Weekend: How to Beat Bernanke's War on Savers

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Weekend: How to Beat Bernanke's War on Savers By Steve Christ | Sunday, July 10th, 2011 Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. There is no other way to put this because it is true: Ben Bernanke hates savers. With his zero interest rate policy (ZIRP), he has virtually declared war on each and every one of them. In his efforts to push asset prices higher, Ben believes savers should actually be pushed from the nest into the world of stocks. After all, in Ben’s world, the safety of money in the bank earning a reasonable interest rate is a dangerous thing... That’s why folks with savings have been virtually forced out into the markets these days in a search for higher yields. Ben knows those 1.25 % savings account and CD rates simply won’t cut it. Advertisement "North America Dominates Global Shale Gas Market" The reports are fantastic — trillions and trillions of cubic fat of natural gas lie under vast expanses of the U.S. Enough to give the U.S. market dominance for the next 10 years. But with current methods bringing about questionable environmental results, we could be seeing the end of this billion-dollar industry... Lucky for you, we've discovered one company whose technology is not only environmentally friendly, but almost 2x more effective than traditional methods in recovering both shale gas and shale oil. Click here for more information on this unique investment opportunity.  The result is that high-paying dividend stocks have been among the best performers in the market since this disaster began. In fact I have been emphatically recommending dividend stocks to my Wealth Advisory subscribers for some time now as a relatively safe way to build wealth while earning a decent yield. Those subscribers have been rewarded with a dividend portfolio that's a perfect 9-0, with net gains of 329% over the last three years. Not bad for a bear market... Because as every successful dividend player knows, income investing lets you win two ways: first, with a cash payout; second, through the price appreciation of the underlying stock. This allows savers and investors alike to earn the double bonus in their search for better yields. However, picking successful dividend-paying stocks is not as simple as buying the stocks with the highest yield. In fact the stocks with the highest yields are often the ones that trip investors up the most. Picking winning dividend stocks usually requires finding candidates with two qualities: They should have a minimal risk of a dividend cut. There should be a high probability that the dividends will increase while you own the stock. With those criteria in mind, here are four stocks worthy of any retirement portfolio: Abbott Laboratories (NYSE: ABT): A diversified health care company, this is a stock you can safely add anytime on weakness. The 3.6% current yield is well above average for this type of company, and the 62% payout ratio suggests future sustainability. What's more, ABT has increased its dividend payouts for 39 straight years. With a forward P/E of 10.71, this is potentially a $63.00 stock. McDonald’s Corporation (NYSE: MCD): I can’t say I’m a big fan of their food, but it's hard to deny MCD is one well-run global machine. Recession or not, food is always moving out of the Golden Arches. The burger behemoth has raised its dividend for 34 years in a row while producing a ten-year annual dividend growth rate of 26.50%. The yield isn’t off the charts at 2.80%, but this one promises steady returns. Realty Income Corporation (NYSE: O): This is one of my all-time favorites. Realty Income has one of the best business models to speak of and pays a 5% yield. The dividend is supported by the cash flow from over 2,500 properties owned under long-term triple-net lease agreements. To date, the company has paid 492 consecutive monthly dividends while raising the payouts 62 times since 1994. Duke Energy Corp. (NYSE: DUK): An energy/utility company, Duke Energy delivers power to four million customers in the Carolinas and parts of the Midwest. The company pays a 5.4% dividend yield and has increased its quarterly distribution for seven consecutive years. So don’t let the Fed’s war on savings keep you from earning the yields you deserve. The right mix of safe, high-yielding dividend stocks can help replace what the Fed has taken away. Advertisement Wait Just Two Weeks... and You Could Miss Out on the End of Oil Things move fast in the world of energy... and that includes the profits. The biggest paydays only come to those who put their chips in at the exact right moment — and that's why I'm writing to you today. As the world scrambles for energy solutions, this small cap company is about to deliver in a big way. There's too much to describe in this space, so if you'd like to hear about this opportunity before the masses, check out this broadcast.  As for some other places to start building a lifetime of wealth, our editors have put together a few of their best ideas for the years to come in this week's top-read articles from Wealth Daily and Energy & Capital, below. Have a great weekend. Your bargain-hunting analyst,   Steve Christ Editor, Wealth Daily Easy Options:  Let “The Coach” Show you How Make the Big Bucks This first-of-its-kind tutorial explains why rich investors don't trade stocks anymore — they make bundles trading options instead. Options Trading Coach Ian Cooper tells you all you need to know to join them. Geothermal Profits: Cleaner than Gas and More Powerful than Nuclear Editor Jeff Siegel discusses the only pure play geothermal stock that Uncle Sam is about to send much, much higher. 60 Million Barrels of 'Nice Try': Obama's Latest Economic Gimmick In two days, Southern Sudan gains independence. They already produce 500,000 barrels of oil a day. When the U.S. repeals its sanctions, these small wildcatters will surge... Time to Short the "Unsinkable" Stock: Apple: Sales for this "Titanic" Toy Store are Finally Coming Up Short The last time this "bullet-proof" tech player missed expectations, it fell 58%! Here's how to leverage the next tumble. Housing Bottom 2011: I'd Bet My Job on This... Analyst Ian Cooper explains why the latest "housing bottom" callers are still wrong and offers two ways to profit from further decline. 84-Year-Old Port and the Dalai Lama: Releasing Dopamine Moments of enlightenment happened over 84-year-old bottles of port and on white sand beaches. And I'd like to share one of them with you today. The Ultimate Energy Bet: Nat Gas: Natural Gas Profits During a Supply Glut It's true. Savvy Investors will profit during the natural gas supply glut. Keith Kohl tells you how. Uranerz Energy Could Pop On Russell Inclusion: Last Time It Popped 233% Analyst Ian Cooper takes a look at a uranium stock given a second chance by the Russell Indexes, and offers other ways to profit from bargain basement prices for the element. The Revaluation of the Iraqi Dinar: How the U.S. Plans to Make Trillions Analyst Greg McCoach reveals evidence of the U.S. government's secret plan to make trillions off the revaluation of the Iraqi dinar, and tells investors what they can do to protect themselves and establish security for the future. Hydraulic Fracturing: Marked for Death or an Inevitability?: The Fracturing Debate Rages On Keith Kohl takes a hard look at the inevitable growth of hydraulic fracturing, offering investors the smartest way to profit from the controversial activity. Refer a Friend to Wealth Daily

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