Daily Gains Letter

dividend stocks


Why Blue-Chip Dividend Stocks Always Make Sense

By for Daily Gains Letter | Apr 10, 2015

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 long-term confidence for investors.

Whether you are starting out on your investment plan or are a seasoned investor, you should always have some funds stashed away in these safer and proven dividend stocks. I would rather play my safe money in the blue-chip dividend stocks than bonds in the long-term.

Proven Dividend Stocks to Watch

When I talk about the proven long-term dividend winners, I’m talking about the likes of Wal-Mart Stores, Inc. (NYSE/WMT), The Procter & Gamble Company (NYSE/PG), and Colgate-Palmolive Company (NYSE/CL). Take a look at their long-term charts, and you’ll see what I mean. These companies sell goods that are always needed by consumers, whether in good times or bad. They also have the financial resources to withstand economic weakness.

In cases when there have been operational issues with these dividend stocks, they generally have been able to pull out of it and rally. Two such companies that faced major issues but managed to subsequently recover are McDonald’s Corporation (NYSE/MCD) and General Electric Company (NYSE/GE). If you … Read More


Top Stocks to Watch for Steady Dividends and Capital Gains

By for Daily Gains Letter | Feb 9, 2015

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, given the default risk?

So that leaves us with stocks.

Stocks to Watch While Bonds and Global Economy Stagnate

For those of you looking for and requiring dividends, it’s not easy at this time. There are the big banks and higher-risk regional banks to consider. For this reason, I would be sticking with the more stable dividend-paying stocks that not only pay dividends, but also offer the opportunity for capital gains.

The most obvious target for dividends is the blue-chip area. These are great companies with proven long-term sustainability for investors seeking dividends and growth. We are talking about world-class multinational companies, such as The Boeing Company (NYSE/BA), General Electric Company (NYSE/GE), Johnson & Johnson (NYSE/JNJ), The Coca-Cola Company (NYSE/KO), McDonalds Corporation (NYSE/MCD), The Procter & Gamble Company (NYSE/PG), and Wal-Mart Stores Inc. (NYSE/WMT). For the most part, you cannot go wrong with blue-chip dividend stocks…. Read More

Aggressive


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

By for Daily Gains Letter | Sep 17, 2013

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 forever. Once the Federal Reserve sees enough data pointing to a sustained economic recovery (unemployment, housing prices, inflation, etc.), it’ll begin to taper off.

Based on so-called encouraging economic jobs data, many think the U.S. economy is strengthening. For investors, this is bad news, because it means the Federal Reserve will start tapering sooner rather than later, and a decrease in the demand for bonds will, of course, lift bond yields. This could throw income investors a serious curve-ball.

Over the last five years, quantitative easing has kept the 10-year Treasury yield near its record lows, hovering around two percent for the last two years. The record-low numbers sent income investors scurrying into dividend stocks in an effort to make up for lost ground. Over the last number of years, income investors were able to realize both significant capital gains and dividend growth.

But that could change, as investors who have been seeking financial solace in dividend stocks with yields of four percent or more are now seeing 10-year Treasury yields above three percent—the … Read More