InvestEd 2013: Friday Bonus Sessions Focus
February 2013 Webinar: Through the Looking Glass: Screening in FINVIZ
How Can Investors Grow Their Wealth in This Volatile Stock Market? Part 3
Wichita, KS June 7-9, 2013
Hyatt Regency Wichita
On Friday, June 7, most InvestEd 2013 registered attendees will participate in four hours of technology education sessions. This month our focus is on two of the new sessions.
Saul Seinberg is presenting "Evernote - a PDF Clipper's Best Friend." We asked Saul to tell us more about the contents of his session. Saul writes:
Evernote is a versatile FREE (up to a fairly generous limit) personal data base, planner, research collector, and organizer. Using it is a snap! Evernote lets you locate, group, and reassemble documents, images, maps, and charts as needed for a specific purpose. Evernote works on several hardware and operating system platforms, such as Windows or Mac OS, through the cloud, and in conjunction with your computer, smartphone, and/or tablet device.
Why should you as an investor be interested in Evernote or in learning how to use it? Well, remember all those web pages, stock studies, brokerage reports, SmartMoney or Seeking Alpha articles, and more that cover a stock of interest, but which you can't locate when it comes time to make a buy, hold, or sell decision? Here comes Evernote to the rescue! By using Evernote, you can save these items when they are first encountered and then recall them when needed, based on a company name or topic label(s) you've assigned to an item. Evernote is superb for this purpose.
And then, once you've learned how to employ Evernote for investing purposes, you can use it to collect and recall documents and information for vacation planning, home projects, school projects, and actually running a business, just to name four possibilities.
Brian White presents the nitty-gritty on a number of apps in his session "How Smart is your Smartphone?" Brian writes:
So, you have a smartphone...but how smart is it? Sure, you have a calendar, a calculator, a GPS, and Angry Birds, but that's not smart enough. Your phone can become a Ph.D. candidate by utilizing some of our favorite apps.
We'll show you how to share calendars to make schedule conflicts a thing of the past. Use Google Drive to keep information at your fingertips while on the road. Do you travel? Use the Tripit to aggregate all of your travel plans and information in one place and add them automatically to your calendar.
Do your photos and files get backed up to the cloud? If not, your smartphone is not smart enough. Use Sugarsync, Lookout security, or even Google to automate the backup task so you never lose track of a photo or file.
Saving money is easy with a smartphone. Is that sale on Legos a good deal? Shop Savvy and Barcode Scanner can show you pricing from local as well as online stores. Need cheap gas? Gas Buddy shows you the way. Craving a good cheesesteak while on business in Omaha? Yelp or Trip Advisor apps show you the best eatery, how to get there, and whether it's currently open.
Do you know how to find your smartphone if it's lost? Lookout Security does. Not only that, it can delete personal information if your phone falls into the wrong hands.
Don't use your smartphone with one hand tied behind your back - come find the best and brightest in apps to help you bring your smartphone to the head of the class!
Learn from Brian and Saul and all the InvestEd instructors, at InvestEd 2013 in Wichita. View the InvestEd PowerPoint kiosk and register to join us on June 7.
Early Bird Registration Rate Ends March 31, 2013
Early bird registration is $389. Registration received after March 31 is $409. Full-time students with a valid school identification card pay $359.
You must register by March 31, 2013, to receive paper copies of session handouts. All attendees receive a CD of the handouts.
Register now and save!
InvestEd Inc. Free Webinar
Through the Looking Glass: Screening in FINVIZ
Sunday, February 24, 2013
8:00 PM-9:00 PM ET / 5:00 PM-6:00 PM PT
Instructor: Saul Seinberg
Screening is a common exercise indulged in by many investors seeking candidates for investment consideration. This capability, once widely available on many free sites, has been limited or eliminated in favor of subscription-based sites. FinViz has bucked this trend. It not only offers a free, robust screening capability, but also makes both fundamental and technical criteria available for screening purposes. This webinar will cover how screening is implemented in FinViz and will offer a couple of sample screens to demonstrate this capability.
Register now to attend the InvestEd Inc. free online investor education webinar. Space is limited.
Saul is an InvestEd Inc. advisory director and a conference instructor. A former vice president for education of InvestEd, he teaches at local through national investor education events. He is a former director and vice president of the Rocky Mountain Chapter of BetterInvesting. With degrees in electrical engineering and law, Saul spent most of his career as a corporate attorney. In addition, he served as an adjunct professor at Albany Law School in New York.
How Can Investors Grow Their Wealth in This Volatile Stock Market? Part 3
Part 1 of this article, which appeared in the December 2012 InvestEd Newsletter and may be accessed here, focused on the great bull market of 1982-2000. Part 2, which appeared in the January 2013 InvestEd Newsletter and may be accessed here, focused on the secular bear market of 2000 to date. In Part 3 of this article, the focus will be on a look forward, as we contemplate what might happen in the foreseeable future that may affect our approach to investing.
Given the state of the world, foreseeing a reduction in defense spending anytime soon is difficult. Similarly, our aging demographics will be with us for many years, with the only partial relief being an increased number of younger immigrants. I do expect we will see actions taken to reduce future deficits and reduce the huge debt level.
Historically, politicians have chosen to use currency inflation to pay off debt with deflated dollars, rather than impose more austere measures that would anger voters. This means higher inflation. Likewise, at some point, the Fed must deleverage its balance sheet. The concern with such an action is: can this be done without causing inflation?
At first glance this scenario of expected slower growth of our economy along with likely higher inflation seems rather gloomy for an investor. This leads me to suggest an approach to help achieve sound returns, even in this tough environment.
Invest in High Quality Companies Paying Meaningful Growing Dividends That Are Expected to Continue
How do we identify these stocks, and why should they perform well in a volatile and slower growth period? Here are a few characteristics of such stocks.
- The companies have paid growing and meaningful dividends for many years and are expected to continue to do so.
Dividends are recognized as a major contributor to stock returns over the longer term. Credit Suisse reported that from 1900 to 2010 the stock market experienced a 6.17% annualized return and about 4.24% of that (or 68% of the annualized return) came from dividends. So, with dividend paying stocks, you have a longer term tailwind. Stocks also tend to provide a hedge against future inflation. The companies are able to raise prices to offset higher inflation.
I prefer to look at companies that have raised their dividends for at least 25 years, stocks known as the Dividend Champions. Others may be more venturesome and select stocks that have increased dividends for a lesser number of years. When a company has been able to increase dividends for at least 25 years, this suggests the company is a sound growing business with strong management. The key here is performing the needed analysis that indicates this trend will be continuing.
A list of Dividend Champions is updated monthly by David Fish. It provides a great starting point to identify companies that have raised their dividends each year for at least 25 years. The list includes extensive data on dividends, including the dividend percentage growth rate for the last one, three, five, and ten years. This spreadsheet also includes stocks that have increased dividends for shorter periods, such as the Challengers that have raised their dividends in each of the last 10 to 25 years.
- The company is in a business that provides goods and services essential to consumers in not so good times, as well as in good times.
This enables ongoing growth in less robust times when consumers have less disposable income and must limit their expenditures largely to real needs, as opposed to simply wants.
- The companies are able to grow Free Cash Flow (FCF) to provide enough cash both to fund the company's growth and to increase dividend payments each year.
FCF is required both to pay increasing dividends and to grow the business. Usually, companies that are able to generate enough FCF are in sound industries with strong margins and with sufficiently strong moats to ward off the competition. FCF will vary from industry to industry, so considering industry leaders is important.
- The companies provide a current dividend yield and an expected dividend growth rate great enough to satisfy your needs as an investor.
I like to see a dividend yield of 3% or more and, at the same time I like to have an expectation of growing the dividend at a rate to endure that yield plus future dividend growth providing at least 9%.
A current yield versus a dividend growth rate is a trade-off. Generally, the higher the yield, the slower the future growth will be. Investors in need of income may opt for stocks with a higher yield, while those with a lesser need for income may opt for a lower yield with a higher growth rate. A meaningful yield, such as 3%, also tends to provide for less stock price volatility, since the yield serves to prop up the stock price during overall market downturns.
- We want to look for multinational companies that derive a meaningful proportion of their revenue from emerging market countries.
Many economists recognize that the rising middle class in these growth countries will create many new middle class households that will be able to afford the many products we take for granted, such as toothpaste, drugs, foods, and beverages. Many large companies recognize they can obtain 50% or more of their growth from this rapidly rising class of consumers and are investing to participate in this growing opportunity around the world. With the growth in the developed markets expected to be slow, investing in these multinational companies enables a growth kicker to one's portfolio, while still investing in stocks that are better known and easier to analyze.
This provides a start to identifying companies that can help your portfolio provide strong returns in this weaker economy and ongoing Secular Bear market. However, along with selecting appropriate dividend paying stocks, we also need to recognize the importance of diversifying. Any stock or any industry may disappoint, and no one is perfect in only selecting winners.
Lastly, but of the utmost importance, I would emphasize not buying even the best companies at a price that is too high to provide strong portfolio returns. The good news is that in this market we likely will have imbedded mini bull and bear markets providing opportunities for the patient investor. Therefore, I suggest identifying the stocks you would like to own and the prices at which you think they are good buys and then having the patience to await the opportunity to buy at the right price.
Some investors will use fundamentals to help accomplish this, while others may use technical analysis or a combination of the two approaches. Those who have a bit more time may consider the use of Covered Call and Cash Secured Put Options to enable obtaining additional income or being able to buy good companies at a lower price. These topics have been covered in InvestEd events, as well as in InvestEd webinars and articles, and both are included in the session offerings at the InvestEd 2013 conference in Wichita.
Dan is an InvestEd author and an individual investor residing in Raleigh, North Carolina. He has been utilizing fundamental investing, as learned from the teachings of George Nicholson, for many years and more recently has combined this with technical analysis. His career was spent with a large multinational firm in both product development and business management that provided an insight into the economies of Asia and Europe, as well as those of the United States.
EmergencyLink is an innovative digital service providing storage and communication of important medical emergency information. This free service lets us store important information about who we want contacted in case of an emergency, along with important records. We may share this information with other EmergencyLink members (including family and friends) so they will be able to assist us in time of emergency, and we have the option of sharing only the information we want to share with only the individuals we wish to have access to it.
When a call comes in to the 24-hour Emergency Response Center, appropriate information is relayed to medical personnel and to your family and friend contacts. Dependent accounts can be added to your account, and each dependent has access to all of the EmergencyLink features. You and each dependent receive an individual identification card.
In addition to using EmergencyLink for medical emergencies, you are able to use the service for a missing person. Using the information you provide, the Emergency Response Center creates a report and forwards it to the police.
The website includes an extensive Frequently Asked Questions (FAQ) section that includes what to do if you are in an accident, if you need to create a missing person report, and other common questions. In addition, an email address is provided for questions not addressed.
Further information may be found on the EmergencyLink webpage. The "In the News" tab shares a variety of articles about this service. Check out the Wall Street Journal article by Walt Mossberg for a review of the advantages and the possible drawbacks.
Sandy is a director, secretary, and lead editor for InvestEd Inc.
Questions? Contact InvestEd
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