February 18, 2015
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dividend Digest and Investment Digest
from Investment Digest, Issue 766

The weather was beautiful and the ideas were plentiful at The World MoneyShow in Orlando. Some 4,500 investors came together to learn more about investing and to meet and greet their favorite advisors and fellow investors.

Just about everyone we spoke with was enthusiastic about the markets, although they were beginning to lean a bit more conservatively. The same view is reflected in our Market Views section of this month’s newsletter.

The markets continue to set new highs—even with the global challenges of Greece’s financial mire and the Ukraine/Russian conflict. Economically, we are holding onto the progress we’ve made. Earnings have been good, with 77% of the S&P 500 companies that reported so far seeing earnings beat their estimates. Interest rates remain low and businesses are continuing to expand, internally and by mergers and acquisition.

Those combined factors provide a significant catalyst for continuing stock market momentum. And today’s issue is packed full of new ideas for your review.

Our Spotlight Stocks focuses on a leader in global outsourcing. And my feature expands on that concept, discussing the growth of that segment—especially in information technology.

With growth stocks continuing to return excellent gains to investors, it’s no surprise that our contributors found plenty of options for you, including a home builder, a railway company, a leading jeweler and a couple of businesses in the uniform/safety/security sector.

But we can’t count out value, either, as turnarounds and other catalysts are driving the shares of these companies in the entertainment, financial, gold, communication and airline industries.

Our technology recommendations span a diverse group of sectors, including the cloud, semiconductors, 3-D printing, the Internet and data. We also offer a couple of energy companies, a variety of medical equipment businesses, a biotech and two low-priced stocks.

If you are seeking easy diversification, you may want to consider our funds and ETFs, which offer a range of selections, including small-cap, value, emerging markets, energy and healthcare.

We hope you enjoy this issue, and invite you to share your investment strategy questions with us. And don’t forget to visit our website for a growing library of educational articles and videos.

EDITOR'S PICK

February 20, 2015
Analysis: Toll Brothers (TOL)
Gordon Pape

Gordon Pape

From The Internet Wealth Builder

Toll Brothers (TOL), a U.S. luxury homebuilder, reported its fiscal 2014 earnings on December 12. Earnings continue to rebound in line with the recovery of the U.S. economy and American home prices.

TOL’s adjusted earnings doubled in fiscal 2014 and revenues per share were up 40%. Based on a recent price of $35.18, the p/e ratio is 18.7, the price to book ratio is 1.69, and return on equity (ROE) is 9.75%.

The profit outlook is for modest growth in the next year as contracts signed in 2014 for houses to be completed mostly in 2015 were flat in units compared to those signed in the previous year. However, they were up somewhat in price. There is a lag of over one year before signed contracts become home sales. Read More »


FEATURED INCOME INVESTMENT

February 12, 2015
Analysis: Potash Corp. of Saskatchewan (POT)
Nancy Zambell

Nancy Zambell

From The National Investor

Bolstered by a stronger-than-expected operating quarter and an earnings beat, Potash Corp. of Saskatchewan has also just announced a dividend increase; from 35 cents/share to 38 cents per share effective with the next payment in May.

The final quarter of 2014 saw a strong jump in net earnings for the company as the fertilizer market tightened. POT reported a 77% rise in quarterly profit, helped by those higher realized prices and lower costs. Net earnings rose to $407 million, or 49 cents per share, in the fourth-quarter from $230 million, or 26 cents per share in 2013’s final quarter. Year-over-year revenues rose 23.4% to $1.9 billion. Read More »


INCOME INSIGHTS

Advice: Bullish on the Rebound in the February 2015 Stock Market
Mary Anne and Pamela Aden

Mary Anne and Pamela Aden

Bullish on the Rebound in the February 2015 Stock Market

by Mary Anne & Pamela Aden from The Aden Forecast

Dividend Digest 269 dated February 11, 2015

Stocks are rebounding in a renewed rise and so far, they’re looking good. The Dow Industrials, for instance, is at a one month high and it’s broken above a six week downtrend (see chart below). The Dow is leading the other stock indexes and if it breaks out into new record high territory, it’ll be off to the races. Read More »