Stock Analysis

Upcoming Correction or Stock Market Crash

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finance investing news

Here it comes. No, not the stock market crash. No, not a stock market correction, either. OK. Well, maybe those things are coming. But, what most definitely IS coming are the analysts’ notes, financial stories, and money website articles about a possible 10% correction, or even 20% crash. How To Get Credit For Predicting The Crash You’ve seen the ads a hundred times on the internet. “He predicted the real estate crash, now he recommends this one company!” So, how do you get credit for calling a stock market correction or stock market crash, anyway? The sad reality is that it doesn’t take much. As long as you have some sort of statement, article, analysis, or investor note floating around out there mentioning a crash or correction when one actually happens, you (and your PR department) simply rush out to take credit. Whether the financial media decides to buy it depends a bit on how long ago your “prediction” happened, and how accurate it was. But, as I’ve tried to point out time and again here on Finance Gourmet and other places I do financial writing for, these predictions aren’t always what they are cracked up to be. Often, the …

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Kroger Stock Dividend Value and Analysis

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kroger stock investment

Kroger stock reported strong earnings and raised its guidance for the coming year earlier today. At least some of this increase can be attributed to the fact that when people eat out less because of the pandemic, they have to buy more groceries to make up for that meals being made at home. Is Kroger a Buy Now? As always, the best way to invest for long-term goals is to create a diversified portfolio tailored to your risk tolerance and goals. Once you’ve gotten those set up and properly funded, you can look at other investment opportunities. Kroger is a nationwide grocery chain that includes many different brands including King Soopers here in Colorado. As a result, Kroger is not a growth stock, but it also has a large position in an industry that cannot be eliminated. People need food and they have to buy it somewhere. The stock’s price ranged from the low 20s to the mid-40s over the entire previous five year range. That said, the stock trades at a 22 PE ratio, which is high for this kind of company. As always, I believe in my stocks paying me money why I wait for them to appreciate …

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Morningstar Reports Free!

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free morningstar access

Morningstar Premium reports costs $29.95 per month for subscribers, but there is a way to get much of Morningstar Premium free! How To Get Free Morningstar Reports Stock research and mutual fund research are important ingredients of a successful investing portfolio. However, for investors who are not continuously adding new investments to their stock portfolio or mutual funds portfolio, the ongoing cost of Morningstar may not be worth it. Fortunately, there is a legal way to get free Morningstar access so you can see if that Coca Cola dividend stock is the way to go or if you should look for other dividend stock investing opportunities. Free Morningstar Access From Libraries It turns out that some public library systems offer Morningstar for free among their online database offerings. Here in Colorado, I know that both the Douglas County Library system and the Denver Public Library system offer free Morningstar reports for their library card holders as well as other free library perks. The Morningstar access is not easy to find on either library’s website, but it is there under Research or Databases. The free Morningstar access includes not just the usual online stuff, but the commonly used one-page report as …

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Dividend Stocks Coca Cola

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coca-cola dividend

Dividend stocks are often an overlooked investment by many Main Street Americans. It isn’t hard to see why. A 3 percent yield on a $5,000 investment isn’t all that impressive, a mere $150 per year, or so. When you are thinking about turning a lifetime of 401k contributions into a retirement plan, that isn’t really the kind of number that gets your mind racing about possibilities. However, the more investable assets you actually have, the more dividend stocks start to look interesting. Consider that many dividend stocks are fairly safe from anything but the most catastrophic downturns. Stocks like McDonalds, and Coca Cola, for example. Those stocks can, and will, trade up and down, but if you don’t really plan on selling them anytime soon, they are sort of like corporate bonds where if you hold them until retirement (or just several years) chances are you will at least get all of your original investment back. What makes dividend stocks like Coca Cola so interesting in a growing portfolio is that they offer potential growth, plus the ability to outpace inflation, all while kicking off real income. Asset Allocation and Dividend Stocks As always, you shouldn’t be thinking about investing …

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Procter & Gamble Stock Investment

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pg stock investing

Procter & Gamble, known mostly as PG, announced their new CEO and predicted solid earnings ahead even though most of the commodities used to make its wide variety of products are increasing in price. PG currently trades around $140 per share, which is the top of its V-shaped chart from the last 12 months. At this price PG offers a 2.46% annual dividend. This is way more than any of your bank accounts, and comes from a stock that really isn’t going anywhere, up or down, fast. Here is the best part. “Activist shareholder” Nelson Peltz is stepping down from the PG board after the company was able to refuse his proposals to break up the company and move its headquarters in a bid to make more money for himself and other short-term shareholders, without regard to the company’s future, or long-term shareholders. Although Peltz never prevailed on any of his major proposals, the fact that he is stepping down indicates that he is done trying to leverage his “large” position of stock into moves that might not be in the best long-term interests of the company. In all of this commotion, the company also named a new CEO. Jon …

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Baker Hughes Stock Buyback from GE

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opec deal stocks

So, weird little bit of financial news today. There are a couple of moving parts, so let’s get those out of the way first. Last summer in July 2020, GE announced that intended to “fully monetized” its stake in Baker Hughes over the next three years. Fully monetize is lingo for sell. Earlier this year, GE said it sold $1 billion worth of Baker Hughes during the second quarter. GE also announced that it planned to sell another $1.3 billion worth of BKR during the third quarter. That brings us up to date. Baker Hughes announces a $2 billion stock repurchase program In part, the idea behind the share buyback is that Baker Hughes is using some of the profits it has reaped recently thanks to a recovering economy and a carefully controlled quota by OPEC. Buying $2 billion worth of stock would essentially soak up the $2 billion that GE is selling right now. In a world where supply and demand are the only factors that impact a stock’s price, GE’s selling would be pushing the price of BKR down. You can kind of see that in the April to May dip in BKR. Assuming that BKR sold its …

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Best High-Yield Investing Strategy

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high yield dividends

The high-yield investing strategy is typically thought of as buying high-yield stocks. High-yield stocks are those stocks that pay a high dividend. The flaw in this strategy is that too often the focus is on yield to the exclusion of some really great investing opportunities that result in high-quality capital appreciation chances as well. Buying those stocks, however, is the best high yield investing strategy. High-yield investing is not the same thing as high-yield savings. If you are looking for information on high-yield savings accounts, try here. Smart High-Yield Investing Let’s start from the beginning. Your best investing strategy for long-term goals like retirement and college investing is a well-diversified portfolio tailored to your goals and risk tolerance. Only after your main portfolio is set up in this manner should you consider other investing strategies. So, go out, get 10% going into your 401k, put a nice hunk of change into your kids’ 529 college savings plans, and fill out your emergency savings. Only after those are taken care of should you be looking at high yield investing. But, if you are going to look at investing strategies, I love what I call smart, high yield. High-Yield with Capital Appreciation …

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Is Volkswagen Stock a Buy?

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volkswagen stock dividend

Is Volkswagen a good stock to buy right now? Some good news from Volkswagen showing rising car sales, despite a pandemic, and nice profitability. As an added bonus, electric car sales are up, and the company gets it that electric vehicles are the future, sooner rather than later. The only ding from analysts was one analyst saying he was worried that the company was spending too much on R&D. This is small minded, short-term thinking. Block that dude, and move on. The real potential problem is the chip shortage that is affecting all card manufacturers will likely hit Volkswagen too. This means that the company won’t be able to make enough vehicles to continue increasing sales. This guidance to lower sales is the reason the stock is down. As long-term investors interested in a dividend, this is a short-term problem overly focused on by a stock analysis and stock new industry obsessed with short-term stock prices. That means its time for some tire kicking from actual investors. The upside to this that no one is talking about is that the vehicles they can sell will likely sell at higher prices due to decreased supply. That means higher profitability per unit. …

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After the Bell Thoughts 4-14

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Quick thoughts based on what pops up on my computer screen as I shut down for the day. I really don’t like this IBM split. I think we’ll get two stocks that lag the market. What I don’t know is if I will still get my dividend. Intel has a 2.17% dividend yield and trades just a bit over its Covid prices… didn’t I hear something about a chip shortage? Bank of America has a 1.81% dividend yield. That yield is insulting for a bank. It’s either overpriced or isn’t paying out a decent dividend. I don’t even know why I looked at Twitter. It doesn’t pay a dividend at all, and I know that. JP Morgan has a 2.38% dividend and is widely considered the best run of the big Wall Street banks. Might be worth a look. Is there ever not a good time to by Berkshire Hathaway? Although I still don’t know what happens when Buffet dies so… Adobe is the 90s Microsoft of its market segment. It’s a monopoly that drains its customers dry. Maybe it’s more accurate to call it the Oracle of the 90s… How long before an imaging mySQL takes down the giant? …

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IBM Stock Spinning Off Kyndryl

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ibm spin off kyndryl

I have had a love/hate relationship with IBM for a long time. On the one hand, it’s an American staple that successfully spun off its PC business back when it could get a good deal for it. On the other hand, it insists on wasting BILLIONS of dollars on share buybacks that do nothing more than help its executives meet their targets before they ship the stock back out the front door as executive stock options. But, and this is the kicker, IBM kicks out a very sweet dividend. Even when the stock trades sideways, earning 4% in a zero-interest environment with an almost zero chance of bankruptcy, it a great investment. Check out my Stash stock back review. Now, IBM is doing another thing that I don’t really like. IBM is listening to short-term investors who don’t like steady, but non-growth income. Instead, these shareholders want stock price appreciation, even at the cost of a long-term stable business. That means the board wants price appreciation. That means the CEO only earns those millions in bonuses if the stock price goes up, even if the company prints money during the day. As a result, IBM is spinning off its managed …

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