Mar 09

Bank of America is one of those rare companies that distribute profits to shareholders. during the latest investor conference, the CEO, Brian Moynihan said BofA aims to pay out 30 per cent of its annual earnings in dividends.

Bofa profit forecast & prediction

BofA has predicted pretax earnings of $35bn-$40bn a year once its businesses recovered from the financial crisis.

BofA dividend yield

It means shareholders could be set to receive close to $10 billion in dividends.

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Mar 09

The good times are around the corner! That was the message from Bank America CEO during the company’s first investor conference since 2007.

Bank Of America Profit Forecast & Prediction.

The chief executive of Bank of America has forecast and predicted pretax earnings of $35bn-$40bn a year once its businesses recovered from the financial crisis.

Why Bank of America stock may be set for Growth

Bank of America stock is currently trading at $14. Last year profits were around $11 billion. If the company delivers in it’s promise of growing profits 3 fold, then the stock could be set for a massive upswing.

The CEO, Brian Moynihan had a sweetener for shareholders, he said BofA aims to pay out 30 per cent of its annual earnings in dividends.

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Jan 31

Capita Registrars forecast that UK listed Companies will distribute to shareholders a whooping £63bn ($100bn) in dividends. The report was published in financial times.

The Top Five UK dividend stocks Were:-

  1. Royal Dutch Shell,
  2. Vodafone,
  3. HSBC,
  4. GlaxoSmithKline
  5. AstraZeneca

These are FTSE 100 stocks. Capita forecast UK equities could yield 4.2% in 2011.

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Nov 12

If what you want from a stock is to collect annual dividend checks, then you might be interested in looking at this list of 25 highest yielding stocks from motley fool.

The dividend yield listed range from a low of 8.79% to a high of 19.6%. Not bad considering the average dividend yield of S&P is peanuts.

Word of caution: Be careful with the list. You need to do your due diligence and verify the yields. Many of these stocks no longer have the return listed above as they have reduced or eliminated their dividends.

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Nov 10

After serving time in the cold the New GM is preparing for IPO. GM has already opened its books for investors and analyst to go through them.

One financial analyst who has gone through GM financials is Francis Gaskins, IPO expert at IPOdesktop.com. His verdict is be careful!

Common stock investors likely won’t get dividends for years, Gaskins says. The company has a negative tangible book value. It also is prohibited from paying dividends as a condition of many of its loans. Meanwhile, it must make payments on new preferred stock, given to the United Auto Workers, before paying a dividend, he says. “This deal has a lot of hair on it,” Gaskins says. “This isn’t the GM of old. It’s not for widows and orphans. Don’t expect dividends.”

To read a full depth analysis on GM IPO go to USA Today GM IPO story

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Jul 23

T. Rowe price investing firm has an investing strategy known as growth stock philosophy of investing.

The philosophy advocates investing in companies whose earnings and dividends could be expected to grow faster than inflation and the overall economy.

T. Rowe Price offers an investor a choice of over 90 mutual funds.

T. Rowe Price Retirement funds

Offers a fully diversified portfolio with one fund that matches the approximate year you turn age 65.

For more information Visit T. Rowe Price

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Jul 19

Successful investing in stocks is never easy because of the many factors that affect a stock. In this article I outline the 10 factors that you need to go through before buying  a stock.

1. Understanding the Services or Products the company sells.

Buy stocks of companies that you understand. If you cant figure out what the company sells it is impossible to understand the companies financial s.

2. Understand How to read a  Companies Balance sheet and Income statements.

Drop by your local library and borrow a simple guide to accounts or economics  and read pages on business finance. If you cant crack it on your own hire a tutor.

3. Understanding the Sector / Industry

Understand the number of players in the sector and the position of your target company. If the company is the market leader it has advantages.

4. Understand how the company will make you money.

Figure out why the company will outperform. How they launched new products that will do well? Are they expanding abroad or into new markets? These are the factors that keep a company stock rising.

5. Understanding that stocks go up and down.

Its important to know stock prices do not go up in a straight line. Stocks prices sometimes go down. When they they drop don’t panic and sell.

6. Take advantage of free online tools.

Free online tools such as Google finance and yahoo finance can help you a great deal in doing your stock purchase research.

7. Investing for dividends.

Some stocks are in mature industries. These stocks have few opportunities for price appreciation. But the good thing about them is that they pay annual dividends. Such industries are mining, oil and tobacco.

8. We All Mistakes.

Even after going through the best research mistakes will be made. When you realise you made a mistake the best thing to do is to cut your losses. Sell the stock and invest the money in a new stock.

9. Diversify You Stock Purchases

You have heard it since you were a kid “Don’t put all your eggs in one basket.” Don’t put all your money in one stock, spread the money in different stocks. This will protect you from large losses.

10. Have an exit strategy.

Have a targeted share price you want to reach before selling all or part of your position? If you reach your target share price, stick to your initial plan and cash out at least some of your position.

While this stock investment guide is by no means exhaustive, it will certainly help you begin your thought process when making a decision to buy a specific stock or not.

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Jul 01

One idea of boosting your finances is to have a passive income stream. A passive income stream is a venture that brings you money without requiring you to manage it on day to day basis.Once you set it up you can get on with your normal life and you wont need to get involved in running it.

The following is a list of some ideas that can generate you passive income:

  1. Investments that Pay Dividends – A good example of passive income stream is stocks. Stocks such as mining stocks, Oil stocks & Banking stocks pay dividends on regular basis. Look for individual stocks and bonds or index funds that pay good dividends, then sit back and watch the money roll in.
  2. Writing a Book – If you have the talent this could be a great passive income idea. Once you have written a book and you have found a publisher you can sit around and watch the royalty checks flow into your bank. Just note it is not as easy at it sounds, getting a publishing is never easy but for those with talent and have faith in their work it is worth the struggle.
  3. Rental Properties – If you have the capital then this is another sure passive income idea. Once you have developed the properties you can hire a property management to collect rent on your behalf.
  4. Set up a website – The websites business is not as easy as it used to be. But if you have the energy you can set up a website, buy your own domain or get a free site at blogger. Once you have written substantial content you can join google adsense program. Google will you pay based on number of clicks. If you are successful this can be a descent passive income stream.
  5. Develop and License a patent. – It is not always necessary to develop the product, you can license the patent or idea to a manufacturer who does all the production and marketing. The manufacturer pays you royalties for your idea. The royalties received from licensing agreements can be lucrative with the right product.

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May 15

Gold is hot at the moment. Gold is up a whooping 84% in the last 3 years. The gold investors who so it coming have made some serious money.

There are many reasons as to why gold has risen this high, one is the idea that gold is a safe haven. There is belief that the bailouts of the last 2 years will lead to inflation which causes devaluation of currencies and the only protection against all this is gold.

The idea gold is a safe investment goes back to medieval times. A safe investment means you cant lose your money. But the truth is you can lose your money in gold. What is needed is a change in sentiment and people who bought gold start taking their profit. The gold price trend will be in a reverse gear.

Risks of Investing in Gold

In a Business week interview Susan C. Elser, of Elser Financial Planning Indianapolis gave a good detailed analysis on the risk of gold investment,

Unlike other commodities, gold has few industrial uses. Unlike businesses owned through the stock market, gold earns no profits and doesn’t pay out dividends. Unlike bonds, no one pays interest to holders of gold. And, unlike insured bank deposits, there is no guarantee of your principal investment.

“There is no downside protection on investing in gold,” Elser says.

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