Chicago Style – Top 10 Stocks to Watch as Rahm Runs in 2012

It’s called “Second City” by New York City snobs, “the Windy City” by those who’ve walked her streets, and “Chi-Town,” by the casual set, but it’s formally known by its proper name — Chicago.

Recently, the debate over President Obama’s former chief of staff Rahm Emanuel’s residency has turned the city’s mayoral election into national news. On Thursday, the Illinois Supreme Court ruled that Mr. Emanuel does, in fact, meet the residency requirements to run for Chicago mayor.

Whoever is boss in City Hall, many of corporate America’s biggest publicly traded companies are headquartered either in Chicago proper, or in a city or suburb surrounding her. The following 10 are arguably the most important Windy City stocks to watch for all investors.

Abbott Laboratories

Diversified pharmaceutical and medical devices giant Abbot Laboratories (NYSE: ABT) is one of the biggest providers of health care related products in the world. It creates, researches, and markets its products from corporate headquarters in North Chicago. Abbott’s stock meandered last year but the $70 billion company remains formidable.

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Safe Dividend Stocks for an Unsafe Market in 2012

A Better Investing Strategy

After practically ignoring geopolitical events an pushing higher despite the unrest in Egypt, U.S. markets finally succumbed to heavy selling this week as protests in Libya and the Middle East erupted, and oil surpassed $100 per barrel. But there’s a much better way to manage your investments than by reacting to the latest headlines. You need a strategy that works in fair weather and foul, 365 days a year. It’s a strategy that can be summed up in two simple words: safe and cheap.

Our high-income experts have put together a list of top dividend stocks to buy that offer investors just that. The yields these steady stocks are throwing off can help to cushion your portfolio if the market continues to react negatively to world events or if the economy continues to struggle. And the recent sell-off is providing you a stellar opportunity to pick up these already discounted dividend stocks at an even cheaper price.

Here are your top dividend stocks for March:

Dividend Stock to Invest in 2012 #1– Hormel Foods (HRL) Read more…

5 Dodgy China Stocks to Sell in 2012

But These Stocks are the Real Traps

Long-term readers know that I am bullish on China stocks and Asia at large, but there have been numerous reports of late of Chinese companies being embroiled in accounting scandals and questionable practices. For example, China stock Rino International (OTC: RINO) recently admitted to falsifying its numbers and was delisted from the Nasdaq. Unfortunately, this type of scandal has tainted the whole sector, preventing some investors from taking part in the Chinese wealth machine.

Clearly, the lack of credibility in RTO Chinese companies is now a big problem for China stock investors. Each time a previously unknown small research shop, blogger or short-seller raises questions, many of these small-cap reverse-merger stocks drop dramatically before the claims can be examined at depth by investors. As a result, many investors are selling first and asking questions later — if at all. The template seems to be a short-seller will short a small Chinese stock, release a negative report on the stock — pushing it out on a personal website and spreading it through online financial message boards and communities — then cover after the stock drops

So it is more important than ever before to have a China guide to make sure that you avoid these China stock traps — and on the following pages are a few stocks that I think have more downside than upside.

Best Small-Cap Airlines Stocks In 2011

Richard Branson, the founder of the multibillion-dollar Virgin Group, is attributed with saying that the best way to become a millionaire is to start off as a billionaire and buy an airline…

Unfortunately for many airline investors, that piece of advice has held true for decades. Airlines are highly susceptible to rising commodity costs, the ebb and flow of consumer spending and even geopolitical risks. The string of bankruptcies, bargain-priced buyouts and outright failures that dot the industry’s history books should serve as a good warning to most investors by now.

But there are exceptions to every rule: A well-placed investment in Delta Airlines in mid-2009 could have netted you 99.8% gains. Buying shares of Southwest Airlines at the same time would have provided profits of 110%. And taking on shares of AirTran even as the market collapsed in mid-2008 could have put 270% gains in your portfolio.

To be sure, there are still significant challenges in the airline industry right now. While prescient investors could have generated some enviable returns by buying many airline stocks at historic discounts, few of those low valuations have withstood the rallies of 2009 and late 2010. Simply put, there are few sheer bargain opportunities left in the airline business.

At the same time, crude oil is maintaining its newfound triple-digit price, and the recovery in consumer travel spending remains tentative.

But ultimately, the fact remains that there are attractive opportunities even in the most challenging sectors. That’s exactly we’re taking a look at a few of the market’s smallest airline stocks right now… Read more…

18 Best Dividend Stocks to Buy in 2012

There were eighteen consistent dividend growth stocks, which announced plans to boost distributions for their shareholders over the past week.

Besides my screening process, my compilation of weekly dividend increases helps me stay up to date on any dividend and business developments for companies I own or for companies I might be interested in purchasing down the road.

In this article, I focused only on companies which have been able to boost dividends for at least five years in a row. In the past, this process has helped me identify opportunities which I would have otherwise missed. It has also been instrumental in my accumulation of knowledge about companies, business and dividends in general.

The eighteen consistent dividend growers in the news include:

18 Best Dividend Stocks to Buy in 2012 – PepsiCo (NYSE:PEP) engages in the manufacture and sale of snacks, carbonated and non-carbonated beverages, dairy products, and other foods worldwide. The company raised its quarterly dividend by 4.40% to 53.75 cents per share. This marked the 41st consecutive annual dividend increase for this dividend aristocrat. Unfortunately, this marks the lowest dividend growth for PepsiCo since 2002. Yield: 3.20% (analysis)

18 Best Dividend Stocks to Buy in 2012 – Cardinal Health (NYSE:CAH) operates as a healthcare services company that provides pharmaceutical and medical products and services. The company raised its quarterly dividend by 10.50% to 23.75 cents per share. This marked the 23rd consecutive annual dividend increase for this dividend achiever. Yield: 2.20%

18 Best Dividend Stocks to Buy in 2012 – Airgas (NYSE:ARG) through its subsidiaries, engages in the distribution of industrial, medical, and specialty gases in the United States. The company raised its quarterly dividend by 25% to 40 cents per share. This marked the tenth consecutive annual dividend increase for this dividend achiever. Yield: 1.70%

18 Best Dividend Stocks to Buy in 2012 – Chesapeake Utilities (NYSE:CPK), through its subsidiaries, operates as a diversified utility company that primarily engages in regulated energy and unregulated energy businesses. The company raised its quarterly dividend by 5.80% to 36.50 cents per share. This marked the ninth consecutive annual dividend increase for this stock. Yield: 3.50%

18 Best Dividend Stocks to Buy in 2012 – Weyco Group (NYSE:WEYS) engages in the distribution of men’s foot wear primarily in the United States, Canada, Europe, Australia, Asia, and South Africa. The company raised its semi-annual dividend by 6.25% to 17 cents per share. This dividend champion has raised distributions for 32 years in a row. Yield: 3%

18 Best Dividend Stocks to Buy in 2012 – Expeditors International of Washington (NASDAQ:EXPD) provides logistics services in the United States and internationally. The company raised its semi-annual dividend by 12% to 28 cents per share. This dividend achiever has raised distributions for 18 years in a row. Yield: 1.40%

18 Best Dividend Stocks to Buy in 2012 – Reynolds American (NYSE:RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. The company raised its dividend for the second time in 12 months, to 59 cents per share. Reynolds American has managed to boost distributions for 8 consecutive years. Yield: 5.85%

18 Best Dividend Stocks to Buy in 2012 – Boardwalk Pipeline Partners (NYSE:BWP), through its subsidiaries, engages in the ownership and operation of integrated natural gas pipelines and storage systems in the United States. This master limited partnership raised its quarterly distributions to 53.25 cents per unit. Boardwalk Pipeline Partners has boosted distributions for six years in a row. Yield: 7.70%

18 Best Dividend Stocks to Buy in 2012 – DCP Midstream Partners (NYSE:DPM), together with its subsidiaries, engages in gathering, compressing, treating, processing, transporting, storing, and selling natural gas in the United States. This master limited partnership raised its quarterly distributions to 66 cents per unit. DCP Midstream Partners has boosted distributions for six years in a row. Yield: 5.80%

18 Best Dividend Stocks to Buy in 2012 – Alliance Resource Partners (NASDAQ:ARLP) engages in the production and marketing of coal primarily to utilities and industrial users in the United States. This master limited partnership raised its quarterly distributions to $1.025 per unit. This dividend achiever has boosted distributions for ten years in a row. Yield: 6.45%

18 Best Dividend Stocks to Buy in 2012 – Alliance Holdings (NASDAQ:AHGP), is the general partner of Alliance Resource Partners (ARLP). This master limited partnership boosted quarterly distributions to 66.75 cents per unit. Alliance Holdings GP has been consistently rewarding its partners with distribution hikes since 2006. Yield: 6%

18 Best Dividend Stocks to Buy in 2012 – RLI (NYSE:RLI), through its subsidiaries, underwrites property and casualty insurance primarily in the United States. The company raised its quarterly dividend by 6.70% to 32 cents per share. This marked the 37th consecutive annual dividend increase for this dividend champion. Yield: 1.90%

18 Best Dividend Stocks to Buy in 2012 – AGL (NYSE:GAS), an energy services holding company, distributes natural gas in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland. The company raised its quarterly dividend by 2.20% to 46 cents per share. This marked the 11th consecutive annual dividend increase for this dividend achiever. Yield: 1.90%

18 Best Dividend Stocks to Buy in 2012 – Microchip Technology (NASDAQ:MCHP) engages in the design, development, manufacture, and market of semiconductor products for embedded control applications. The company raised its quarterly dividend to 35 cents per share. Microchip Technology has managed to boost distributions for 11 years in a row. Yield: 4%

18 Best Dividend Stocks to Buy in 2012 – Northeast Utilities (NYSE:NU), a public utility holding company, provides electric and natural gas energy delivery services to residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. The company raised its quarterly dividend by 16.80% to 34.30 cents per share. Northeast Utilities has managed to boost distributions for 12 years in a row. Yield: 3.80%

18 Best Dividend Stocks to Buy in 2012 – VSE (NASDAQ:VSEC) focuses on providing sustainment services for the legacy systems and equipment of the U.S. Department of Defense (DoD); and professional services to the DoD and federal civilian agencies in the United States. The company raised its quarterly dividend by 14.30% to 8 cents per share. VSE Corporation has managed to boost distributions for 8 years in a row. Yield: 1.30%

18 Best Dividend Stocks to Buy in 2012 – AmTrust Financial (NASDAQ:AFSI), through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. The company raised its quarterly dividend by 11.10% to 10 cents per share. AmTrust Financial Services has managed to boost distributions for 6 years in a row. Yield: 1.40%

18 Best Dividend Stocks to Buy in 2012 – Regal Beloit (NYSE:RBC), together with its subsidiaries, manufactures and sells electric motors and controls, electric generators and controls, and mechanical motion control products in the United States, Asia, and internationally. The company raised its quarterly dividend by 5.60% to 19 cents per share. Regal Beloit Corporation has managed to boost distributions for 9 years in a row. Yield: 1.10%

The Best Blue-Chip Stocks to Invest Due for a Dividend Boost in 2012

If you’re in the market for income, then you’re constantly on the hunt for companies that keep their foot on the dividend pedal. And so far, 2012 has proven to be a stellar year when it comes to the number of big companies increasing their quarterly payouts to shareholders. The latest blue chip to put a smile on shareholders’ faces was beverage behemoth The Best Blue-Chip Stocks to Invest  in 2012 – PepsiCo (NYSE:PEP), but earlier this year we saw dividend boosts from a slew of the elite S&P 100 stocks. In fact, nearly one-third of S&P 100 companies have increased their dividend payouts in 2012.

The list below shows S&P 100 companies that already have announced an increase in their payouts this year:

In addition to this list, we have tech icon Apple (NASDAQ:AAPL), which until this year had refrained from giving back any cash to shareholders. In March, Apple surprised Wall Street with the announcement that it would begin paying its first quarterly dividend since 1995 later this year.

So, with all these mega-cap stalwarts increasing shareholder payouts, the logical question is which companies are most likely to boost dividends next?

To find the likely suspects, I looked at S&P 100 components’ dividend-related metrics such as yield, payout ratio and cash on hand. The thesis here is that companies with a relatively low yield, low payout ratios and a lot of cash on hand would be the most likely candidates to increase their dividend payments.

After sifting through the data, I came up with several companies that I suspect are the most likely candidates for a dividend increase in the near future.

Perhaps the biggest of these stocks is tech giant The Best Blue-Chip Stocks to Invest  in 2012 – Oracle (NASDAQ:ORCL). The company has a payout ratio (the amount of earnings paid out in dividends to shareholders, calculated by dividing the dividend per share by the earnings per share) of just more than 12, and a paltry 0.8% dividend yield. Oracle also has cash on hand of some $13.8 billion, and this confluence of factors makes it a great candidate for increasing its payout.

Another likely dividend booster is The Best Blue-Chip Stocks to Invest  in 2012 – UnitedHealth Group (NYSE:UNH). The insurer has metrics similar to Oracle, with a payout ratio of just over 12.4, a dividend yield of 1.04% and $14.3 billion in cash on hand.

Yet another solid candidate that jumped out at me is automaker The Best Blue-Chip Stocks to Invest  in 2012 – Ford (NYSE:F). The company has a payout ratio of 13.6, a dividend yield of 1.8% and more than $17.1 billion in cash. Ford plans to use some of that cash to expand its China operations, but it also can use some of that cash to put dividend investors in the driver’s seat.

Honorable mention stocks here using the aforementioned criteria are Anadarko Petroleum (NYSE:APC), FedEx (NYSE:FDX), The Best Blue-Chip Stocks to Invest  in 2012 – Halliburton (NYSE:HAL), National Oilwell Varco (NYSE:NOV) and Visa (NYSE:V).

Of course, time will be the arbiter of whether my speculation proves prescient. It could turn out that none of the aforementioned companies end up boosting their respective payouts. But I say if you’re an investor chasing the next dividend divas, these stocks definitely should be placed on your income watch list.

The Best Times to sell Dividend Stocks in 2012

Dividend stocks have lots of appealing factors, and it’s easy to find reasons to buy. Some stocks have a great dividend yield. Others have a decades-long history of raising dividends once a year. Then there are picks with a modest dividend but great upside potential for shares.

If you’re looking for a reason to buy dividend stocks, there are plenty. But a trickier scenario is knowing when to get out.

So when do you sell a dividend stock? Some dividend investors have a holding period of forever, thinking that all stocks suffer slides or even dividend cuts, so it all works out in the wash when your priority is on the quarterly payout. If that describes you, then the answer to the question of when to sell is simply “never.”

Other dividend investors find quarterly payouts nice, but really secondary to share values. Investors with this mind-set typically set stop-losses or set sell targets because it’s the stock price that matters most. If that describes you, then obviously you’re not asking when to sell a dividend stock — you’re wondering when the best time to buy and sell is based on the best share price.

For those who fall in between, pulling the trigger on a dividend stock is a balancing act. They grant some leeway to stocks with a hefty and reliable payout when shares slip, or they’ll stick with a stock that has slashed its dividend because it has upside potential for shares in the long term. But where do you draw the line?

There are five conditions that are helpful in sounding the sell signal for any dividend stock investor.

The company cuts or altogether eliminates its dividend. This one is fairly obvious. You can sometimes stomach a company that keeps dividends flat for a few years, but if a company is slashing dividends it means that the balance sheet has gotten so bad that it needs to literally take money out of shareholders’ pockets. The most likely scenario in this situation is that investors will be stung twice — once with the cancellation of dividends and again as share prices suffer. Take The Best Times to sell Dividend Stocks in 2012 – The Best Times to sell Dividend Stocks in 2012 – General Electric (NYSE:GE) in February 2009, for example. When it cut its dividend, GM saw shares drop 10% the next day.

The dividend stock sees its annual dividend yield drop below 1%. There are plenty of stocks out there that offer a nominal dividend — even small-cap companies with lower volume and a comparatively small pool of profits to share. However, if a company’s dividend is below 1%, chances are it’s not a dividend stock. It’s just a stock that happens to offer a dividend. If a stock is truly in your portfolio because of its quarterly payout, you must demand more than a payout of just a few pennies per share. Besides, if dividends are an afterthought for companies, there’s no guarantee that they will make an effort to maintain or boost their payouts.

Your “yield on cost” for the specific stock is below 2%. Let’s say you bought shares of The Best Times to sell Dividend Stocks in 2012 – Home Depot (NYSE:HD) in 2000 at their peak of around $60 a share. The current annualized dividend for HD is $1.16 per share — meaning your yield based on the cost you paid is just 1.9% — meanwhile, HD yields 2.3% on 2012 prices around $50 per share. And had you bought in for August 2011 lows around $28, your personal “yield on cost” would be about 3.5%. Just as profits are relative depending when you bought in to a stock, so are dividend yields.

The dividend stock is bought out. Frequently, such deals are made with a lot of cash — meaning there’s less to pay out in dividends. So don’t wait around three months anticipating a payday that won’t be all that impressive in most cases. Other times you might find that a company with a great yield and good potential for shares has been bought by a less favorable competitor, so it’s better to move out of the position instead of accepting the resulting shares from the buyout. Lastly, obviously if the company goes private, there will no longer be shareholders to share in the profits.

Your position in the dividend stock is down 50%. Though small fluctuations in share price are not necessarily a problem for dividend investors, watching a position get hacked in half should set off warning bells. A dividend stock with a yield of about 2% will take 50 years to “double your money” via dividends — or pay for itself, depending on how you view your investment. Waiting five decades (if not reinvested) just to get back to square one doesn’t make any sense no matter how healthy the dividend payout is. You’ll be better served by simply taking the haircut and finding a stronger dividend stock that will deliver reliable returns. Though it’s tempting to believe a dividend stock will fight back, it’s often quicker to make up for a loss in a good stock that’s on the rise than a bad stock that’s getting a dead-cat bounce. Think of it this way: If you find a stock with a similar yield that provides the exact same performance, all you’re out is your broker fee. When you’re down more than 50%, even the most conservative buy-and-hold investor should consider rolling the dice.

Oilfield Services Stocks to buy for May in 2012

Oilfield services stocks have been on the ropes lately as natural gas supplies hit their highest levels in five years and their lowest prices in a decade. On the face of it, now would appear to be the time to run from the stocks of companies whose equipment and services help oil and gas exploration and production (E&P) companies tap into energy reserves that traditionally have been difficult to reach.

Yet, there are strong indications that the industry may be turning around as the most agile competitors redeploy their assets and refocus their attention on higher-margin business lines and higher-growth regions.

Consider the quarterly earnings reports of the two largest oilfield services companies — Oilfield Services Stocks to buy for May in 2012  -  Schlumberger (NYSE:SLB) and Oilfield Services Stocks to buy for May in 2012  – Halliburton (NYSE:HAL), both of which reported strong profits last week. Oilfield Services Stocks to buy for May in 2012  – Baker Hughes (NYSE:BHI) and Oilfield Services Stocks to buy for May in 2012  – Key Energy (NYSE:KEG) will report next Tuesday and Thursday, respectively.

Schlumberger on Friday reported earnings of $1.3 billion (97 cents a share) up from $944 million (71 cents a share) for the same quarter last year, meeting analysts’ expectations. Revenue was $5.6 billion, up from $5.5 billion last year. Although the margins on SLB’s business in North America are narrowing because of the natural gas glut and low prices, strong international earnings growth offset softer performance in the U.S.

Halliburton on Wednesday reported a nearly 23% rise in profit — to $627 million (68 cents a share) for the quarter and a 30% increase in revenue to nearly $6.9 billion. That’s after it took a $191 million charge related to BP’s (NYSE:BP) Macondo well explosion in 2010. The company has begun moving away from dry gas drilling toward oil and liquids. It also is cashing in on Asia-Pacific markets like China and Australia. Read more…

4 Funds That Go Beyond Stocks and Bonds to invest in 2012

Some of the world’s best investors run private equity firms like Blackstone (NYSE:BX), KKR (NYSE:KKR) and Apollo Global Management (NYSE:APO). To generate high returns, they often focus on so-called alternative investments — which go beyond just focusing on plain-vanilla stocks and bonds.

Instead, private equity firms will invest in commodities, real estate and private businesses. They also will engage in sophisticated strategies, such as short selling.

For individual investors, it is not easy to get exposure to alternative investments — often, you need to be fairly wealthy to participate in the funds. But there’s at least a few available mutual funds you can tap for some exotic flavor. True, some of these funds still have some equities in their portfolio, but the stocks are unique companies that have a chance at performing independently of the general market.

Here’s a look:

4 Funds That Go Beyond Stocks and Bonds to invest in 2012 – First Eagle Gold

For centuries, gold has represented a safe haven. In times of crisis or inflation, investors will buy up the precious metal to preserve capital. Let’s face it: Governments can print money, but they can’t print gold. Meanwhile, it has become harder for miners to find new sources for gold. Companies like like Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) have had difficulties increasing their reserves. This limitation on supply should help keep a floor on the price of gold.

Investors looking to put some gold into their portfolios — through a mutual fund — should look at the First Eagle Gold Fund (MUTF:SGGDX).

It’s important to realize that many “gold” funds actually have exposure to other commodities like copper, silver and aluminum. But First Eagle’s focus is heavily toward gold. More than 15% of the portfolio is invested in bullion, and SGGDX also holds substantial positions in miners like Goldcorp (NYSE:GG) and AngloGold (NYSE:AU). Read more…

2 Best Stocks to Invest for This Week in 2012

Volatility continued in the markets this week, with economic reports decidedly mixed.

While retail sales went through the roof, the housing market stats showed a slowdown in housing starts but a pickup in building permits and mortgage applications. Unemployment claims remained steady, and so did the leading indicators.

Earnings season continues to surprise on the positive side, yet Europe’s problems also impact our markets almost daily.

We are on the right side of the trend, so investors should remain optimistic but always cautious in their selections. This week, most of the companies that look interesting to me are a dividend payer and a technology player.

Here are my two favorites:

2 Best Stocks to Invest for This Week in 2012 – Silicon Motion Technology (NASDAQ:SIMO)

SIMO makes multimedia data processing, storage and transfer products, including flash memory, embedded graphics processors, mobile television tuners and LTE modem solutions.

Price: $22.09

Market cap: $685.94 million

Target: $$30

Why I Like It: While chip prices are down, improving economic conditions should strengthen technology, including the semiconductor market, in terms of volume. However, caution remains during this earnings period of volatility. There could be a short-term pullback in the shares, but expect long-term appreciation. Read more…