The S&P 500 Index (SNPINDEX: ^GSPC ) needed to take a break. It had hit all-time highs in nine of the last 10 sessions and, on Thursday, the index did something unconventional: It took a step back. Perhaps it was warranted, as new housing starts slipped big-time in April (more than 16%), and recent industrial production figures underwhelmed. But while the S&P was going through a modest, eight point, 0.5% pullback to close at 1,650, the following three stocks were suffering through far more severe sell-offs.
Chip maker Advanced Micro Devices (NYSE: AMD ) , which has been on an absolutely unbelievable run as shares soared more than 80% this year, cratered 12.6% today on some scathing comments from a Goldman Sachs analyst, who thinks the run-up has been exaggerated. He noted that, while AMD doesn’t traffic exclusively in the PC market, the PC segment still makes up 45% of the company’s sales, implying that investors have gotten too excited about AMD’s involvement with the new Microsoft Xbox consoles.
Top 5 Financial Stocks To Buy Right Now: Dime Community Bancshares Inc.(DCOM)
Dime Community Bancshares, Inc. operates as the holding company for The Dime Savings Bank of Williamsburgh that provides financial services and loans primarily for multifamily housing. The company accepts various deposit products, including savings accounts, certificates of deposit, money market accounts, interest bearing checking accounts, and non-interest bearing checking accounts. Its loan products comprise multifamily residential mortgage loans, commercial real estate loans, one- to four-family residential mortgage loans, construction and land acquisition loans, and consumer loans. In addition, the company, through its other subsidiaries, involves in the management and ownership of real estate; the sale of non-FDIC insured investment products; and investing in multifamily residential, one to four-family, and commercial real estate loans. As of January 26, 2012, it operated 26 branches located throughout Brooklyn, Queens, the Bronx, and Nassau County, New York. The comp any was founded in 1864 and is headquartered in Brooklyn, New York.
- [By Tim Melvin]
I always find it very interesting to see what long-term investors are selling in a given quarter. Kahn Brothers lightened up on many financials that have shot up and now trade above book value. The firm sold out of Flushing Financial (FFIC), TCF Financial (TCB) and Dime Community Bank (DCOM). Khan apparently shares my views on the large-cap drug stocks, easing up on both Pfizer (PFE) and Bristol Meyers (BMY) over the summer. Khan Brothers also sold the last of the Travelers shares (TRV) it has owned since 2008 at more than twice the purchase price.
Top 5 Financial Stocks To Buy Right Now: iShares US Home Construction ETF (ITB)
iShares Dow Jones U.S. Home Construction Index Fund (the Fund) is a non-diversified index fund. The Fund seeks investment results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Home Construction Index (the Index).
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Index measures the performance of the home construction sector of the United States equity market, and includes companies that are constructors of residential homes, including manufacturers of mobile and prefabricated homes.
- [By Ben Levisohn]
Susquehanna’s head of derivative strategy Trevor Mottl, however, recommends betting against the sector with options on the iShares U.S. Home Construction ETF (ITB) following Friday’s big drop in new home sales. He writes:
- [By Ryan Detrick, Senior Technical Strategist, Schaeffer’s Investment Research, Inc.]
The action in housing stocks is another concern. The iShares Dow Jones US Home Construction Index Fund (ITB) is in the midst of making a very bearish-looking head-and-shoulders peak.
- [By Paul Ausick]
The recovery may be real, but it is stalling a bit today. The iShares Dow Jones U.S. Home Construction (NYSEMKT: ITB) is down 1.3%, at $20.92 in a 52-week range of $17.67 to $26.21.
Top 5 Financial Stocks To Buy Right Now: Australia and New Zealand Banking Group Ltd (ANZ)
Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc. Advisors’ Opinion:
- [By Adam Haigh]
Komatsu Ltd. tumbled 8 percent in Tokyo after the world’s second-largest maker of construction equipment cut its full-year profit forecast by 26 percent. Industrial & Commercial Bank of China Ltd. gained 1.4 percent in Hong Kong, pacing an advance among Chinese lenders, after China’s central bank added funds to the financial system for the first time in two weeks. Australia & New Zealand Banking Group Ltd. (ANZ) climbed 1.4 percent to a record in Sydney after posting its highest profit and raising its dividend more than forecast.
- [By Adam Haigh]
Australia & New Zealand Banking Group Ltd. (ANZ) sank 3 percent after Australia’s third-largest bank by market value forecast interest margins will keep dropping. Hyundai Merchant Marine Co. jumped 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the Gaeseong industrial complex. Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes. Everbright Securities Co. said it experienced a trading error.
Top 5 Financial Stocks To Buy Right Now: WisdomTree Emerging Markets Equity Income Fund (DEM)
WisdomTree Emerging Markets High-Yielding Equity Fund (the Fund) seeks to track the performance of the WisdomTree Emerging Markets High-Yielding Equity Index (the Index). The Index measures the performance of emerging market stocks with relatively high dividend yields. The Index is created by selecting the top 30% of Index constituents ranked by dividend yield from the WisdomTree Emerging Markets Dividend Index. Companies eligible for inclusion in the Index must be incorporated in and have their shares listed on a major stock exchange in Argentina, Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Israel, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand or Turkey. Companies must have paid at least $5 million in cash dividends on their common stock in the 12 months prior to the most recent Index measurement date. Companies are weighted in the Index based on regular cash dividends paid. The Index includes large-cap italization, mid-capitalization and small-capitalization securities.
The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Fund attempts to invest all, or substantially all, of its assets in the stocks that make up the Index. The Fund generally uses a representative sampling strategy to track the Index. The Fund’s investment advisor is WisdomTree Asset Management, Inc.
- [By Genia Turanova]
WisdomTree Emerging Markets Equity Income ETF (DEM) is designed to track the performance of the high-yielding subset of the dividend paying segment of 18 emerging-markets nations.
- [By Carlton Delfeld]
Finally, to get more Asia and emerging market exposure, add a dash of the WisdomTree Emerging Market Equity Income ETF (DEM).
DEM has 20% exposure to Taiwan, as well as 20% to Brazil. Telecom companies make up a majority of the companies in the basket and you can expect it to distribute dividend income in the area of 5% annually.
- [By TopYields]
1. WisdomTree Emerging Markets Equity Income (DEM)
This ETF tracks the price and yield performance of the WisdomTree Emerging Markets Equity Income Index, a fundamentally-weighted index that measures the performance of the dividend-yielding securities in the top 30% by dividend yield of the WisdomTree Emerging Markets Dividend Index. The stocks in the Index are weighted based on annual cash dividends paid.
- [By Philip Springer, President, Retirement Wealth Management, Inc.]
Our favorite is battle-tested WisdomTree Emerging Markets Equity Income (DEM). It holds some 200 high-yield emerging-markets stocks, weighted by their annual dividend payouts.
Top 5 Financial Stocks To Buy Right Now: Aberdeen Australia Equity Fund Inc (IAF)
Aberdeen Australia Equity Fund, Inc. (the Fund) is a closed-end, non-diversified management investment company. The Fund’s principal investment objective is long-term capital appreciation through investment primarily in equity securities of Australian companies listed on the Australian Stock Exchange Limited. Its secondary objective is current income, which is expected to be derived primarily from dividends and interest on Australian corporate and governmental securities. The Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities, consisting of common stock, preferred stock and convertible stock, of companies tied economically to Australia (each an Australian Company), and at least 65% of its total assets in equity securities, consisting of common stock, preferred stock and convertible stock, listed on the Australian Stock Exchange Limited (ASX). Advisors’ Opinion:
- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund’s market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 346%Bexil Advisers LLC (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer