NEW YORK (TheStreet) -- Strange looks and "Oh, OK" are typically the responses I receive when I tell people that Microsoft (MSFT) and General Electric (GE) are the stocks they should buy.
When people ask me for stock tips, I know that most of the time they're thinking of companies that will make them a lot of money quickly.
But they should be thinking instead about stocks that will deliver a better-than-average return with the least amount of risk.
If your eyes aren't sore from staring at charts and Securities and Exchange Commission filings all day, leave the home runs to the traders who can get in and out of securities before you even hear about the news. Some stocks are natural fits for long-term investors who seek to build real wealth over time. As a rule, this means dividend-paying stocks that dominate their space and don't have issues on their balance sheets or income statements. I've touted the virtues of Microsoft (MSFT) for more than a year, but the company remains a strong buy. You may think of "Mr. Softee" as little more than the maker of Windows, but that's a mistake. Microsoft's Azure is also one of the biggest players in cloud computing. Microsoft maybe the largest player by revenue when you consider that Amazon.com (AMZN), Google (GOOG), Rackspace (RACK), IBM ( IBM), Hewlett-Packard (HPQ) and others are all paying Microsoft for every Windows-based server they host. From my experience, Azure was much easier and straightforward to set up than Amazon's AWS. Both are priced about the same, giving Microsoft the edge due to a smaller learning curve. Cloud computing isn't where the real money is, not yet at least. And business software, Microsoft's cash cow, has proven it can compete against free software relatively easy. MSFT Operating Income Annual data by YCharts The market reacted positively to the announcement of CEO Steve Ballmer stepping down even though operating profits have climbed at a rapid pace since Ballmer took over in 2000. The company has the resources to hire the very best talent, and you can expect another pop higher in shares once the replacement is announced.
5 Best Trucking Stocks To Own Right Now: Xcel Energy Inc.(XEL)
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers, as well as to public authorities in the United States. The company generates electricity using coal, nuclear, natural gas, hydro, wood, diesel, and wind energy. It also engages in the purchase, transportation, distribution, and sale of natural gas to residential, commercial, and industrial customers. The company serves customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. As of December 31, 2010, it provided electricity services to 3,391,611 customers; and natural gas services to 1,893,250 customers. Xcel Energy, through its joint venture interests in WYCO Development LLC, develops and leases natural gas pipeline, storage, and compression facilities. The company was founded in 1909 and is based in Minneapolis, Minnesota.
Advisors' Opinion:- [By David Dittman]
Xcel Energy Inc�� (NYSE: XEL) coal-fired generation was 42.3 percent of its total 2013output. Xcel was down 0.2 percent.
NRG Energy Inc�� (NYSE: NRG) 2013 coal-fired share of generation was 28.8 percent, but it�� been actively adding renewable sources. Its stock was up 2.2 percent. NextEra Energy Inc (NYSE: NEE), owner/operator of the largest fleet of renewable generation in the US with just 1.7 percent of its output from coal, was up 2.8 percent.
- [By Shauna O'Brien]
Jefferies announced on Wednesday that it has raised its rating on Xcel Energy Inc (XEL).
The firm has upgraded XEL from “Hold” to “Buy,” and has raised the company’s price target from $31 to $32.50. This new price target suggests a 15% upside from the stock’s current price of $27.72.
Analyst Paul B. Fremont commented: “The stock is currently trading at an 8% P/E discount to our 2015E group average multiple.”
“Despite a difficult political environment in Minnesota the company was able to achieve a reasonable outcome in its NSP-Minnesota rate case,” the analyst added.
Looking forward, the firm has increased its FY2014 outlook from $1.95 to $2.00 per share.
Xcel Energy shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.
- [By Richard Stavros]
In fact, investment opportunities in this niche could soon be on the rise. Several utilities have been considering creating standalone transmission companies this year, including Xcel Energy Inc (NYSE: XEL). But whether it’s a standalone company or the sale of transmission assets to a transmission company, regulatory approval will still be key. For instance, regulators declined Entergy Corp’s (NYSE: ETR) sale of its transmission assets to transmission company ITC Holdings Corp (NYSE: ITC) in 2013.
- [By David Dittman]
Answer: It’s too soon to say what the financial impact of the Winnipeg incident will have on TransCanada. The impact for its customers, including Xcel Energy (NYSE: XEL) and Great Plains Energy (NYSE: GXP), may be more acute in the short term. TransCanada will definitely be under increased regulatory scrutiny.
I’m a fan of TransCanada for the long term. It has a solid, diverse and growing presence in North American energy infrastructure. It’s about much more than Keystone XL.
5 Best Dividend Stocks To Buy For 2014: Prospect Capital Corporation(PSEC)
Prospect Capital Corporation is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. It makes secured debt and equity investments. The firm typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. The firm prefers to invest in the United States and Canada. It seeks to invest between $5 million to $50 million in companies with EBITDA between $$ million and $75 million, sales value up to $500 million, and enterprise value of up to $250 million. The firm also co- invests for larger deals. It seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corporation was founded in 1988 and is based in New York, New York.
Advisors' Opinion:- [By Lauren Pollock]
Prospect Capital Corp.(PSEC) said it agreed to buy Nicholas Financial Inc.(NICK) in a stock deal valued at about $199 million that the investment firm expects will expand its presence in the car-loan industry. Prospect Capital is offering $16 a share for Nicholas, a 4.5% premium over Tuesday’s closing price. Nicholas Financial shares edged up 2.8% to $15.70 premarket.
5 Best Dividend Stocks To Buy For 2014: Sysco Corporation(SYY)
Sysco Corporation, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company offers a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats, custom-cut fresh steaks, other meat, seafood, and poultry; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products, such as disposable napkins, plates, and cups; tableware, which include china and silverware; cookware comprising pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company offers personal care guest amenities, equipment, housekeeping supplies, room accessories, and textiles to the lodging industry. It serves restaurants, hospitals and nursing homes, schools and colleges, hotels and mote ls, lodging establishments, and other foodservice customers. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Holly LaFon]
The disciplined investors at Yacktman Funds have stuck with the world�� highest quality businesses, most of which offer products or services integral to society. Their top holdings are PepsiCo (PEP), News Corp Cl. A (NWS), Procter & Gamble (PG), Microsoft (MSFT), C.R. Bard (BCR), Cisco Systems (CSCO), Sysco Corporation (SYY), Coca-Cola (KO), Pfizer (PFE) and U.S. Bancorp (USB).
5 Best Dividend Stocks To Buy For 2014: Linear Technology Corporation(LLTC)
Linear Technology Corporation, together with its subsidiaries, designs, manufactures, and markets a line of linear integrated circuits. The company's products include amplifiers, comparators, voltage regulators, voltage references, monolithic filters, linear regulators, DC-DC converters, power over Ethernet controllers, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, Advisors' Opinion:
- [By Damian Illia]
Although the stock has done pretty well, investors can have another option of investing in the tech sector with Linear Technology Corporation (LLTC) because there is no other semiconductor company that can be able to match the company's profitability. Linear Technology offers thousands of analog products to original equipment manufacturers. The company麓s plan is to specialize in market segments that require high-performance analog with focus on industrial and automotive products. Customers base decisions on quality and Linear麓s chip are considered to be products that have long life and superior technology. This is considered in prices and makes attractive margins to the company.
- [By Dividends4Life]
This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
Omega Healthcare Investors Inc. (OHI) is a real es
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