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10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year

The following is an excerpt from 10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year.

Today we’re going to take a look at 10 dividend stocks that look like solid bets to generate double-digit total returns every year, or at least every year on average.

A 10% annual return is obviously not get-rich-quick money. But at that rate, you’re still doubling your money every seven years, and that’s not too shabby.Claiming a stock will deliver a double-digit return every year is a bold statement. After all, the “Siegel constant,” named after Wharton Professor Jeremy Siegel, says the stock market as a whole delivers total returns of around 7% per year after inflation. So, a stock that delivered a double-digit return every year would be one that consistently beat the market.

You know the old refrain: Past performance is no guarantee of future results. I can’t promise you that every stock on the list will deliver a double-digit return, particularly if we have weakness in the broad market. But I can tell you this: Based on current prices and dividend yields, these stocks are definitely priced well enough to make double-digit returns possible, which is better than what I can say for the vast majority of other stocks.

You’ll notice some common themes among this list of dividend stocks to buy. They all pay dividends, and most a long history of raising those dividends. Also, tech stocks or other companies I see as being at risk of disruption are also mostly left off the list.

In no particular order, here’s a look at the picks:

Energy Transfer Equity LP (ETE)

I’ll start with one of my favorite long-term holdings, pipeline giant Energy Transfer Equity LP (ETE).

Let’s start with the dividend. At current prices, ETE yields 6.1%. Dividend growth has been a little tepid of late, as the company overextended itself during the go-go years of the 2010s energy boom and is in the process of slowly deleveraging by retaining more of its cash. But this is a company that, as recently as a couple years ago, was improving its dividend at a 30% annual clip.

With a dividend yield of more than 6%, ETE doesn’t have to hit any home runs to generate a double-digit annual return. Even being the tortoise rather than the hare, 4% share price appreciation should be doable, and I expect it to be much better than that.

New wells in the Texas Permian Basin are profitable at prices as low as $20 per barrel. That tells me that domestic oil and gas exploration is here to stay, and midstream operators like ETE are going to be major beneficiaries.

I’ll admit I’m partial to Energy Transfer, as it was my winning pick in last year’s Best Stocks contest with a 53% return. I can’t say I expect every year to be like that. And in fact, ETE’s massive run last year was only made possible because of the beating the stock took the previous year.

But at today’s prices, ETE is definitely priced to deliver double-digit returns annually for a long time to come.

To read the rest of the article please follow this link to 10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year.

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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Warren Buffett’s Letter: Valuable Lessons From the Oracle

The following is an excerpt from “Valuable Lessons from the Oracle.”

Warren Buffett published his annual letter to investors this past weekend, and when Buffett speaks, the rest of us mere mortals sit up and listen. At 86 years old, Mr. Buffett has a lifetime of insight to share. And seeing as how he won’t be with us forever, his letters get more and more valuable with each passing year.

So today, let’s go through the Oracle of Omaha’s letter to look for nuggets of wisdom.

Buffett started with a fair amount of self congratulation, but in fairness, I’d say it was deserved. After all, Berkshire Hathaway (BRK.A) shares are up almost 2 million percent since Buffett took the reins in 1964. Not a bad run.

But there were definitely some bumps in the road and some painful lessons learned, which brings me to Buffett’s first memorable quote about stock-funded mergers:

“Today, I would rather prep for a colonoscopy than issue Berkshire shares.”

Buffett recounted an incident back in 1998 in which he diluted his shareholders by 22% issuing new Berkshire stock to buy Swiss Re. While Swiss Re has been a solid holding for Buffett, the returns never quite justified the 22% dilution and Berkshire shareholders ending up giving “far more than they received.”

Think about it. Buffett effectively traded 22% of Berkshire Hathaway — one of the greatest wealth generators of all time — for a run-of-the-mill insurance company. That’s a bad trade. And likewise, investors would be wise to avoid companies that habitually use their stock like currency for acquisitions. If a stock is worth owning, you don’t want management trading it for something inferior.

You can read the read article here.

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 Ways to Make Money in the Market in 2017

The following is an excerpt from an article I originally published on InvestorPlace.

The year 2016 has been, for lack of better description, a strange one. It started with one of the worst Januarys in history and an oil price bust … continued with a surge of populist election surprises in Europe and the United States, and wrapped up with the Trump Rally — what might be remembered as the most unlikely rally in history based on pre-election sentiment.

BestInvestments2017So after a year like this, what will 2017 bring?

Frankly, your guess is as good as mine. I’m generally pretty optimistic, and I think it’s likely that the market surprises us to the upside next year. But I’m also a realist, and I also know that an aggressive Fed, surging bond yields and an expensive stock market all pose some pretty significant headwinds.

There are a lot of big question marks out there. But even with far greater uncertainty than usual, we still have to invest our portfolios in something.

So today, I’m going to cover 10 ways to make money in the market in 2017.

Some will be broad, while some will be specific stock and fund picks. Some will be fairly standard … perhaps even obvious. But others will be a lot different than the advice you’re reading elsewhere. Some might sound downright ridiculous, but hear me out. Unusual times call for unusual investing solutions.

Ways to Make Money in the Market in 2017: #1: Buy REITs

I really believe real estate investment trusts (REITs) are the single most attractive American asset class right now. REITs have gotten utterly obliterated by the recent surge in bond yields. As a sector, they are down about 14% from their summer highs, and many of the more “bond-like” conservative REITs are down by closer to 30%.

That’s ugly.

REITs are sensitive to bond yields for two reasons. First, they borrow a lot of money to buy their properties, so higher market interest rates cut directly into profits. Secondly, as income-focused investments, they are priced relative to bonds. So as bond yields rise (and bond prices fall), REIT yields rise (and prices fall).

But remember: REITs, unlike bonds, actually enjoy a rising payout over time. REITs tend to raise their dividend by at least a couple percent per year, more than keeping pace with inflation. And should the inflation that everyone seems to fear from a Trump presidency come to fruition, real estate should perform at least moderately well, as real estate is a natural inflation hedge.

That makes the Vanguard REIT ETF (VNQ) — which holds REITs such as Simon Property Group Inc (SPG) and Public Storage (PSA) — a natural play here.

This is the third time in three years that REITs have sold off aggressively on yield fears. The previous two times, REITs went on to soar to new all-time highs. Can we expect things to play out the same way the third? We shall see.

To read the full article, follow this link.

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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Best Stocks for 2017: General Motors Will Roll Over the Competition

10best2017_final_728x400-300x165It’s that time of year again… While the Best Stocks for 2016 contest is still going down to the wire — and yours truly is duking it out for first place, up 38% on the year — it’s already time to start planning for 2017. Here’s an excerpt from my 2017 submission:

As I’m writing this, we still have a few weeks left in 2016, and I’m duking it out for first place in the Best Stocks for 2016 contest with Jason Moser. His pick — mortgage processor Ellie Mae Inc (ELLI) — has a slight edge on mine — pipeline operator Energy Transfer Equity LP (ETE). But it’s a close race, and anything can happen. So may the best stock win!

Nerve-wracking, “blood-in-the-streets” markets like those are the kinds of markets I live for. I lost clients in December and January, but frankly, I didn’t mind. Those who stuck with me ended up enjoying a fantastic year in 2016 when the market turned up again.As we start 2017, we’re in a very different type of market. This time last year, stocks were in freefall, and energy stocks in particular were in full-blown panic mode.

Well, a year later, things are vastly different. We’re entering the year with investors feeling downright euphoric … and that makes me nervous. I’m sitting on cash positions of 15%-20% in most of my stock portfolios.

But there is one pocket of the market that I still consider massively and unambiguously cheap — automakers. So even if this stock rally fizzles in 2017, I think it’s likely that the automakers finish the year with a respectable return.

I chose General Motors (GM) as my pick for 2017. To read the full article, see General Motors Company (GM) Stock Will Roll to Victory

And as always, may the best stock win!

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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Going Down to the Wire…

With one month to go in 2016, InvestorPlace’s Best Stocks for 2016 contest is going down to the wire. My pick, pipeline superpower Energy Transfer Equity (ETE), is tied for first place with Ellie Mae (ELLI), both up 40% on the year.

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Source: http://investorplace.com/10-best-stocks-2016/ Data as of 11/30/2016. Past performance no guarantee of future results.

 

Energy Transfer is rallying today, mostly on the news that OPEC had reached an agreement to curtail production and boost energy prices. Of course, a pro-energy incoming republican government and approval of long-delayed pipeline projects helps as well.

Regardless of how this year ends, best of luck to Jason Moser and the rest of the contestants. May the best stock win!

 

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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