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Dividends Still Don’t Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market
Dividends Still Don’t Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market
A timely follow-up to the bestselling classic Dividends Don’t LieIn 1988 Geraldine Weiss wrote the classic Dividends Don’t Lie, which focused on the Dividend-Yield Theory as a method of producing consistent gains in the stock market. Today, the approach of using the dividend yield to identify values in blue chip stocks still outperforms most investment methods on a risk-adjusted basis.Written by Kelley Wright, Managing Editor of Investment Quality Trends, with a new Foreword by Geraldine Weiss,
List Price: $ 29.95
These Stocks Yield Up to 13.5%… But I Doubt You Know About Them
My husband Melvin and I bought our first home when we were expecting our first child. After an exhaustive search, we settled on an up-and-down duplex. It was built in the 1940s and had a rental suite in the basement.
The purchase was a good decision from a financial standpoint. Rental payments covered a substantial part of our mortgage, and about two years later we were able to sell it for 20% more than we paid.
But from a lifestyle perspective, it was not ideal. First, the rental suite's bathroom faucet started leaking. Then ceiling tiles came tumbling down. Soon the rent was a week overdue and counting. There was always something.
I learned some important lessons from that experience. First, carefully selected real estate could be highly profitable. Second, I didn't want to deal with the upkeep required by rental properties.
Thankfully, there are real estate investment trusts (REITs).
The Market is WRONG About this Big Pharma Stock
Generic prescription drugs are the bane of big pharmaceutical companies and investors alike. As patents for name brand drugs expire, generics eat into revenue, shrink earnings, and depress stock prices of the Big Pharma players.
But the smart investor knows that good drug companies are hardly one-trick ponies. The herd always overlooks the mountains of products that either still have patent protection, or have survived and retained market share. Then there's the pipeline full of new products that's often not given enough consideration.
Bottom line: It's important to be able to see the forest for the trees if you want to recognize a good investment opportunity.
And right now, industry giant AstraZeneca Plc (NYSE: AZN) is the forest. And it's on sale.
But first the not-so-good news…
The near-term picture is… well… simply "not good." In the first-quarter, sales declined 11% to $ 7.34 billion, compared with the year-ago period. Operating profits were off 19% from $ 3.67 billion reported in the first quarter of 2011. The result was a dismal 38% drop in earnings per share (EPS) from $ 2.08 to $ 1.28. It's no surprise that the company has lowered core 2012 EPS guidance from $ 6.00-$ 6.30 to $ 5.85-$ 6.15.
On top of all this, there's concern about succession at the top of management. Chairman and CEO David Brennan just announced his retirement. Chief Financial Officer Simon Lowth will serve temporarily in the top slot until a permanent replacement is found.
Is Apple’s Golden Goose About to Be Cooked?
Evidence is rising that wireless carriers are pushing back on smartphone upgrades. Could this kill Apple’s gravy train?
Click to view a price quote on AAPL. Click to research the Computer Hardware industry.
Short Sellers Could be Dead Wrong about this Stock
Every two weeks, we get a chance to look at fresh data on how heavily stocks are being shorted. It helps to see what short-sellers are focusing on — especially if you own one of the stocks being targeted.
You'll often see short positions in a particular stock slowly rise as an increasing number of short sellers start to sniff trouble at a company. But it's highly unusual to see a short position rise from 60 million shares to 139 million shares in just two weeks, as I did. It's as if the entire short-selling community has raced to get on the bus and watch this stock tumble.
Normally, these short-sellers spot red flags in a quarterly report and want to bet against a stock before even worse numbers appear in subsequent quarters. But that's not why they are targeting wireless services provider Sprint Nextel (NYSE: S). The company actually delivered pretty decent results during that interim period between short seller release dates (April 15-30).
Instead, short sellers are focusing on a news item that hit the wires on April 19, a full week before quarterly earnings came out. That's when New York State Attorney General Eric Schneiderman slapped the company with a $ 100 million lawsuit alleging under-collection of sales taxes. The scary part: New York could win triple damages if successful. The really scary part: other states may follow New York's lead, opening Sprint up to a liability in excess of $ 1 billion.
Since I am not a legal expert, I'll lay out the facts for others to digest. Sprint claims it didn't owe taxes on sales associated with out-of-state phone calls. So the company decided to put a reduced amount of taxes on each customer's bill as a way of cementing its reputation as a low-cost industry provider. In my cursory review of the resulting fallout, this is indeed a gray area. Other communications firms have reportedly adopted similar tactics regarding interstate commerce without any pushback.
One Thing Is Certain About the Eurozone
News from the Eurozone continues to drive short-term trading, says John Netto, but with the longer-term picture much more certain, traders can add much-needed clarity to their approach.
MoneyShow.com – Trading Strategies and Techniques
10 Things We Learned About Chesapeake Energy
MINYANVILLE ORIGINAL If you were short Chesapeake Energy (CHK) into its earnings release may I humbly suggest you consider taking some off of the table? The stock traded 145 million shares on Wednesday compared to an average daily volume of just 20 million. That said if things remain as they are I don’t think the stock is done going down — just experiencing some near-term choppiness. I covered approximately half of my short position into the close and will now look to sell calls against it at higher prices. What did we learn on Wednesday? 1. We learned that Chesapeake
Minyanville.com – All Articles
How to Save Money for Just About Anything!
Whether you want to save money for college, a vacation, a wedding, or the latest gizmo to impress your friends, you’re going to need to have a good plan for saving up the money first! Whatever you are saving for, there is a tried and true process for saving money faster than ever and making sure you don’t go spend it on something else! Here are some tips on how to save money for just about anything!
The Process of Saving for Anything
1. Know how much money you need to save.
This one seems like a no-brainer, but you might be tempted to wing it if the purchase you need to make is of substantial value. For example, if you’re saving for a future college education, you might not count the cost first because of the complexity of adding up all the expenses. After all, there’s tuition to pay, books to buy, a gas tank to fill, room and board to deal with, and random college fees that pop out of nowhere. Yikes!
Even though it might be a hassle, it’s recommended that you count the cost of everything involved as best as possible. If you feel you might be missing some expenses, add a bit of extra money to your total; this will help cover any unexpected expenses.
Weekend Edition – Faith, Destiny? How About Choices
As we progress through life, we realize that our past choices have determined our current position. As much as some people like to toss around terms like “faith” and “destiny,” our ultimate success really depends on how we’ve maneuvered through the twists and turns of life.
Was it faith that led to me publishing a newsletter red by tens of thousands of investors each day, or was it the hard work and sacrifices I made to learn my craft as best I could for the last 17 plus years? Was it destiny that Dividend.com was to become the industry leader in investment research for dividend-oriented investors, or was it our daily efforts to produce quality, hard-hitting content that built our large audience?
For those trying to figure out the next chapter of their lives, know the answer will come from the decisions you’ve been making for the past several years. You’ve had control of your own destiny all along.
“Am I Going to be the One Who Blows This Place Up?”
When former General Electric (GE) CEO and business legend Jack Welch was running the huge conglomerate, he’d often ask himself the question above when a key strategy or initiative came down to his final decision. As he looked back at his career, he said this fact was his biggest fault, as it prevented him from moving quicker than he should have at times.
It’s easy to see why Mr. Welch would have constant reservations. He and the company earned great accolades through the years, and the last thing he wanted to do was damage his pristine record.
