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Dividend Seekers Dip Into DRIPs
If the global financial crisis has taught investors one thing, it’s thatnow is not the time to gamble with your money or your prosperity.
More companies have been bought, bailed out or bankrupted since this financial crisis began than most of us have seen in our lifetimes. And even as Wall Street’s dominoes keep falling, no one can be sure if the worst is over.
From here on – recession or not – targeting dividend stocks is one of the few strategies that will deliver income safely and efficiently.
In theory, dividends should prop up an investor’s portfolio during uncertain periods,…
13Feb2009 | Money Morning | 0 comments | ContinuedThe Young and Investless
A quick clarification of some common advice:
“You’re young, you can afford more risk.â€
This statement has been uttered countless times by investment experts and, at heart, it’s very true. However, “more risk†does not imply that every new investor should consider throwing every bit of his or her money into a small Nicaraguan telecom company.
Instead, the intent of the phrase is such that risk implies fluctuation, and young investors simply have more time to ride the ups and downs of their investments, possibly absorb a few poor investments, and reallocate their portfolios if necessary.
Deceptive journalism breeds false hope in novice…
29Aug2008 | Oxbury Research | Comments Off | ContinuedInvesting in CDs: 2 “Safe Harbor” Investments Right Now
I walked into the University Place Branch of Bank of America on Saturday morning and was eyewitness to a shocking run on the bank. An unruly crowd had taken over the lobby of the branch. Every station in the normally deserted suburban banking center was full of customers.
Then I noticed a sign in the window. “Branch hours are extended today to accommodate all the customers wishing to open a High Yield 4% Certificate of Deposit.”
These customers weren’t demanding to withdraw their money; instead, they were rushing to make deposits. Bank of America was experiencing a reverse run as investors hurried…
1Aug2008 | Investment U | Comments Off | ContinuedHigh Yields Raise Red Flags for Bank Stocks
Fifth Third Bancorp (FITB) just became the latest in a string of hard-hit financial firms to slash its dividend to preserve much-needed cash.
Yesterday (Wednesday),the Ohio-based regional bank slashed its dividend to 15 cents down from 44 cents, becoming the 17th company to reduce or eliminate its dividend completely this year, Bloomberg News reported.
Fifth Third certainly wasn’t the first bank to have to resort to this unpopular measure, nor will it be the last.
Financial firms of every stripe have taken a beating from the subprime mortgage crisis that has accounted for $396 billion in write-downs so far. From national consumer banks such…
19Jun2008 | Money Morning | Comments Off | ContinuedNot Enough Candy
So, the Federal Reserve Open Market Committee lowered the target Federal Funds interest rate by half a point, to 3 percent. In response, the Dow Industrials promptly rocketed up 200 points and then just as quickly headed south, ending 37 points down on the day. It seems that a half point drop was still not enough to satisfy the players. It was not enough candy, because even at 3%, the Federal Funds rate is still about three-quarters of a point higher than the 3-month Treasury Bill rate. The Fed lags the Treasury Bill market, which is par for the course.…
31Jan2008 | William Kurtz | Comments Off | Continued
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