One of the best ways to make a lot of money in stocks is to invest in dividend-paying stocks. After all, a company that is able to commit to regularly rewarding its shareholders with a payout of cash is a company that's relatively stable, with a sufficiently predictable profit stream. There are pitfalls within the world of dividend investing, though. Here are some tips to help you avoid common blunders.
Don't overshoot
It's easy to be drawn to sky-high dividend yields. Who wouldn't favor a 10% yield over a 3% one, after all? Plenty of 10% yields are solid, but plenty are tied to companies on shaky ground. The best explanation for that is math: A dividend yield is simply a ratio, dividing a stock's annual dividend payout by its current stock price, and then expressing that result as a percentage. Thus, if the stock price falls sharply, you'll be dividing the dividend by a smaller number, and the yield will be bigger. Huge dividend yields are sometimes due to a company simply having a lot of excess cash to distribute, but sometimes they reflect a company in temporary or permanent trouble that has seen its price plunge.
Top 10 Defense Stocks To Buy Right Now: Enel SpA (ENEL)
Enel SpA is an Italy-based company engaged in the utilities sectors. It operates in seven divisions. The Sales segment focuses on the sale of electricity and gas products and services for end users. The Generation and Energy Management is involved in generation with thermal, natural gas regasification and schedulable hydroelectric power plants. The Infrastructure and Networks distributes electricity and public lighting. The Iberia and Latin America operates in the electricity and gas markets of Spain, Portugal and Latin America. The International segment supports strategies for the European and Russian markets. The Renewable Energy is active in the generation of electricity from renewable resources. The Engineering and Research develops the conventional and nuclear construction of power plants. In November 2013, through Enel Investment Holding BV, it sold a 40% stake in Artic Russia BV, which in turn owns a 49% of the share capital of SeverEnergia, to NK Rosneft' OAO. Advisors' Opinion:- [By Jonathan Morgan]
Enel SpA (ENEL) retreated 3.8 percent to 3.22 euros after Deutsche Bank AG said that its estimates for earnings at Italy�� biggest utility show no potential for growth for 2013 or 2014.
Top 10 High Dividend Stocks To Watch For 2014: Parametric Technology Corporation(PMTC)
Parametric Technology Corporation develops, markets, and supports product lifecycle management (PLM) software solutions and services that help companies design products, manage product information, and enhance product development processes worldwide. Its PLM solutions comprise Windchill, an Internet-based content and process management solution for managing data and relationships, processes, and publications; Arbortext, an enterprise solution to manage complex information assets that enhance their customer support and service center information delivery processes; Creo View, which enables enterprise-wide visualization, verification, annotation, and automated comparison of various product development data formats; and Integrity that coordinates and manages various activities and artifacts associated with developing software-intensive products. The company?s desktop solutions include Creo Parametric, a family of three-dimensional product design solutions based on a parametr ic, feature-based solid modeler that enables changes made during the design process to be associatively updated throughout the design; Creo Elements/Direct, a family of computer aided design and collaboration software used for customers to meet short design cycles and to create product designs; Mathcad, an engineering calculation software solution, which combines a computational engine, accessed through conventional math notation, and with a full-featured word processor and graphing tools; and Arbortext to help customers improve documentation accuracy, speed time to market, reduce translation requirements, and lower publishing costs. In addition, it provides consulting, implementation, training, maintenance, and computer-based training products. Parametric Technology sells its products and services through direct sales force and third-party resellers and other strategic partners. The company was founded in 1985 and is headquartered in Needham, Massachusetts.
Advisors' Opinion:- [By Markus Aarnio]
Autodesk's competitors include Adobe Systems (ADBE), Dassault Systemes SA (DASTY.PK), and Parametric Technology Corporation (PMTC). Here is a table comparing these companies.
- [By Northrop Puckett]
The company is facing headwinds in the broader economy. This can be seen in declining sales in many areas of their business. Regionally, the U.S was flat; Northern Europe was up; Southern Europe was down; and emerging markets were down. Autodesk also lowered quarterly and yearly revenue expectations. This lowering of guidance by Autodesk also matches the same guidance changes made by competitors Parametric Technology (PMTC) and ANSYS (ANSS), so it is not necessarily losing out to its rivals in this case.
- [By Eric Volkman]
PTC (NASDAQ: PMTC ) results for the company's Q2 have been released. For the quarter, non-GAAP revenue was just under $315 million, which bettered the $302 million the company posted in the same period the previous year. Net profit also saw an increase, advancing to $49.6 million ($0.41 per diluted share) from Q2 2012's $35.9 million ($0.30).
Top 10 High Dividend Stocks To Watch For 2014: Body Central Corp.(BODY)
Body Central Corp. operates as a specialty retailer of young women's apparel and accessories in the south, mid-Atlantic, and midwest regions of the United States. The company operates specialty apparel stores under the Body Central and Body Shop banners, as well as a direct business of its Body Central catalog and e-commerce Website at bodyc.com. Its stores feature an assortment of tops, dresses, bottoms, jewelry, accessories, and shoes under Body Central and Lipstick labels. As of March 8, 2012 it operated 241 specialty apparel stores in 24 states. The company, formerly known as Body Central Acquisition Corp., was founded in 1972 and is headquartered in Jacksonville, Florida.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Body Central (Nasdaq: BODY ) , whose recent revenue and earnings are plotted below. - [By Lauren Pollock]
Body Central Corp.(BODY) swung to a steeper-than-expected third-quarter loss, hurt by a sharp drop in same-store sales and gross margins, sending shares of the women’s clothing retailer down 18% to $4.60 in premarket trading.
- [By Lee Jackson]
Body Central Corp. (NASDAQ: BODY) also comes in with an off-the-charts IRR of 26%. The company reported a dreadful second quarter, which hammered the share price. Body Central operates as a specialty retailer of young women’s apparel and accessories in the South, Mid-Atlantic and Midwest regions of the United States. It operates stores under the Body Central and Body Shop banners, as well as a direct business comprising its Body Central catalog and e-commerce website at bodycentral.com. The company’s stores sell tops, dresses, bottoms, jewelry, accessories and shoes, primarily under its Body Central and Lipstick labels. The lower the share price goes, the more attractive the stock becomes. The consensus price target is $11, with the high target at $12. The stock closed Thursday at $6.43.
- [By John Udovich]
As we approach Black Friday, small cap apparel retail stocks�Body Central Corp (NASDAQ: BODY), Abercrombie & Fitch Co. (NYSE: ANF) and Francesca's Holdings Corp (NASDAQ: FRAN) have the dubious distinction of being the sector�� worst performing stocks (according to Finviz.com) as they are down 62.8%, 29.5% and 26.4%, respectively, since the start of the year (see my previous article: This Year�� Best Performing Small Cap Apparel Retail Stocks? CACH, SMRT, PSUN & DXLG). With that performance in mind, what�sort of performance should�investors and traders alike expect from these apparel retail dogs as we head into Black Friday and the all important holiday season? Here is what you need to be aware of:
Top 10 High Dividend Stocks To Watch For 2014: Diana Shipping inc. (DSX)
Diana Shipping Inc. provides shipping transportation services. It transports dry bulk cargoes that include commodities, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2010, the company?s fleet consisted of 23 dry bulk carriers, including 14 Panamax, 1 Post-Panamax, and 8 Capesize dry bulk carriers with a combined carrying capacity of approximately 2.5 million deadweight tonnage. Its customers include national, regional, and international companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was founded in 1999 and is based in Athens, Greece.
Advisors' Opinion:- [By Bryan Murphy]
If you're reading this, then odds are you already know shipping stocks like Diana Shipping Inc. (NYSE:DSX), Safe Bulkers, Inc. (NYSE:SB), and Navios Maritime Partners L.P. (NYSE:NMM) are all up big-time today, and up nicely for the week, for that matter. SB is up 11% for the day, NMM is up 6% for the week, while DSX is higher by 8% for the session, snapping a surprisingly-long weak streak.
Top 10 High Dividend Stocks To Watch For 2014: Fusion Pharm Inc (FSPM)
Fusion Pharm, Inc., incorporated on January 21, 1998, manufactures and sells a patent pending commercial hydroponic cultivation system capable of growing almost any herb, vegetable, flower, fruit or terrestrial plant better and faster than traditional farming methods. The Company is the creator and manufacturer of the PharmPods hydroponic cultivation container system. The Company sells and licenses its PharmPods containers to agricultural equipment distributers, urban farming companies and other specialty growers. The Company is focused on the development and commercialization of its patent pending PharmPods cultivation container system. In February 2013, the Company completed the sale of 8 PharmPod High Intensity containers under its licensing agreement with Meadpoint Venture Partners (Meadpoint).
The Company's PharmPods are constructed of standard ISO steel shipping containers that are repurposed for use in hydroponic plant cultivation and are equipped with specialty lighting, irrigation systems, climate-control systems and ventilation for a grow-ready, self-contained agricultural solution. PharmPods allow users to precisely control what a plant receives, grow crops densely, avoid using pesticides, increase yields and automatically water plants.
The Company�� PharmPods are used for agricultural cultivation by urban faming companies and other specialty growers The Company does not own any real estate or other physical properties material to its operations. It operates from leased space.
Advisors' Opinion:- [By Dan Burrows]
From questions regarding the accuracy of publicly-available information about these companies��operations to potential illegal activity, these marijuana stocks have incurred the wrath of federal regulators for good reason:
GrowLife (PHOT) FusionPharm (FSPM) CannaBusiness Group (CBGI) Advanced Cannabis Solutions (CANN) Petrotech Oil and Gas (PTOG) Marijuana Stocks Asking for TroubleBut it doesn’t end there. Investors should run away from all OTC marijuana stocks, including Medical Marijuana (MJNA), Cannabis Science (CBIS), CannaVest (CANV), MediSwipe (MWIP) and GreenGro Technologies (GRNH). As the SEC warns:
Top 10 High Dividend Stocks To Watch For 2014: Service Corporation International (SVC)
Service International Corp., formerly Service Corporation International, incorporated in July 1962, is a provider of deathcare products and services, with a network of funeral service locations and cemeteries primarily operating in the United States and Canada. Its operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The Company operates in two segments: funeral and cemetery operations. At December 31, 2011, it operated 1,423 funeral service locations and 374 cemeteries (including 214 funeral service/cemetery combination locations) in North America, which are geographically diversified across 43 states, eight Canadian provinces, and the District of Columbia. Its funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The Company sells cemetery property and funeral and cemetery products and services at the time of need and on a preneed basis. In December 2013, the Company announced that it completed its acquisition of Stewart Enterprises, Inc. In May 2014, Carriage Services, Inc. acquired six businesses in New Orleans and Alexandria, Virginia from Service Corporation International.
The Company�� funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The Company provides all professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles and preparation and embalming services. Funeral-related merchandise, including caskets, casket memorialization products, burial vaults, cremation receptacles, cremation memorial products, flowers, and other ancillary products and services, is sold at funeral service locations. Its cemeteries provide cemetery property interment rights, including mausoleum spaces, lots, and lawn cr! ypts, and sell cemetery-related merchandise and services, including stone and bronze memorials, markers, merchandise installations, and burial openings and closings. The Company also sells preneed funeral and cemetery products and services whereby a customer contractually agrees to the terms of certain products and services to be delivered and performed in the future.
During the year ended December 31, 2011, its operations in the United States and Canada were organized into 29 major markets, 47 metro markets, and 78 main street markets. At December 31, 2011, it owned approximately 89% of the real estate and buildings used at its facilities, and the remainder of the facilities were leased. At December 31, 2011, its 374 cemeteries contained a total of approximately 26,540 acres, of which approximately 60% was developed.
Advisors' Opinion:- [By WWW.DAILYFINANCE.COM]
From a struggling department store chain delivering better than expected financial results to a popular photo-printing services provider botched a mass mailing, here's a rundown of the week's smartest moves and biggest blunders in the business world. Keurig Green Mountain (GMCR) -- Winner Coca-Cola (KO) is apparently a coffee addict. The world's leading beverage company turned heads earlier this year when it paid $1.25 billion for a 10 percent stake in Keurig Green Mountain. This week it announced that it's bumping its stake to 16 percent, paying a much higher price for the new shares. Keurig Green Mountain is the company behind the country's most popular single-serve coffee maker. In a few months it plans to enter the carbonated beverage market with Keurig Cold. Coca-Cola is on board to provide soft drink flavors for the machine, and now the company has a greater stake in seeing that Keurig Cold is successful. Shutterfly (SFLY) -- Loser "There's nothing more amazing than bringing a new life into the world," begins a promotion that Shutterfly mailed out this week. "As a new parent you're going to find more to love, more to give and more to share -- we're here to help you every step of the way." Shutterfly intended for the mailing to go out to customers who had recently ordered birth announcements, reminding them that matching thank you cards are now in order for the family and friends who provided gifts for the new baby. The problem here is that the marketing email went out to a far wider base of Shutterfly registered users. Twitter and Facebook were alive with folks joking or complaining about the mishap. It was an amusing blunder for most recipients, but it's easy to see how this kind of missive could hit hard to others. Netflix (NFLX) -- Winner We're apparently a nation of Netflix addicts. Online trend watcher Sandvine (SVC) reports that the streaming video service accounted for 34.2 percent of the North America's peak downstream Internet traffic durin
Top 10 High Dividend Stocks To Watch For 2014: Everest Re Group Ltd.(RE)
Everest Re Group, Ltd., together with its subsidiaries, underwrites reinsurance and insurance in the United States (the U.S.), Bermuda, and international markets. The company operates in five segments: U.S. Reinsurance, U.S. Insurance, Specialty Underwriting, International, and Bermuda. The U.S. Reinsurance segment writes property and casualty reinsurance, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies within the United States. The U.S. Insurance segment offers property and casualty insurance primarily through general agents, brokers, and surplus lines brokers in the U.S. The Specialty Underwriting segment writes accident and health, marine, aviation, and surety business within the U.S. and worldwide through brokers and directly with ceding companies. The International segment offers non-U.S. property and casualty reinsurance. The Bermuda segment provides reinsurance and insurance to worldwide property and cas ualty markets and reinsurance to life insurers through brokers and directly with ceding companies, as well as offers reinsurance to the United Kingdom and European markets. The company was founded in 1973 and is based in Liberty Corner, New Jersey.
Advisors' Opinion:- [By Marc Bastow]
Reinsurance and insurance underwriters Everest Re Group (RE) raised its dividend 56% to 75 cents per share, payable on Dec. 18 to shareholders of record as of Dec. 4.
RE Dividend Yield: 1.92% - [By John Emerson]
Last August, I purchased Everest Re (RE) when it fell within the value parameters outlined in today's article. I wrote an article about the stock titled: Everest Re: Low Risk High Reward http://www.gurufocus.com/news/143388/everest-re-low-risk-high-reward
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