Stock Market News: 3-14-20

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Market Indexes:
Thursday was the market’s worst day since 1987, with all sectors and assets selling off, including previous safe havens, such as gold and muni’s. “Wall Street clawed back some of the losses on Friday from its biggest declines in three decades, Click here to read more…

Stock Market News: 4/21/18

How is your portfolio handling the up and down market of 2018?

Click here to learn how Selling Options can take advantage of higher Volatility, giving you more downside protection and more income.

Markets: It was an up week for the market, with all 4 indexes posting gains, led by the Russell small caps. The week ended on a down day, though, investors grew leery of rising bond yields and rising inflation. The 10-Year Treasury note rose to 2.956% on Friday, the highest since January 2014. Stocks have been more sensitive to bond prices recently, as the 10-year yield approaches 3%. Click here to read more…

Defensive Utility Dividend Stocks Beating The Market In 2017

by Robert Hauver
Is the post-election rally over? Maybe it’s just slowing down, with some investors taking profits, and others adopting a “wait and see” posture, as we head toward next week’s Fed meeting, where it seems more than likely that they’ll raise rates again. There’s also the uncertainty of future policy execution in DC, coupled with the upcoming French and Dutch elections. Suddenly, there’s more for investors to worry about…
In light of this altered landscape, we examined the defensive Utility sector, also well known as having many dividend stocks. It’s represented here by the popular ETF, XLU, which serves as a proxy for the sector on many financial websites.
Even though the S&P has had an impressive gain of 5.69% over the past 3 months, the Utilities ETF has outperformed, rising 8.28%:

Here are XLU’s top 10 holdings – Florida-based Next Era Energy, NEE, is the fund’s largest holding, at 9.45%:

(Source: YahooFinance)
Valuations: This table ranks them by lowest P/E ratio, where electric utility PPL Corp., PPL, leads the pack by a wide margin. It’s interesting to note that PPL is also among the leaders for dividend yield – (see the Dividends table further on in this article for more info).

Performance: The first 4 stocks in this table have outperformed the group average and the S&P 500’s performance year to date in 2017, and also over the past trading month.

As the market has gotten a bit choppier, some Utilities have had more appeal, in spite of the impending advent of rising rates. Edison International, EIX, NEE, and Sempra Energy, SRE, are the 3 top performers in this group so far in 2017, and over the past month.

Dividends: However, those 3 leaders are among the lowest, when ranking by dividend yield. Of course, their yields declined, as their price/share advanced strongly over the past year, from 15% to over 20%.
Note: PPL’s next ex-dividend date is tomorrow, 3/8/17, so we should see it adjust downward for the $.395 quarterly dividend. PPL, NEE, SRE, and EIX have the lowest dividend payout ratios in this group, which speaks to the strength of their earnings, and their conservative cash allocation.

You can track the current prices and dividend yields for several of these stocks in the Utilities section of our High Dividend Stocks By Sectors Tables.

Options: We’ve listed this June call trade for NEE in our free Covered Call Table, which has more details about this and over 25 other call-selling trades. NEE has one $.983 quarterly dividend due during the term of this trade. The June $135.00 call strike has a bid of $2.00, about 2x the amount of the next dividend.

You can also track a June NEE put option trade, in our Cash Secured Puts Table, where we track over 25 other income-producing, put-selling trades.

Price Targets: As income and value investors, we’re always faced with the same conundrum – which do you favor more – dividend stocks with an attractive dividend yield, vs. finding undervalued stocks.
As this table illustrates, these stocks are all either close to or above their consensus price targets right now – analysts upward price revisions haven’t kept up with the price advances of this group. This makes sense, given that higher rates will create higher operating expenses for these capital equipment-heavy companies.

Financials: The relative debt loads for these companies shows that the 4 performance leaders, EIX, NEE, SRE, and PCG, all have Debt/Equity loads which are lower than the average for this group. Even if rates aren’t going to rise to much higher levels, the market is rewarding lower debt loads in this sector.

Disclosure: Author held no shares of any of the stocks mentioned in this article at the time of publishing.
Disclaimer: This article is written for informational purposes only, and isn’t intended as personal investment advice.
Copyright 2017 RH Group Inc. All Rights Reserved

Stock Market News 01-07-17

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Markets: Indexes hit new record highs in this 1st trading week of 2017, aided by a strong Dec. US Auto Sales report. U.S. sales of new cars and trucks hit a record high in 2016, 0.4 percent higher than the previous record set in 2015. It was the 6th straight year of increasing sales, with Ford’s F-series trucks as the best-selling model line in the US, for the 40th year in a row.
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Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: WDR, HCAP, CIO, FSC, FSFR, MN.
Click here to read more…

Stock Market News – 10-22-16

Markets: 3 of the indexes had modest gains this week, while the DOW was virtually flat. The ECB’s Mario Draghi decided to maintain the ECB’s Bond-buying QE program, rather than increasing it which took pressure off of the US Bond market, and paves the way for a Fed rate hike in December. While there’s virtually no chance of a hike at the Nov. 1-2 confab, fed-funds futures put a 68% probability on a December move, according to Bloomberg.
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Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: GEL, CLDT, Click here to read more…

3 Monthly High Dividend Stocks Yielding Over 8%

by Robert Hauver
Are you trying to smooth out monthly dividend income? While many high dividend stocks pay in certain quarterly cycles, (most notably – February, May, August, and November), unfortunately, those monthly bills keep coming don’t they? It would certainly help to have dependable high yield dividends hitting your account every month.

We’ve added quite a few monthly high dividend stocks to various sections of our High Dividend Stocks By Sector Tables over the past few months. Interestingly, a lot of these stocks are based in Canada, where they were founded as royalty trusts a few years ago.
Click here to read more…

Dividend Paying ETF’s Beating The Market In 2016

by Robert Hauver
Our last article, “Market Correlations & Hedging Strategies”, covered some ETF’s that have an inverse correlation to the market, and have been beating the S&P 500 handily over the past several months.

This article goes one step further – how’d you like to find some ETF’s that are not only good market hedges, but also pay dividends? We found 3 such vehicles – they may not be high dividend stocks, but 2 out of 3 pay monthly, and all 3 go ex-dividend in March:
Click here to read more…

2 Small Bank Dividend Stocks Outperforming The Market

by Robert Hauver
With the specter of Fed interest rate hikes looming over the market for the past 2 years, many interest-rate sensitive stocks have gotten sold off. However, there are some stocks which will benefit from higher rates, namely banks, and, in particular, small banks.
Why small banks vs. large ones? Because smaller banks stick to traditional lending and deposits as their business model, whereas larger banks also play with derivatives and other forms of trading to make $.

We found 2 small/micro cap bank stocks, which have gotten good support from the market in 2015: Click here to read more…