Buy These Stocks and Stiff the IRS

As tax time starts moving into full swing, everyone wants to find ways to pay as little tax as possible. Many investors don't realize that they may be able to take advantage of tax-free treatment for the income they earn on their investments -- without even having them in a retirement account. When you talk about avoiding taxes on your investments, the natural first thing most people think of is opening a Roth IRA. With a Roth, you don't have to pay taxes on your capital gains and investment income while your Roth is growing. And even better, when you withdraw money from your Roth after you retire, those withdrawals are tax-free as well.... more

3 High Yield Oil Stocks to Buy on Dips

As demand for oil is rising globally, and with signs of inflation in the economy, it makes sense to look at energy stocks. The major oil company stocks listed below offer a generous dividend yield of about 3.4 to 5% and they all have reasonable PE ratios. The dividends are attractive and can rise in time along with inflation. The valuations on these stocks have risen in the past couple of weeks along with oil prices due to tension in the Middle East. Because they are all trading higher than their recent trading range, I would wait for a pullback in these and other energy stocks before buying shares. Eni SPA (E) is a major integrated oil and gas company that engages in the exploration, production and marketing of oil and natural gas. This company operates worldwide and is based in Rome,... more

The Most Promising Dividends in Family Clothing

Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the family clothing industry offer the most promising dividends. Yields and growth rates and payout ratios, oh my!Before we get to those companies, though, you should understand just why you'd want to own dividend payers. These stocks can contribute a huge chunk of growth to your portfolio in good times, and bolster it during market downturns.... more

3 Oversold Tech Stocks With Cash-Rich Balance Sheets That Pay (Or Will Soon Pay) Dividends

These three top-tier technology stocks have corrected substantially in the past several trading sessions. All are at levels which should be good entry points for accumulation. All three companies have a forward price to earnings ratio of less than 12. Hewlett Packard (HPQ) and Microsoft (MSFT) both pay dividends now, and Cisco (CSCO) has said it will announce a dividend later this year. These stocks have a Relative Strength Index (RSI) of about 30 which is a level which indicates a stock is oversold. Cisco is a premier networking hardware company that saw its shares fall on earnings results, which some investors found disappointing. The shares currently trade at about $18.64, well below the 50-day moving average of $20.33 and the 200-day moving average of $21.74. The RSI is about 33,... more

Income Investors: 7 Low Risk, High Yield Stocks for a Retirement Portfolio

We reviewed the investment universe for low volatility, large-cap stocks. Investment Underground found seven safe havens for your money in retirement. Those which passed the test are: 3M Company (MMM) has a market cap of $64 billion. Over the past five years, the share price is up 22%. Moreover, its board of directors recently upped its dividend to $0.55 for Q1 2011. This is a current yield of 2.4%, and MMM has paid dividends since 1916. Shares also trade under a P/E multiple of 16, coming from an EPS of $5.63. For 2011, 3M expects EPS to be in the range of $5.90 to $6.10 or increases in the range of 4.79% to 8.3%. In 2010, the company brought in $26.6 billion in revenues, which is a year-on-year increase of 15.3%. It also has a healthy EBT margin of 21.59%. In comparison, GE (GE) and... more

T. Rowe Price Group Inc. (TROW) Dividend Stock Analysis

This article originally appeared on The DIV-Net February 21, 2011. Linked here is a detailed quantitative analysis of T. Rowe Price Group Inc. (TROW). Below are some highlights from the above linked analysis: Company Description: T. Rowe Price Group Inc. operates one of the largest no-load mutual fund complexes in the United States. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number TROW is trading at a premium to all four valuations above. The stock is trading at a 59.0% premium to its calculated fair value of $44.63. TROW did not earn any Stars in this... more

In Today's Economy, Go With What Works: Use Options, Get Dividends, Buy Oil

The market hasn’t been very good lately as many factors are impacting the life of the rally. From rising oil prices to unrest in the Middle East to just simply overbought, the market is on the verge of a huge correction. The major indices have doubled from their 2009 low ... doubled! Yet they have not seen any form of a correction that should be expected. These days traders are getting into an overly speculative mindset that will end in disaster. Meanwhile, pundits are going on CNBC and predicting another Flash Crash this year, causing more reason to fear. The VIX has been on fire this week due to Flash Crash predictions, rising oil, unrest, and the possibility of government shutdown. There is just so much fear and uncertainty right now that its time to prepare for the worst. Its time... more

Twelve Dividend Stocks Growing Distributions

Every week I screen the list of companies whose board of directors has approved an increase in their dividend. I then further narrow the list by including only companies which have shown commitment to raising distributions for at least five consecutive years. The purpose of this exercise is to note whether any companies in my dividend portfolio are raising distributions and also to identify any hidden dividend gems. Further screening based on quantitative factors such as valuation, earnings growth, dividend sustainability could add value by decreasing the list of potential candidates for further research to a more manageable level. Last week, there were twelve stocks which announced dividend hikes: The Chubb Corporation (CB), through its subsidiaries, provides property and casualty... more

Dow Components Ranked by Dividend Risk and Growth

The Dow Jones Industrial Average (DJIA) is one of the leading stock market indicators in the world. The DJIA is the subject of several investing strategies, including the Dogs of the Dow which basically states that a portfolio of the top 10 dividend yielding stocks will outperform the DJIA over the next year. However, the 2011 DOD is currently underperforming. I would offer a new metric to screen for potential Dow investments. Table 1 shows the DOD components selected for 2011 with both the yield at year end 2010 and current dividend yield. Table 1: 2011 Dogs of the Dow Stocks Ticker Name 12/31/2010 Dividend Yield 2/25/2011 Current Dividend Yield ... more

12 Dividend Stocks Increasing Their Dividends

Every week I screen the list of companies whose board of directors has approved an increase in their dividend. I then further narrow the list by including only companies which have shown commitment to raising distributions for at least five consecutive years. The purpose of this exercise is to note whether any companies in my dividend portfolio are raising distributions and also to identify any hidden dividend gems. Further screening based on quantitative factors such as valuation, earnings growth, dividend sustainability could add value by decreasing the list of potential candidates for further research to a more manageable level.Last week, there were twelve stocks which announced dividend hikes:The Chubb Corporation (CB), through its subsidiaries, provides property and casualty... more