Tag Archives: NYSE:STOR

Stock Investing is Not Just About Returns: 2 Things You Might Care More About!

As you may know, I’ve been investing in stocks for about 13 years. I surely love it when my stocks provide outperforming returns. Of course, there are laggards, too. 

What more can stock investing be about if it’s not just about returns? Every stock investor wants to get rich, right?

I discuss below why earnings quality and dividend income could be important to you.

a pile of U.S. dollar bills
Photo: SuperTowTrucks Blog. Licence: CC 2.0. Source: flickr

Earnings Quality

Since I delved into growth investing, including in small caps, I’ve become more deeply appreciative of stocks with underlying businesses that have superb earnings quality.

I hate to break the news. Stocks with high earnings quality won’t give you the greatest returns. However, they give you something else — a defensive, low-risk holding. These kinds of stocks should provide reassurance to any stock investor when the macro environment is in turmoil. 

The more conservative you are as a stock investor, the bigger percentage of these types of stocks you should hold in your stock portfolio. 

Read More

Stock Market Crash Coming: 2 Stock Investing Strategies

We believe the stock market has recovered too fast and that stock market crash 2.0 is coming.

COVID-19 is undoubtedly the biggest drag on the global economy. The pandemic has pushed up unemployment rates and pulled down GDP, as it swept through and destroyed multiple industries (think tourism, hospitality, brick-and-mortar retailers, retail real estate).

Some are optimistic about the situation, thinking that vaccines can save the day. Unfortunately, even when effective vaccines become available, it’s going to take quarters, if not years, for the economy to recover.

Additionally, COVID-19 isn’t the only thing that’s weighing on the global economy. Let’s not forget about trade wars, anti-racism protests, low energy prices, high debt levels, and the upcoming U.S. presidential election. They all add pressure and or uncertainty to the economy.

With the above backdrop in mind, here are two stock investing strategies you can consider. 

Read More

Value Stock Rally: Bargain Dividend Stocks Still Available

It was value stocks’ time to shine. They rallied. 

They were too cheap to ignore. 

Real estate stocks with big exposure to retail properties took a big hit from COVID-19 disruptions. 

Here are two examples.

STORE Capital: Dividend Stock Yielding 5.6%

STORE Capital (NYSE:STOR) fell as much as 65% from last year’s high. Then, the dividend stock developed a base in the $16-18 range for about three months before appreciating approximately 46%.

Source: Stockcharts with author annotation

It still offers a nice yield of 5.6%. And it still trades at a discount of about 20% from its normalized valuation. However, it’s meeting short-term resistance right now at about $26. The price action in the next two weeks will tell us if it’ll break above it or not. 

The commercial real estate company has a diversified portfolio consisting of 2,552 properties across 49 states and 491 customers who operate across 113 industries.

Read More