Stocks and bonds are fundamentally different types of investments. However, if you are seeking the traditionally very-safe income provided by investment-grade bonds, you’re probably very disappointed by our ongoing “near-zero” interest rate environment. Traditionally speaking, stocks are simply too risky for bond investors. However, not all stocks are created equally, and in this article we review the very-safe yield provided by a specific blue-chip stock that has been increasing its dividend for over 6 decades, while its share price has also steadily increased too. Specifically, we review the company’s business, dividend safety, valuation and risks, and then conclude with our opinion on investing.
New Options Trade: Upfront Income, Frothy "Forever Stock"
There are certain blue chip stocks that are basic staples in many investors’ portfolios. These are often safe dividend payers that can be trusted to earn income (and pay dividends) throughout the market’s ups and downs. However, from time-to-time, these stocks can get a bit frothy, and the near-term upside can seem limited. This is our view on the stock covered in this report, and we are sharing an options trade that generates upfront income and adds discipline to your sell decisions. We current own these shares, and we believe this is an attractive trade to place today (and potentially over the next few trading days) as long as the price doesn’t move too dramatically before then.
New Options Trade: P&G Shares Expensive, Yield Is Ugly Low
The market has been strong this year, but dividend yields on popular blue-chip stalwarts have been in decline (as price rises, yields mathematically fall). P&G's has clearly improved (and is now firing on all cylinders), but its valuation and dividend yield are not appealing relative to the sector and its own trading history. This report shares an attractive, Procter & Gamble, income-generating options trade.
Top 5 High-Yield Contrarian Opportunities (Members-Only)
Attractive Dividend Dog Of The Dow: Anti Froth-Chasers, Trade War Fearmongers
“Dogs of the Dow” is basically a high-dividend contrarian strategy, whereby an investor selects annually for investment the ten Dow Jones (DIA) stocks with the highest dividend yields. This article reviews one particular Dog that we consider particularly attractive right now because of overblown trade war fears, its low volatility, its big growing dividend, and because the market is vastly underestimating its improved business.
Retirement Stocks: 2 Unloved, Dividend-Paying, Consumer Staples
“Investing is the only business I know that when things go on sale, people run out of the store” – Mark Yusko
If you are looking for high-flying aggressive growth stocks, this article is NOT for you. However, if you are an income-focused contrarian investor, you may want to consider the ideas presented in this article. In particular, you may have noticed that consumer staples stocks have been significantly lagging the rest of the market lately…
Top 5 High-Yield Blue Chips for Contrarians
Two Attractive “Dogs of the Dow”
The Dogs of the Dow strategy proposes that an investor invests annually in the ten Dow Jones stocks with the highest dividend yield. Proponents of the strategy argue that blue-chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company. The following table ranks the 30 Dow Jones stocks by dividend yield, it includes a variety of other financial metrics, and finally we discuss two of our favorite Dogs of the Dow right now.
Don’t Chase the Highest Yield, Own the Healthiest Yield (Part I)
Unfortunately, many investors make the mistake of chasing the highest yielding securities without doing their homework. We believe in owning healthy yielding securities. This week’s Weekly highlights a group of healthy yielding securities. We also provide details for several specific high yielders with significant long-term price appreciation potential, including one we own in our Blue Harbinger Income Equity portfolio.
“America First” is Great, but Global Diversification is Powerful
The 45th President of the USA likes to say “America First,” which is great in our view, but global diversification can be very powerful. Case in point, the US dollar has declined sharply versus the euro (EUR) so far this year (after a “yuge” November rally). This article highlights our holdings in US companies with significant non-US exposure as well as our non-US holdings. In addition to the diversification benefits, we believe there could be more rewards ahead for investors with overseas exposure.
Our 28 Favorite Stocks: July Performance Review & Outlook
In this week’s Blue Harbinger Weekly, we provide a brief performance review and outlook for each of the 28 holdings across our Blue Harbinger strategies. We also provide access to a members-only report on our “Top 3 Covered Call Stocks.” Lastly, you’ll notice we’ve updated performance though the end of July, and all three Blue Harbinger strategies continue to significantly outperform.
Top 5 Donald Trump Stocks Worth Considering
This week's Blue Harbinger Weekly is a continuation of our free report titled Ten Donald Trump Stocks Worth Considering. Specifically, we provide detailed reports for each of the top five stocks. We believe each stock offers a particularly attractive dividend yield and significant price appreciation potential. Without further ado, here are the top 5 Donald Trump stocks worth considering...
Top 5 Blue Chip Stocks Worth Considering
In a continuation to part 1 of our free report (Ten Blue Chip Stocks Worth Considering) this week's Blue Harbinger weekly reviews the remaining (top 5) blue chip stocks on our list. And yes we do own all five of the top five stocks.
Top 5 Big Dividend Investments Worth Considering
In a continuation to part 1 of our free report (Ten Big Dividend Investments Worth Considering), this week's Blue Harbinger Weekly includes the remaining (top) five big dividend investments (we currently own three of them). We also discuss the market's reaction to Fed Chair Janet Yellen's recent comments on interest rates, as well as the continued outperformance of Blue Harbinger's members-only investment strategies through the end of the first quarter (3/31/2016).
Upcoming Earnings Announcements: Plenty of Upside Ahead
In this week’s Weekly, we review the Blue Harbinger stocks that announced earnings last week (they completely knocked it out of the ball park), and we explain why we believe they’ll continue to deliver very big gains going forward. We also review the Blue Harbinger stocks that will be announcing earnings over the next two weeks, and why we believe they too will deliver terrific results. Also worth noting, this weekend Barron’s announced it is “Time to Buy Bank Stocks.” We highlight our favorite bank stock in particular.
Are You Diversified? Appropriately?
Long-term investors should not forget the risk-reward tradeoff. For example, if you were diversified into investment-grade bonds over the last year then your account balance probably hasn’t suffered as much as if you’d invested entirely in stocks. However, over the long-term, we expect stocks to significantly outperform less-risky bonds. This week’s Weekly highlights some extremely attractive stock-specific opportunities that have been created by 2016’s recent market volatility.
Year-End Rebalancing and Great Opportunities
Time to sell your winners and buy the losers? Some contrarians might think so. With 2016 right around the corner, it can be helpful to see what has and has not been working, and why. For example, Caterpillar has been a persistent loser (as we wrote about here), and Nike and McDonald’s have been big winners this year. This week we review the Dow Jones stocks we do own (and why), and our view on when it’s prudent to rebalance.
Au Contraire and the Central Banks
Procter & Gamble Update - Strong Earnings Announcement
Good news from Procter & Gamble today. The company announced earnings of $2.6 billion, or 91 cents per share, up from 69 cents per share a year earlier. Earnings were above analyst expectations due to cost savings and wider profit margins. And while overall sales declined in the third quarter, the company said it expects next quarter’s earnings to grow. The stock was up 2.91% for the day.
Procter & Gamble has underperformed over the last year declining 7.5% versus a gain of 10.0% for the overall market as measured by the S&P 500. This relative underperformance makes us like the company even more because we believe the company has sold off more than it should have. The company has been hampered by foreign currency headwinds, and they’re also in the middle of a multi-year restructuring whereby they’re shedding some sub-optimal brands. We believe the company has nearly 30% upside. We also are attracted to the 3.44% dividend yield which is near the highest level it’s been in about 25 years.
You can view our previous P&G updates here, and you can view our full research report and thesis here.