This is no longer our grandparents’ or even parents’ stock market. High valuations have become the norm in an investing world dominated by retail traders. But when market volatility is high and economic uncertainty is on the rise, your best bet is to invest in mega-cap stocks. Why? Well, although there are no guarantees in
Dividend Stocks
Early last month I wrote that Exxon Mobil (NYSE:XOM), then trading for $60.14, was worth at least 25% more at $75.19. At the time, XOM stock had a 5.76% dividend yield and traded for 16 times forward earnings. Source: Michael Gordon / Shutterstock.com The good news is that Exxon is now cheaper at $55.10 as
Healthcare REITs have dramatically underperformed the broader market over the last 12 months due to the impact of the coronavirus crisis on their business. However, investors should not dismiss these stocks, particularly given that the broad market has doubled off its bottom last year and is now trading at a rich valuation level. While healthcare
Let’s talk about utility stocks. Companies that grow dividends during periods of economic expansion are very common. The more difficult endeavor is to grow the dividend during times of economic hardship. Demand often falls in many areas as consumers and companies reduce their spending in recessions. Customers tend to keep their spending to a minimum
When it comes to selecting dividend stocks to buy, investors can take their pick: high yield stocks, blue chip stocks with safe payouts, stocks with high dividend growth rates, value stocks; the list goes on. But selecting undervalued dividend stocks is particularly advantageous for a variety of reasons, not the least of which is that
Robinhood stocks have generally been associated with speculative buys or meme trades. That’s not inherently bad — it’s a good idea to set aside some space in your portfolio for speculative plays. Even if only one or two stocks provide multi-fold returns, those gains can positively impact the health of your overall portfolio. At the
Wells Fargo (NYSE:WFC) just doubled its quarterly dividend per share from 10 cents to 20 cents. This raised the dividend yield for WFC stock to 1.64% as of Aug. 9. Source: Martina Badini / Shutterstock.com Additionally, Wells Fargo just reported excellent earnings with a good increase in its tangible book value per share (TBVPS). I
While growth names typically get all the headlines, every investor should consider cash flow. Certainly, you don’t want to be trading hours for income all your life, which means you need a portfolio of companies that will pay you — whether their underlying securities perform well or not. Therefore, dividend stocks have permanent relevance. But
ViacomCBS (NASDAQ:VIAC) should be a wildly profitable investment. It isn’t one. The best trade on this stock over the last year was a short. If you borrowed shares to sell during its January and February run-up, you prospered after Archegos Capital collapsed. Source: Jer123 / Shutterstock.com Viacom shares started August 2 near the level they
Investing in companies with competitive advantages and sustainable dividend payouts is one of the best ways to generate long-term wealth creation. So, what’s a great place to start when looking for high-quality dividend growth stocks? To me, you can’t go wrong with the Dividend Aristocrats, an exclusive group of 65 stocks that have at least
The U.S. economy is back in growth mode and unemployment is falling despite the lingering threat of the Delta variant. This bodes well for the nation’s restaurant stocks, which were hit especially hard by the pandemic. Restaurant stocks have notched impressive returns in the past several months and are primed for further growth as the
If you’re in the market for an investment that could last for generations, I invite you to consider Wells Fargo (NYSE:WFC) stock. Source: Ken Wolter / Shutterstock.com It’s a banking giant that seems to respect the WFC stockholders – even if Wells Fargo’s reputation with its customers isn’t perfect. You may have heard allegations about the
Telecom titan AT&T (NYSE:T) is a company that your grandparents might have invested in. I consider T stock to be an all-wealth holding – something that offers security through both good and bad times. Source: Jonathan Weiss/Shutterstock Still, even a huge company like AT&T has to execute as the stakeholders expect results, quarter after quarter. The
Many AT&T (NYSE:T) investors may wonder whether it’s time to cash out, as the company is anticipated to cut its dividends. But I’m urging investors to rethink their stance, as there’s a very good reason behind the dividend cut, which could benefit investors after considering the capital gains versus dividend income tradeoff. In addition, investors
Inflation has definitely penetrated the U.S., as the June U.S. producer price index jumped 7.3% year-over-year and 1% month-over-month. The YOY surge was the highest on record. Investors looking for a conservative way to combat the inflation, which will probably stay elevated for at least the next year, should consider safe, high-yield stocks. Certainly, a
When it comes to dividend stocks, income investors would do well to determine the best sectors to buy from. Certain sectors lend themselves to longevity, stable earnings and strong fundamentals. One such sector is tobacco stocks, which collectively offer investors many of the attributes that make for great dividend stocks. One of those attributes is
This may seem like a weird time to be recommending Exxon Mobil (NYSE:XOM) stock. Inflation expectations — and policymakers’ lack of clarity regarding plans to curb any potential inflation crisis — are discouraging investors. None of us can control the fact that central authorities are prioritizing per-capita GDP recovery while ignoring surging prices. Source: Jonathan
Dividend investors often pay attention to stocks with the highest yields, and understandably so; the appeal of a big yield for income-focused investors is difficult to overlook. But over time, investors can often generate larger dividends by selecting quality blue chip stocks with high levels of dividend growth, rather than simply chasing the highest yield
ExxonMobil (NYSE:XOM) announced very satisfactory second-quarter results on July 30, but the shareholders seem to want more. The problem is the company is doing exactly what it should do with its cash flow. It’s covering its very ample dividend, paying down debt, and paying for necessary capital expenditures. In short, XOM stock is still very
AT&T (NYSE:T) shocked the world this summer. AT&T has long been a centerpiece of many retirees and income investors’ portfolios. T stock generally yielded in the 6% range annually, and at times paid an even higher rate than that. Source: Jonathan Weiss/Shutterstock This was a massive number in a zero interest rate world. With banks paying