Super Stock Blog

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Category: Dividend Stock (Page 2 of 2)

Procter & Gamble – The Slow and Steady Earner

You are in it for the long-run, you are tired of trading the markets but you still want to make the stock returns with it.  Procter & Gamble is a nice old-age company that continues to perform and you get to collect a dividend at the same time.  They have had some recent mishaps and they are priced to go up in value.  The stock has hovered around the high $60s for quite a bit of time.  It yields around a 3.3% dividend and it isn’t shaken too much by the market.  There is plenty of reason to see this stock move up in the future.

You also get the added benefit of following Bill Ackman.  He is on the board and suggesting that the company buy of some of their own stock to bring up the value.  These are all good things for the stock investor.

Buy it, forget it, and look back at retirement with a winner!

Hugoton Royalty Trust, a Dividend Play on Natural Gas

Hugoton Royalty Trust, HGT, looks like it is ready to break out. Plus in addition to that, you get a nice dividend of over 8%. The dividend changes depending on the market fluctuations. This stock is a play on natural gas. It has been going up since a huge downturn last year.

Why be bullish?

This company was started by XTO Energy. They spun it off and own a bunch of shares in this company: “It holds a 80% net profits interests in certain natural gas producing working interest properties of XTO Energy Inc.” This trust is always producing profit and giving the money back to the shareholders. When the price of natural gas goes up, they can give more dividends. They also use the money to look for more opportunities in drilling and producing more natural gas.

Recently inventories of natural gas has been going down. This is in part to the prices of oil moving up and just natural gas being at very low prices because of the high supply of inventories that have been built up. The price will continue to increase as natural gas producers slow down. The recent statistics on home sales increasing also gave a more positive outlook that natural gas demand will increase. OPEC is also cutting back on oil production which will furthur the demand for natural gas as a substitute.

Technically HGT hit a triple top at $18.60. It’s at $19.50 currently and it did not drop with the stock market the past couple days! The volume looks good and it appears it’s time for it to move up to new territory. Before this recession, the last time it hit these highs were in 2003. It continued to rise to $40 as commodities increased during the decade. I think this stock has reached a bottom. For those seeking stocks that are defensive and want to make a play on inflation, I’d definitely suggest this stock.

Stocks to Look at for 7/6/09-7/12/09

Sorry for not posting for a while, I’ve been out-of-the-country and on my own stock research sabattical researching short-term trading and swing trading.  Now we can get down to business and make more money than just doing value investing.  I’m not to fond of big drops in the market.  If we want to make cash, we ogtta be able to swing our trades no matter what the scenario.

The past week we bottomed out at the market at 9200.  The only next point of resistance is at 10,500.  We have a lot of bull to go and the stocks that I am posting below all have an advantage to gain for the next couple weeks.

ETFC, E-trade, is a online broker company and mortgage financing company.  They trade at $1.55 but ran up to $1.92 last week before hitting a low of $1.50.  A lot of institutional investors have been trading this stock.  Citadel investment put out a press release stating they will not be selling their shares of stock.  They are the largest holder with 120 million shares!  Goldman Sachs bought over $38 million and Barclays bought over $60 million worth of shares.  There has been recent buying by Vanguard, IShares, Equity Advisors, and other mutual funds.  Companies like Vanguard continually buy more shares through 401k programs.  I see this company as a very safe trade at these levels.  There is also a ton of shorts in this stock.  I definitely see it breaking $2 just by the short-covering alone.  Great stock to get in now!

CMO, Capstead Mortgage Corporation, is a mortgage REIT that invests in residential and commercial properties.  It makes money by investing in mortgage loans.  The last quarter is gave a whopping .58 dividend.  This comes out to a yield of 17.34%.  The company makes money by profitting off the spread on interest rates.  Since the United States is at all time lows on interest rates it is making tons of cash right now.  Just last week the interest rate for short-term loans went down furthur this will add to its profitability.  The only way this company will lose is if the interest rates go up; however, this only happens when the FED wants to slow the growth of the country.  We have the highest unemployment rates for the past 27 years and tons of mortgages that will be going into foreclosure for at least the next year.  I highly doubt interest rates will be rising anytime soon.  Technically, the daily stoichastics are at the lowest its been for the past few weeks.  The risk is low right now.  Buy now at $13.35 and hold it long-term for at least a year.  Easy dividends and easy cash.  Nothing to lose.

FSLR, First Solar, has low stoichastics.  It has already started a move up from hitting a low of $112.  It currently trades at $121.47 and I see it moving up to $145-150 range.  After that depending on market conditions it can either move up or drop.  This is a very easy trade right now with the current bullish market conditions and solars at all-time lows.  If you want to play with more leverage, JASO, JA Solar Holdings, moves up a lot more.  I don’t know what the long-term trend for solars will be but for the short-term they both look like fine plays.

BSTK is a penny stock with a lot of potential.  This stock currently increased 100% from .12 and it was at a low of .05.  I see it moving it .50 cents before it hits strong resistance.  Another great short-term play!

Good luck!

Canadian Sands + Dividend = $$

As the market continues to plummet and things continue to worsen, dividend stocks will allow you to continue to win.  They work for long-term investors.  People that can wait it out a few years.  As they wait, they get rewarded.  I have a couple stocks I like currently that are pretty safe and if you have money to invest it will make you pretty rich in a few years.

HTE, Harvest Energy Trust, is a open-ended investment trust in Canada.  Their primary investments are in oil-related industries including shale-mining, oil refining, and drilling.  They also do invest heavily in petroleum and natural gas.  Right now, with crude oil hitting highs of $70, their stock price of $6.21 looks like a real bargain.  This gives you a dividend of 8.40%.  As with all stocks, make sure you do your due diligence!  I mention DD because HTE will get taxed in 2011 by the Canadian government and this will lower the dividend.  I do believe buying at this time will continually yield a pretty good dividend.  As oil prices go back up, you will see this stock price go up and you will happily be enjoying a nice dividend no matter what happens in the future.  I do believe oil prices will rebound, and I also believe this will rebound sooner than later.

PWE, Penn West Energy, is another open-ended investment trust in Canada.  They are paying off a yield of 11.40%. This one is also at a very low price.  I think both will be a good way to make money long-term and if you are willing to wait it out, you will be handsomely rewarded as oil gets back to its normal $80+.  Oil could become the next major currency.  Think about it, US dollar going down, what does everyone still use in the world?  Even with hybrid cars we still rely on that black gold.

If you have some money in your bank, put some of it in these two stocks.  Why not collect a fatty dividend!  When the market finally moves up, you will continually be rewarded and when the time comes when you need to sell, you can surely bet the price of these stocks will be more than it is right now!

Dividends are the Way to Richness Part II

Smirnoff, Jonnie Walker, Guiness, Baileys, Captain Morgan, Cuervo, have you heard of any of these liquors?  All of these are owned by Diageo, stock ticker DEO, and they continue to sell even during our current depression.  An article from Smart Money states that “Diageo’s balance sheet, paradoxically, can become stronger the longer some of its products sit in the warehouse. That’s because while the products of most companies lose value the longer they remain unsold, more than a quarter of Diageo’s revenues come from some form of whiskey, which often commands higher prices as it gets older.”  How many companies do you know have inventory that makes more money the longer it sits?  This company can sell during good times and bad because everyone around the world drinks.  The president is even shifting advertising to the more ‘moderately’ priced alcohol because of the economic slowdown.  Sounds like they have all corners covered.

With a dividend yield of 6.10% at the current price of $52.08, this looks to be a great  bargain.  Even if the prices drop furthur and the economy goes down, you will get a much better yield from this then the bank.  You might as well drink some of those woes away while waiting also, and you can with the dividend.  Maybe your drink is some delicious Bailey’s on the rocks, or you like to mix it up with Bailey’s and Guiness, whatever your preference, you will be living up to drinks that continue to sell in bars, liquor stores, markets, etc.

Dividend Stocks Are the Way to Richness

I’ve been doing research on dividend stocks lately.  As the market continues to plummet and things continue to worsen, dividend stocks will allow you to continue to win.  They work for long-term investors.  People that can wait it out a few years.  As they wait, they get rewarded.  I have a couple stocks I like currently that are pretty safe and if you have money to invest it will make you pretty rich in a few years.

RSO, Resource Capital Corporation, is a very conservative REIT.  They give out loans to commercial buildings.  As the whole subprime mess unraveled, they continued to make profit and collect mortages.  They did an excellent job of checking their clients out and making sure they would not default on their loans.  Their stock has plummeted to a low as of friday to $3.09.  This is a very cheap price for a stock that is giving a dividend yearly of $1.56.  That means if you buy it right now, you will have a dividend of 50.50%!  In just two years, you will not only make your money back but you will continue to collect awesome dividends.  If you are thinking this might be a little risky, here’s a link that tells how they have been punished by the subprime crisis.

HTE, Harvest Energy Trust, is a open-ended investment trust in Canada.  Their primary investments are in oil-related industries including shale-mining, oil refining, and drilling.  They also do invest heavily in petroleum and natural gas.  Right now, with crude oil hitting lows of $33, their stock price has dropped to $8.71.  This is a real bargain for a stock yielding $2.85.  This gives you a dividend of 32.80%.  As with all stocks, make sure you do your due diligence!  I mention DD because HTE will get taxed in 2011 by the Canadian government and this will lower the dividend.  I do believe buying at this time will continually yield a pretty good dividend.  As oil prices go back up, you will see this stock price go up and you will happily be enjoying a nice dividend no matter what happens in the future.  I do believe oil prices will rebound, and I also believe this will rebound sooner than later.

If you have some money in your bank, put some of it in these two stocks.  Why not collect a fatty dividend!  When the market finally moves up, you will continually be rewarded and when the time comes when you need to sell, you can surely bet the price of these stocks will be more than it is right now!

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