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Income Investors: Dump GE & Buy This Safer Income Investment Instead
We’ve endured three consecutive weeks of losses for the S&P 500 (.INX). Never fun. But if you’re an income investor, ala Charles Dickens, the worst of times is creating the best of times…
Dividend yields now rest close to 15-year highs. Plus, the premiums from writing covered calls (the only safe options strategy) are significantly higher thanks to the extreme market volatility.
As far as I’m concerned, that’s an attractive one-two income-earning punch we shouldn’t ignore.
So how do we play it?
Not with the usual suspects…
Income Investors: GE Is A Dog at Any Price
There’s something about an adolescent stock price on General Electric…
2Feb2009 | Investment U | 0 comments | ContinuedValue Investors – Beware The Value Traps
Value investors, consider this your warning… With thousands of stocks down 50% (or more), investors are salivating over the bargains. But for every true deal, there are at least three “value traps” – stocks destined to languish at depressed levels indefinitely. Or worse, get cheaper still.
Think Kmart here. In late 2001, it became the poster child for value investors. They argued it was dirt cheap based on countless metrics like book value and sales. And it was destined for a historic turnaround.
Sure enough, the stock went from the bargain bin to the trash heap, as the company filed bankruptcy in…
5Dec2008 | Investment U | 0 comments | ContinuedThese Dividend Stocks Keep On Giving… Even As The Market Keeps Falling
There are several interesting correlations between sports and investing.
One of the truest is also one of the most fundamental rules: If you want to be successful, it starts with playing solid defense.
Sadly, this is a concept lost on my favorite English soccer team, Everton, who’ve shipped a league-high 18 goals in just eight games this season. It’s also lost on the Denver Broncos, whose defense has more holes than the Old Course at St. Andrews and who got walloped 41-7 by New England on Monday night.
When it comes to investing, the ability to play solid defense can ease you through…
23Oct2008 | Smart Profits Report | Comments Off | ContinuedThe Decade of No Returns
What a difference a decade can make! Over the last 10 years of the 20th century, anyone buying and holding U.S. stocks made a total return approaching 18% per year.
Their initial stake, as a 2002 research paper noted, increased five times over. Now that’s real money!
But roll forward 10 years, and the total return on the S&P 500 was actually negative for the decade ending on 30 June 2008.
Yes, you read that right. For the 10 years to last week, the S&P index delivered less than zero. That’s even after accounting for dividends (good) as well as inflation (bad).
U.S. equity…
14Jul2008 | Whiskey and Gunpowder | Comments Off | Continued
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