Category Archives: Energy Stocks

Top Performing Stocks To Watch For 2019

The popularity of real estate investment trusts (REITs) hinges heavily on dividends. Equity (meaning non-mortgage) REITs pay on average of 4.1% in dividends, vs. 1.8% for the S&P 500. Tax rules tend to boost dividend payments for these real estate stocks. If REITs agree to pay out at least 90% of their income in dividends, certain types of income receive an exemption from federal income tax. While such a rule can lead to constant fluctuation in payout amounts, investors often willingly accept this condition in exchange for the higher dividend.

A handful will also pay a dividend that places the yield close to or sometimes above 10%. Stockholders must exercise caution with some of these real estate stocks, as the high payout could mask problems with the stock. For example, CBL & Associates Properties (NYSE:CBL) may tempt some investors with its 14.3% dividend. However, investors will likely find themselves less anxious to buy when they see that troubled retailers such as Sears (NASDAQ:SHLD) and J C Penney Company (NYSE:JCP) anchor 60% of their properties.

While investors need to understand the stocks and exercise caution, they can still find REITs that pay a safe, sustainable, return at or near double-digit dividend yields.

Top Performing Stocks To Watch For 2019: Government Properties Income Trust(GOV)

Real Estate Stocks Paying Monster Dividends: Government Properties Income Trust (GOV)

Source: Shutterstock

 

Dividend Yield: 10.7%

As the name implies, Government Properties Income Trust (NASDAQ:GOV) acquires, manages, and leases office space to government entities. What differentiates GOV from most real estate stocks is that most of their real estate is leased to the federal government. Still, GOV also counts many state governments, municipalities, and international organizations among its clients. Both the growth of government and the expansion of agencies have sustained a continued growth path for longer than anyone can remember. Hence, this REIT should remain among the safer investments.

Investors should buy this stock assuming that most (and possibly all) the income derived from GOV stock will come from the dividend. The stock trades a little bit more than 20% lower than its IPO levels of 2009. Still, it could be well-positioned to bounce back. The stock is well off its 52-week low of $11.87 per share.

At nearly $16 per share, it remains about 35% below the near-term high achieved in 2016. That places its forward price-to-earnings (P/E) ratio at just under 8. Although no profit growth is forecast through 2020, both the P/E and price-to-sales (P/S) ratio trade well below five-year averages.

Moreover, the reduction in price has brought the dividend yield near double-digit levels. The REIT has held its annualized dividend at $1.72 per share since 2013. At current prices, that takes the dividend yield to about 10.9%. With a stable income source, a double-digit yield and the possibility of stock price appreciation, long-term income investors should look at GOV stock.

Top Performing Stocks To Watch For 2019: Amazon.com, Inc.(AMZN)

Amazon is my pick from the services sector. Up 47% YTD compared to 25% for its specialty retail peers, it has managed to deliver an annualized total return of 29% over the past 15 years, making CEO and founder Jeff Bezos one of the better providers of shareholder value.

You’re probably not going to believe this, but picking Amazon as my service-sector pick wasn’t a slam dunk despite the fact I’m a big fan and think Amazon’s long-term goal of selling you everything you need in your home and life is a big home run.

The company’s June 28 announcement that it would pay close to $1 billion to acquire online pharmacy PillPack knocked $11 billion in market cap from the nation’s three leading publicly traded drug store chains’ stocks … in a single day.

The Seattle behemoth has certainly become a company that can move markets. I expect the future to be a bright one for Bezos and company no matter where it chooses to set up its second headquarters. Even a Canadian HQ2 couldn’t slow it down.

Top Casino Stocks For 2019

Oil prices have been blistering hot so far in 2018. A barrel of WTI, which is the U.S. oil price benchmark, has rocketed 23% in the first half to more than $74, its highest level since November 2014. Meanwhile, Brent, the global oil benchmark, has been almost as hot, rising 18.8% for the year to more than $79 per barrel.

Those surging crude prices fueled big gains for the stocks of oil producers, with the following five components of the S&P 500 leading the way:

Top Casino Stocks For 2019: Fossil Inc.(FOSL)

The S&P’s single best performer is a stock that many investors had left for dead before the start of the year. In fact, Fossil (NASDAQ:FOSL) shed 70% of its value in 2017 as demand for wearable tech disrupted its core watch business. The stock has rebounded lately thanks mainly to surprising strength in its new wearables segment. However, for shares to continue their growth, Fossil will need show that it can return to steady sales and profit gains. That isn’t likely this year, given that management is projecting revenue declines of between 14% and 6% in 2018, compared to an 8% drop last year.

These market-thumping gains raise the pressure on each of the companies to show strengthening results in the quarters ahead. The shifting investor opinions on their businesses, meanwhile, are likely to drive future volatility — one way or the other — in their stocks.

Top Casino Stocks For 2019: Anadarko Petroleum Corporation(APC)

Anadarko Petroleum is also sending more money back to shareholders thanks to higher oil prices. After initially authorizing a $2.5 billion repurchase program last fall (enough to retire 10% of its outstanding shares), the oil giant added $500 million to its buyback this year and is expected to spend the entire amount by the end of the second quarter. On top of that, Anadarko announced a fivefold increase in its dividend and committed to repaying another $1 billion in debt by the end of next year. With oil running well above Anadarko’s $50-a-barrel budget level, the company should generate even more excess cash that it could send back to shareholders.

Top Casino Stocks For 2019: Mastercard Incorporated(MA)

There are several ways to find a growth stock, but one of my personal favorites that I believe has a high success rate is investing in well-established companies that are poised to ride the next megatrend. Think digitization, and payment processing companies like Mastercard.

You’d be surprised to know that nearly 80% of consumer purchase transactions across the globe are still made in cash, and that includes rapidly growing economies like India. Incidentally, India is also among the fastest-growing e-commerce markets in the world, which means there’s tremendous underlying potential for a company like Mastercard. And it’s not just about India or e-commerce — it’s about improving financial literacy, greater financial inclusion and the shift of the unbanked population to banks, and the rising adoption of cashless methods of payments like credit cards across nations.

Mastercard is already a global brand that’s been connecting financial institutions, merchants, and consumers for more than five decades and facilitating electronic modes of payments. Over the years, the company has expanded its reach to more than 210 countries and conducts transactions in more than 150 currencies.

Mastercard stock has grown exponentially over the years, backed by solid growth in earnings, cash flows, and 50%-plus operating margins. With management now focused on advanced technologies like biometrics and artificial intelligence to keep up with the times even as the global shift from cash to cashless gathers steam, Mastercard should continue to see investors succeeding in the game.