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.

Hot Stocks To Watch For 2019

We are halfway through the calendar year and stock markets are sitting right about where they began 2018. Optimism about economic growth and lower corporate taxes has roughly balanced with worries about trade disruptions to leave the S&P 500 up by just 1% through the six months ending on June 30.

A few companies have dramatically outperformed that result by logging gains of as much as 245% so far this year. Below, we’ll take a closer look at a few of these standout stocks.

Hot Stocks To Watch For 2019: Roku, Inc.(ROKU)

When people think about cutting the cord from their cable TV operator, names that usually spring to mind include Amazon.com, Netflix, and maybe Hulu, but the one they should be thinking about is Roku.

The streaming device maker is actually in the midst of a major transformation to move away from hardware sales to one where its advertising platform is central to its business thesis. Last quarter Roku was finally able to make the pivot so that revenues from ads and fees exceeded those of its devices. Platform revenues more than doubled to $75.1 million, significantly ahead of the $61.5 million it made on its players.

It’s not abandoning the device market — a branded sound bar for controlling a home entertainment system will be coming to market soon — but advertising revenue will be the focus from here on out. It just launched its own ad marketplace and has lined up some heavy hitters, including Turner Broadcasting, Fox, and Viacom. According to Cord Cutter News, 70% of those who have cut the cord own a Roku device, while the maker of OTA DVRs, TabloTV, says 70% of its users also use a Roku device.

As the viewing public increasingly moves to streaming, they’ll turn to Roku in one form or another, and those advertisers trying to reach them, will do so as well.

Hot Stocks To Watch For 2019: Netflix, Inc.(NFLX)

Shares of streaming video giant Netflix (NASDAQ:NFLX) have doubled this year following a few quarterly reports that have investors feeling giddy about its growth potential. Its most recent outing was highlighted by a record 43% sales spike that came as subscriber gains blew past management’s forecasts despite a 14% increase in average membership fees.

A family watching TV.

IMAGE SOURCE: GETTY IMAGES.

Those two trends imply that the streamer has a long runway for growth ahead both in its global subscriber base and in monthly prices that currently hover around $11. Netflix will post its next earnings report in mid-July, when it is expected to reveal it added another 6 million members worldwide.

Top Penny Stocks To Own For 2019

Buying and holding growth stocks is a great way to predictably generate wealth over the long term. But not all growth stocks are created equal; the very best have unique characteristics that set them apart — and set up investors for years of success.

So we asked three top Motley Fool investors to each discuss a growth stock that successful investors can appreciate. Read on to learn why they like these stocks.

Top Penny Stocks To Own For 2019: Marathon Oil Corporation(MRO)

Marathon Oil has spent most of 2018 finishing its portfolio cleanup plan. Not only did the company receive the final payment from last year’s sale of its oil-sands position, but it also sold its Libya subsidiary. Those deals brought in $1.2 billion in cash, boosting the company’s balance to a healthy $1.6 billion. That level should continue rising this year since the company can balance its budget at $50 oil, putting it on pace to generate $500 million in excess cash if crude averages $60 a barrel — and even more at current prices. Marathon hasn’t yet decided what it plans to do with the money, other than investing some of it in buying land in an emerging shale play in Louisiana, though the company said that it could start returning some of it to shareholders later this year via a stock repurchase program.

Top Penny Stocks To Own For 2019: Zillow Group, Inc.(ZG)

Shares of Zillow Group have climbed nearly 50% so far in 2018 as of this writing. After all, with Premier Agent revenue expected to arrive at just above $900 million this year — still a small fraction of the roughly $12 billion that real estate agents spend each year advertising their listings — Zillow enjoys a long runway for growth from its core business. And that’s not to mention the supplemental growth of its smaller rentals, mortgages, and other real estate services segments.

But two developments have actually tempered the stock’s growth in recent months, giving investors a much better chance to step in and participate in its longer-term gains.

First, in April Zillow pulled back hard after the company announced it would accelerate its home-flipping initiatives with the the expansion of Zillow Instant Offers. As part of that effort, Zillow expects to hold around 300 to 1,000 homes for resale by the end of 2018 — a capital-intensive effort that some investors worried would come at the expense of its current core Premier Agent business. Sure enough, though Zillow has assured agents the program actually encourages sellers to use an agent regardless of whether they accept Zillow’s offer for their home, Instant Offers has certainly ruffled some feathers in its early stages. Once real estate industry professionals realize Zillow still has their best interests at heart, however, I think the program should prove to be an astute move to drive incremental revenue and profits for the company.

Second, late last month, Zillow stock pulled back again when it announced plans to raise as much as $725 million in net proceeds from a combination of offering new stock and debt. As I subsequently pointed out, however, I think Zillow could use the cash to potentially acquire one of its largest competitors, further solidifying its industry leadership as more people inevitably flock to online real estate platforms.

Top Penny Stocks To Own For 2019: Markel Corporation(MKL)

In order to be a truly successful investor, you need to have the patience to buy and hold shares of great companies for the long term. And it’s hard to think of a business that fills that mold better than Markel.

There’s a reason they call this specialty insurance and financial holding company a "mini-Berkshire Hathaway." Markel follows the formula that Warren Buffett used to make Berkshire a household name — that is, with its core insurance operations, its long-term-oriented investment portfolio, and its diversified group of noninsurance, noninvesting businesses acquired and held under the Markel Ventures segment.

As per usual, last quarter demonstrated the effectiveness of this three-tiered approach for generating shareholder value. Even as Markel’s investments endured stock market volatility at the start of this year, Markel was able to lean on its profitable insurance business and growth (both organic and acquisitive) at Ventures to offset that temporary weakness. Thus, Markel’s book value per share still climbed more than 8% year over year to roughly $671. So even with Markel stock having more than doubled over the past five years, shares still trade at around 1.6 times book value — a reasonable premium for this high-quality company. And I think long-term investors who buy now can still enjoy market-beating returns for decades to come.

Top Penny Stocks To Own For 2019: Noble Energy Inc.(NBL)

Like most of the other oil producers on this list, Noble Energy put the finishing touches on its portfolio cleanup by selling several assets, including its position in the Gulf of Mexico. That gave the company the money to pay down some debt as well as repurchase shares, as it announced a $750 million buyback program. That authorization is part of a plan to return $1.3 billion in cash to investors by the end of 2020, which also includes the company’s dividend. However, with Noble Energy basing that plan on $50 oil, it will likely be able to return even more cash to investors in the coming years, given where crude prices are these days.

Top 5 Warren Buffett Stocks To Watch For 2019

You might have thought that 2018 would have been a fantastic year for most marijuana stocks. Canada is on course to open its big recreational marijuana market in October. Global demand for medical marijuana is increasing. But the reality is that most marijuana stocks aren’t performing nearly as well so far this year as they did at this point in 2017.

However, there have been some winning marijuana stocks at the halfway market through 2018. These three are the best marijuana stocks of 2018 so far for companies with current market caps of at least $200 million and that have a significant focus on the cannabis industry. 

How have these stocks Growth emerged as the top year-to-date performers? And are these hot marijuana stocks smart picks now? Here’s what you need to know.

Top 5 Warren Buffett Stocks To Watch For 2019: Innovate Biopharmaceuticals, Inc.(INNT)

Innovate Biopharmaceuticals stock skyrocketed 75% this week. Even before this big move, Innovate was already the best-performing biotech stock of the first half of 2018. Its recent gains cemented its spot at the top.

The company had a couple of developments this week that helped boost its share price. On Monday, Innovate announced that it was being added to the Russell 3000, Russell 2000, and Russell Microcap indexes. The biotech also announced on Thursday that it had entered into a research and development collaboration with O. Colin Stine at the University of Maryland School of Medicine. Stine plans to study Innovate’s lead candidate, larazotide acetate, in correcting the dysfunctional intestinal barrier and the dysfunctional microbiome.

Innovate hopes to advance larazotide acetate to a phase 3 clinical study targeting treatment of celiac disease. The drug has also attracted considerable interest due to its potential in treating other inflammatory diseases, especially nonalcoholic steatohepatitis (NASH).