Investors are beginning to turn their attention back to corporate earnings. They might not like what they see. While actual results are still coming in, we are tracking toward a 3% decline. That would mark the second-straight negative quarter — the technical definition of an earnings recession. This slowdown follows ten straight quarters of uninterrupted growth, including an extended streak of double-digit increases.  By itself, this isn’t necessarily a reason to panic. Still, there are other troubling signs…  Business investment has been tepid. The boom in capital spending on new equipment and factories has stalled, the stimulative effects of corporate… Read More

Investors are beginning to turn their attention back to corporate earnings. They might not like what they see. While actual results are still coming in, we are tracking toward a 3% decline. That would mark the second-straight negative quarter — the technical definition of an earnings recession. This slowdown follows ten straight quarters of uninterrupted growth, including an extended streak of double-digit increases.  By itself, this isn’t necessarily a reason to panic. Still, there are other troubling signs…  Business investment has been tepid. The boom in capital spending on new equipment and factories has stalled, the stimulative effects of corporate tax overhaul wearing off… Meanwhile, the damaging trade war could reignite at any time. The hostilities may even spill over into the currency markets if the White House decided to weaponize the U.S. dollar, deliberately weakening it to put domestic exporters on a more level playing field. Meanwhile, the global economy continues to cool, particularly across Europe. Even more concerning, China (the world’s economic growth engine) is seeing the weakest economic output in 30 years.  The point is, any of these wild cards could trip up the market. And with the major averages having ascended to record heights, it’s a… Read More

Don’t get lulled into a false sense of security.  Yes, it’s been an amazing run for the markets this year. The 17% surge in the Dow Jones Industrial Average since the beginning of 2019 has made us forget all about the market’s woes last December. That 700-point freefall on Christmas Eve is now just a distant memory.  #-ad_banner-#All that consternation about an inverted yield curve? Those worries have melted away.  The prospect of an interest rate cut has provided a temporary distraction. But understand that the Federal Reserve is only shifting course and loosening monetary policy because it sees darkening… Read More

Don’t get lulled into a false sense of security.  Yes, it’s been an amazing run for the markets this year. The 17% surge in the Dow Jones Industrial Average since the beginning of 2019 has made us forget all about the market’s woes last December. That 700-point freefall on Christmas Eve is now just a distant memory.  #-ad_banner-#All that consternation about an inverted yield curve? Those worries have melted away.  The prospect of an interest rate cut has provided a temporary distraction. But understand that the Federal Reserve is only shifting course and loosening monetary policy because it sees darkening in the macro skies. Now more than ever, it’s important to focus on what’s working in the market. And what better way to start than by looking for companies that are raising their dividends? After all, all things being equal, if a company is giving shareholders a raise at this late point of the economic cycle, then there’s a good chance management has confidence that it can generate enough cash to cover the payout in any condition.  That’s why every month I make a point to research possible dividend raisers for the next month or so and share my findings… Read More

Nobody likes to be early to a party. After all, it can be painfully awkward at times before the rest of the crowd shows up. In fact, you may even wonder why you bothered to come in the first place. That’s what’s happening right now with one of our energy picks over at High-Yield Investing.  In short, my readers and I spotted a solid company whose stock was so oversold — so unloved — that we just had to buy. And while we love collecting the 5% yield it’s paying right now, the stock price itself has yet to rebound. … Read More

Nobody likes to be early to a party. After all, it can be painfully awkward at times before the rest of the crowd shows up. In fact, you may even wonder why you bothered to come in the first place. That’s what’s happening right now with one of our energy picks over at High-Yield Investing.  In short, my readers and I spotted a solid company whose stock was so oversold — so unloved — that we just had to buy. And while we love collecting the 5% yield it’s paying right now, the stock price itself has yet to rebound.  So to understand what’s going on (and why I think we’re overdue for a spike in the shares), let’s consider a completely different “unloved” sector for a moment…  —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account​ Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. But your action is required TODAY while the enrollment window is open. … Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower… Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower rates by 50 basis points at its September meeting. The next most likely outcome (23%) was a quarter-point cut, followed by a 19% chance of a 75-basis point cut and a slim 3% probability that rates remain unchanged. While it wasn’t specifically stated (you can do the math), that implied a zero percent chance of a rate hike. The Fed didn’t make any moves at last week’s meeting, leaving short-term lending rates at 2.25% to 2.50%. But post-game comments from Fed chief Jerome Powell suggested that rate cuts could be coming sooner rather than later. Citing the cooler global economy… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this is one that’s actually worth a further look… An Inside Look At Hoegh LNG As a reminder, Hoegh owns floating storage and regasification units (FSRUs). Basically, these are ships anchored off the coast that have been mounted with regasification equipment. In the simplest terms, they turn liquefied natural gas (LNG) back into a usable product, which is then pumped via pipeline to the shore where it can be distributed to utilities or other end users. (The U.S. Energy Information Administration has a good primer on LNG, which you can read here.)  So, when an LNG… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable business conditions, all else being equal. This month, I told my premium newsletter subscribers about three companies that are likely to give shareholders a dividend boost in the next four to six weeks. And while High-Yield Investing readers get a lead on this information each month before anyone else, I always make a point to pass my findings along to the public. So without further delay, here they are… 1. Illinois Tool Works (NYSE: ITW) — This industrial manufacturer sells auto parts, welding equipment, restaurant ovens and coolers, and many other specialized products spanning seven distinct business segments. It’s not exactly… Read More