I have a game I like to play. A little con. It generally involves two pigeons. One is a friend, the other is Bill Gates. It never fails. I’m always amazed at how little people know about financial information. When I show someone the SEC’s site, for instance, he or… Read More

It’s the classic Cinderella story. Rags to riches. From nothing to something. The big dance begins with a single step — the initial offering of a company’s shares to the public. Thousands of investors try to “get in on the ground floor.” Take… Read More

It’s no secret that investors place a premium on lofty margins. If one business squeezes $0.15 in earnings from each dollar in sales and another manages just $0.10, the first company clearly has a big advantage. But there’s one thing even better than a… Read More

Looking at the yields on junk bonds today, I’m reminded of a Joanie Mitchell lyric many years ago: “Don’t it always seem to go that you don’t know what you’ve got till its gone.” In October 2008, the dividend yields for speculative-grade (junk) bonds were averaging 2,182 basis points above… Read More

The stock market may seem chaotic and unpredictable — but there is some order, if you know where to look. Some things, history tells us, tend to repeat. One such instance happens every time the S&P 500 Index… Read More

If you think “widow and orphan” utility stocks are boring, then you’ve never heard of this one. It’s an electric utility that has increased its dividend each year for the past 20 years. Not only does it offer its shareholders an… Read More

The market rebound, which began in March, has so far increased the value of the S&P 500 by about +55%. Economic indicators are still weak, but the market tends to lead the recovery by several months. Despite the worry, cyclical stocks — those affected by the economic cycle — are… Read More

If anyone ever tells you that you must choose between dividends and capital gains, it’s now safe to laugh. A full 135 companies have increased their dividends AND decreased their shares outstanding through buybacks in each of the past five years. Stock buybacks… Read More

I doubt you’ve ever heard of John Wightkin. He’s the Director of Equity Research Applications of the Schwab Center for Financial Research. Sure that’s a fancy title, but John is doing some very important work in the field of income investing. In fact, John Wightkin just confirmed what I’ve been… Read More

They say what’s past is prologue. So when history starts repeating itself like this, it’s wise to take notice. Mergers and acquisitions are picking up after a drought in activity for much of the past year. On Monday, Dell (Nasdaq: DELL) said it would buy computer-services provider Perot Systems (NYSE:… Read More