Daily Gains Letter

Dividend Paying Stocks

Best Dividend Paying Stocks of 2015

A dividend is the payment that a company distributes to its shareholders as a percent of earnings. Management can decide whether to pay a dividend, how much it is, and the frequency of payments.  Dividends are often distributed quarterly and are quoted as the amount of dividend per share. Companies that issue such payments are called dividend paying stocks and are attractive for investors seeking income in addition to capital appreciation.


Why Blue-Chip Dividend Stocks Always Make Sense



Blue Chip Dividend StocksIn the first quarter, we witnessed a market shift back to higher-beta technology, growth, and small-cap stocks as investors searched for higher potential profits. Yet while this investment strategy makes sense, you also need to make sure your portfolio is diversified across numerous sectors and stocks with varying market caps, including dividend-paying stocks. Dividend stocks may not have the upward explosiveness of smaller technology stocks or the large-cap momentum stocks like FaceBook, Inc. (NASDAQ/FB), Twitter, Inc. (NYSE/TWTR), and Netflix, Inc. (NASDAQ/NFLX); but you know the large-cap blue-chip dividend stocks found on the Dow Jones Industrial Average and S&P 500 offer ... Read More



Top Stocks to Consider Right Now: Defensive and Dividend-Paying Stocks



Dividend paying stocksSuccess in the stock market is all about balancing risk and reward. Too much risk and you leave yourself vulnerable to added downside when the stock market turns, as may be the case at this time. However, too little risk and you don't fully partake in the upside moves of the stock market, though your downside risk is lessened. The key is to understand the stock market we are in and alter your investment strategy accordingly. Prior to the flush in the stock market on Wednesday, technology growth and small-cap stocks were leading the broader market higher this year. Yet as we also witnessed, the higher-beta stocks were also vulnerable to added selling on Wednesday. What happened on Wednesday (and what hap ... Read More



Small-Cap Stocks Outshining NASDAQ, S&P 500; Top Investment in 2015?



Top InvestmentIf you haven’t already done so, you should start to take a closer look at small-cap stocks.

Small-Cap Stocks Outperforming in 2015

While small companies underperformed in 2014 with the Russell 2000 gaining a mere 3.53%, compared to the 13.40% and 11.41% advances by the NASDAQ and S&P 500, respectively, I believe that as the long as the economic renewal holds, small-cap stocks could turn things around this year. So far in 2015, small-cap stocks are second only to the technology sector. The Russell 2000 is up 2.10% as of Thursday, versus a 4.88% move by the NASDAQ. At this time, small-cap stocks are beating the S&P 500 and DOW; it’s still early on, but it’s looking good coming off of a soft ye ... Read More


How to Earn Income in a Low Interest Rate Environment



DL_Sasha_7Historically, investors who are looking for income have bought bonds and other fixed-income investments to generate yield. This unprecedented level of monetary policy has pushed interest rates to historically low levels. This means that income from bonds will be extremely low, and after taking inflation into account, it will actually be negative. The danger is that not only is an investor going to lose money over the long term, but they will also see dramatically lower prices for fixed-income instruments once interest rates start rising. At this point, investing in stocks that pay out a solid dividend yield makes sense as a prudent investment strategy. At this point, many people may be hesitant to look at investing in ... Read More



How to Avoid Danger When Searching for a Good Dividend Yield



DL_Sasha_3When looking at the historical returns of stocks, a recurring investment strategy that has been successful is to have some equities that have a dividend yield. Adding this type of equity to a portfolio can help boost long-term returns and smooth out the volatility. However, a dividend yield investment strategy is not as straightforward as simply looking for stocks that have the highest dividend yield. One must carefully choose equities for a portfolio that hit a number of criteria. A company can issue a dividend, but they are not forced to continue making payments, unlike a bond. A bond is a contract in which an investor owns a company’s debt, and the firm that borrows the money must pay according to the covenants o ... Read More



How to Earn Income in a Low Interest Rate Environment



DL_Sasha_6Historically, investors who are looking for income have bought bonds and other fixed-income investments to generate yield. This unprecedented level of monetary policy has pushed interest rates to historically low levels. This means that income from bonds will be extremely low, and after taking inflation into account, it will actually be negative. The danger is that not only is an investor going to lose money over the long term, but they will also see dramatically lower prices for fixed-income instruments once interest rates start rising. At this point, investing in stocks that pay out a solid dividend yield makes sense as a prudent investment strategy. At this point, many people may be hesitant to look at investing in st ... Read More



Top Stocks to Watch for Steady Dividends and Capital Gains



Top StocksThe stock market may be blooming again with the major key stock indices rallying back above their 50-day moving average (MA), but there is still ample downside vulnerability. We have the mess in the eurozone with Greece threatening to leave the euro and not honor its massive debt obligations. There's also the China risk. Then there are the oil prices. Oil rallied to $53.00 last week, prior to retrenching and then rallying again. It's going to be nerve-racking. The problem investors continue to face is the lack of alternatives to the stock market. The 10-year bond yields 1.82%, which is not great unless you have tons of cash. Of course, you could buy distressed high-yielding Greek or Russian debt, but why would you, gi ... Read More



Five Dividend-Paying Stocks That Are Better Than Bonds



Dividend-Paying StocksThe DOW may very well soon break 18,000 and the S&P 500 continues to edge to new record-highs. But the bullish bias towards the stock market is clear when you consider the alternatives. The 10-year bond has a yield of around 2.3%, which is pitiful at best, considering the gains we have seen in the stock market over the past five years of this bull market. Now, while the upside moves will likely become more difficult, stocks are still really the only good option for investors at this time. You may want to take some profits, especially on your big winners or the higher-beta holdings, such as small-cap stocks. I would be looking at the dividend-paying stocks that offer a combination of dividend inco ... Read More



How to Survive This Stock Market



Survive a Stock Market with Little ChoiceThe bulls are out in full force again following a pause in the stock market. Investors were initially spooked by the fear of interest rates moving higher in the first quarter of 2015, but that appears to have been pushed to the backburner now as the stock market rally reignites. The thing is there are few real alternatives to the stock market—unless you are happy with the 2.42% yield on the 10-year bond. Personally, I would rather invest in dividend paying stocks. There’s nothing spectacular about the stock market and economy at this time. Things seem to be moving just enough to warrant buying an ... Read More



Warren Buffett Is Right—Buy Dividend Stocks Over Time, and Build Your Wealth



Build Your WealthIf you are saving for your retirement, it’s likely that you will have some exposure to the stock market, whether it is through mutual funds, exchange-traded funds (ETFs), or individual stocks. If there’s one thing I’ve learned over the years, it’s that you don’t have to be chasing the latest highflier to do well on the stock market. In fact, picking a solid blue chip name with increasing dividend payments to shareholders is often a much more fruitful and less stressful way to invest. Even in mature industries, you can do well over time by owni ... Read More



Your Retirement Strategy—It Doesn’t Have to Be Complicated



DL_Mitchell_7_If you’re saving for retirement, you probably have some exposure to the stock market, whether it’s through individual companies, mutual funds, or exchange-traded funds (ETFs). Right now, the interest rate cycle favors the stock market, but a lot of investors aren’t very encouraged by the stock market and its potential for good returns. This is largely because of the extreme volatility we’ve had in share prices over the last 12 years. Big corporations seem to be doing great, but the volatility on the stock market can really wear you down. And depending on when you’re planning for retirement, the volatility of your investments can be directly responsible for your timeframe. Mutual funds have gone a long w ... Read More



Reliable Dividend Stocks You Can Count On to Combat Plunging Bond Prices



Dividend StocksThe markets are taking a predictable breather ahead of the Federal Reserve’s meeting later this week. Analysts from every corner of the globe are weighing in on whether or not the Federal Reserve is going to begin tapering its stock market-fueling $85.0-billion-per-month bond-buying program. Stock markets have been on a tear ever since the Federal Reserve initiated its first round of quantitative easing in late 2008. Since early 2009, the S&P 500 has climbed more than 150% and is up roughly 17.5% year-to-date. But the Federal Reserve can’t print money and keep interest rates artificially low f ... Read More