MAXIMUM RETURN ON YOUR INVESTMENTS (MAX-ROI)

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CURRENT ADVICE 

Up to date market investment news

STOCK RATINGS   

Dividends, P/E, & Advisor ratings

STOCK CHARTS     

Technical charts of recommended stocks

CASH RICH TECH CO'S  

Tech companies cash reserves 

HIGH YIELD DIVIDEND ARISTOCRATS 

How to live on a salary of $1.00 / year. 

DIVIDEND BOOSTERS

Updated Monthly

PEG RATIO

Updated Monthly

CREATE high INCOME STREAM  

Updated Monthly

MAX-ROI SELECTIONS

How to make  investment selections

RULE 0F 72

By Albert Einstein

 

Current Advice AUGUST 7, 2013

Several advisors are predicting that the US stock market crash will occur in 2013-2016. If the technical indicators go negative consider following the advise on the TA Page and sell your non dividend paying stocks. 

Consider investing in Canadian Stocks and  International Mutual Funds & ETF's to avoid the US Market.


David Skarica of The Gold Stock Adviser sees Gold ending the current correction in the near future based on the Central-Banks Stimulus and predicted future high inflation.  Nations from Brazil to Iraq to Russia and China are buying gold to add to their official reserves.

 

 Montgomery Gates editor of the Wealth Generation Report said in his last newsletter that a giant currency super storm is about to hit America because of the currency wars and a plan to "re-monetize gold". This is the reason central banks are buying gold as their reserves to replace mortgages , bonds and treasures. Some  advisors are now saying that gold might test the previous highs before it goes to the $700 level as shown in the chart below. Other  advisors said that gold and silver have reached a bottom support level and  currently are  establishing an up trend.

 

Based on the charts below, some  of  the stocks are in the overbought zones of the RSI and MACD.

Based on market timing, it is time to take some profits or sell covered calls.

 

CHART "A" DJIA MEGAPHONE PATTERN

1965 -2015

CHART "B" GOLD MEGAPHONE PATTERN

1999-2015


The current official cash cost to mine one ounce of gold is an average of USD $736.00.

For some small companies the cost is close to USD $1,000.00

STOCKS WITH  MAXIMUM RETURN ON INVESTMENT

update August 3,  2013

Thanks for assisting with the collection of data for this page goes to

EXPOVEST Member John Voissem

The following  companies have been recommended by Barron's,

Charles Schwab, Utility Forecaster, Complete Investor, Navillier or  Warren Buffet


MAX-ROI Stock Ratings

GO TO PEG RATIO FOR A FULL DEFINITION & EXAMPLES

Following table is a list of codes used by the rating companies

CODES

                 DEFINITION

NR

NOT RATED

B

BUY

N OR H

NEUTRAL OR HOLD

S

SELL

0P

OUT PERFORM

L

GO LONG (BUY)

A

AVOID = DO NOT BUY

CHARLES SCHWAB

RATES A THROUGH F:  A & B = BUY, C = HOLD, BELOW C  = SELL OR AVOID

S&P & MORNING STAR

RATE WITH STARS: 4 & 5 STARS = BUY,  3 STARS = HOLD, BELOW 3 = SELL OR AVOID

              LAST UPDATE FOR THIS TABLE WAS  JULY 3,  2013

Stock

TICKER

CURRENT

PRICE

Dividends

  %

3 YR

Dividend

growth

 %

 Forward

     P/E  

3 YR

EPS

growth

 %

PEG

Charles

Schwab

RATE

Credit

Suisse

Ned

Davis

BUY/SELL

NEUTRAL

Argus

BUY/SELL

NEUTRAL

S&P

Opinion

STARS

Market

Edge

*

 

BARRACK GOLD CORP

 

ABX

16.68

1.2

5.8

6.22

5,8

NA

C

N

H

H

4

N

 

CONOCO PHILLIPS

 

COP

 67.23

4.11

11.4

11.88

4.1

289

A

N

N

B

4

L

 

DUKE ENERGY

 

 

DUK

71.75

4.35

2.4

16.58

4.0

4.14

C

OP

S

H

3

L

Gabelli Global Gold & Natural Resources Income Trust

GGN

10.80

13.11

N/R

N/R

N/R

N/R

Trust

NR

N/R

N/R

2

N/R

GENERAL ELECTRIC

GE

24.70

3.08

14.7

14.86

9.8

1.5

D

OP

N

B

4

A

 

GOLD TRUST (SPUR)

 

GLD

126.36

 0

N/R

N/R

N/R

N/R

N/R

NR

N/R

N/R

 

5

Morning

star

Rating

N

HONEYWELL INC  

  HON

84.68

1.94

8.1

17.11

10.4

1.64

B

N

B

B

4

L

 

SCHLUMBERGER

 

SLB

82.89

1.56

9.4

17.44

17.5

0.99

B

N

N/R

B

3

L

SOUTHERN

  SO

44.34

4.58

3.9

16.39

4.8

3.4

D

UP

S

H

4

N

 

WELLS FARGO  

 

  WFC

44.49

2.70

21.6

11.58

7.2

1.6

B

N

N

S

3

L

Stock

TICKER

CURRENT

PRICE

Dividends

  %

3 YR

Dividend

growth

 %

 Forward

     P/E  

3 YR

EPS

growth

 %

PEG

Charles

Schwab

RATE

Credit

Suisse

Ned

Davis

BUY/SELL

NEUTRAL

Argus

BUY/SELL

NEUTRAL

S&P

Opinion

STARS

*Market

Edge

* Market Edge uses Technical Analysis (TA) as listed below

Neutral indicates 'hold ' but watch for a change in direction.

LONG IS A STRONG 'BUY' INDICATION BASED ON TA.

  Market Edge will change its position when the indicators listed below have a change in direction. The change in direction from Avoid to Long will also be posted on this website for the listed stocks.

1.

Moving Average Convergence/Divergence (MAC) indicates a Bullish Trend

2.

Chart pattern indicates a Strong Upward Trend

3.

Relative Strength Index (RISK) is Bullish

4.

Up/Down volume pattern indicates that the stock is under Accumulation

5.

The 10, 20 & 50 Day Moving Averages are rising which is Bullish. (positive slope)

6.

The 200 Day Moving Average is rising which is Bullish. (positive slope)

7.

Bid/Ask ratio is positive

                                       Avoid indicates the following

Avoid the stock if you are long, close the position and monitor the stock closely. Market Edge will change its position when the indicators listed below have a change in direction. The change in direction will also be posted on this website for the listed stocks.

                            AVOID  IS A STRONG 'SELL'  INDICATION BASED ON TA

1.

Moving average convergence/divergence (MAC) indicates a Bearish Trend

2.

Chart pattern indicates a downward trend

3.

Relative Strength Index (RISK) is bearish

4.

Up/Down volume pattern indicates the stock is under distribution

5.

The 10, 20 & 50 Day Moving Averages are falling which is bearish (negative slope)

6.

The 200 Day Moving Average is falling which is bearish (negative slope)

7.

Bid/Ask ratio is negative

 RETURN TO TOP

The following companies listed below have global exposure:

  ABX,  COP, GGN, GLD, GE, HON & SLB, 

LAST UPDATE FOR THESE CHARTS WAS  AUGUST 3, 2013

Barrack Gold ABX is the largest gold and copper mining company

 in Canada, and it was recommended by CNBC. Consider buying this company when the stock is trading in the oversold areas of the chart above.  ABX provides an entry into gold and copper for diversification and protection against the failing  US dollar and future inflation. The TA indicators are in the neutral  zone as ABX currently  is trading  below the 50 & 200 DMA lines.

ConocoPhillips COP was recommended by CNBC & Complete Investor as a way to include an energy company in your account  with a good yield, long term growth and a low P/E.  Barron's July 4 issue stated that the low price of oil is temporary and that it will continue going up in 2013-2014. Based on the current chart wait for the stock to trade in the oversold zone of the TA indicators before placing a buy order.

This  may be a good time to sell covered calls on COP.

Duke (DUK) is one of the DJU  stocks and has been recommended by several advisers as a long term investment with increasing dividends.

Currently DUK is trading  above   the 50 & 200 DMA's. It  is in the

overbought  zone with the  MACD & RSI indicators. The utility stocks are good for long term investors looking for dividend growth and protection during bear markets.  The RSI  & MACD are currently in the overbought zones.

This  may be a good time to sell covered calls on DUK.

Gabelli-Global  Gold & Natural Resources Income Trust  GGN  has been recommended by several advisers as a long term income investment.  GGN was recommended for investors that want to  have part  of their investments  in Gold & Natural resources plus  have income (cash flow) over 10% at the same time. GGN also sells covered calls to generate income. Currently GGN  is trading above the  50 DMA  with the RSI & MACD indicators are in the neutral zone. Buy at its support level below $11.

General Electric (GE)-  is one of Buffet's stocks as a long term investment with increasing dividends.   GE is currently trading above   its 50 & 200 DMA's  and is in an up trend. This stock seems to be in the third stage of the bull market. The TA indicators are in the

overbought zone.

This  may be a good time to sell covered calls on GE.

 

GOLD TRUST (GLD)  provides an entry into gold bullion for diversification and protection against the failing  US dollar and future inflation.  It is trading BELOW  the 50 & 200 DMA's and is in a DOWN trend.  Its technical indicators are in the neutral  zone at this time. One advisor expects gold to plunge to the 700 level by 2016.

Honeywell (HON)  is now in a major up-trend. It has been recommended by Jim Crammer on CNBC as a long term investment. Currently HON  is trading above  its 50 & 200 DMA's with the RSI & MACD indicators showing an  up trend in the overbought  zones.   If a major bear market occurs as predicted in 2013 - 2016 wait for a better buy price below  $40 per share before placing a buy order.

 This may be a good time to sell covered calls on HON.

Schlumberger Limited (SLB) is included with the

'BLACK GOLD OIL GROUP ' . The drilling companies will increase exploration and drilling as long as the demand for oil and natural gas remains on the high side. SLB  has been recommended by PF, Barron's' & CNBC.  Barron's July 4th  issue states that the price for oil will continue go up. Currently SLB is trading above  it's 50 & 200 DMA's  with the RSI &  MACD indicators in a the  overbought zones.  This may be a good time to sell covered calls on SLB.

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Our neighbor Canada MSCI Index Fund

There are several Canadian  REIT's that have fat yields.

Canadian stocks soared for more than 180% or 8.5% since 2000. Canada's fiscal situation looks a lot more stable than the USA at this time. The U.S. government debt to GDP ratio currently is at 107%, whereas Canada's debt to GDP ratio is only 33%. The average dividend yield for Canadian companies is 3.0%.

SP500

 how TO LIVE ON $1.00 PER YEAR

HIGH YIELD DIVIDEND ARISTOCRATS ARE THE FOREVER STOCKS 

(HYDE)

How can the following CEO’s live on a salary of

[$1.00 per year]?

Each CEO receives a large sum in dividends from

their FOREVER STOCKS each year .

Start your own cash machine today.

John Mackey CEO of Whole Foods Market receives $400,000 per year.


Richard Fairbanks founder and CEO of Capital One receives $514,000 per year


Richard Kinder founder and CEO of Kinder Morgan   receives $27,000,000 per year.


2012:  THE THREE BEST FAVORITE STOCKS

    ARE SXL, MUMP AND WRY Click for details  >>

 

 These companies include blue chip companies that have increased their dividends for 25 consecutive years, The companies in this index must have an average trading volume of at least $5 Million for the prior six months before the December index reference date. The average dividend payout ratio is 57% for the companies listed below. 

 

Based on history the (HYDE) companies outperform the SP500  index in bear markets which allows investors to get a good nights sleep. During the last bear market the SP500 indexed bottomed at 695 and the (HYDE) index bottomed at 1050.

N=Neutral; B=Buy; S=Sell L=Long; A=Avoid;  N/R=Not Rated  OP=Out Perform

This table is the top ten companies and will be updated in June & December of each year.

(STY)  is an ELF that invests in the ARISTOCRATS.

Notice in the chart above if you use indicators on the TA Page to time your purchase of the

FOREVER STOCKS you will buy at reduced prices.

 LAST UPDATE FOR THIS TABLE WAS AUGUST 3, 2013

HIGH YIELD DIVIDEND ARISTOCRATS ARE THE

FOREVER STOCKS 

Stock

TICKER

CURRENT

   PRICE

 Dividends

      %

Schwab

Ratings

Ned Davis

Score

S&P

Opinion

STARS

*Market

Edge

Abbott Labs (Health Co)

ABT

36.63

1.52

A

N

3

l

Alfa Inc

 (Insurance)

AFL

61.68

2.30

B

N

5

L

 

AT&T  

 

T

35.27

5.08

B

NR

3

N

Bemis Co. Inc

(Packaging)

BMS

41.19

2.52

C

B

2

L

Century Link Inc (integrated internet  Communications)

CTL

35.85

6.05

C

N

4

N

Cincinnati Financial Corp.  (Insurance Co)

CINF

49.01

3.33

C

N

3

N

Clorox  

 

CLX

85.94

3.33

D

N

3

L

HCP INC

HCP

43.87

4.70

D

S

3

N

JOHNSON & JOHNSON   

 

Jnj

93.50

2.85

B

N

4

L

Leggett & Platt (Industrial Materials)

LEG

31.41

3.73

C

B

3

A

Kimberly-Clark Corp. (Paper products)

KMB

98.80

3.31

C

N

3

A

SPUR S&P DIVIDEND ETF Invested in the (HYDA)

SDY

70.13

2.76

NR

NR

5

Morning

star

Rating

L

Stock

TICKER

CURRENT

PRICE

Dividends

  %

Schwab

Ratings

Ned Davis

Score

S&P

Opinion

STARS

*Market

Edge

 RETURN TO TOP


**DIVIDEND PAYING STOCKS TO MAXIMIZE RETURN ON

INVESTMENTS***

DIVIDEND BOOSTERS

Positive Exponential Compounding  Portfolio (PECP)

Facts and figures from historical data prove that investing in dividend-paying stocks and reinvesting the dividends to obtain compounding will produce a positive exponential  return on investments (+ROI).

As an example, since 1926 dividends have contributed 42% of the total return in the S&P 500. US companies have been increasing or starting to pay dividends in the past few years because of the 15% income tax break. Company officers are ecstatic over high dividends because their income is taxed at 15% rather than 38%.

  •     $1,000 invested in S&P 500  from 1926 with dividends reinvested today is worth $3,326,018

  •     $1,000 invested in S&P 500 from 1926 without dividend reinvested today is worth $117,591

There is a margin of safety during bear markets as an example during the 2000 to 2003 bear market: for the S&P 500 stocks:

  •   That pay dividends rose 10.4% during the bear market.

  •   That don't pay dividends declined 33.19% during the bear market.

A large percentage of the expert advisors are predicting a 2011 year-end rally that will take the SP500 back to its resistance area of 1350. This may give you a chance to raise cash and wait for the next bear market. Some expert advisors are predicting the SP500 will be trading in the 600 to 700 range in the next bear market.

 

If you invest in high quality companies that pay increasing dividends you will be able to sleep better during the next bear market because you will still receive  income. One of the best investors today is Warren Buffet who has followed the principle of investing in simple solid consumer top quality based industries that pay increasing dividends and only buy when others are fearful like in bear markets. Pail Tracy said that watching Warren Buffet trade stocks is like watching paint dry.  Please take a look at the Buffet page on this website.

 

Rules to follow on how to pick companies to place in this

positive exponential compounding  portfolio (PECP)
  • Must have a long record of improving earnings

  • History of consistent and growing dividends

  • Strong (high) cash flow that is above average

  • Strong (high) projected growth in earnings, dividends and sales

  • Have a dividend payout ratio that is sustainable

  • PEG must be within range  (Click on PEG RATIO)

 

Formula for investing in dividend paying stocks, mutual funds & ETF's

based on your age.

AGE

% of portfolio invested  in  stocks &  mutual funds  that meet the above rules

Over 25

20% to 34%

Over 50

35% to 49%

Over 65

50% to 74% Use dividends to support your retirement costs

Over 75

75% to 100% Dividends to help pay for your life support

 

The companies that meet the above rules are posted below:

The following stocks listed in the MAX-ROI TABLE above are also Dividend Boosters

AT&T, HON, INTEC, JNJ,  SO, VS. & WACO

 LAST UPDATE FOR THIS TABLE WAS AUGUST 3, 2013

DIVIDEND BOOSTERS

Stock

TICKER

CURRENT

PRICE

    Dividends

  %

Schwab

Ratings

Ned Davis

Score

S&P

Opinion

STARS

*Market

Edge

MICROSOFT

MSFT

31.84

2.89

B

N

3

A

NAVELLIER

Reynolds American

RAI

49.43

5.08

D

N

3

L

NEW  - NAVELLIER-

ALTRIA GROUP INC

MO

35.06

4.95

B

N

4

N

WIND STREAM

CORP

WIN

8.36

11.93

D

S

S

N

 

SOLAR CAPITAL

LTD

 

SLRC

22.03

7.24

D

NR

NR

NR

AMERICAN ELECTRIC POWER

AEP

46.35

4.21

C

N

3

N

MUTUAL FUNDS

ETF'S  & MLP'S

////

///

////

///

///

///

///

ALLIANCE Bernstein

        NATIONAL  MUNICIPAL INCOME

        FUND INC

AFB

12.74

6.87

TAX

 FREE

3

Morning

star

Rating

4

Morning

star

Rating

NR

NR

ENTERPRISE PRODUCTS PARTNERS

EPD

62.03

4.42

  NR

N

5

L

KINDER MORGAN ENERGY PARTNERS LP

KMP

82.51

6.40

  NR

  NR

5

N

ENERGY TRANSFER PARTNERS LP (MLP)

ETP

52.06

6.93

  NR

  NR

4

L

PENN VIRGINIA RESOURCE PARTNERS MLP

PVR

25.87

8.29

  NR

  NR

  NR

L

Stock

TICKER

CURRENT

PRICE

Dividends

  %

Schwab

Ratings

Ned Davis

Score

S&P

Opinion

STARS

*Market

Edge

               

 RETURN TO TOP

HOW TO CREATE AN INCOME STREAM FOR RETIREMENT

This section is based on a article that was in the Barron's November 21, 2011 paper and was presented at the EXPOVEST meeting on November 22, 2011.  The President asked for a summary to be placed on this website.

INVESTMENT

DETAILS

Dividend Paying Stocks, Funds, Bonds, Trusts, ETF's, & Sectors

This website page lists several companies with yields over 5% that are good candidates for a retirement fund. The HIGH YIELD DIVIDEND ARISTOCRATS  would be an excellent starting point to build a 'yield generating portfolio'.

The  recommendations in the Barron's article are as follows

AND ARE LISTED IN THE TABLE BELOW.

average

growth

 investment description  --- Net Asset Value: (NAV)

Yield %

RATE%

SECTOR Average  Yields & DIVIDEND GROWTH RATES

6.0

3 TO 5

Telecom         

4.2

3 TO 5

US Utilities         (Considered safe during bear markets)

3.0

3 TO 4

Health Care       (Considered safe during bear markets)

10.0

10 TO 15

Big oil

5.0

5 TO 7

Water utilities    (Considered safe during bear markets)

Longevity Insurance

Yield %

  investment description 

6.0

TO

 7.0

Deferred annuity to create an annuity income stream from 5 to 20  years or for life.

Solid longevity-insurance providers include New York Life and Metropolitan Life.

Some policies will pay over $1,000 per month for life.

Example

A 65 year old man in good health can deposit $200,000 into a fixed annuity and receive $1,100 per month for life.

 LAST UPDATE FOR THIS TABLE WAS JULY 3, 2013

INCOME STREAM FOR RETIREMENT

Stock

TICKER

CURRENT

PRICE

Dividends

  %

S&P

Opinion

STARS

*Market

Edge

Pimco High Income

Fund

   PHK

11.97

12.25

2

NR

Alliance Bernstein 

Fund

  ACG

7.21

6.64

3

NR

Black Rock Credit

All

   BTZ

12.74

7.39

3

NR

Eaton Vance

Fund

(TAX ADVANTAGE)

  EVT

18.66

6.91

NA

NR

iBoxx $ High Yield 

ETF

   HYG

ISHS

98.78

6.56

2

NR

Fidelity New Markets

Fund

FNMIX

16.04

4.67

4

NR

Pimco Emerging

PELAX

9.76

6.00

2

NR

 T. Rowe Price Bond

Fund

PREMX

12.80

5.73

3

NR

TAX FREE FUNDS

/////

////

/////

//////

///////

Neuberger Berman Intermediate Municipal

NBH

13.67

6.13

3

NR

T. Rowe Price Tax-Free Income Bond

Fund

PRTAX

9.87

4/01

4

NR

REIT'S

/////

////

/////

//////

/////

FROM NAVELLIER-- 

American Capital

Agency (Residential)

AGNC

22.59

18.19

NR

N

 Annaly Capital  Management INC

NLY

11.92

13.32

3

A

Stock

TICKER

CURRENT

PRICE

Dividends

  %

S&P

Opinion

STARS

*Market

Edge

 RETURN TO TOP


 

INVESTMENT SELECTIONS TO MAXIMIZE YOUR RETURN

  • Tax free mutual funds or tax free bonds give a good return if you are in a high tax bracket. Example: you will receive an additional 1% to 3% net return on your investment (ROI) based on your tax bracket.

  • The stock market as a long term investment will have the highest return (10% to 12% on the average) but it is also risky. Some advisers recommend investing a set amount in the market each month which is called “dollar cost averaging” and letting the dividends and capital gains compound. When the market is down you will buy more shares and when it is up fewer shares which should average out to be 10% to 12% return on investment (ROI).

  • The IRA or 401K is the best way to invest for retirement because all of the dividends, capital gains and interest income are tax deferred and you can reduce your taxable income while you are working by the amount you invest up to a limit. The Roth IRA is another form of savings that has several advantages. The money is taxed as you invest; however you can withdraw money at any time tax free.

  • Utility stocks are a smart way to invest because they usually pay higher dividend rates. Plus you can sell covered calls on each 100 shares of stock for additional income. Plus under the current federal income tax laws you only pay 15% of qualified dividends and long term capital gains from certain companies including utilities.

  • Real Estate Investment Trusts (REIT‘s) are another smart investment because their dividend rates are usually higher than utilities. However; the dividends from a REIT will be taxed at your current tax rate and you cannot sell covered calls on some REIT’s.

  • CD’s, Money Market Funds and Federal Credit Unions usually pay higher interest rates than a bank savings account. Bonds may be a  good investment but the principal on bonds will vary based on the direction of interest rates. Be sure to invest in any form of dividend or interest paying account that will give you an investment that is above the inflation rate after paying taxes.

Technology Companies have too much cash compared to other sectors.

Do you remember the rule of 72?

  Did you know that Albert Einstein discovered it along with the other great things he did.  To double your money at a

  fixed rate of return (ROI) at a given interest rate. Divide 72 by your interest rate to get the number of years it will take to

  double. This assumes that all of the earning are reinvested  to obtain compound growth. Example at 9% interest, the rule

  will yield 8 years to double. If you want to double $10,000 in 7 years: 72/7= 10% to get $20,000.

NOTE- Disclaimer: This service owns shares of the following stocks: AA, ACG. AFB, DUK, GGN, &  SLB

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