There's nothing like an investment that pays off even if there's no capital appreciation. That's the appeal of renting out your home instead of selling it – you get income along with and investment. The way markets are behaving right now with the Fed rate hike delayed once again, most likely until 2016, and uncertainty driving investor decisions, picking a stock that can pay out in more than one way is a huge benefit.
Limited partnership entities differ from traditional corporations in the sense that they are obligated to pass on a lion's share of the profits to shareholders. That gives them an edge when it comes to dividend yields and makes them defensive even if they're not necessarily in a defensive sector of the economy.
The oil and gas pipeline industry might not seem like a defensive environment given what's happened with commodities and energy prices, but this sub-sector operates a little differently. Pipelines are more on the midstream segment of energy operations giving them a more stable business with steady growth prospects regardless of energy prices. Continue reading "This Pipeline LP Pays You Just To Hold It"→
Over the past few years, a predictable trend has dominated earnings season. Analysts lower their profit forecasts in the weeks and months ahead of quarterly results, and then companies manage to slightly exceed the lowered set of expectations. It's happening again.
According to FactSet Research, on an aggregate basis, analysts lowered Q3 profit forecast by 4.2%, slightly above the typical 2.7% downward revision of the prior 20 quarters. In theory, lowering the bar further should boost the chances that companies manage to exceed current consensus forecasts.
But the typical "cut and beat" game may not be the key theme this time around. As third quarter earnings season gets underway later this week (as Alcoa (NYSE: AA) weighs in on Wednesday, October 8), a range of cross-currents promise to make this one of the more unpredictable earnings seasons in quite some time. Both positive and negative factors are likely to keep analysts and investors on their toes. This is not time to take a casual approach to earnings season. After rising 6% in the first six months of 2013, the SP 500 rose less than 1% in the third quarter.
Let's face it, we're ALL looking for discounts. I don't care if you're rich, poor, hurt by the economy, or not...everyone loves a discount. And since this is a site that focuses on trading/investing, what better then to learn about how to get a discount for a stock! To help us learn the art of the discount, I've asked Phil Davis from PhilStockWorld.com to come and enlighten us. Enjoy the article and tell us where you've found great discounts!
If this market hasn’t convinced you that buy and hold is a gamble - I don’t know what will.
Holding any stock for more than a day has been a sure recipe for heartache (sometimes just an hour will do it) but it’s possible to regularly get much better prices than the ones paid by the average retail investor using a very basic option strategy. This strategy, which we call a "buy/write" – buying the stock and writing options against it - is one of our most effective tools for dealing with a choppy market.
There are, of course, many, many stocks trading near multi-year lows and it’s still important to select ones that have strong underlying fundamentals that we actually don’t mind holding long-term but, as long as you’re willing to own 200 shares of a stock, this system can reliably give you a 10-20% discount off the current market price. It’s simple, easy to follow and is ideal for trading in a volatile market.