My High Dividend Stocks Blog

My High Dividend Stocks
This is my high dividend stocks site where I help site members find high dividend stocks with earning power and strong balance sheets.

TIP OF THE WEEK - Four Important Tickers to Monitor on a Weekly Basis. They Affect Your Wealth.

Four Important Tickers to Monitor on a Weekly Basis. They Affect Your Wealth.
Jason Brizic
Feb. 11, 2011

Last week's tip of the week focused on how I like to setup my chart views and indicators on www.stockcharts.com . Click on this link to read last week's tip of the week (http://bit.ly/LastTotW ). This week I would like to offer you my list of favorite tickers that I monitor using StockCharts.com and briefly why. This will save you time looking them up.

S&P 500 index - Use ticker $SPX. This ticker returns the S&P 500 large cap index. It is more representative of the US stock market than the Dow Jones Industrial Average of 30 stocks. The Dow is abnormally high because AIG was replaced by Kraft Foods. Big losers like AIG don't fall out of the S&P500 so easily. Consider the S&P 500 to be the market your trying to beat with your high dividend stock portfolio.
http://bit.ly/3yrSP500 Gold - Use ticker $GOLD. This ticker returns the price of gold at the end of the day. Physical gold coins belong in your investment plans as a crisis hedge and non-correlator. Unfortunately you can't see the intraday price of gold with this one. Use www.kitco.com or symbol GLD on Google Finance or stockcharts.com to see gold's intraday moves. Remember to multiply GLD's price times ten to get the price of gold. GLD does have one advantage over the kitco.com spot prices - GLD includes volume info.
http://bit.ly/3yrGold Oil - Use ticker $WTIC. WTIC stands for west Texas intermediate crude otherwise known as light crude oil. We can use oil as a non-correlator in our high dividend stock portfolios. So it is important to know the recent price of oil has been before you purchase any energy related ETFs, oil stocks, or energy related mutual funds. Also, many oil related stocks have high dividends above 6%. You can factor the oil price into your decision to buy high dividend oil stocks.
http://bit.ly/3yrOil Commodities - Use ticker $CCI. The Continuous Commodities Index (CCI) is an index of commodities which is not dominated by oil. It includes other commodities such as grains, meats, tropicals, and metals. For more info on this commodity index please go here: http://www.zealllc.com/2008/commcycl.htm. Commodities are good non-correlators for your portfolio and some of them like copper are leading economic indicators. Price inflation also hits commodities first. It is important to monitor them. The CCI lets you view them as a group.
http://bit.ly/3yrCommodities For more tips, go here:

http://www.myhighdividendstocks.com/category/tip-of-the-week

Do You Need an Oil Stock for Your High Dividend Stock Portfolio?

SeaDrill (SDRL) caught my eye as a high dividend stock.  This deep water oil drilling company currently yields 7.54%.  It paid over $0.60 for the past three quarters.  However, it only has a three quarter dividend record.  Time will tell if this stock will be a reliable dividend payer.

Here is the description from Google Finance:

SeaDrill Limited is a Bermuda-based company active within the oil and gas industry. Its activities are of an offshore drilling contractor. The Company operates a fleet of 36 offshore drilling units, including eight units under construction, which consist of 10 jack-up rigs, 10 semi-submersible rigs, four drillships and 12 tender rigs. It operates three business segments. The Mobile Units business segment offers services including drilling, completion and maintenance of offshore wells. The Tender Rigs business segment operates self-erecting tender rigs and semi-submersible tender rigs. The Well Services business segment provides services using platform drilling, facility engineering, modular rig, well intervention and oilfield technologies. SeaDrill Limited operates through subsidiaries in Bermuda, Norway, Cayman Islands, British Virgin Islands, Cyprus, Nigeria, Liberia, Hungary, Singapore, Brazil, Hong Kong, Panama, the United Kingdom, Denmark, Malaysia, Brunei and the United States.

This stock’s price will correct when the price of oil corrects.  A continuation of the global recession, government debt crisis, and or a busting of China’s real estate and construction bubble will cause the price of oil to go down.  War with Iran (coupled with Iranian government sinking of oil tankers in the Straits of Hormuz), Keynesian money printing, large oil spills (Gulf of Mexico), and commercial banks resuming lending like in 2006 will all lead to higher oil prices.

The P/E is reasonable at 12.06.  Debt is less than 50% of assets.  I will analyze earnings and balance sheet in great detail in the future.

If you can’t wait for my analysis of their earnings power and strength of their balance sheet, then wait for this stock to pull back to below $20.00 per share like in May through July 2010.

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Don't Put Off Your First Gold Purchase. A Buying Opportunity Awaits.

There is a place in your investment portfolio for non-correlators to the stock market.  I believe you should own 5% – 30% of your net worth in non-correlators.  For most people this means gold, silver, agricultural commodities, and energy (e.g. oil, coal, and natural gas).  This article is specifically about purchasing gold or silver coins.  I recommend that you buy gold before silver.  Central banks to not purchase and store silver.  If you feel you must own silver, then limit it to 20% of your precious metals dollar total.  For example, if you have $7,000 to purchase PMs, then buy 4 ounces of gold (80% @ $1,400/oz) and 46 ounces of silver (20% @ $30/oz.).  Follow Burt Blumert’s rules: "Buy the best. Pay cash. Take delivery."

MarketWatch sent an interviewer to interview Parker Vogt of Camino Coin Company in Burlingame, California. This was Burt Blumert's company. He gave it to Vogt, an employee. How's that for a legacy!

The reporter has such a thick accent that I had difficulty following her narration. She is obviously reading a script. It's not a good script. But Vogt is very good.

The margins at Camino are low.

http://www.marketwatch.com/video/asset/bullion-coin-investing-may-cost-you/97CFE159-0178-43F2-962B-A1F1E5CC5256

Do not buy the gold ETFs.  Buy physical gold coins and take delivery of them.

The price of gold has declined for nearly four weeks.  If you don’t own any physical gold coins, then you should prepare to buy some while the price is declining.  I think that the price might continue to decline almost to the 200 moving average at around $1,260 per ounce.  We won’t get a slide in gold of -25% like in 2008 unless the entire stock market flounders.  A stock market crash is unlikely in the absence another financial panic.  There is a financial panic coming, but there is no buildup to it right now in the worldwide media.  The problems in the financial systems have not been solved.  Central banks are printing trillions of dollars, euros, and other fiat currencies.  Gold will rebound.  Take the opportunity to buy some while it is relatively cheap.

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P.M. Kitco Metals Roundup: Gold Ends Solidly Lower, hits 4-Month Low, on Technical Selling

27 January 2010, 02:06 p.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/

(Kitco News) - Comex gold futures prices closed solidly lower, near the daily low and hit a fresh nearly four-month low Thursday. Fresh technical selling amid waning safe-haven demand pressured gold prices. Comex gold last traded down $14.80 at $1,318.20 an ounce. Spot gold last traded down $26.70 at $1,320.00.

The gold market is seeing reduced safe-haven investment demand, what with the U.S. stock indexes trading near multi-year highs, no fresh headline news regarding European Union financial problems, and no major geopolitical flare-ups occurring. Indeed, investors worldwide have gained a better appetite for taking risk, which is hampering the safe-haven gold market. However, the gold market is still just one step away from a solid price rebound or an extended rally should a significant geopolitical or financial market event suddenly and unexpectedly appear in the news headlines.

Lower crude oil futures prices Thursday, which hit a fresh seven-week low, also worked to pressure the precious metals markets. Crude oil has seen bearish near-term technicals develop that do suggest more downside price pressure in the near term, and that's also an underlying bearish factor for gold.

The U.S. dollar index traded weaker again Thursday and hit another fresh 2.5-month low. The dollar index bears have downside near-term technical momentum and if the index remains on a downward path in the near term, look for gold prices to at least see limited selling interest. Gold bulls have been disappointed recently that the yellow metal has not seen more upside support from the weaker dollar index.

The London P.M. gold fix was $1,334.50 versus the previous P.M. fixing of $1,328.00.

Technically, February Comex gold futures prices closed nearer the session low Thursday and scored a bearish "outside day" down on the daily bar chart. Serious near-term technical damage has been inflicted in gold recently. Prices are in a four-week-old downtrend on the daily bar chart. A bearish head-and-shoulders top reversal pattern is also playing out on the daily bar chart.

Gold market bulls' next near-term upside technical objective is to produce a close above solid technical resistance at this week's high of $1,352.40 in February futures. Bears' next near-term downside price objective is closing prices below psychological support at $1,300.00. First resistance is seen at $1,325.00 and then at $1,332.00. Support is seen at Thursday's low of $1,315.70 and then at $1,310.00. Wyckoff's Market Rating: 5.0.

March silver futures closed down 18.8 cents at $26.94 an ounce Thursday. Prices closed nearer the session low today and were pressured by lower gold and crude oil prices. Prices Tuesday hit a fresh seven-week low. Silver prices are in a four-week-old downtrend on the daily bar chart. Some near-term chart damage has been inflicted in silver recently.

The next downside price objective for the silver bears is closing prices below solid technical support at $26.00. Bulls' next upside price objective is producing a close above solid technical resistance at this week's high of $27.95 an ounce. First resistance is seen at $27.25 and then at $27.50. Next support is seen at Thursday's low of $26.775 and then at this week's low of $26.54. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 670 points at 433.40 cents Thursday. Prices closed nearer the session high. The bulls had faded a bit earlier this week and needed to show fresh power, which they have done. The copper bulls have the overall near-term technical advantage. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the January all-time high of 449.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 410.00 cents. First resistance is seen at Thursday's high of 435.55 and then at this week's high of 437.25 cents. First support is seen at 430.00 cents and then at Thursday's low of 427.55 cents. Wyckoff's Market Rating: 7.0.

  

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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