Wednesday, March 4, 2020

Wealth is a Journey, Dividend Stocks Can Take You There

Fad diets and fad investing plans rarely work. They are primarily designed to separate you from your money and make the seller wealthy. Real wealth is built with sweat equity and a sound financial plan. For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity and 2. Time.

Unfortunately, very few people are able to take advantage of the situation enough to even build a secure retirement. The formula to building wealth is rather simple - spend less than you earn and invest the difference. Implementation is where many people come up short. With the right focus and some positive feedback, building wealth can be much easier than shedding the spare tire around your mid-section. Here's how to do it...

Have A Plan

Many people are putting money into various retirement vehicles, but they haven’t taken the time to envision how it is all going to come together and ultimately if it will be enough. We often will spend enormous amounts of time planning every detail of our vacation, but I have no idea what our estimated income or expenses will be when we retire.

As the old adage goes, ‘Everyone has a plan – failing to plan is planning to fail.’ Retirement planning does not have to be complicated, but not doing it will complicate your retirement. To help you start the planning process, take a look these FREE retirement calculators (Retirement-Calculator.xls [Excel] or Retirement-Calculator.ods [Libre/Open Office]).

Use Time To Your Advantage

Time is your most valuable wealth building asset. Everyone is born with it. Few realize its importance until they lose most of it. The asset is so valuable it can’t be bought. As a value/dividend growth investor, I have learned that time can cure many mistakes and provide enormous investment leverage.

When you are young time is your friend. It allows to recover from mistakes. It educates you and provides you with valuable experiences. However, time is a double-edged sword that can also work against you. It is easy to say, 'I will start investing tomorrow - I have plenty of time.' Time can also create a false sense of urgency -' I held this stock for over a year and its price has gone nowhere.' Use time to your advantage start young and be patient.

Dividend Stocks To Help Grow Your Wealth

A long-term buy-and-hold investing approach focusing on quality dividend growth stocks has provided the means for many investors to enjoy a comfortable retirement. If you start early enough, you will go beyond a comfortable retirement into the realm of building long-term wealth. For starters, you might consider these select dividend stocks that have been rewarding their investors with growing dividends for 40 or more consecutive years, all with a yield greater than 3%:

The Coca-Cola Company (KO) is the world's largest soft drink company, and also has a sizable fruit juice business. The company has paid a cash dividend to shareholders every year since 1893 and has increased its dividend payments for 58 consecutive years. Yield: 3.1%

Kimberly Clark Corp. (KMB) is a global consumer products company producing tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Scott. Yield: 3.3%

Genuine Parts Co. (GPC) is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 63 consecutive years. Yield: 3.3%

3M Co. (MMM) provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives and other chemical additives. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 61 consecutive years. Yield: 3.9%

Abbvie Inc. (ABBV) is a global research-based pharmaceuticals business that emerged as a separate entity following its spin-off from Abbott Laboratories at the start of 2013. AbbVie's key drug is Humira for rheumatoid arthritis. The company has paid a cash dividend to shareholders every year since 1926 and has increased its dividend payments for 47 consecutive years. Yield: 5.5%


If losing weight and building wealth were easy, there wouldn't be people wanting to sell you the secret. The first step toward success is deciding to take responsibility for our future. With a little planning, effort and the right dividend growth stocks, we can be well on our way to creating long-term wealth and building a secure

Source: Dividend Growth Stocks

Friday, November 3, 2017

7 Stocks That Will Push the Dow Jones to 25,000

Source: Shutterstock
The Dow Jones Industrial Average is on a roll. The storied index recently breached the psychologically significant 23,000 mark for the first time, and in doing so the Dow logged yet another all-time high.
Certainly, if you’ve owned the 30 Dow Jones stocks in 2017 you’ve done remarkably well. In fact, the Dow is up some 18.5% year to date (through midday Thursday), a move that relatively few pundits (myself included) would have thought likely at the beginning of the year.
Now the question for investors is: What, if anything, will push the Dow materially higher?
The answer, as I see it, lies in Washington, D.C. I think the key to Dow 24,000, and ultimately Dow 25,000, rests in the hands of Congress, and specifically the issue of tax reform. If we get some real tax reform that includes a sizeable cut to the corporate tax rate (to 20% or at most 25% from the current 35%) that will go a long way toward justifying the high valuations on stocks (the S&P 500 currently trades at about 18X 2018 earnings estimates).
The tax reform legislation released Thursday, however, was met with a lukewarm reception. Yet, while the macro backdrop of tax cuts will be the external catalyst for the Dow’s fate, that doesn’t mean all Dow Jones stocks will benefit equally.
To get the Dow to 25,000, we are going to need to see big gains in many of the Dow’s components. Yet which Dow stocks will have to shine in order to send the Industrial Average up through the 25,000 mark? The smart money wants to know, so allow me to pontificate.
Here are seven stocks that will send the Dow to 25,000.

Dow Jones Stocks: Apple Inc.
Source: Shutterstock
The world’s leading personal technology company is a relative newcomer to the Dow, as Apple Inc. (NASDAQ:AAPL) was only granted admission to the Industrial Average in March 2015. Yet in the two-and-a-half years since, Apple shares have jumped nearly 30%, a move that’s helped the Dow trek to record highs.
In early August, Apple’s stronger-than-expected, fiscal Q3 revenue and earnings easily bested estimates on the back of solid iPhone sales. That caused shares to rise sharply, and that rise helped the Dow breach the 22,000 on its way to one of many record highs in 2017.
But September was tough for Cupertino giant, as shares tumbled more than 6% that month on a disappointing initial reaction, and potential production delays, in its new iPhone 8 and X models.
For the Dow to move to 25,000, Apple is going to have to perform the way it did in August, when shares surged more than 10%. What can make that happen? It’s called a new iPhone for Christmas.

Dow Jones Stocks: Coca-Cola

Carbonated sugar with a distinctive flavor is popular around the globe, and that’s made Coca-Cola Co (NYSE:KO) and its flagship Coke brand one of the most successful consumer brands in corporate history. In recent years, the Coke brand has lost a bit of its fizz, but the beverage giant has adjusted nicely by promoting successful brands such as Sprite, Honest Tea and smartwater to its mix.
It was success in these brands that helped KO report better-than-expected third-quarter. Cost-cutting programs and the refranchising of its low-margin bottling operations also helped KO beat estimates. So far in 2017, shares are up nearly 12%.
That’s helped lift the Dow, but for the Industrial Average to surge to 25,000, KO will have to get out of its recent funk. Shares have basically traded flat over the past three months (up just 0.50%).
If investors begin opening the bottle again on KO shares, that will give the Dow a sugar high that could send it past 25,000.
  • Dow Jones Stocks to Buy: McDonald’s

    Fast-food giant McDonald’s Corporation (NYSE:MCD) may be the oldest kid on the cheap restaurant block, but that just means the company has had time to figure out the ever-changing taste trends of its patrons. Key amongst those trends is the desire for “fresh” and health foods, and in recent quarters McDonald’s has promoted items that cater to that demand.
    On Tuesday, the company reported Q3 earnings per share of $1.76. That was basically in line with expectations. Revenue was $5.8 billion, which was a slight beat vs. the $5.7 billion analysts had anticipated.
    The really sound metric was the company’s same-store sales in the U.S. That number climbed 4.1%, far outpacing the 3.6% growth industry watchers had anticipated.
    That same-store sales number is even more impressive considering it came during a period that included Hurricanes Harvey and Irma, which shut down many of its restaurants for days and even weeks.
    So far in October, MCD shares are up nearly 5%. For the Dow to go to 25,000, we need MCD shares to serve up more solid gains.

Dow Jones Stocks: Walmart

Retail behemoth giant Wal-Mart Stores Inc (NYSE:WMT) is one of the few companies to, at least recently, figure out a balance between selling items in physical locations and selling online.
That mix of sales funnels allowed Wal-Mart to announce in early October during its annual meeting that it’s still expecting earnings per share to range from $4.30 to $4.40 for fiscal 2018, in line with current Street estimates.
The company also rather boldly announced that it expects its fiscal 2019 earnings per share to be up 5% from the year prior. Perhaps most impressively, the company’s renewed focus on online sales has allowed it to announce that it expects e-commerce in the U.S. to rise by some 40% in fiscal 2019. Part of that renewed focus includes an additional 1,000 online grocery locations in the U.S.
Wal-Mart’s share price is up nearly 11% in October, and that recent move helped lift the Dow past 23,000. To get the Dow past 25,000, we need more of the same from WMT stock.

Dow 25,000 Stock to Buy #5: Procter & Gamble

One of the Dow stocks that’s been lagging in 2017 (although it’s still up 4.3% year to date) is consumer products giant Procter & Gamble Co (NYSE:PG). The company recently reported “ok” fiscal Q1 earnings, which came in at an adjusted $1.09 vs. estimates for $1.08.
Revenue came in at $16.653 billion vs. $16.698 billion expected by analysts. That top-line figure did, however, represent 1% year-over-year growth. Ans when you take out the effects of changes in currency, we get organic growth that also came in at 1%.
Perhaps more important in the life of PG shares is the recent proxy battle with activist investor Nelson Peltz. That brawl has pressured PG shares. Of course, sagging segments such as the Gillette men’s grooming operations have damaged profits and the share price more than Peltz ever could.
If the Dow’s going to jump past 25,000 anytime soon, we need to see PG shares get back to favor with the smart money.

Dow Jones Stocks: IBM

The share price performance of “Big Blue” hasn’t been very big over the past five years, but it has been rather “blue.” In fact, International Business Machines Corp (NYSE:IBM) stock is down some 20% over that time, and that’s enough to give any investor the blues—especially when you consider the Dow is up almost 79% during that period.
Yet fortunes are beginning to turn, at least somewhat, for IBM. The company just released better-than-expected earnings for the third quarter, where it said adjusted EPS came in at $3.30, two cents per share better than what Wall Street was expecting. Revenue also beat expectations, coming in at $19.15 billion vs. the $18.6 billion expectation.
Shares jumped on the news, lifting IBM up more than 6% so far in October. That is the kind of strong performance from a hitherto laggard that we need to see if the Dow is going to vault to 25,000.

Dow Jones Stocks: 3M Co

One of the strongest performers in the Dow this year has been industrial products maker 3M Co (NYSE:MMM). The stock has powered some 30.5% higher year to date, and that gain has come on the back of solid earnings. In fact, the company, best known for its famous consumer brands Scotch, Post-It, and Scotch-Brite, recently reported strong Q3 results that easily beat expectations.
3M said its Q3 bottom line was $2.33 per share, well above estimates calling for EPS of just $2.21. That solid earnings metric came as a result of strong revenue, which came in at $8.17 billion, well above consensus estimates of $7.93 billion.
Impressively, 3M saw sales rise in each of its reporting segments. Leading the way was the electronics and energy segment, which climbed 13.1% year over year. 3M also saw sales growth in its industrial, its biggest overall segment, of 6.2% year over year to $2.8 billion.
If that weren’t enough bullishness for one report, the company also raised its full-year guidance for sales growth from 3% to 5%, to 4% to 5%, and its EPS forecast from the prior range of $8.80 to $9.05 to $9.00 to $9.10.
With a gain of nearly 11% so far in October, MMM shares already are spearheading the march toward Dow 25,000.
Jim Woods is the Editor-in-Chief of  Successful Investing and the Intelligence Report. As of this writing, he was long MCD, WMT, PG, IBM and MMM in his Intelligence Report advisory service.

Saturday, April 1, 2017

Buy Facebook Inc (FB) Stock and Don’t Look Back

The world's biggest social network looks to boost ad revenue even more

Facebook Inc (NASDAQ:FB) is up nearly 25% in 2017. And the crazy thing is, that isn’t surprising. For a company with 1.86 billion monthly users that continues to log a compounded annual growth rate (CAGR) around 17% even at these levels, it’s hard to know what can slow it down.

For a long time, its one Achilles’ Heel was its ad revenue. When you see that at least 90% of FB’s revenue is derived from advertising it’s a pretty scary concept. The company with a $410 billion market cap and a price-earnings ratio of 40 only has one source of income.
But don’t worry. It’s not the first company to rely on one revenue source for its success. Clorox Co (NYSE:CLX) only sold bleach for most of the 20th Century and remains a great company today.
While these are two wildly different markets, the one commonality is the fact that both companies’ leadership knows how to adapt and grow as economic cycles come and go. A company like CLX that has been doing it for over a century and FB hasn’t logged that kind of history, but the fact is, both were the only game in town for quite a while.
Yes, there were challengers, but branding was key and the name became synonymous with quality and performance. These days, FB continues to expand that advertising base with new, innovative ideas. One of the most recent ones is testing ads in the “Related Articles” section of “Instant Articles.” It has also bumped up advertising to every 250 words from every 350 words.
These moves may seem trivial, and they should for a company with such a massive base of users. But the implications are significant for that very reason — it means billions of more ads seen every month.
It also shows that the people at 1 Hacker Way understand the advantages to its fast-growing ad revenue as well as its risks. If you go too heavy-handed with ads, users will stop using the service as regularly. This subtle move will give FB a good measure of how it can best expand ad revenue without harming its reputation or using more aggressive personalized advertising.

Bottom Line on FB Stock

The big daddy of online ad revenue remains Alphabet Inc’s (NASDAQ: GOOG) Google division. And even there, Facebook is looking to gain some ground with its recent addition of Facebook Video that is trying to get at some of GOOG’s YouTube lunch.
But the thing I like most about FB right now isn’t the fact that it’s looking ahead and staying competitive in a very dynamic and dog-eat-dog space, it’s that Mark Zuckerberg & Co. is executing, quarter after quarter.
User growth is up across its product lines. And most important, average revenue per user continues to rise. That means it’s finding new ways to get users to say “yes” to advertisers. This number gives FB pricing power with advertisers, which will help grow revenue as well as margins.

Dividend Smackdown: IBM Stock vs. MSFT Stock

We look at dividend yield, income growth and prospects for big tech juggernauts IBM and MSFT

Ring the bell because it’s that time again. We’re putting two iconic dividend payers in the ring for an old-school dividend smackdown. The fighters: Two old-school tech giants, Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM).

At first this might seem like a bout between two washed up has-beens. Both of these companies are ancient by tech company standards, and neither gets the headlines they used to. Yet longevity in the tech space is something to take seriously. If you’re able to survive decades in an industry known for rapid upheaval, you’re clearly doing something right.
Yet no fighter’s streak lasts forever. Even Mike Tyson eventually got knocked out, by underdog Buster Douglas. And in our match today, one company is well into a bona fide comeback, whereas the other is at risk of getting knocked out … permanently.
So with that, let’s go ringside in this battle between IBM stock and MSFT stock starting with the current dividend yield.

Dividend Yield

In a world where the S&P 500 yields just 1.9%, both Microsoft and IBM have to be considered relatively high-yield stocks. Microsoft stock sports a dividend yield of 2.4% and IBM 3.2%. So, in a head-to-head match up, IBM is clearly the higher yielder.
Furthermore, at first glance, IBM’s dividend would appear to be more sustainable. IBM stock is only paying out 44% of current earnings per share, whereas MSFT is payout out a much higher 69%.
So, in round one of this dividend smackdown, we have a clear winner: Big Blue.
Dividend Yield Winner: IBM

Dividend Growth

For round two, let’s take a look at dividend growth. After all, the current dividend yield only gets you so far, as a dividend stock without a growing dividend is essentially just a riskier version of a bond. A good dividend stock should have both a respectable current yield and a dividend growth rate well in excess of inflation.
Well, both of our fighters qualify here. Microsoft has raised its dividend for 13 consecutive years, and IBM has raised its dividend for 17.
Over the past 10 years, both stocks have been aggressive dividend raisers, but one has clearly taken the lead. Microsoft has raised its payout by a cumulative 300%, which would crush nearly any competitor other than IBM. Big Blue has managed to raise its dividend a cumulative 400%.
Over the past five years, MSFT stock has the edge, beating out IBM stock by a cumulative 125% to 87%. But in round two, I’m going to have to give the edge to IBM.
Dividend Growth Winner: IBM

Future Prospects

Thus far, it has been a lopsided contest, with IBM taking the first two rounds. So is the match over? Or is Microsoft about to mount a comeback worthy of Rocky Balboa?
Let’s take a look.

3 Blue-Chip Technology Stocks That Will Break Through the Ceiling


U.S. equities are trading mixed on Friday on light volume, with the Dow Jones Industrial Average stalling in the doldrums between its 20-day and 50-day moving averages.
Source: Shutterstock
The Federal Reserve remains in focus, with the PCE inflation rate topping 2% for the first time in almost five years, increasing the odds of an aggressive pace of rate hikes through the end of the year.
And the political headwinds remained focused on the gridlock in Washington threatening to stall any tax reform efforts.
But after a relatively subdued March, by many measures, stocks have worked off some of the speculative excess seen at the end of February. As a result, a number of stocks in key leading sector groups like industries, financials and technology are pushing higher.
Here are three big technology stocks on the move:

Thursday, May 28, 2015

Wednesday’s Hot Stocks in the News: Broadcom Corp. (NASDAQ:BRCM), Comcast Corporation (NASDAQ:CMCSA), JetBlue Airways Corporation (NASDAQ:JBLU), Gilead Sciences (NASDAQ:GILD)

On Wednesday, Shares of Broadcom Corp. (NASDAQ:BRCM), surged 21.45% to $57.15, hitting its highest level.
Today, Avago Technologies Limited (AVGO) and Broadcom Corporation (BRCM) declared that they have reached a definitive agreement under which Avago will acquire Broadcom in a cash and stock transaction that values the combined company at $77 billion in enterprise value. Upon completion of the acquisition, the combined company will have the most diversified communications platform in the semiconductor industry, with combined annual revenues of about $15 billion.
Following completion of the transaction, Mr. Tan, President and Chief Executive Officer of Avago, will continue to serve as President and Chief Executive Officer of the combined company, which will adopt the name Broadcom Limited. Dr. Samueli will join the board of the combined company as will another director from Broadcom. In addition, Dr. Samueli will be designated Chief Technology Officer of the combined company. Dr. Nicholas will serve in a planned advisory role within the combined company, reporting to Mr. Tan.
Under the terms of the definitive agreement, Avago will acquire Broadcom for $17 billion in cash consideration and the economic equivalent of about 140 million Avago ordinary shares, valued at $20 billion as of May 27, 2015, resulting in Broadcom shareholders owning about 32% of the combined company. Based on Avago’s closing share price as of May 27, 2015, the implied value of the total transaction consideration for Broadcom is $37 billion.
Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The company operates in two segments: Broadband and Connectivity, and Infrastructure and Networking.

Shares of Comcast Corporation (NASDAQ:CMCSA), inclined 1.28% to $59.34, during its last trading session.
Comcast Chairman and CEO Brian L. Roberts issued the following statement this morning regarding the Charter/Time Warner Cable/Bright House transactions:
“This deal makes all the sense in the world. I would like to congratulate all the parties.”
Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments.

At the end of Wednesday’s trade, Shares of Gilead Sciences Inc. (NASDAQ:GILD), gained 2.45% to $112.46.
Gilead Sciences, declared that its corporate presentation will be webcast from the Bernstein 31st Annual Planned Decisions Conference in New York.
John F. Milligan, PhD, Gilead’s President and Chief Operating Officer, will provide an overview of the company at the conference on Thursday, May 28 at 8:00 a.m. Eastern Time.
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical nee in North America, South America, Europe, and the Asia-Pacific.

Finally, JetBlue Airways Corporation (NASDAQ:JBLU), ended its last trade with 3.20% gain, and closed at $20.18.
Today, JetBlue Airways Corporation launched service to its latest destination, Nevada’s Reno-Tahoe International Airport (RNO), with nonstop service from John F. Kennedy International Airport (JFK).
To celebrate Reno-Tahoe joining JetBlue’s network, the airline’s Reno-Tahoe partners recently launched a sweepstakes (a) for one lucky person to win a free trip for two to the city, counting flights on JetBlue, a five-night stay at the Peppermill Resort Spa Casino and Silver Legacy Resort and Casino, and a ride with Soaring Nevada Glider Rides.
In addition to new access to New York City, customers will also have connecting opportunities via JetBlue’s JFK Terminal 5 to several destinations along the East Coast in addition to America’s largest network of Caribbean destinations. Reno-Tahoe marks JetBlue’s 89th destination.
JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2014, the company operated a fleet of 13 Airbus A321 aircrafts, 130 Airbus A320 aircrafts, and 60 EMBRAER 190 aircrafts. It also served 87 destinations in 27 states in the United States (the U.S.), the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 17 countries in the Caribbean and Latin America.