25 Of The Most Attractive Dividend Stocks

These are tough times for investors who look for cheap companies. The Dow and S&P 500 jump from high to high, but this boom is credit-driven; it's the result of the monetary easing policy of the world's major government banks.

The good thing is that we can buy stocks in every market situation, whether the market has a P/E level of 30 or 10. What we need to is to look at solid growth for the single stock and not overpay for the future prospects of an asset.

When I look at the market today, I see that the financial sector, conglomerates and basic material stocks are the cheapest valued ones in terms of forward P/E, but the highest growth is predicted for the Services and Technology sector, both of which have the highest P/E ratios.

Tech stocks have made many people rich, but if you recall the dot.com bubble in 2000, many investors and private dealers lost their money because they believed that their super high-flying stock could change the world.

Facebook, Twitter and Google dominate our world today, but will they do it in 10 or 20 years too? For sure, Microsoft has survived over 40 years. Oracle, IBM and even Apple also developed into dominant players and created a long track record, but technology is a fast changing business. You can make billions in a year, but also lose all your money in the next half-decade.

I own some of the old-school technology stocks too, but I don't like to pay for the uncertain future of a company more than it makes sense in an economic view. I will not pay 500 times sales today because of the company's next revolutionary product if I don't understand how it works.

I want dividends and a fair chance to make an 8 percent or more return, nothing else. The market has enough opportunities to realize this goal, and it is easy to succeed.

I've found a new screener on Morningstar, but it seems only to work with Canadian and US stocks. Morningstar has a great classification of companies, from financially healthy to growth, so I tested it.

Today, I was looking for fairly valuated growth stocks with a good dividend yield. In addition, 5-year expected earnings growth had to be over 8 percent. The screen delivered 25 results, and my focus is still on consumer stocks, as well as non-cyclical dividend payers.

Below are 5 of my favorite picks. Do you like some of them? Please let me know what you think from the screen.

#1 Verizon (NYSE:VZ) has a market capitalization of $204.90 billion. The company employs 176,800 people, generates revenue of $120.550 billion and has a net income of $23.547 billion. Verizon's earning

Aluminum Maker Alcoa Can Soar to New Highs on the Back of Economic Development

Aluminum maker Alcoa (AA) is doing great in 2014, with its shares effectively up 55%. Anyway, the great thing is that Alcoa hasn't used up breath yet. The organization as of late reported strong second-quarter results, and looking ahead, strong energy in various end markets will keep impelling Alcoa shares higher.

Alcoa's performance in the downstream segment was good in the previous quarter, as the organization recorded the highest level of profit as well as margin. Moreover, midstream profit increased 34%, and the upstream also put in an enhanced performance.

Aerospace prospects look strong

At present, Alcoa looks like another organization that has moved its focus on to specialized products like combination components for aircrafts. The organization is focused on transforming its portfolio through the $3 billion acquisition of Firth Rixson, which strengthens its as of now solid aerospace portfolio and affirms the administration's dedication to the aerospace industry.

As of late, Alcoa also affirmed that it has won an enormous contract from Pratt & Whitney in the aerospace sector.

So, Alcoa's focus on advancement is permitting it to make good progress in the aerospace business. This is uplifting news for investors as the substantial business airplane segment is required to develop 12.1%. What's more, Alcoa sees a robust business plane request book with nine years of creation build-up as of now.

Al

Will Security Problems Hamper Mexico's Energy Boom?

Mexico has attracted attention for passing secondary laws that will end its state oil monopoly and open the country's borders to new types of foreign investment. As Juan Montes explained in a recent article, "Under the new law, foreign and private domestic energy companies will be able to explore, produce and refine oil for the first time since Mexico nationalized its oil industry in 1938 and transformed oil into a symbol of national pride. State-owned oil giant Petróleos Mexicanos, or Pemex, was created that year, and has since been the only company allowed to exploit the country's oil and gas resources, turning Mexico into the world's ninth-largest oil producer."

Economic consultant Luis de la Calle explained, "This is a new, important step in that same direction of creating markets. Transforming the energy sector into an energy market should lower power costs and Mexico's industry would be unstoppable against China and even the U.S."

Mexico is now open for investment by foreign oil companies. It remains to be seen what the impact of this reform will be.  (Photo credit: Wikipedia)

There are opportunities for foreign companies both offshore and in the shale fields of northwestern Mexico, south of the Texas border. The Perdido Fold belt which is located on the U.S.-Mexican maritime boundary could contain between ten and thirty billion barrels of oil. The area is likely to be of interest for oil majors such as Chevron, BP, and Royal Dutch Shell are already operating in areas close to Mexican waters.

Mexico's state-owned oil company Pemex will likely still control the bulk of Mexico's oil and shale production. In mid-September the Ministry of Energy will decide what blocs it will open to private investment, but deepwater projects and difficult shale plays are likely to be opened to competitive biddings. These projects require expertise and funding that Pemex lacks.

In a recent article for Oil & Gas Journal Rachel Seeley explained "The Ministry of Energy will ultimately decide which geographic areas to make available for international bidding and when they will be unveiled. The ministry will also be responsible for deciding which contract types will be applied to which areas, evaluating bids, awarding contracts, and later monitoring exploration and production plans to ensure contract compliance and maximize productivity."

It is still not clear whether foreign companies will be offered production-sharing deals, profit-sharing agreements, pure service contracts, or licenses rather than concessions. Companies considering investing will wait to see how attractive the terms of the deals are. Then, the first round of bidding will likely take place after the July 2015 mid-term elections. Once the deals start taking effect, however, the impact on Mexico's economy could be quite significant. During an April 2014 visit to Washington DC Pemex chief Emilio Lozoya said, "The impact on the economy will be great."

Violence May Hamper Investment

Gold hovers after three days of losses

Bloomberg

LOS ANGELES (MarketWatch) — Gold prices inched fractionally lower on Wednesday, getting back on track after Janet Yellen's dovish testimony sapped any chance for gains.

At last check, gold for August delivery (GCQ4) (GCQ4) was basically flat at around $1,298 an ounce. September silver (SIU4)  gave up 8 cents to $20.81 an ounce.

A day earlier, gold prices reversed course and ended up losing ground for a third-straight session. This after the biggest drop of the year befell them to start the week.

Along with Janet Yellen, the mortgage purchase applications index and the producer price index hit early with the industrial production and capacity utilization numbers and the NAHB homebuilder survey at little bit later. The Federal Reserve Beige Book hits at 2:00 p.m. Eastern.

Walter de Wet, commodities strategist at Standard Bank, says gold seems a bit toppy, despite the fact that it has let off some steam in recent sessions.

"While some of the new speculative longs in the market may be justified based on (largely unpredictable) political tension in e.g. the Middle East and Eastern Europe, we believe that these longs won't stick because the fundamental drivers are lacking," he said.

Elsewhere in metals trading, October platinum (PLV4) rose $1.20 to $1,486.20 an ounce, while September palladium (PAU4)  tacked on 70 cents to $869.25 an ounce. High-grade copper for September delivery (HGU4)  continued to hold tight at $3.24 a pound.

Other must-read MarketWatch stories include:

Decoding Yellen: What 'sooner' rate hike means

Yahoo CEO has nothing to celebrate

Much Ado About Nothing? Amgen Drops in After Hours on Failed Trial, Recall

Shares of Amgen (AMGN) are falling in after-hours trading after the biotech giant announced that a drug trial had failed and it had to recall one of its drugs due to visible particulates.

Steve Remich

Amgen said that it had recalled prefilled syringes of Aranesp, its anemia drug, from overseas distributors. At the same time, Amgen said that its drug Kyprolis failed to meet the primary endpoint of its so-call FOCUS trial in patients with multiple myeloma, a cancer of plasma cells.

Piper Jaffray’s Joshua Schimmer doesn’t understand the fuss:

Investors hand-wringing over the missed endpoint and what it might mean for EU reimbursement or the increase in renal AE relative to the label miss the forest for the trees, in our view. These are small incremental factors since ASPIRE will drive the program forward and a missed trial is a missed trial; the Street expected the top line result. There is a risk in over-interpreting the implications of a missed trial.

Our global Kyprolis revenue estimate in 2020 is only $1B and yet we still see AMGN being able to comfortably deliver a 10%+ EPS CAGR through the end of the decade. Success of ASPIRE means our estimate may prove conservative, but the point is that Kyprolis is not a key driver of AMGN’s long-term outlook. Rather, its growing pipeline which includes evolocumab for LDL, romosozumab for osteoporosis, blinatumomab for ALL, AMG416 for hyperparathyroidism, T-vec for melanoma, AMG334 for migraine etc represent cumulatively multiple billions of dollars of upside to consensus.

Shares of Amgen have dropped 2.3% to $124.39 at 4:30 p.m. in after-hours trading. It gained 0.8% during normal trading hours.

Got a Rash? Why Your iPad Could Be the Cause

Getty Images CHICAGO -- Unexplained rash? Check your iPad. It turns out the popular tablet computer may contain nickel, one of the most common allergy-inducing metals. Recent reports in medical journals detail nickel allergies from a variety of personal electronic devices, including laptops and cellphones. But it was an Apple (AAPL) iPad that caused an itchy body rash in an 11-year-old boy recently treated at a San Diego hospital, according to a report in Monday's Pediatrics. Nickel rashes aren't life-threatening but they can be very uncomfortable, and they may require treatment with steroids and antibiotics if the skin eruptions become infected, said Dr. Sharon Jacob, a dermatologist at Rady Children's Hospital, where the boy was treated. Jacob, who co-wrote the report, said the young patient had to miss school because of the rash. The boy had a common skin condition that causes scaly patches, but he developed a different rash all over his body that didn't respond to usual treatment. Skin testing showed he had a nickel allergy, and doctors traced it to an iPad his family had bought in 2010. Doctors tested the device and detected a chemical compound found in nickel in the iPad's outside coating. "He used the iPad daily," she said. He got better after putting it in a protective case, she said Whether all iPad models and other Apple devices contain nickel is uncertain; Apple spokesman Chris Gaither said the company had no comment. Nickel rashes also have been traced to other common products including some jewelry, eyeglass frames and zippers. Jacob said evidence suggests nickel allergies are become more common, or increasingly recognized. She cited national data showing that about 25 percent of children who get skin tests for allergies have nickel allergies, versus about 17 percent a decade ago.

Openshaw to Lead Financial Women’s Association

The Financial Women’s Association said early Tuesday that Jennifer Openshaw is its new executive director. Openshaw most recently served as president of Finect, a social networking platform for advisors.

She becomes only the second executive director for the organization since it was founded in 1956, succeeding Nancy Sellar, who held the post for nearly 30 years.

“Jennifer brings not only a unique blend of technology, educational and financial industry experience, but also the vision, passion and reputation for advancing women in today’s evolving world,” said FWA President Maureen Adolf, in a press release.

In the past, Openshaw worked as the press secretary for the California State Treasurer’s Office and in senior roles at Bank of America (BAC), Wilshire Associates and BankOne.

She founded and then served as CEO of Women’s Financial Network, which was bought by the late Muriel Siebert in 2000.

“I’m honored and excited to serve as FWA’s executive director,” said Openshaw, in a statement. “Advancing women in the industry – including our next generation – is more important than ever. The FWA has delivered for over 50 years, and I can’t wait to help them continue to advocate and impact women in the financial industry.”

The news of Openshaw’s appointment came one day after Wells Fargo Advisors (WFC) said it tapped former AmericanExpress.com executive Devon McConnell to lead its digital-media efforts. She will report directly to WFA President Mary Mack.

In March, a Finect survey of investors polled in late 2013 found that 87% of them used social media, and 27% said they were unable to find their advisors via social media.

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Check out Nearly Half of Investors Can’t Find Their Advisors on Social Media on ThinkAdvisor.

For an Enjoyable Ride, Add Theme Park Stocks to Portfolio

www.sixflags.com Summer is the peak season for enjoying thrill rides and family-friendly attractions at amusement and theme parks. Summer may also be a good time to approach these havens of coasters and cotton candy as investing ideas. Let's go over a few reasons why the fundamentals are strong for the industry. 1. Big Thrills Add Up to Big Yields Six Flags (SIX) and Cedar Fair (FUN) -- the country's two largest regional amusement park operators -- combined to entertain 49.6 million guests last year, and 80 percent of those visits came between Memorial Day and Labor Day. Many publicly traded amusement park operators pay out hefty quarterly distributions. Cedar Fair can get the credit for that pocket-happy trend. It's organized as a limited partnership, distributing most of its income to its stakeholders. Cedar Fair units currently yield 5.3 percent. When Six Flags returned as a public company four years ago, it decided to also declare beefy dividends. It now yields a healthy 4.5 percent. Even marine life park operator SeaWorld (SEAS) decided to ride the wave when it went public in last year. Its stock packs a 2.8 percent yield. Leading theme park operators Disney (DIS) and Universal Studios parent Comcast (CMCSK) aren't as generous with their payouts, with yields of 1 percent and 1.7 percent, respectively. 2. Parks are Making Big Investments for the Future Gated attractions aren't hesitating to make big investments that will pay off in the coming years. Just a few days ago, Indiana's Holiday World announced that it will spend $22 million for an ambitious expansion next summer that includes the country's first launched wing coaster. If a small yet critically acclaimed family-owned park can justify that kind of investment, one can only imagine what the larger operators will do. Universal Orlando has made a nine-figure investment this summer in its bar-raising Diagon Alley expansion. Despite some operating hiccups with the Harry Potter-themed area's flagship attraction, it should result in some huge attendance gains at both of its Orlando theme parks (and factor in four on-site resort hotels). Disney just completed its New Fantasyland expansion in Florida. Six Flags and Cedar Fair are starting to tease about new attractions that they will add next year. 3. Social Media Is Making Parks Smarter Amusement parks may seem like an old school business, but this is an industry that was made for today's new media communications. Through Facebook (FB) and Twitter (TWTR), parks can reach out to fans, and park goers can share their experiences. Park operators had a solid 2013. Industry tracker Themed Entertainment Association reports that the world's 10 largest theme parks experienced a 5.4 percent gain in attendance last year. We don't know how much of this growth was from parks getting more savvy with social media, but it's fair to say that parks having more consistent communication with their visitors has helped. As parks get smarter -- finding ways to get to know their guests even better -- everyone will win. Patrons will be able to optimize their visits. Parks will rake in more money. Investors will enjoy their appreciating investments when they're not too busy depositing their quarterly distribution checks. It's a ride that everyone can enjoy. More from Rick Aristotle Munarriz
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Buy Cognizant Now and Hold On for Big Upside

Popular Posts: Trade of the Day: MGM Resorts (MGM)Buy Cognizant Now and Hold On for Big UpsideBest Stocks Update: EMES Continues to Shine Recent Posts: Buy Cognizant Now and Hold On for Big Upside Trade of the Day: MGM Resorts (MGM) Trade of the Day: Halliburton (HAL) View All Posts Buy Cognizant Now and Hold On for Big Upside

Usually I am pretty short-term oriented, but occasionally I lift my eyes to the horizon and think about the long term. You know, like, three months to 12 months out — what we would call “buy and hold” investing at Trader's Advantage.

My editors asked me for a one-year idea at the start of 2014, and my suggestion was Emerge Energy Services (EMES), which mines a special sort of sand used in shale “fracking” by energy producers. It’s up about 160% so far, so I am ready to put that in the “win” column and move on.

The cool thing about EMES at the time was that it stood at the front of a major business trend, it was a recent IPO that no one really knew anything about, and it was an MLP that yielded a rather juicy 5.5% annualized dividend. That is a nice combination of factors — and it worked out.

For a stock to hold for a quarter, I decided to look for a more mature company with a rock-solid record over the past five years of performing well from Aug. 1 through Nov. 1. (By "well," I mean up every one of the past five tumultuous years in that span — and this one fits the bill, including four years with growth of at least 10%.) I also wanted a company that will benefit from the surprise improvement in emerging markets, as that is an unappreciated story at this time.

In particular, I wanted a stock that could benefit, if possible, from a tidal improvement in India, which was bombed-out last year financially but has rebounded already quite a bit this year on the prospect that a new business-friendly government would take the reins. And finally the stock needed to be ranked a 9 or better in my StockScouter rating system and to have an intrinsic value at least 50% higher than the current quote.

When I put all of that in the blender, the top-rated idea was Cognizant Technology Solutions (CTSH), which provides info-tech consulting and business process services to a wide range of companies out of its dual bases in Teaneck, N.J., and Mumbai, India.

Since its start as a division of Dun & Bradstreet more than 25 years ago, Cognizant has developed into a wide-ranging consultancy powerhouse, helping  companies in the financial services, healthcare, manufacturing, utility and retail industries manage its data and information systems more efficiently.

Its customer list is incredibly diversified, which helps Cognizant avoid reliance on any one industry. The company’s financial services programs are among its main draws, accounting for around 40% of revenues. Healthcare customers account for another 25% of revenue, as Cognizant consultants help drug and medical device makers corral their IT costs. Most of the rest of its business comes from telecom, media and entertainment industries.

Though Cognizant recently experienced a couple short-term setbacks in its U.S. business due to a profit squeeze from competitors, its eurozone and Asian business picked up the slack. Indeed, installations at European countries grew 35% in the past year, while its American business only grew 16%. Helping most was the need for eurozone countries to deal with recent economic and weather disruptions.

The Affordable Care Act has had a big impact on Cognizant; the company has had to radically adjust the way it helps its healthcare customers — a transition that temporarily hurt margins in the last quarter and created a rare buying opportunity in the shares. Also looming on the horizon is the risk of immigration legislation in Congress that could restrict Cognizant from employing foreign-born workers. Under one version of the bill, Cognizant could suffer an impact of close to 7% of revenue. This is another overhang that has slightly depressed the price in the near term but should be resolved in coming months.

In the past quarter, the company’s outsourcing growth was quite a bit lower than its consulting business growth, which was up 24% year over year. But management expects improvement during the remainder of 2014 as a result of an aggressive hiring plan.

Despite these minor setbacks, Cognizant continues to grow at a much more robust pace than competitors. A shift toward a global delivery model has served it well, especially when backed by its recent acquisitions of companies C1 and Equinox. Furthermore, its stable prices and margins show that it is fending off competitors.

Cognizant shares have performed well outside of the broad bear markets since going public in 1998, rising an amazing 21,000% since going public in June 1998 — a pace unmatched by all but the best stocks of our era, such as Apple (AAPL). The S&P 500 is only up 105% in the same span. Amazon.com (AMZN), which went public around the same time, is up only a third as much, at +7,000%.

No wonder Cognizant placed on Fortune‘s “100 Fasted-Growing Companies” list for 10 consecutive years from 2003 to 2012, and it also has been among the Fortune 500 since 2011. At that same time, Fortune also named it the third-most admired IT services company behind only Accenture (ACN) and IBM (IBM).

Cognizant reports Q2 earnings on Aug. 6. Since it is cheap and largely oversold, shares are likely to rise into the report and could very well get back on their upward path. Buy CTSH now and hold for target $87.

Jon Markman operates the investment firm Markman Capital Insights. He also offers a daily trading advisory service, Trader's Advantage, and CounterPoint Options, a service that helps individual traders make steady, consistent profits with volatility-related instruments.

10 Ways to Retire on Less Money

Getty ImagesYour retirement savings will stretch further if you take steps to reduce housing and entertainment costs. Don't let the financial experts scare you. Remember, it's in their interest for you to save more than you really need and then let them handle it so they can profit from your fears and anxieties. Retiring on 100 percent of your pre-retirement income may be an option for one percenters who leave work with golden parachutes, but it's not realistic for the rest of us. Most of us will get by on a combination of some retirement savings in addition to Social Security and a pension if you still have one. Whether your nest egg is large or small, here are 10 ways to make it last: 1. Pay off debt before you retire. The first thing to do is count up your assets and debts. Hopefully, by the time you retire you have more assets than debts. You should no longer have student loans, and your mortgage might even be paid off. Now is not the time to take on new debt. If you have to float a big loan to buy a new car, it's probably better to keep the old one and fix it up. 2. Downsize your housing. Once your kids are grown you don't need three or four bedrooms anymore. A lot of retirees hang on to the old place in case the kids want to move back in. But this is a "what if," while the expense of carrying a home is a certainty. If your budget is limited, then move to a smaller place in a less expensive neighborhood with lower taxes and smaller utility bills. 3. Get a part-time job. Many people choose to work in retirement because they need the money, a place to go in the morning or some new friends. Retirees are no longer concerned about a career, so they don't need to stress out over promotions or workplace politics. Think of your retirement job like the summer job you had as a kid -- have fun, make a few bucks and then go live your life. 4. Share your home. If you're single, consider sharing a home with a friend or relative. Many older houses feature mother-in-law suites, and some newer construction offers two master bedrooms. Two can live cheaper than one, and this setup can offer companionship as well. 5. Rely on friends. Don't be afraid to ask for a favor and then offer to reciprocate. You can save a lot of money driving each other to the airport or the store instead of calling a cab. Exchange yard work for housework or financial expertise for culinary skills. Don't think you have to pay someone to do everything for you. Help each other out. 6. Search for free entertainment. If you want to cruise the Mediterranean, you may need 100 percent of your pre-retirement income. But most people don't do that. Your community likely offers free summer concerts and fall festivals. Check out your library for free seminars, book clubs, movies and lectures. Your church, veteran's association or social club can provide rewarding activities, all at little or no cost. 7. Eat out early in the day. We all like to splurge a bit and skip a turn in the kitchen. If you're going out for a meal, go early in the day. Breakfast is cheaper than lunch. Lunch is cheaper than dinner. If you insist on dinner, go early for the senior citizen discount. Or consider trying a place that serves breakfast anytime. Eggs and sausage are definitely less expensive than steak and potatoes. 8. Stop subsidizing your kids' lifestyles. The old saying goes: Give your children roots and wings. You've already given them roots. Now it's time for wings. It doesn't really help anyone to let them settle into their old bedroom. They need to find their own apartment, prepare their own meals and learn to live on their own. 9. Take advantage of discounts. Join AARP for discounts as well as supplemental medical insurance. Take a trip to town hall and find out about real estate tax breaks and other senior citizen discounts. Check out programs for free transportation, low-cost meals and subsidized health services. 10. Go international. Some people retire to the land of their grandparents, where they enjoy the support of family members. There are retirement enclaves in Mexico, Costa Rica and other Latin American countries. And a new trend points toward Asia and countries like Malaysia and Thailand, where the cost of living is low and people respect the elderly. Retiring overseas requires a lot of research, but it's an option more budget-minded people are considering. .