Love ’em or hate ’em, there’s no denying tobacco stocks are among the best and most reliable dividend payers in the investing world. Indeed, the yields on these stocks might be as addictive as the tobacco products that made such high payouts possible in the first place. Take a look at the dividends available from today’s best-known tobacco stocks: #-ad_banner-#While these are among the industry’s most recognizable names, there’s another great tobacco stock I suspect many U.S. investors have forgotten about, perhaps because the underlying company operates mainly overseas. The stock currently trades around $110 and… Read More

Love ’em or hate ’em, there’s no denying tobacco stocks are among the best and most reliable dividend payers in the investing world. Indeed, the yields on these stocks might be as addictive as the tobacco products that made such high payouts possible in the first place. Take a look at the dividends available from today’s best-known tobacco stocks: #-ad_banner-#While these are among the industry’s most recognizable names, there’s another great tobacco stock I suspect many U.S. investors have forgotten about, perhaps because the underlying company operates mainly overseas. The stock currently trades around $110 and offers a dividend of $4.70 a share — good for a 4.3% yield that’s right in there with big names I mentioned. Most investors will recognize the firm’s top brands, such as Kent, Pall Mall, Dunhill, Newport, and Kool. These may not be in the same league as Marlboro, the world’s #1 cigarette brand by far, but they’ve been strong enough to lead the company to more than $25 billion in annual sales. Granted, Philip Morris (NYSE: PM), the company that makes Marlboro, was pulling in more than $25 billion a decade ago and now generates annual revenue north of… Read More

When people want to express a lack of enthusiasm about something, they sometimes compare it to cardboard.  #-ad_banner-#We’ve all heard someone say something like “This cereal is so bland, I might as well be eating cardboard,” or “This movie is about as exciting as a cardboard box.” But after I’ve told you about one company that produces cardboard boxes and other types of packaging, you may see these sorts of products in a whole new light. Indeed, they could be among the most lucrative investments you ever encounter. The firm I’m referring to is the fourth-largest player in… Read More

When people want to express a lack of enthusiasm about something, they sometimes compare it to cardboard.  #-ad_banner-#We’ve all heard someone say something like “This cereal is so bland, I might as well be eating cardboard,” or “This movie is about as exciting as a cardboard box.” But after I’ve told you about one company that produces cardboard boxes and other types of packaging, you may see these sorts of products in a whole new light. Indeed, they could be among the most lucrative investments you ever encounter. The firm I’m referring to is the fourth-largest player in the U.S. containerboard and corrugated packaging industry, with a 10% market share. Its products come in all shapes and sizes from big shipping containers and multicolored boxes to retail displays and food packaging. The company also produces white paper, newsprint and wood pulp. It has 15,000 customers in many industries like food and beverages, retail, and appliances. Production capability is about 3.4 million tons of containerboard and 46 billion square feet of corrugated products annually. Bored yet? Then consider this: The firm’s stock is up fivefold in the past five years. And it could triple again during the next five… Read More

Among people with money to spend, there’s been a significant shift away from ultra-high-end purchases since the financial crisis, say analysts at global banking giant Barclays. #-ad_banner-#It isn’t that top-tier consumers have stopped spending, but nowadays even they’re more likely to scale it back a notch, devoting more dollars to what could be called the “affordable” luxury space. Simply put, wealthier shoppers are still looking for high-quality, fashionable items. But maybe they’re no longer quite so dead-set on the priciest versions like a $2,000 Gucci tote bag, a $1,500 Lanvin T-shirt, or a $4,000 Chanel purse. While this may not… Read More

Among people with money to spend, there’s been a significant shift away from ultra-high-end purchases since the financial crisis, say analysts at global banking giant Barclays. #-ad_banner-#It isn’t that top-tier consumers have stopped spending, but nowadays even they’re more likely to scale it back a notch, devoting more dollars to what could be called the “affordable” luxury space. Simply put, wealthier shoppers are still looking for high-quality, fashionable items. But maybe they’re no longer quite so dead-set on the priciest versions like a $2,000 Gucci tote bag, a $1,500 Lanvin T-shirt, or a $4,000 Chanel purse. While this may not be welcome news for high-end retailers, it bodes well for those specializing in affordable luxury — currently a $285 billion industry worldwide. With its increasing popularity, affordable luxury is projected to grow 8% to 10% a year domestically and 3% to 5% a year worldwide during the next few years. The big question for investors is how best to capture this growth. It might be tempting simply to default to Ralph Lauren (NYSE: RL) since it’s probably the best-known industry player, what with its iconic brands of apparel, accessories, and fragrances. But that would be a mistake. No doubt RL’s… Read More

When stocks run up several-fold or more, their valuation metrics typically reflect the gain in a big way. Take the wildly popular automaker Tesla Motors (Nasdaq: TSLA). In the five years since the stock began trading on the Nasdaq, it’s up almost 900%, making it nearly a 10-bagger. The company is still losing money (it’s in the red by $0.62 a share during the past 12 months), so it has no price-to-earnings (P/E) ratio to evaluate. But other commonly used valuation measures are looking quite ugly in Tesla’s case, and I think it’s safe to say the stock is horribly… Read More

When stocks run up several-fold or more, their valuation metrics typically reflect the gain in a big way. Take the wildly popular automaker Tesla Motors (Nasdaq: TSLA). In the five years since the stock began trading on the Nasdaq, it’s up almost 900%, making it nearly a 10-bagger. The company is still losing money (it’s in the red by $0.62 a share during the past 12 months), so it has no price-to-earnings (P/E) ratio to evaluate. But other commonly used valuation measures are looking quite ugly in Tesla’s case, and I think it’s safe to say the stock is horribly overvalued. However, that’s not the case at all for another stock that has matched Tesla’s gain, which has also soared 900% during the past five years. But despite this, shares of the company are still very reasonably valued relative to its industry and the broader market. #-ad_banner-#I’m referring to the well-known insurance and wealth management firm Genworth Financial (NYSE: GNW). Even though Genworth is up as much as Tesla, it’s far from overpriced, and I think it’s a much better investment at this point. Part of the reason the stock was able to post such amazing… Read More

Not many public companies ever attain blue-chip status, where they become the types of top-tier investments that can basically be held forever. That’s because blue-chip stocks have high standards to meet, such as a history of market dominance, outstanding financial strength, competitive margins, and reliable dividends. #-ad_banner-#After many years of success — sometimes over a century or more — they’re usually among the biggest, best-known names in their industries… firms like General Electric (NYSE: GE), Procter & Gamble (NYSE: PG), and Coca-Cola (NYSE: KO). While blue-chip stocks are relatively rare, it might be even less common to find a company… Read More

Not many public companies ever attain blue-chip status, where they become the types of top-tier investments that can basically be held forever. That’s because blue-chip stocks have high standards to meet, such as a history of market dominance, outstanding financial strength, competitive margins, and reliable dividends. #-ad_banner-#After many years of success — sometimes over a century or more — they’re usually among the biggest, best-known names in their industries… firms like General Electric (NYSE: GE), Procter & Gamble (NYSE: PG), and Coca-Cola (NYSE: KO). While blue-chip stocks are relatively rare, it might be even less common to find a company that could be on its way to becoming one — but I think I’ve found exactly such a stock. This company can trace its roots back to World War II, when the firm’s founder and some colleagues developed a uranium filtration process crucial for the construction of the first atomic weapons. In the ensuing seven decades, the company has become the world’s largest manufacturer of filtration/purification products. But with a market capitalization just under $10 billion, it hasn’t yet grown into a full-fledged blue chip. (For example, GE is worth around $257 billion.) But I do consider it an excellent… Read More

It would be great if investing was more science than art, but unfortunately the reverse is probably true. #-ad_banner-#In reality, stock price behavior often has more to do with to publicity, psychology, and hype than facts and figures. So sometimes investors are pretty much left to guess about what a stock, industry, or the market in general might do next. The guesswork is most nerve-racking when a stock or group of stocks is hyped so much their prices rapidly begin soaring to unexpected heights and seem like they’ll never stop rising. At that point, investors have a tough decision —… Read More

It would be great if investing was more science than art, but unfortunately the reverse is probably true. #-ad_banner-#In reality, stock price behavior often has more to do with to publicity, psychology, and hype than facts and figures. So sometimes investors are pretty much left to guess about what a stock, industry, or the market in general might do next. The guesswork is most nerve-racking when a stock or group of stocks is hyped so much their prices rapidly begin soaring to unexpected heights and seem like they’ll never stop rising. At that point, investors have a tough decision — sell and lock in their gains, or hold out for more profits. It’s a hard call to make. No investor wants to cash out only to find later they did so too soon and missed out some of the best growth their investment had to offer. But it’s the anticipation of this sort of remorse that keeps so many investors in the game too long, setting them up for massive losses when the hype fades and the market realizes the investment is ridiculously overpriced. I’m not just talking about the dot-com bust a decade and a half ago. Investors have… Read More

Bull market critics have long said stocks are soaring mainly because of the Federal Reserve’s stimulus program known as quantitative easing (QE). According to QE bashers, stocks have been falsely propped up by money printing and are in a huge bubble, which will inevitably pop and make the previous financial crisis look like a Sunday picnic. #-ad_banner-#Though overly sensationalized, this argument does have some validity. By precipitating ultra-low interest rates, QE probably has many more investors than usual looking to stocks, since these now often have much better yields than bonds. But when interest rates finally become attractive again, income… Read More

Bull market critics have long said stocks are soaring mainly because of the Federal Reserve’s stimulus program known as quantitative easing (QE). According to QE bashers, stocks have been falsely propped up by money printing and are in a huge bubble, which will inevitably pop and make the previous financial crisis look like a Sunday picnic. #-ad_banner-#Though overly sensationalized, this argument does have some validity. By precipitating ultra-low interest rates, QE probably has many more investors than usual looking to stocks, since these now often have much better yields than bonds. But when interest rates finally become attractive again, income investors may flee stocks in droves, and a very nasty correction may result. Still, I think the bull market critics aren’t giving the U.S. economy the credit it deserves, and I suspect their concerns about a QE-triggered financial crisis are far overblown. Consider, for instance, that earnings per share (EPS) for the large-company-dominated S&P 500 expanded solidly — nearly 9% — in 2013. And of the 482 S&P 500 firms that had reported fourth-quarter earnings as of Feb. 28, 65% beat analyst expectations. Typically, 63% beat expectations. Also consider the S&P’s price-to-earnings (P/E) ratio of 16. While markedly higher than… Read More

When assessing a company’s stock, many investors make it a point to check out its bonds, too. This can often provide insight into a firm’s financial health and where its stock price is headed. #-ad_banner-#Keeping an eye on credit ratings is especially smart if you’re thinking of buying stock in an out-of-favor company struggling to turn itself around. You certainly don’t want to sink hard-earned cash into a stock based on a nice-sounding turnaround story only to find out the hard way — by further decimation of the stock price — the firm was a financial wreck on the verge… Read More

When assessing a company’s stock, many investors make it a point to check out its bonds, too. This can often provide insight into a firm’s financial health and where its stock price is headed. #-ad_banner-#Keeping an eye on credit ratings is especially smart if you’re thinking of buying stock in an out-of-favor company struggling to turn itself around. You certainly don’t want to sink hard-earned cash into a stock based on a nice-sounding turnaround story only to find out the hard way — by further decimation of the stock price — the firm was a financial wreck on the verge of bankruptcy. If they don’t watch out, that’s just what could happen to shareholders in one struggling retailer. The company is the subject of much turnaround chatter. And its stock has shown the ability to post exciting returns recently, more than doubling from mid-November 2012 to mid-May 2013. After retreating over nearly a three-month period, it popped again, this time almost 60% from early August to mid-September 2013. Following another pullback, it was on the move yet again from mid-January to the end of February, rising 31% during that time. But despite these brief, intense updrafts, the stock is still… Read More

I like that the market tends to get wrapped up in the biggest or hottest stocks in each industry. It often means the crowd is overlooking smaller or lesser-known names with as much or more investment potential and a lot less risk. #-ad_banner-#So if the market wants to obsess over Tesla (Nasdaq: TSLA), Facebook (Nasdaq: FB), Twitter (NYSE: TWTR) and other hot names that are vastly overpriced, it’s fine by me. It sets the stage for more value-oriented investors to make a killing on less-celebrated companies that have been quietly churning out profits and dividends for years. One such firm,… Read More

I like that the market tends to get wrapped up in the biggest or hottest stocks in each industry. It often means the crowd is overlooking smaller or lesser-known names with as much or more investment potential and a lot less risk. #-ad_banner-#So if the market wants to obsess over Tesla (Nasdaq: TSLA), Facebook (Nasdaq: FB), Twitter (NYSE: TWTR) and other hot names that are vastly overpriced, it’s fine by me. It sets the stage for more value-oriented investors to make a killing on less-celebrated companies that have been quietly churning out profits and dividends for years. One such firm, which describes itself as a commercial lines insurer focusing on liability coverage for businesses, governments and institutions, has raised its dividend 33 years in a row. That’s since 1981, back when President Ronald Reagan was in his first term. The company’s current dividend of $0.73 per share is good for a 4.6% yield based on a recent stock price of $15.75. So you know I’m not talking about any of the big insurers you always hear about like American International Group (NYSE: AIG), MetLife (NYSE: MET), Allstate (NYSE: ALL), or Travelers (NYSE: TRV). None of them yield anywhere near 4.6%. Read More

The defense industry may now seem like an area best avoided by investors, what with the sequester eroding the U.S. defense budget and imposing total projected defense cuts of about $1 trillion over a 10-year span. #-ad_banner-#I wouldn’t categorically dismiss defense stocks, though. You could end up missing opportunities for some very nice investment returns. There’s one defense firm in particular that has held up quite well so far in spite of the sequester, with earnings per share (EPS) growing by 50% in the past 12 months. During that time, the company’s stock has more than doubled, compared with a… Read More

The defense industry may now seem like an area best avoided by investors, what with the sequester eroding the U.S. defense budget and imposing total projected defense cuts of about $1 trillion over a 10-year span. #-ad_banner-#I wouldn’t categorically dismiss defense stocks, though. You could end up missing opportunities for some very nice investment returns. There’s one defense firm in particular that has held up quite well so far in spite of the sequester, with earnings per share (EPS) growing by 50% in the past 12 months. During that time, the company’s stock has more than doubled, compared with a 23% return for the S&P 500. The firm has remained strong in large part because it’s so crucial to national defense, providing the bulk of the equipment and services necessary to keep the U.S. Navy operational. I wouldn’t be surprised if most investors were unfamiliar with the company because it certainly isn’t among the first names that typically come to mind when you think of firms involved in defense like Lockheed Martin (NYSE: LMT), Boeing (NYSE: BA) and General Dynamics (NYSE: GD). However, the company was spun off a few years ago from another well-known defense firm, Northrop Grumman (NYSE:… Read More