-Yield Investing.  In short, my readers and I spotted a solid company whose stock was so oversold — so unloved — that we just had to buy. And while we love collecting the 5% yield it’s paying right now, the stock price itself has yet to rebound. … Read More

Nobody likes to be early to a party. After all, it can be painfully awkward at times before the rest of the crowd shows up. In fact, you may even wonder why you bothered to come in the first place. That’s what’s happening right now with one of our energy picks over at High-Yield Investing.  In short, my readers and I spotted a solid company whose stock was so oversold — so unloved — that we just had to buy. And while we love collecting the 5% yield it’s paying right now, the stock price itself has yet to rebound.  So to understand what’s going on (and why I think we’re overdue for a spike in the shares), let’s consider a completely different “unloved” sector for a moment…  —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account​ Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. But your action is required TODAY while the enrollment window is open. … Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower… Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower rates by 50 basis points at its September meeting. The next most likely outcome (23%) was a quarter-point cut, followed by a 19% chance of a 75-basis point cut and a slim 3% probability that rates remain unchanged. While it wasn’t specifically stated (you can do the math), that implied a zero percent chance of a rate hike. The Fed didn’t make any moves at last week’s meeting, leaving short-term lending rates at 2.25% to 2.50%. But post-game comments from Fed chief Jerome Powell suggested that rate cuts could be coming sooner rather than later. Citing the cooler global economy… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this is one that’s actually worth a further look… An Inside Look At Hoegh LNG As a reminder, Hoegh owns floating storage and regasification units (FSRUs). Basically, these are ships anchored off the coast that have been mounted with regasification equipment. In the simplest terms, they turn liquefied natural gas (LNG) back into a usable product, which is then pumped via pipeline to the shore where it can be distributed to utilities or other end users. (The U.S. Energy Information Administration has a good primer on LNG, which you can read here.)  So, when an LNG… Read More

More than usual, the markets have been very sensitive as to what the Federal Open Market Committee (FOMC) will do in terms of interest rates. Analysts and investors alike hang on every word and action that the FOMC makes.  Will they increase rates? And if so by how much? Or will economic data and market sensitivity cause them to once again cut rates? These are the questions at the top of investors’ minds.  We’ve enjoyed a decade of low interest rates, which has arguably provided a boost to the stock market as well as helped millions lock in record-low mortgage… Read More

More than usual, the markets have been very sensitive as to what the Federal Open Market Committee (FOMC) will do in terms of interest rates. Analysts and investors alike hang on every word and action that the FOMC makes.  Will they increase rates? And if so by how much? Or will economic data and market sensitivity cause them to once again cut rates? These are the questions at the top of investors’ minds.  We’ve enjoyed a decade of low interest rates, which has arguably provided a boost to the stock market as well as helped millions lock in record-low mortgage rates.  But it has come at a cost… —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account ​Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. But your action is required TODAY while the enrollment window is open. You must click here right now to get started. Interest earned in savings accounts, money market accounts, Certificates of Deposit (CDs),… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable business conditions, all else being equal. This month, I told my premium newsletter subscribers about three companies that are likely to give shareholders a dividend boost in the next four to six weeks. And while High-Yield Investing readers get a lead on this information each month before anyone else, I always make a point to pass my findings along to the public. So without further delay, here they are… 1. Illinois Tool Works (NYSE: ITW) — This industrial manufacturer sells auto parts, welding equipment, restaurant ovens and coolers, and many other specialized products spanning seven distinct business segments. It’s not exactly… 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… 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

Who doesn’t love receiving a dividend check in the mail? In fact, many investors clamor over stocks that pay consistent and growing dividends. There’s even a select group of stocks within the S&P 500 that have grown their dividends consistently, every year, for at least 25 consecutive years. These elite stocks are known as “Dividend Aristocrats,” and you can invest in them through the ProShares S&P 500 Dividend Aristocrats ETF (AMEX: NOBL).  Of course, over at my Maximum Profit premium newsletter service, we aren’t necessarily concerned with dividends as much as short-term capital growth, but there’s little doubt that dividends,… Read More

Who doesn’t love receiving a dividend check in the mail? In fact, many investors clamor over stocks that pay consistent and growing dividends. There’s even a select group of stocks within the S&P 500 that have grown their dividends consistently, every year, for at least 25 consecutive years. These elite stocks are known as “Dividend Aristocrats,” and you can invest in them through the ProShares S&P 500 Dividend Aristocrats ETF (AMEX: NOBL).  Of course, over at my Maximum Profit premium newsletter service, we aren’t necessarily concerned with dividends as much as short-term capital growth, but there’s little doubt that dividends, especially when reinvested, contribute a massive amount to total return over a long timeframe. To give you an idea, going back to 1960, 82% of the total return of the S&P 500 Index can be attributed to reinvested dividends.  What if we could have the best of both worlds? What if we could identify the top-paying dividend stocks that are also likely to see strengthening share prices? Sounds like a worthy mission for my next stock screen.  Let’s Hunt For Dividend Stocks With Momentum There are currently 57 companies that meet the criteria of a Dividend Aristocrat (companies that… 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