Stocks & Equities
A solid strategy for investors looking to outperform in flat and down markets starts with a portfolio built of low volatility, dividend-paying companies.
This month several mainstream media outlets joined the Mauldin Economics chorus in praising dividend stocks. Take a look at these headlines…
From CFO Journal by the Wall Street Journal:
From Forbes: (also includes 10 attractive buys) – Editor Money Talks
And this extremely accurate headline from the New York Times:
Why extremely accurate? Because most often, the bigger the yield, the greater your risk. The takeaway here is: Don’t fall into the high-dividend yield trap.
Building a portfolio of the right dividend-paying stocks is not simple or easy. Fact is, it takes as much research as any other type of investing-perhaps more. But, if you succeed, the rewards are a continuing stream of income in an otherwise “yieldless” environment.
That’s the goal of Mauldin Economic’s most popular investment letter, Yield Shark-helping investors build the right type of income portfolio for today’s market.
And we’re on the right track-in 2013,Yield Shark generated a total return of 18.59%.
How did we do it?
-
By carefully constructing a low-beta portfolio-made up of companies with strong dividend yields, low valuations, and less volatility than the S&P 500, and
-
By selling positions when, in this choppy market, a stock became overbought. With Yield Shark, we’re investing for long-term income, but when the opportunity to take an outsized profit arises, it makes sense to grab it.
I’m more than proud of our analysts and the portfolio they’ve built. They’ve successfully balanced risk and reward to generate a double-digit return while maintaining a low beta.
And they’re on track to do it again in 2014.
Our next recommendation-set for release in the next issue of Yield Shark-is for an exceptional timberland company paying an annual dividend of over 4%. But what’s more, the capital gain we expect to see could push its total return well into the double digits. And all backed by a company with hard assets of real estate and timber and a long history of increasing its dividend payments.
*Note: The following is an advertisment for a service, some of you may be interested in the offer so I have included it. For those who want to understand the author’s strategy the articles that are linked above should do the job – Money Talks Editor
I’d like you to see this recommendation, and the entireYield Shark portfolio, so you can determine if Yield Shark is the right tool to help you invest.
I also want to make sure you fully understand the challenges and opportunities presented by today’s market. That’s why I want to send you a copy of John Mauldin and Jonathan Tepper’s latest book, Code Red.
This best seller details the actions taken by the Fed since the financial crisis of 2008, predicts the bubbles that are now becoming very evident, and outlines the steps you should consider taking to protect your wealth.
Give Yield Shark a try and we’ll send you a copy of Code Red, with our compliments.
If for any reason in the first 90 days you are not completely satisfied, we’ll send you a prompt refund, less a modest 10% reprocessing fee (I need to pay for shipping and handling on that book!).
A one-year subscription to Yield Shark is only $99, and we’ll guarantee that price for life, so long as you maintain your subscription. Code Red makes a perfect investment companion and reminds you of the risks and opportunities today’s markets present.
If you already have a copy of Code Red, please pass this one on to a friend or relative not fully aware of the situation we face as investors.
Don’t go it alone in this market. Take a risk-free look at our most popular letter, Yield Shark, and read up on the challenges facing investors in this Code Red world. You won’t regret it.
Sincerely,
Ed D’Agostino,
Publisher, Yield Shark
The installed politicians in Kiev are hand-picked by the West including Germany and the USA. This is why I say the people have been warned that if they rise up against this NEW crop of corrupt politicians, they will have zero support.
The corruption is pervasive on ALL sides – this is by no means limited to Russia. This grassroots feeling against corruption is NOT restricted to Ukraine – we just saw it in Nevada and then people/government go to remove video from YouTube to hide the actions of the US government.
I know there was no leaders from Maidan, for my direct contacts could find nobody willing to stand-up to assume such a position. I would have been glad to hop on a plane with no charge to help restructure a government that would be honest. I know a lot of people who would have chipped in with the hope that if just one government reforms, it will become like a virus that spreads among all world governments.
I would have had Ukraine default on the national debt just for starters and told the creditors they KNEW Yanukovich was corrupt and he had accounts everywhere from London down to Switzerland. Where did all this money come from for a guy whose job paid 25,000 euros? Go collect the debts from him – not the people of Ukraine from whom it was stolen.
I am ahead of the curve because I am supported by a network of REAL people around the world who see what I see and know what I know is coming. Either we stand for something or we lose everything. That is the choice on the table.
As the recovery from the Great Recession stretches into its fifth year, the locus of economic momentum has shifted. In the early years of the recession, the cities that created the most jobs — sometimes the only ones — were either government- or military-dominated (Washington, D.C.; Kileen-Temple-Fort Hood, Texas), or were powered by the energy boom in Texas, Oklahoma and the northern Great Plains.
Now the recovery has shifted to a new group of cities that have benefited from the boom on Wall Street and the parallel IPO surge in Silicon Valley — call them asset inflation cities. Last year the S&P 500 clocked its biggest rise since 1997, helped by aggressive monetary easing by the Federal Reserve and a return to the stock market by investors who had retreated to the sidelines after the financial crisis. The high times have brought on a surge in IPOs: 2013 was the busiest year for public offerings in over a decade, and the pace has if anything quickened this year, with healthcare and technology offerings leading the way. M&A has also surged, with some very impressive valuations in the tech sector, such as Facebook’s $19 billion purchase of 50-person What’s App. The biggest beneficiaries employment-wise: the Bay Area, Silicon Valley and New York City….
The Dow Jones industrial average is closing at an all-time high.
A gain of 45 points Wednesday left the Dow at 16,580, four points above the record high it set on Dec. 31.
The Dow hadn’t been in the black for 2014 until today.
The Standard & Poor’s 500 index increased five points, or 0.3 percent, to 1,883. The index is seven points below the record high set April 2.
The Nasdaq composite rose 11 points, or 0.3 percent, to 4,114.
Twitter slumped 9 percent after its customer growth fell short of what investors were hoping for.
The Federal Reserve said would reduce its bond purchases by another $10 billion a month, in line with what investors were expecting.
The yield on the 10-year Treasury note fell to 2.65 percent.
-
I know Mike is a very solid investor and respect his opinions very much. So if he says pay attention to this or that - I will.
~ Dale G.
-
I've started managing my own investments so view Michael's site as a one-stop shop from which to get information and perspectives.
~ Dave E.
-
Michael offers easy reading, honest, common sense information that anyone can use in a practical manner.
~ der_al.
-
A sane voice in a scrambled investment world.
~ Ed R.
Inside Edge Pro Contributors
Greg Weldon
Josef Schachter
Tyler Bollhorn
Ryan Irvine
Paul Beattie
Martin Straith
Patrick Ceresna
Mark Leibovit
James Thorne
Victor Adair