Wednesday, May 15, 2013

Boring stocks that can triple your money ... | Uncommon Wisdom Daily

Publisher?s Note:

A lot of you have written in to feedback@uncommonwisdomdaily.com to express your interest in finding new ways to take advantage of rising markets while staying relatively safe.

Specifically, one question that comes up again and again is how you can generate regular income from the stocks you own while discovering new, income-generating opportunities that are easy to add to your portfolio.

So this week, we?re taking a break from our daily stories about precious metals and other natural resources, issues in the bond markets and other global investing trends to zero in on some of the best ways you can boost your income potential.

To help answer some of your questions, I?ve asked my friend and colleague at Easy Street Investing, Nilus Mattive ? one of the foremost experts in the field on this topic ? to do a special four-part series on how (and why) he approaches the world of investing with a unique focus on generating income.

You may already know Nilus? name from his many years as a Weiss Research analyst. But what you might NOT know is just how successful Nilus has been at leading thousands of investors ? and his own family members ?to outsized profits.

For example, his super-conservative Dividend Superstars income portfolio is up 19.9% so far this year ? outperforming the S&P 500 by more than 29% ?

The real-life $100,000 IRA he runs for his father is up $23,930 since he took it over ?

And as he explains in the article below, one of his current (and, in his words, most-boring) recommendations has already tripled in value!

So if you?re looking for some new ways to go for richer, safer returns, you?re going to love the ideas Nilus is going to share with us this week. ? Best wishes, Brad


A lot of former bears are suddenly turning bullish on the stock market now that it has continued to run up in 2013.

While this massive shift in sentiment tends to make me a bit nervous, I AM glad to see that a lot more people are finally waking up to some of the same facts I?ve been sharing with my own readers for many years now.

I?d like to share a few of these important points with you, so that you can make your own portfolio work harder for you.

Perhaps the most-important one is that dividend stocks are a terrific way to build your wealth ? especially at a time when most other income investments are paying practically nothing in the way of interest.

Of course, a lot of folks are still skeptical when they hear this kind of claim. They think dividend stocks are ?boring.? That it takes a long time to see results investing in them. Or that doing so carries all kinds of outsized risks.

Nothing could be further from the truth.

The sum total of my dividend-stock recommendations ? including open and closed positions, winners and losers ? are already up 19.9% so far this year vs. a 15.4% rise for the S&P 500 over the same period.

And many individual positions have been going absolutely gangbusters!

Let Me Give You a Couple
Specific Dividend Names to Consider ?

Take a stock like Hershey (HSY). It?s a company nearly everyone has heard of, yet one very few people would consider an exciting investment.

I first recommended it to my readers back in November 2009, when it was trading for about $35.

This year, the stock started hitting all-time high after all-time high. And when it topped $80 a share a month ago, I recommended locking in gains.

Factoring in all the capital appreciation, plus the fat dividend payments, I figure my readers had the chance to lock in a total return as high as 140%.

That?s about 42% a year for three years straight. Hardly a ?boring? return!

And while Hershey is no longer the screaming buy it was a few years ago, it isn?t even the best example I can come up with.

Altria Group (MO), the tobacco company formerly known as Philip Morris, is another stock I?ve been recommending for many years ? and one that I?m still recommending even today.

Obviously, only you can decide whether the stock makes sense in your portfolio, but this steady dividend-payer is still yielding far more than U.S. Treasury bonds.

Plus, look what a juggernaut this conservative play has been ?

Altria barely notices the financial crisis, then skyrockets higher ?

I first said Altria was a buy in July 2007. As you might know, that was right as the stock market was topping out before the financial crash of 2008.

But Altria is the kind of dividend stock that proves you can do well even DURING market crashes.

It held its ground throughout the turmoil, and continued kicking off massive income the entire time ? never dropping anywhere near as much as the broader stock market.

And today, that original recommendation is up as much 136%, and a follow-on recommendation I made in December 2008 is up a staggering 220% ? enough to more than triple every dollar someone invested in this well-known company!

?OK,? you might be thinking. ?But these gains all came over a couple years ? so it still takes a long time for income investments to produce gains.?

Not necessarily.

With Good Timing, You Can Reap
Big Returns Even More Quickly!

Here?s another stock that might not immediately cross your mind for a fat or even a fast payout. But this restaurant chain continues to offer a menu of profits for yield-hungry investors.

For example, this past January I recommended buying Cracker Barrel (CBRL) ? both because it looked like a very compelling value and it paid a nice dividend to boot.

Here?s what happened next ?

Cracker Barrel whetted appetites for appreciation with up to 24.7% gains in just 2 months!

As you can see, the stock exploded higher in short order ? and in less than two months of originally recommending it, I was telling readers to close out their positions for gains as high as 24.7%!

If it pulls back from here, would I consider recommending it again? Sure!

Naturally all of returns mentioned do not take into consideration commission or fees or the slight varying prices subscribers would have received. And we all know that past performance is not an indication of future performance and not all of my picks have worked out this well.

But what?s most important about every one of the examples I just shared with you is that I wasn?t telling readers to take outsized risks. Nor was I recommending unknown, or unproven, investment ideas.

Instead, I was just telling people to buy quality income investments when most others were ignoring the opportunities.

The bottom line is that getting richer, safer returns doesn?t have to take a lot of time or effort. Nor does it require a lot of money to get started.

This is just a glimpse of the type of returns you can make with solid dividend stocks. The best part of adding strong stocks that pay attractive dividends as part of your overall income-boosting strategy is that it?s just the beginning of what?s possible right now.

By the end of this series, you?ll know about some even more interesting ways to get even-bigger, more-consistent returns no matter which way the markets head next. So stay tuned for my next article coming out in this same spot tomorrow afternoon.

Best wishes,

Nilus

P.S. Now, let me turn it back over to Brad for today?s market highlights ?

***

In Other Market News:

  • Federal Reserve officials are mapping out a strategy to rein in QE-Infinity, the controversial $85B-a-month quantitative-easing stimulus. Per the WSJ, officials ?plan to reduce their purchases of bonds in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves.?
  • The specifics of this pullback are of intense interest to financial markets. A WSJ survey showed 55% of private economists expected a pullback this year while 45% expected it next year. None expected an increase in Fed QE purchases.
  • Since Virgin America started flying in August 2007, it has lost money every quarter, except one. Now CEO David Cush is spearheading a balance-sheet restructuring and efforts to raise fresh capital as a ?first step? to put it on the runway to profits.
  • Cush expects those steps to ultimately lead to an initial public offering.
  • The FTC has filed a complaint against Wyndham Worldwide (WYN) over data-breach issues, after hackers gained access to customers? credit-card numbers. Section 5 of the FTC Act is broadly written to allow the body to proceed against a company that harms consumers with unfair or deceptive practices.
  • But can a company be held liable for a cyber attack? Wyndham said in a filing, ?It defies common sense to think that Congress would have delegated that responsibility to the FTC, particularly through a 1914 statute that does nothing more than forbid ?unfair? practices.?
  • The FTC has faced criticism in the past for too broadly interpreting this statute. In the ?70s, it wanted to ban television ads to children. The fall-out from that debacle took a generation to subside.
  • From less regulation wanted to more: Former ?Saturday Night Live? comedian and U.S. Senator Al Franken from Minnesota wrote an amendment to the Dodd-Frank financial-reform bill that would require the SEC to create a board and assign ratings firms to structured-finance deals, or else come up with an alternative.
  • McGraw Hill Financial, Moody?s and other ratings firms oppose the amendment, saying an SEC board might imply government endorsement. And because the process used to assign rating firms is unclear, it is subject to bias. Lawrence White, a professor at New York University?s Stern School of Business, said, ?There wasn?t going to be major change. It wasn?t going to happen quickly. It?s not going to happen now.?

***

Your questions and comments about gold, silver, oil, natural gas, bonds and other investments keep rolling in! I want to answer as many as I can. Today I want to share just one before I let you go for the evening.

Haberdasher asks:

?I am confused: Some analysts say not to buy any gold or the miners (right now), then you have Sean Brodrick for weeks telling us now is the time to buy the juniors. Is he just trying to push his newsletter or (are your competitors) wrong? Please advise.?

Thanks for your question, Haberdasher!

Every analyst is looking at the same historical pricing information when it comes to gold and other precious metals and related stocks like the miners. Yet everyone follows different indicators when it comes to where these assets will trade in the near, intermediate and longer term.

I think you can concur that many analysts see gold going up eventually ? it?s just how and when it will get there that sets them apart.

So, while I realize that differing opinions can be a bit confusing when it comes to where you want to put your own money to work, it may help to examine the time frame that each analyst is following.

Day traders make a lot of money, as do value investors. Commodities investing, stock investing, and bond investing can all be profitable if done correctly. The trick is to gather information from several sources ? sometimes sources who disagree ? look at your specific situation, pick a strategy and move forward with that strategy.

Our goal is to offer the most timely and accurate information possible. In the end, everything dealing with your portfolio is always up to you, and there are always many ways to be right.

As for Sean, you?re right ? he?s bullish on junior resource miners. His Junior Resource Millionaire subscribers are up 22% year-to-date in their open positions right now, and they?ve just closed out a string of winners in precious metals, energy and other resource-rich plays. If you haven?t caught his newest junior-resource video presentation, you can view it here right now. We?re pulling it offline tomorrow night, so be sure to watch it while you still can!

Good Luck and Happy Investing.

Brad Hoppman
Publisher
Uncommon Wisdom Daily

Source: http://www.uncommonwisdomdaily.com/boring-stocks-that-can-triple-your-money-16246

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