Category Archives: Investing

3 Top Dividend Stocks For February 2020

Summary

  • Restaurant Brands, Nutrien, and Simon Property are undervalued.
  • They offer decent yields of about 3-6% and long-term total returns potential that’d beat the market.
  • Returns will come from dividends, growing profitability, and valuation expansion over the long run.

Are you looking for dividend stocks to generate some nice passive income and market-beating long-term returns? Let’s get some insight from Peter Lynch. 

Are you looking for dividend stocks to generate some nice passive income and market-beating long-term returns? Let’s get some insight from Peter Lynch. 

He’s the incredible mutual fund manager who returned about 29% per year for his investors between 1977 and 1990 — essentially, transforming a $10,000 investment into about $280,000 over 13 years.

Source: Author

Lynch is also the author of The New York Times bestseller, One Up on Wall Street.

One of his famous quotes is

Invest in what you know.

So, what do we know? We come into contact with many companies every day. For example, in the past week, you might have gotten a quick bite at Burger King, Tim Hortons, or Popeyes Louisiana Kitchen and notice that the quick-service restaurant was buzzing with people.

This triggers you to do more research and realize that these franchises are actually all under the same company, Restaurant Brands (TSX:QSR)(NYSE:QSR).

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Will The Stock Market Crash In 2020?

Summary

  • The U.S. stock market is near its all-time high.
  • Since 1928, the market has delivered negative returns in 4 out of 23 presidential years. So, a 17% probability.
  • The stock market crashing or not has little to do with whether it’s a presidential year or not.
  • Coronavirus outbreak is triggering a correction in the market.

The U.S. market trades at an all-time high. It has been a bull market for almost 11 years, whereas historically, whenever the stock market has appreciated for 10 years or so, there will be a market crash like the one we had in 2008.

Yet, 2020 is a presidential year. Some people believe that the market will continue to head higher until after the election because Trump will do everything in his power to keep the market up since he’s going for the seat again. And the U.S. presidential election isn’t until November 3. So, the market could go up another nine months or so.

Historically, in presidential years since 1928, the S&P 500 delivered negative returns in 4 out of 23 presidential years (17%), including:

  • 1932, during the Great Depression, the market was down 8%,
  • 1940, during WWII, the market was down 10%,
  • 2000, the Internet bubble burst, the market was down 9%,
  • 2008, a financial crisis from subprime mortgages in the U.S., S&P 500 declined 37%
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Coronavirus Outbreak: A Stock Investing Opportunity.

Today marks the first day of the Year of the Rat as we bid farewell to the Year of the Pig. Unfortunately, this supposed time of celebration clashes with the coronavirus outbreak catastrophe that originated from Wuhan, China.

The Lunar New Year in China is the world’s largest annual migration of people, with hundreds of millions of travelers fanning out across the country and the world, and hundreds of billions of dollars spent on hotels, restaurants and shopping. (Source: New York Times)

The outbreak will undoubtedly negatively impact the already slowing Chinese economy, but it should only be temporary, if it is, as some experts believe, not as severe as the SARS virus that infected more than 8,000 people, caused 774 deaths reported across 17 countries, and devastated many in 2002-2003.

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