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Dividenders Achievers List

Posted: 11 Jul 2019 06:36 AM PDT

When you buy stock, you're buying partial ownership in a company. Many of these companies pay out dividends – your share of the company's profits.

Right now, 2,800+ companies currently pay dividends, which can be an amazing source of extra income for investors. In fact, many investors collect tens of thousands of dollars in dividends alone.

So as you might imagine, many investors assume that the higher the dividend the better the stock.

Well, that's not always true. Sure, a high yield means you get paid more for each share of stock you own. But there's also a downside.

If a dividend yield is super high, it can indicate that investors are selling the stock, driving the share price down and increasing the dividend yield as a result.

For instance, dividend yields over 4% should be carefully assessed. And those over 10% tend to come from companies that are viewed as "high risk."

Put simply, super high dividend yields are very tough to sustain.

So what kind of dividend SHOULD you be looking for?

Well, the good news for you, is that there's a sort of "magical" checklist that will tell you exactly which companies pay the best dividends. Keep in mind, these won't necessarily be the highest-paying dividends. But they'll be the most stable, least risky, and sustain maximum potential to make you money year after year after year.

And in case you're wondering, there are only three items on this "magical" checklist.

  1. The company MUST want to reward shareholders with dividends

  2. The company MUST have the ability to pay rising dividends every year

  3. The company MUST have raised dividends for at least 10 straight years

Companies that fulfill ALL of these requirements are known as Dividend Achievers.

Now, when you filter through EVERY company that currently trades on the open market, you end up with a surprisingly small number of Dividend Achievers.

Consider there are nearly 20,000 stocks traded publicly, both over the major exchanges and over the counter.

Now, out of all of those, only 264 match the criteria above. Just over 1% of all companies that trade publicly.

So, while it's not impossible to filter these all out yourself, chances are it would take you an inordinate amount of time to do so.

The good news is, you don't have to sit in front of your computer trying to figure out screeners or work through massive lists of companies by hand.

You can see every Dividend Achiever, today, within minutes.

Simply click this link, and we'll send you ALL 264 Dividend Achievers absolutely FREE.

CLICK HERE TO DOWNLOAD LIST

 

 

Unusual Options Activity: Host Hotels & Resorts (HST)

Posted: 11 Jul 2019 03:00 AM PDT

Big bet hotel chain will rally into 2020.

The hospitality industry has faced some significant headwinds in recent years, but that's not stopping one trader from betting on a rally in Host Hotels & Resorts (HST).

On Wednesday, over 10,500 contracts of the January 2020 $20 calls on shares traded hands. That represents a 31-fold increase in volume on the contract. With shares around $18, the move is a bet that shares will move at least 10 percent higher by the time the option expires in mid-January.

Host Hotels owns high-end luxury brands, under such names as Marriott, Hyatt, Fairmont, Ritz-Carlton, and others. It owns a total of 87 properties in the United States and 5 properties abroad, as well as non-controlling interests in additional high-end brands.

Action to take: Luxury-level hotels have had less pressure from lower-end hotels by competition from home-sharing apps like AirBnB in recent years, and could be an interesting play on continued spending in the high-end luxury market on hotels here.

While the option looks interesting, investors would be better served buying shares, where they can get any capital gains in addition to a nice 4.4 percent dividend yield.

With shares trading at just 13 times earnings, there's more upside in shares either way, but buying shares eliminates the need for shares to move higher before expiration.

Oil Pushes $60 on Inventory Decline, Gulf Storm

Posted: 11 Jul 2019 03:00 AM PDT

Short-term uncertainties rise for oil.

While stock prices moved towards all-time highs on Wednesday, oil prices rose by over two percent on two separate but important events.

First, U.S. inventories of oil fell more than expected, by 8.41 million barrels against an expectation of a decline of 3.1 million barrels. This has been the second unexpectedly large drop in recent weeks, and a sign that the summer driving season for oil inventories, which typically starts earlier, is finally underway.

Secondly, a tropical storm forming in the Gulf of Mexico is leading to the evacuation of Gulf oil rigs. The latest data indicates the possibility for a category 1 hurricane—hurricane Barry—to hit western Louisiana early next week.

Gulf shutdowns, whether rigs or refiners, can have a short-to-medium term impact on oil and gasoline supply, indicating that prices may rise a little bit more in the coming days.

Action to take: While oil prices can be volatile, these factors are seasonal ones that won't last forever. Any shutdown in the Gulf will be temporary, as well as any disruption from refining activity. Investors could bet on oil futures heading a bit higher in the coming days, but take profits quickly. A category 1 hurricane is unlikely to impact the region as much as bigger storms have in the past.

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Insider Activity: vTv Therapeutics (VTVT)

Posted: 11 Jul 2019 03:00 AM PDT

Activist investor adds $2 million to existing stake.

On Tuesday, activist investor Ron Perelman revealed the additional purchase of 1.2 million shares in a company he already owns more than 10 percent of, vTv Therapeutics (VTVT).

Perelman now owns over 20.2 million shares of the company. The shares were purchased at an average price of $1.65, but shares currently trade around $1.45, so anyone looking to piggyback on the billionaire investor can get a bargain here.

The company may not be for all investors, however. With only an $80 million market cap, shares will be volatile. And vTv is in the business of developing small-molecule drug candidates to fill unmet medical needs.

The company is currently working on Azeliragon, an orally-administrated drug to treat Alzheimer's disease. It also is working on a drug called TTP399, designed to treat type 2 diabetes.

Action to take: Shares look like one of the more interesting and smaller biopharma plays out there. Given its small size, and need for capital, investors should expect to see share periodically beaten down by additional capital raises.

Should any of its drugs prove successful, however, there's a high possibility of seeing shares surge 5-10 fold from current prices, making this a very speculative play. A small allocation to shares under $1.50 could prove a great investment— albeit with a big risk of the position going to zero.

Fed Chair Powell Goes Dovish Before Congress

Posted: 11 Jul 2019 03:00 AM PDT

Fed Chairman justifies changed outlook to Congress on Wednesday.

The stock market rallied on Wednesday, fueled in part by dovish comments by Federal Reserve Chairman Jerome Powell. Speaking to the House Committee on Financial Services, Powell essentially stated that uncertainties in economic outlook have increased in recent months.

This increase explains the move by the fed towards a "more accommodative monetary policy" –Fed speak for cutting interest rates—in recent weeks.

Powell cited several mixed statistics to explain the central bank's changing stance. For instance, while job growth has been strong, there are limits to how far the job market can go with unemployment already near record lows. And wages, while growing, are doing so at a slower rate in the past.

Powell also warned that the Fed is seeing fewer signs of inflation for this stage in the market, a potential warning sign. Yet other signals, such as household confidence, remain high.

Overall, Powell strengthened the case for interest rate cuts later in the year. Traders view rate cuts as bullish in the short-term, as the returns on fixed-income assets lower relative to stocks.

With the stock market pushing record highs, an initial set of rate cuts by the Fed could fuel one last big rally before a recession. If the Fed acts now, however, the view is that the economy may slow, but any recession would be milder as a result.
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