Income, strength, and stability are the three core characteristics every retired person needs in their portfolio. Because retirees lack the luxury of a steady paycheck, dividends are the key to financial stability after one leaves the workforce.  But what types of dividend stocks are best for retirees? Of course, any choice needs to possess the three core characteristics above, but there are other factors that make a dividend-payer truly unique. By far the most important is a genuine potential for price appreciation and growth.  I drilled down three stocks that I think contain all three of these essential characteristics…  1. Read More

Income, strength, and stability are the three core characteristics every retired person needs in their portfolio. Because retirees lack the luxury of a steady paycheck, dividends are the key to financial stability after one leaves the workforce.  But what types of dividend stocks are best for retirees? Of course, any choice needs to possess the three core characteristics above, but there are other factors that make a dividend-payer truly unique. By far the most important is a genuine potential for price appreciation and growth.  I drilled down three stocks that I think contain all three of these essential characteristics…  1. AT&T (NYSE: T) AT&T shares have suffered this year, with a nearly 10% price plunge due to slowing growth, competition, and a substantial debt load. The selling has placed this legacy telecommunication and data company deep in the value zone, setting up an ideal buy opportunity for yield-hungry investors. #-ad_banner-#Long known as a dividend aristocrat, AT&T has increased its dividends for an astounding 30 years in a row. Currently yielding an impressive 5%-plus annually with a quarterly dividend of about $0.49 per share, the company is the seventh-highest-yielding name in the S&P 500.  Boasting revenue of nearly $162 billion,… Read More

Traditionally, many income securities have come from the energy sector. Large integrated oil companies, for instance, have long been a staple of many income portfolios. A big reason for that was a business model that benefited investors: Steady demand for their product (oil) resulted in steady cash flows. Of course, the steady rise in oil prices between 2001 and 2008 didn’t hurt either. But much has changed in the past few years, as major economic trends have collided and driven oil prices lower. The emergence and economic viability of alternative energy is one such factor. The other major trend that… Read More

Traditionally, many income securities have come from the energy sector. Large integrated oil companies, for instance, have long been a staple of many income portfolios. A big reason for that was a business model that benefited investors: Steady demand for their product (oil) resulted in steady cash flows. Of course, the steady rise in oil prices between 2001 and 2008 didn’t hurt either. But much has changed in the past few years, as major economic trends have collided and driven oil prices lower. The emergence and economic viability of alternative energy is one such factor. The other major trend that has impacted the price of oil is the advances in hydraulic fracturing — what most of us know as “fracking.” This new technology that has unleashed huge oil and gas reserves hidden in the U.S. shale basins has resulted in massive growth in oil production.  —Sponsored Link— Millionaire Releases His Personal Stock Checklist For 26 years, a scientist from Delaware has carefully analyzed the potential of an unusual stock pattern, and has secretly developed a formula to identify it. On just the best trades alone thus far in 2017, this pattern has delivered 31 triple… Read More

Back in 2014 offshore drilling giant Seadrill (NYSE: SDRL) was a darling for high-yield stock investors. At the time, Seadrill was the largest offshore driller in the world by market cap. Revenue was surging, hitting a fresh all-time high early in the year.    Most importantly for high-yield stock investors, Seadrill was paying one of the best dividends in the entire global stock market. Between 2010 and 2014 Seadrill’s dividend yield ranged between 7.0% and 10.8% — topping off above 11.0% in early January. Take a look below.     Despite the impressive run of revenue growth and dividend payments,… Read More

Back in 2014 offshore drilling giant Seadrill (NYSE: SDRL) was a darling for high-yield stock investors. At the time, Seadrill was the largest offshore driller in the world by market cap. Revenue was surging, hitting a fresh all-time high early in the year.    Most importantly for high-yield stock investors, Seadrill was paying one of the best dividends in the entire global stock market. Between 2010 and 2014 Seadrill’s dividend yield ranged between 7.0% and 10.8% — topping off above 11.0% in early January. Take a look below.     Despite the impressive run of revenue growth and dividend payments, by the end of 2014 Seadrill investors were begging for mercy. When the price of oil crashed in the summer of 2014, it took Seadrill’s revenue and dividend payment with it. By the end of 2014 the company had scrapped its dividend payment entirely.   Two days ago, Seadrill — once the largest offshore driller in the world — filed for bankruptcy, virtually wiping out all of its remaining stock and bond holders. It was a stunning turn of events for a once great company, and an important lesson for high-yield stock investors.    #-ad_banner-#​Not All High-Yield Stocks Are Created… Read More

Once upon a time, tech stocks were hot. They eventually crashed back to earth, only to rise again and lead this bull market.  The survivors of the dot-com era clearly did something right, and Cisco Systems (Nasdaq: CSCO) is a great example.  While shares trade much lower than the March 2000 high of $82, the stock has come a long way from the October 2002 low of $8.12. During that comeback, the company has made itself stronger, has become essential for making the internet work the way it does, and has become a powerful income stock in the process.  #-ad_banner-#It’s… Read More

Once upon a time, tech stocks were hot. They eventually crashed back to earth, only to rise again and lead this bull market.  The survivors of the dot-com era clearly did something right, and Cisco Systems (Nasdaq: CSCO) is a great example.  While shares trade much lower than the March 2000 high of $82, the stock has come a long way from the October 2002 low of $8.12. During that comeback, the company has made itself stronger, has become essential for making the internet work the way it does, and has become a powerful income stock in the process.  #-ad_banner-#It’s probably hard to find an investor who hasn’t heard about Cisco — and yet, many people don’t know what, exactly, Cisco does. I think there are a couple reasons for that gap. One is the highly technical nature of Cisco’s business. The other is the wide variety of products and services Cisco makes. But all of its products, all of its services, all of the changes Cisco went through over the years, they all have something in common: They all connect people.  And because the world is becoming even more interconnected, Cisco’s work is never finished. The company builds products… Read More

U.S. equity markets have had a good year. The prices of the indices themselves sit at all-time highs while year-to-date returns have given investors reason to celebrate. The Dow Jones Industrial Average has gained 10.5%, the S&P 500 better than 9% and the tech-heavy Nasdaq is up nearly 17%. However, unless you were smart enough to take the passive index-following route or stick with the much hyped FAANG (Facebook, Apple, Amazon, Netflix, Google) names, you may be among the frustrated. In previous articles, I’ve called out some of those frustrated investors moaning about the lack of quality bargains in stocks. Again,… Read More

U.S. equity markets have had a good year. The prices of the indices themselves sit at all-time highs while year-to-date returns have given investors reason to celebrate. The Dow Jones Industrial Average has gained 10.5%, the S&P 500 better than 9% and the tech-heavy Nasdaq is up nearly 17%. However, unless you were smart enough to take the passive index-following route or stick with the much hyped FAANG (Facebook, Apple, Amazon, Netflix, Google) names, you may be among the frustrated. In previous articles, I’ve called out some of those frustrated investors moaning about the lack of quality bargains in stocks. Again, I will say that they’re just not looking hard enough. Using a screen for large-cap stocks based on forward price-to-earnings ratio (P/E) discounts and dividend yields greater than 2%, I’ve uncovered a list of high-quality, big-name, franchise stocks that are trading at deep discounts to the market. Here are three of the strongest. The Blackstone Group (NYSE: BX) With a market cap of nearly $40 billion, Blackstone is the undisputed heavyweight champ of what we in the wealth management business refer to as alternative asset management. Alternative assets run the spectrum from long-short, hedge-fund style products to real estate… Read More

It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana… Read More

It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana — forever. In fact, if you haven’t already dipped your toes into cannabis investing, now is the time. You see, thanks to this historic announcement, tiny pot stocks trading for under $5 are getting set to double, triple, or quadruple. And by putting a couple hundred bucks into these penny stocks, you could pocket life-changing gains — turning a fortune overnight. America’s leading pot stock expert shares all the good news — including details on five tiny weed stocks — right here. Here’s How It Works…  There is no complicated system to learn. All you have to do is… Read More

I had a busy summer. Whether it was helping one son with his Eagle Scout project, shuttling the other one to out-of-state lacrosse tournaments for his summer travel team, or expanding my business, there wasn’t a whole lot of time for leisurely summer stuff. The market has had a busy summer as well. Since the middle of May, the S&P 500 Index has surged nearly 4.5% while the index has climbed more than 10% year-to-date. On the bond side of the market, yields on the 10-year Treasury have fallen nearly 8%, causing pundits and investors alike to fret over extended… Read More

I had a busy summer. Whether it was helping one son with his Eagle Scout project, shuttling the other one to out-of-state lacrosse tournaments for his summer travel team, or expanding my business, there wasn’t a whole lot of time for leisurely summer stuff. The market has had a busy summer as well. Since the middle of May, the S&P 500 Index has surged nearly 4.5% while the index has climbed more than 10% year-to-date. On the bond side of the market, yields on the 10-year Treasury have fallen nearly 8%, causing pundits and investors alike to fret over extended valuations and low yields.  On the surface, it would appear that they’re right. But they’re not diving deep enough. Relative value and attractive yields are out there. A Truly Impressive Income Fund Recently, I’ve been exploring closed-end funds (CEFs). The primary reason is that they typically pay above-average dividend yields and often trade at attractive discounts to their net asset value (NAV). One fund that’s caught my attention is the Franklin Limited Duration Income Trust (NYSE: FTF). With total net assets of around $300 million, FTF focuses on providing investors a high rate of income by taking a bottom-up… Read More

Honestly, even one would have been big news.  But just a couple of weeks ago, in a single day, two U.S.-listed high-yielding companies moved to either significantly reduce or eliminate their dividends.  Both are from industries income investors traditionally flock to, and both stocks dropped sharply on the news.  On August 3, large-cap Israel-based Teva Pharmaceuticals (NYSE: TEVA) announced a 75% cut to its dividend payment. Afterward, the stock lost 44% of its market value in just five days. There is no doubt in my mind that the dividend cut was a major culprit.  Then there’s the much smaller rural… Read More

Honestly, even one would have been big news.  But just a couple of weeks ago, in a single day, two U.S.-listed high-yielding companies moved to either significantly reduce or eliminate their dividends.  Both are from industries income investors traditionally flock to, and both stocks dropped sharply on the news.  On August 3, large-cap Israel-based Teva Pharmaceuticals (NYSE: TEVA) announced a 75% cut to its dividend payment. Afterward, the stock lost 44% of its market value in just five days. There is no doubt in my mind that the dividend cut was a major culprit.  Then there’s the much smaller rural telecom company Windstream Holdings (NYSE: WIN). This former high-yield darling is high-yield no more. Indeed, this company does not even qualify for a “yield” tag now. On August 3, Windstream announced that it would be eliminating its dividend. Naturally, the shares plunged. As I write this, WIN is down more than 75% year-over-year, with 45% of its fall coming in the five days since the announcement.  —Recommended Link— Don’t Hate The Rich, Join Them! Too many people go through life envying the rich and their lavish lifestyles. But what if you could join them? Recently, a group of millionaires and… 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… 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

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