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25 Stocks Every Retiree Should Own

The following first appeared on Kiplinger’s as 25 Stocks Every Retiree Should Own.

Retirement is a major life milestone, eclipsed only by marriage or the birth of your first child in terms of financial impact. For many, it’s an exhilarating leap into the unknown. In your working years, you can take investing setbacks in stride, as portfolio losses can be offset by new savings or working an extra year or two.

But once retired, you no longer have that luxury. Your portfolio must last for the the rest of your life, and that of your spouse as well. So, the decision of what retirement stocks you should include your portfolio is an important one.

An ideal retirement stock will pay a healthy dividend. As Sonia Joao, president of Houston-based RIA Robertson Wealth Management, explains, “Four out of five of our clients are in or near retirement, and essentially all of them tell us the same thing. They want safe, secure streams of income to meet their living expenses and replace their paychecks.”

While a good dividend is probably the most important characteristic to look for, it’s certainly not the only one. Yields across most asset classes are lower today than in years past, and retirees need growth to stay ahead of inflation. So, while a retirement portfolio should have a large share of income stocks, it also will include some growth names for balance.

http://www.carrieryan.com/faq/ viagra without prescription The following are 25 stocks every retiree should own. This group of retirement stocks includes both pure income plays and growth companies, with a focus on very-long-term performance and durability.

Public Storage

Self-storage REIT  canadian pharmacy without prescription Public Storage (PSA) may be the single least sexy stock in the entire Standard & Poor’s 500-stock index. If you mention it at a cocktail party, don’t expect to be the center of attention.

But the boringness is exactly what makes Public Storage such an ideal retirement stock. Self-storage is one of the most recession-proof investments you’re ever likely to find. In fact, recessions are often good for the self-storage industry, as they force people to downsize and move into smaller homes or even move in with parents or other family – and their stuff has to go somewhere.

With the economy looking a little wobbly these days, that’s something to consider. But there’s another angle to this story as well. According to Ari Rastegar – founder of Rastegar Equity Partners, a real estate private equity firm with expertise in the self-storage sector – changes to the broader economy are at work.

“Despite unemployment being exceptionally low, wages haven’t kept pace with rising prices,” Rastegar explains. “This has led to the rise of micro apartments and the general trend of smaller units closer to city centers. All of this bodes very well for the future of the self-storage sector. Your apartment might be shrinking, but you still need to put your personal belongings somewhere.”

Public Storage has a diversified portfolio of nearly 2,500 properties spread across 38 states and additionally has a significant presence in Europe. While the REIT has kept its dividend constant at $2 per quarter for the past two years, it historically has been a dividend-raising machine. Over the past 20 years, Public Storage has raised its dividend by nearly 10-fold.

At current prices, Public Storage yields 3.4%. That’s not an exceptionally high yield by any stretch, but it’s still better than what you’re able to get in the bond market these days – at least not without taking significantly more risk.

To continue reading, please see 25 Stocks Every Retiree Should Own.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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11 Stocks to Buy That Prove Boring Is Beautiful

The following first appeared on Kiplinger’s as 11 Stocks to Buy That Prove Boring Is Beautiful.

Stocks aren’t all that different than cars, in some ways. Sure, the Ferrari is a lot of fun to drive, and you look cool sitting behind the wheel. But it’s also going to cost you a fortune, and high-performance cars spend a lot of time at the mechanic’s shop.

Now, compare that to a Honda Civic. You never really notice a Honda Civic on the road. It’s utterly forgettable. But it’s also just about indestructible, requires virtually no attention from you, and it quietly and efficiently does its job.

Consider that mentality when you’re tracking down stocks to buy. A highflying growth pick can be a lot of fun to own. You look smart owning it, and it’s fun to talk about at parties. But when the market’s mood swings the other way, you’re often left with some nasty losses and a bruised ego. Meanwhile, that dividend-paying value stock in your portfolio might not be particularly interesting. But over the long haul, it’s a lot less likely to give you problems. Like that Honda Civic, it will quietly do its job with no stress and no drama.

“Some of our most profitable trades over the years have been some of our most boring,” explains Chase Robertson, principal of Houston-based RIA Robertson Wealth Management. “We’ve done well for our clients by mostly avoiding the trendy sectors and focusing instead on value and income.”

viagra without prescription Here are 11 boring but beautiful dividend stocks to buy now. They might not be much to look at, but they’re likely to get the job done over the long term. And when you need them most – in retirement – they’ll be less likely to break down on you.

AT&T

AT&T (T) has been a boring play for many years now. Even its seemingly transformative recent buyout of Time Warner (which owns HBO, Cinemax, TBS and TNT) was a drawn-out affair that got bogged down in court battles.

It seems almost silly now, but in the late 1990s and early 2000s, AT&T was a bubble stock. Investors couldn’t get enough of everything related to telecommunications, and AT&T delivered the goods. But when the bubble burst, AT&T crashed hard. Today, nearly 20 years after the peak of the internet mania, T shares still are more than 40% below their old highs.

Of course, 20 years later, AT&T is a very different company. Its mobile and home internet businesses are mature, and its paid TV business is actually shrinking, albeit slowly. AT&T is essentially a utility stock. But T belongs on any short list of boring stocks to buy now given its current pricing.

AT&T took a tumble in 2018 that brought it to its most attractive prices in recent memory. The stock has recovered somewhat, but not completely, and still offers a value at less than 10 times analysts’ expectations for future profits, and a fat dividend yield of 5.9%.

Are you going to get monster growth from AT&T? Of course not. But modest capital appreciation and high levels of income should deliver a very respectable total return.

To continue reading, please see 11 Stocks to Buy That Prove Boring Is Beautiful.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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13 High-Yield Dividend Stocks to Watch

The following first appeared on Kiplinger’s as 13 High-Yield Dividend Stocks to Watch

High-yield dividend stocks have gained even more allure lately in the face of shrinking bond yields. However, while a handful are ready buys right now, several more sport alluring yields – at least 5%, and up into the double digits – but need a little more time to simmer before it’s time to dip in.

Patience is a virtue in life. That’s particularly true in the investing world. It’s even true across investing disciplines. Sober value investors wait for their price before buying, but disciplined market technicians also know to wait for the proper setup before trading.

Sometimes, you need to wait for a fundamental catalyst to make your trade worth making. Other times, it’s simply a matter of waiting for the right price. But the key is having the self-control to wait for your moment. Lack of patience can be a portfolio killer.

“We tell our clients during the onboarding process that we won’t be investing their entire portfolio on day one,” explains Chase Robertson, Managing Partner of Houston-based RIA Robertson Wealth Management. “We tend to average into our portfolios over time as market conditions warrant, and we’re not opposed to having large cash positions. Our clients thank us in the end.”

Today, we’re going to look at 13 high-yield dividend stocks to keep on your watch list. All are stocks yielding over 5% that you probably could buy today, but all have their own unique quirks that might make it more prudent to watch them a little longer rather than jump in with both feet.

Altria

The high-yield dividend stocks of the tobacco industry have been resilient survivors during the past 50 years. While smoking rates have plummeted around the world, the major brands have managed to stay relevant by raising prices and cutting costs.

The best-run operators, such as Marlboro maker Altria (MO), have managed to chug along despite a difficult environment and have managed to reward their patient shareholders with regular dividend hikes. Altria has hiked its dividend every year without interruption for nearly half a century, and the shares yield an attractive 7% at current prices.

All the same, the popularity of vaping has come as a new shock to the industry. Nielsen reported annualized volume declines of 3.5% to 5% throughout 2018. But the declines have accelerated this year, and recent Nielsen data saw volumes declining at an 11.5% rate during one four-week stretch this past spring.

Big Tobacco benefits from the popularity of vaping, but margins tend to be smaller than on traditional cigarettes. Furthermore, there is a growing concern that much of the growth in vaping is due to underage smokers picking up the habit. The U.S. Food and Drug Administration has stepped up its regulation and has gone so far as to order some vaping products removed from store shelves.

It remains to be seen how hard the regulators crack down or if traditional cigarette volumes continue to shrink at an accelerated pace. Like Ford, Goldman likes Altria right now. But it might make sense to watch Altria and the other Big Tobacco players for another quarter or two before committing. The shares have been in near-continuous decline since 2017, and trying to catch a proverbial falling knife is a good way to cut your hands.

The continue reading, see 13 High-Yield Dividend Stocks to Watch

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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10 Emerging-Markets Stocks That Will Survive the Trade War

The following was first published on Kiplinger’s as 10 Emerging-Markets Stocks That Will Survive the Trade War

Photo credit: Financial Times

The old saying goes: When America sneezes, the world catches a cold. As the world’s largest importer – and holder of its largest trade deficit by a country mile – the United States is the planet’s indispensable economy. And emerging-markets stocks, with their dependence on foreign capital and high concentration in cyclical and commodity sectors, are particularly vulnerable to weakness in the U.S.

There’s nothing quite like a good trade war to give investors the jitters. But it’s not just the ongoing spat between Presidents Donald Trump and Xi Jinping that has investors unnerved. U.S. economic growth appears to be topping out for this cycle, and issues in the American market have a way of spilling across borders.

When western investors go into de-risking mode, they tend to throw out the baby with the bathwater, dumping high-quality emerging-markets stocks in a flight to cash. But in doing so, they often create fantastic buying opportunities.

Jeremy Grantham and his colleagues at Boston-based asset manager GMO are not known for being wide-eyed Pollyannas. They’re sober value investors best known for calling the last two major bear markets in 2000 and 2008. Perhaps not surprisingly, Grantham & Co. see U.S. stocks performing poorly over the next seven years, losing 3.7% per year. But interestingly, GMO expects emerging-markets stocks to return 5.2% per year over the next seven years. Even more interestingly, they see EM value stocks returning 9.8% per year.

Today, we’re going to look at 10 strong emerging-markets stocks that might give you a bit of heartburn, but ultimately should weather the trade war and reward new money. Most depend heavily on domestic EM consumers rather than on exports or trade flows, and all should be considered potential buys on any weakness in the coming months.

Tencent Holdings

We’ll start with Tencent Holdings (TCEHY), one of China’s leading technology conglomerates and, at nearly $400 billion, one of the largest emerging-markets stocks you can buy.

Tencent is a little hard to define and has no exact Western equivalent. It’s part-Facebook (FB), part-PayPal (PYPL), and part-Netflix (NFLX) with elements of Alphabet (GOOGL) and Activision Blizzard (ATVI) sprinkled in. You can consider Tencent a one-stop shop for all things related to Chinese mobile services.

Its most important product is the mobile chatting app WeChat, which is similar to Facebook’s WhatsApp (though light-years ahead of it in terms of features). In addition to the chat, audio phone calls and video conferencing you might expect from such an app, WeChat also is a leader in mobile payments via WeChat Pay and serves as an e-commerce platform.

Importantly, Tencent has sparse exposure to trade-war risk. A deep recession in China could mean lower transaction-based revenues for WeChat Pay. But most of Tencent’s revenues come from “disposable luxuries” such as smartphone games. Interestingly, while people might cut back on things such as big vacations and expensive dinners if the economy hits the skids, they tend to hang on more tightly to small, disposable luxuries. The somewhat addictive nature of video games even resembles another pair of consumer goods that do well in recessions: tobacco and alcohol.

Tencent is down about 30% from its old 2017 highs. There’s no guarantee it resumes an uptrend tomorrow, but it’s certainly a stock to buy on dips.

To continue reading, please see 10 Emerging-Markets Stocks That Will Survive the Trade War.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Hate Your 401(k) Options? Try This

As you probably know, I’m a big believer in the humble 401(k) plan. Even though it’s a very basic tax shelter widely available to regular middle-class Americans, I challenge you to find something better. I’ve spent my entire professional career looking, and I have yet to find one.

If you religiously max out your 401(k) plan every year (currently $19,000 per year or $25,000 for those 50 or older), it will likely grow to become your single largest financial asset.

There’s just one big, glaring problem with the 401(k): The investment options are often terrible.

Cruddy Investment Options 

Most plans are limited to a menu of mediocre mutual funds that move the same direction as the market. They’re fantastic when the stock market is moving higher but a financial death sentence during a bear market. The gallows humor following the 2008 bear market was that “My 401(k) just became a 201(k).” That joke will be making the rounds again after the next bear market.

And these days, hiding in bonds won’t do much for you. With yields now hitting new all-time lows almost daily, a portfolio invested in bond funds is essentially dead money.

Some 401(k) plans have a brokerage window that allows you to buy individual stocks. That’s a nice feature if your plan offers it, but it’s not available on most plans.

No matter how cruddy the investment options are in your 401(k), taking the funds out really isn’t an option. If you’re under 59 ½, you’d have to pay a 10% penalty, and at any age you’d have to pay taxes on whatever you pull out.

An Alternative to a 401(k)

Well, I have good news for you. If you hate your 401(k) investment options, you might be able to bail on them without triggering a tax nightmare. It can be possible to roll over your 401(k) balance into an IRA while you’re still working.

As you probably know, you can always roll over your 401(k) into an IRA whenever you switch jobs or retire. But if you’re 59 ½ or older, you can legally do the same thing without having to quit your job. This is what’s called an “in-service rollover.”

Your plan might or might not offer this. It really just depends on your employer. But if your company plan does offer it, an in-service rollover might be exactly what you need.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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