Best stocks to buy for the week ending Sept. 12, 2014: Last week for Money Morning Members, we highlighted 15 stocks - 10 of which are some of the best dividend stocks to own in 2015.
Four of our dividend recommendations hedge against upcoming rising interest rates - each promises to deliver both income and share-price gains to investors in the New Year. Another five are dividend-paying water stocks - a play on a "must have" commodity - that offer a yield of at least 2.6%. And our 10th dividend pick is one our chief investment strategist called "a real gem for investors" seeking dividend gains. In fact, early investors now own the stock for free - they've had the chance to receive more in dividends than they originally paid for the stock itself.
Our other five picks include an automotive play in China, three biotech penny stocks, and an investment our defense & tech expert recommends readers buy now - and never sell.
You can find all of last week's tips and recommendations here in our newest list of the best stocks to buy now.
Money Morning's Latest "Best Stocks to Buy" List
- There's a dividend stock with such an impressive track record that Money Morning Chief Investment Strategist Keith Fitz-Gerald named it "dividend royalty" last week. The Richmond, Va.-based company has proven market tenure and consistency. What's more, just a month ago it boosted its quarterly dividend 8.3% - the 48th increase in 45 years. "I cannot overstate the importance of reinvesting in high-yield dividend stocks like this one," Fitz-Gerald said. "That's not only key to building huge fortunes, but it's also one of the single most powerful investment wealth builders of all." Get this high-yield pick here.
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Traffic in Shanghai, ChinaSo far this year, Tesla stock (Nasdaq: TSLA) is up more than 70%, and its efforts to expand into China will propel it even higher. For instance, just on Aug. 29, TSLA stock hit a new high when the company announced it will install 500 charging stations in 120 Chinese cities. But there's another automotive industry play in China that makes TSLA's amazing 2014 share price growth seem modest by comparison. Since Money Morning Defense & Tech Specialist Michael A. Robinson recommended this Chinese auto e-commerce company on Feb. 4, shares have skyrocketed more than 150%. "This exciting stock isn't done yet, and I think you're going to make another 50% over the next couple of years," Robinson said...
- The tech sector is ripe with investment opportunities with huge upside. Take, for example, the mobile revolution. According to one report, sales by the world's 500 leading mobile commerce retailers will reach $84 billion in 2014 - that's an 80% increase from 2013. There's also the semiconductor industry. Forecasters at the World Semiconductor Trade Statistics service organization estimate that the worldwide chip market will have sales of $325 billion in 2014, up 6.5% from last year. "When you consider the daily advances we see in cloud computing, biotech, miracle materials, and Big Data, tech is definitely a 'target-rich environment,'" Robinson said last week. With so many tempting tech investments to choose from, investors may not know where to start. Robinson helped readers by identifying the one tech investment he recommends they buy now - and never sell...
- Traditionally, the best dividend stocks to buy are thought to be those that provide steady income - the price per share moves slowly over time, not offering much in the way of capital gains. But with the U.S. Federal Reserve's July announcement that it will likely hike rates sooner than expected, owning dividend stocks that do more than deliver income alone is increasingly important. Last week, we compiled a list of four dividend stocks that will reward investors with big share-price gains and a steady income in 2015...
- In the week ending Sept. 5, 23 companies boosted their dividend payouts. Verizon Communications Inc. (NYSE: VZ) was one of them, and it was no surprise. In the first half of 2014 alone, this global wireless communications giant shelled out $3.6 billion in cash dividend distributions. Another dividend booster was Nature's Sunshine Products (NYSE: NATR). Not only did this natural health and wellness company declare a special $1.50 per share dividend, but it also recently signed an agreement with Fosun Pharma to market and distribute its products in China. We highlighted for readers all 23 dividend boosts here...
- Water stocks are heating up as the must-have commodity increasingly faces shortage issues. In the United States, California has been suffering from drought in recent years, with 2013 going down as the driest year on record (so far, this year hasn't been any better). The U.S. Geological Survey estimates that the chance of a decade-long drought in the Southwest is "at least 80%." And worldwide, some 780 million people don't have access to clean drinking water. That's why we identified for readers these five water stocks - each one is a dividend-paying utility that will not only provide steady income, but also will deliver capital appreciation over time...
- Some of the best penny stocks to buy right now are found in the biotech sector. "Strong growth in prescription drug sales, growth in FDA drug approvals, increasing orphan drug development, and an aging U.S. population are all reasons to invest in biotech stocks now," Money Morning Bioscience Investment Specialist Ernie Tremblay said. Penny stocks take advantage of the booming sector with their ability to bring massive profits in a short period of time. Last week, we highlighted three of the best penny stocks in biotech to buy now...