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Cash in on This "Invisible" $33 Billion Business

U.S. defense contractors don’t make a habit of sending “thank you” letters to America’s enemies.

But if they did, the corporate leaders at The Boeing Co. (NYSE: BA) might want to look up Vladimir Putin‘s address – before running to the Hallmark store.

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  • These Dividend-Paying Stocks Deliver Yield and Growth number two

    When you think of growth profit plays you do not ordinarily think they could also make for solid dividend-paying stocks as well.

    Growth stocks are high-flying market darlings with some exciting new product or service that is driving spectacular earnings growth.

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  • Dividend Stocks to Buy Now

    Yield-seeking investors know that holding the right dividend stocks means they get paid even if the market pulls back.

    That's an enticing idea now that the Dow Jones Industrial Average is at a record high.

    That's also why Money Morning Global Investing Strategist and editor of the Permanent Wealth Investor service Martin Hutchinson warns that holding only non-dividend payers could hurt investors.

    "I find stocks that don't pay dividends rather alarming because there's no way of getting any return from them at all," explained Hutchinson.

    His favorite dividend stocks are "heirloom stocks," a select group of 82 stocks listed on the NYSE or Nasdaq with a reliable dividend-paying history.

    In the following video Hutchinson explains how to spot heirloom stocks and why they should be an important base of any portfolio. He also shares one of his favorite "heirloom" dividend stocks to buy now.

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  • This Time-Tested Strategy Could Be Your Winning Lottery Ticket Every time I talk to my nephew Sam, I realize youth really is wasted on the young. Especially when it comes to money.
    Like most novice investors, 22-year-old Sam would much rather chase the latest big momentum names than actually work to build true wealth. So - of course - he ends up buying all the wrong stocks. Even after he got absolutely roasted last year buying Groupon (Nasdaq: GRPN) shares, he still couldn't wait to load up on Facebook (Nasdaq: FB) when it IPOed.
    What Sam doesn’t understand yet is the power of time. If he did, he would know he has the most valuable investing asset of all right at his fingertips. Fact is, anyone can become a millionaire this way.
    It's all thanks to the Rule of 72.... Read More...
  • Dividend-Paying Stocks: Some of the Best Bets for 2013 Investors who shy away from dividend-paying stocks next year because of higher taxes will miss some of the best income sources of 2013.

    Plus, there's a good chance many investors will miss the biggest dividend tax hit.

    U.S. President Barack Obama, who earlier had suggested raising the dividend tax on those earning $250,000 or more, now says he wants to increase the tax on those earning $400,000 or more. Republicans have suggested raising the dividend tax on those earning $1 million or more.

    Many investors wouldn't be affected by either proposal: Among Americans who receive qualified dividends - those taxed as capital gains, not regular income - 48% make less than $250,000 a year.

    And there are some stocks that will be relatively immune to the fiscal cliff tax effects.

    For those who will keep their money in dividends, we've highlighted some of the best picks among dividend-paying stocks for 2013, as well as some you'll want to avoid.

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  • Risky Dividend-Paying Stocks to Avoid Investors have had to endure a lot of turbulence and volatility this year, but it's been a very good year for those who invest in dividend-paying stocks.

    In the third quarter, dividend increases by U.S. companies amounted to $8.8 billion, according to S&P Dow Jones Indices.

    During the quarter, there were nearly 440 dividend increases, up more than 25% from the third quarter of 2011.

    Companies that aren't in the S&P 500 also are among those sharing the wealth. The percentage of non-S&P 500 common issues paying a dividend again increased, to 43.4% in the third quarter from 42.7% in the second quarter, 41.7% in the first quarter and 41.4% at the end of the fourth quarter of 2011.

    Even with all the positive news for dividend-paying stocks, there are some that are best avoided. Here are a few to keep out of your portfolio.

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  • How to Find the Best Dividend-Paying Stocks for You If you find yourself always on the hunt for the best dividend-paying stocks for your portfolio, that's because one of the most discussed topics in the past two years has been the search for the right income investments.

    We all know the story and the problem.

    The U.S. Federal Reserve has lowered interest rates to basically zero and has made it clear it intends to keep them there for years. The hope is that this eventually spurs the economy and returns us to a state of economic growth.

    While we don't know how the Fed's efforts will succeed given two more years, we do know that it has created near impossible conditions for investors in search of income.

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  • The Best Dividend-Paying Stocks to Buy Now Some investors fail to realize that successful investing is a matter of continuous performance, not instantaneous performance.

    That's why we like dividend-paying stocks.

    Over time, dividends and reinvestment can account for 85%-90% of total stock market returns.

    In some cases, the dividends are so steady and increase so much that you actually make more in dividends than you paid to buy the stocks that produce them.

    And as inflation concerns grow following QE3, investors need to make sure they are protected.

    Money Morning's Global Investing Strategist Martin Hutchinson says dividend-paying stocks offer that protection.

    "Do you know what the ultimate investment protection is? It's not gold, and it's certainly not Treasuries. It's dividend stocks," said Hutchinson.

    But before you go hunting for the best dividend-paying stocks, let's set some ground rules for evaluating which ones are most valuable.

    First, a good cutoff is a stock with a yield close to 3%, preferably higher, and a payout ratio less than 60%. Any higher payout ratio would indicate that the company cannot sustain the dividends, manage debt and grow at the same time.

    Second, look for companies that have price/earnings ratios less than 25 and a solid history of paying and increasing dividends.

    This establishes a solid benchmark for dividend stocks and their fundamentals. Sometimes a dividend stock can look great because it has a 10% yield, but you have to look at the other numbers to decide if it's a worthy investment.

    To avoid those high-yield traps, check out this list of some of the best dividend-paying stocks to buy right now.

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  • Dividend-Paying Stocks: AOL Not the Only One to Raise Payout AOL Inc. (NYSE: AOL) announced Monday it would divvy out $1.1 billion in cash to shareholders, joining the growing group of dividend-paying stocks - although only for brief moment.

    AOL will dole out a one-time payment of $5.15 a share to holders of record Dec. 5, for a total of $500 million given out in dividends.

    In addition to the whopping and unexpected dividend news, AOL also reported a $600 million fast-tracked share repurchase agreement with Barclays Plc (NYSE ADR: BCS).

    The move comes on the heels of a deal inked in April to sell 800 patents to Microsoft Corp. (Nasdaq: MSFT). At the time, AOL assured its plans were "to return a significant portion of the sale proceeds to shareholders."

    The move also follows a push from activist shareholder group Starboard Value LP, which had been lobbying for AOL to unload its patent cache and reward shareholders with a dividend and share repurchase program.

    Investors applauded the dividend news, sending shares of AOL up more than 3% Monday. The stock has been on a tear, climbing more than 120% year-to-date.

    While AOL has only planned a one-time dividend, many other companies in 2012 have announced regular payouts.

    Dividend-Paying Stocks: Payouts on the Rise

    A number of companies are beginning to recognize just how important dividends have become in this era of low-interest savings accounts and certificates of deposits (CDs) that offer paltry yields.

    In fact, dividends, once a trademark of stodgy blue chip companies, are emerging in full force in the tech sector.

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  • A Dividend Paying Stock for "Times Like This" Earnings season teaches us a lot about companies - like which ones have figured out how to successfully navigate in the uncertain economic times we have now. And this earnings season has shown us that there's a dividend paying stock that has not only delivered profits but could increase its already healthy payout.

    Money Morning's Shah Gilani joined Fox Business' "Varney & Co." Tuesday morning to talk about this top sin stock that can deliver consistent money to your portfolio.

    "[This stock] has a 4.7% dividend yield. I think you have to like anything that provides you income and that has appreciation potential," said Gilani. "[This stock] is always on the top of my list."

    This stock delivered blockbuster Q2 profits. Watch this accompanying video to hear everything Gilani has to say about this dividend paying stock that can give your portfolio some profit protection.

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  • Six Dividend Stocks to Hold Forever Investor. Now there's a word you don't hear much these days. "Buy and hold," they tell us, has gone the way of the dinosaur.

    Today, it's all about the fast money. In the market, out of the market... this stock, that stock...

    Of course, that's perfectly fine for traders. The good ones earn small fortunes that way. But for folks who don't have that kind of experience, being nimble is simply an invitation to be whipsawed by the markets.

    You may be one of them.

    For instance, are you fed up with stock recommendations that only seem to last a couple of weeks?

    Or do you constantly find yourself buying on a day when the market is hot, because you feel enthusiastic, only to end up selling on a bad day, because the same stock suddenly looked less attractive?

    If so, there's a solution to all this day-to-day madness. Despite the rumors of its demise, there are still stocks you can buy and hold forever.

    Of course, seasoned income investors have known this for years. That's why the truly rich don't spend their days watching the financial news and trading stocks. They're too smart for that.

    They know that investing in steady-income producing dividend stocks is just as rewarding over the long haul.

    How to Pick the Long-Term Winners

    However, picking successful dividend-paying stocks is not as simple as buying only the stocks with the highest yield. In fact, the stocks with the highest yields are often the ones that trip up investors the most.

    When it comes to buying stocks you can truly hold forever, what's important is the company's track record.

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