Small-cap stocks are generally perceived riskier than larger-cap stocks, but they still sport their fair share of strategies with market-beating potential. Given that small-cap stocks are mainly growth-oriented, they have not been recognized as prominent dividend payers, as lion’s shares of these companies’ cash flows are channeled into business expansion. Therefore, income-focused investors have shied away from small-cap stocks as income plays.
However, in the small-cap universe there are more »
Financial news has focused on many sectors and themes over the past several years: big energy companies, commodities, a never ending attention on tech stocks, cloud computing, and even Buffett buying a railroad. One of the most unheralded stories over the same period has been the continual, nearly unbreakable, strength in the utility sector. Looking at a three-year chart of the Dow Jones Utility Index produces a nearly perfect low-to-high more »
The global economic picture is darkening rapidly and severely. The United States unemployment rate is still above 8.00%. The European Union is falling into a deep and dark recession. German bankers are scheming up a sophisticated plan to somehow keep the euro alive or conduct an orderly exodus from the common currency. Chinese bankers are suddenly realizing the fact that their economy is not an unstoppable machine, and are more »
I recently used the Motley Fool CAPS Screener to come up with some new investment ideas. The screen I ran was pretty simple, I wanted at least a 2% yield, 10% or better EPS growth in the last 3 years, and the stock had to be rated 4 or 5 stars by the CAPS community. Looking at the utilities industry, there were 3 that had a yield of over 4% that looked like they could be attractive. The names I came up with were TECO Energy (NYSE: TE), UniSource Energy (NYSE: UNS), and Northwestern Corp (NYSE: NWE). Since most investors only buy one or two companies to represent an industry, let's find out which of these 3 looks like the best buy.