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While Washington Stews, You Can Cash In on the Biggest "Tax-Inversion" Deal in History

Back in June 2012, we recommended that you pick up shares of Big Pharma player Abbott Laboratories Inc. (NYSE: ABT). The reason: Abbott was planning to split in two at the end of the year, meaning folks who took our advice would end up with stakes in two companies for the price of one.

There was more than bargain-basement thinking at work here.

You see, these corporate breakups – known as spin-offs – have a habit of turning into market-beating profit plays. And the newly minted spin-off firms often end up as takeover fodder – also at big profits.

Abbott followed part of that blueprint.

  • Featured Story

    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....
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  • highest dividend paying stocks 2013

  • 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.

    To continue reading, please click here...

    Read More...