And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower… Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower rates by 50 basis points at its September meeting. The next most likely outcome (23%) was a quarter-point cut, followed by a 19% chance of a 75-basis point cut and a slim 3% probability that rates remain unchanged. While it wasn’t specifically stated (you can do the math), that implied a zero percent chance of a rate hike. The Fed didn’t make any moves at last week’s meeting, leaving short-term lending rates at 2.25% to 2.50%. But post-game comments from Fed chief Jerome Powell suggested that rate cuts could be coming sooner rather than later. Citing the cooler global economy… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this is one that’s actually worth a further look… An Inside Look At Hoegh LNG As a reminder, Hoegh owns floating storage and regasification units (FSRUs). Basically, these are ships anchored off the coast that have been mounted with regasification equipment. In the simplest terms, they turn liquefied natural gas (LNG) back into a usable product, which is then pumped via pipeline to the shore where it can be distributed to utilities or other end users. (The U.S. Energy Information Administration has a good primer on LNG, which you can read here.)  So, when an LNG… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable… Read More

You might have missed the news, but video game retailer GameStop (NYSE: GME) tumbled 35% last week after the company eliminated its dividend.  #-ad_banner-#In this age of streaming and online software downloads, it seems there are fewer customers looking for game titles on store shelves. Go figure. As Chief Investment Strategist of High-Yield Investing, it’s my job to help steer my premium subscribers away from looming icebergs like this.  One of the best ways to do that is by hunting for companies that are raising their dividends — after all, a growing dividend is usually a sign of good, predictable business conditions, all else being equal. This month, I told my premium newsletter subscribers about three companies that are likely to give shareholders a dividend boost in the next four to six weeks. And while High-Yield Investing readers get a lead on this information each month before anyone else, I always make a point to pass my findings along to the public. So without further delay, here they are… 1. Illinois Tool Works (NYSE: ITW) — This industrial manufacturer sells auto parts, welding equipment, restaurant ovens and coolers, and many other specialized products spanning seven distinct business segments. It’s not exactly… Read More

I’m betting that sometime today, a shipping container will fall into the sea. That’s what the odds tell us, anyway. According to a survey by the World Shipping Council, an average of 612 containers go overboard each year. Some even wash up on distant shores, disgorging their soaked cargo. Scavengers on Dutch islands recently picked through furniture, clothing and televisions that had broken free after a ship was battered by 30-foot waves and fierce winds. In the grand scheme of things, though, such events are rare. About 99.999% of these sturdy steel boxes make it safely to their destinations. There… Read More

I’m betting that sometime today, a shipping container will fall into the sea. That’s what the odds tell us, anyway. According to a survey by the World Shipping Council, an average of 612 containers go overboard each year. Some even wash up on distant shores, disgorging their soaked cargo. Scavengers on Dutch islands recently picked through furniture, clothing and televisions that had broken free after a ship was battered by 30-foot waves and fierce winds. In the grand scheme of things, though, such events are rare. About 99.999% of these sturdy steel boxes make it safely to their destinations. There are approximately 30 million shipping containers in use worldwide, and most make several transits annually. Built to be nearly indestructible, these stackable twenty-by-eight foot containers can safely hold up to 25 tons of cargo. Pry one open, and you might find tennis shoes inside… or kitchen appliances, sporting goods or lawn mowers. There are even refrigerated units for frozen foods and other perishable cargo. Consumers give little thought to how merchandise arrives on store shelves at their local Wal-Mart or Target. We don’t even notice until items are out of stock (or prices creep higher). But think how empty those… Read More

Last month, I brought you up to speed on Occidental Petroleum (NYSE: OXY) (a High-Yield Investing portfolio holding) and its bold plan to steal Anadarko Petroleum (NYSE: APC) away from Chevron (NYSE: CVX).  Chevron had already signed a deal to take over Anadarko’s prized Permian Basin assets for $33 billion in cash and stock, but Occidental swooped in with a superior $38 billion bid, thanks largely to timely financial assistance from Warren Buffett’s Berkshire Hathaway.  As usual, Buffett drove a hard bargain and exacted great terms for his shareholders. In exchange for $10 billion in upfront financing, Berkshire will… Read More

Last month, I brought you up to speed on Occidental Petroleum (NYSE: OXY) (a High-Yield Investing portfolio holding) and its bold plan to steal Anadarko Petroleum (NYSE: APC) away from Chevron (NYSE: CVX).  Chevron had already signed a deal to take over Anadarko’s prized Permian Basin assets for $33 billion in cash and stock, but Occidental swooped in with a superior $38 billion bid, thanks largely to timely financial assistance from Warren Buffett’s Berkshire Hathaway.  As usual, Buffett drove a hard bargain and exacted great terms for his shareholders. In exchange for $10 billion in upfront financing, Berkshire will walk away with a stack of preferred shares with an 8% coupon that will generate $800 million in annual dividends.  Behind The Numbers The total price tag for this purchase comes to $57 billion including the assumption of debt. Before the bidding war started, APC had an enterprise value of around $40 billion. While it’s common for acquirers to offer a nice premium, some of Occidental’s largest shareholders feel that the $76 per share bid was far too generous. Asset manager T. Rowe Price and shareholder activist Carl Icahn have both publicly expressed their disapproval.  Occidental is paying an Enterprise… Read More

The first quarter proved to be challenging for many retailers (especially in the apparel sector), and it was no exception for Nordstrom (NYSE: JWN), a holding in my Daily Paycheck premium newsletter portfolio. #-ad_banner-#Sales for the period slipped 3.3% to $3.44 billion, driven largely by weakness in the full-price division (the off-price Nordstrom Rack stores performed in line with last year). It wasn’t an egregious top-line miss, but with operating margins contracting, earnings were cut in half to just $0.23 per share — well short of expectations. With the slow start, Nordstrom trimmed back its full-year 2019 outlook and is now… Read More

The first quarter proved to be challenging for many retailers (especially in the apparel sector), and it was no exception for Nordstrom (NYSE: JWN), a holding in my Daily Paycheck premium newsletter portfolio. #-ad_banner-#Sales for the period slipped 3.3% to $3.44 billion, driven largely by weakness in the full-price division (the off-price Nordstrom Rack stores performed in line with last year). It wasn’t an egregious top-line miss, but with operating margins contracting, earnings were cut in half to just $0.23 per share — well short of expectations. With the slow start, Nordstrom trimmed back its full-year 2019 outlook and is now forecasting earnings between $3.25 and $3.65 per share, versus a prior range of $3.65 to $3.90 per share. In other words, the previous worst-case scenario ($3.65) is now the best case. While the industry, in general, is fighting against headwinds, Nordstrom has hobbled its own turnaround efforts with operational miscues. Changes to the firm’s well-regarded loyalty club program didn’t go over well (failure to send out promotional sale flyers was cited as a contributing factor). Merchandising strategies were also off the mark. The Bright Side Fashion is fickle, and it’s never easy to predict what customers will want from… Read More