Top Tips From 2015

top tips 2015

Like I did last year, I want to finish 2015 with a compilation of the Wealthy Retirement columns that resonated most with readers over the year.

There is a lot to choose from this year, as we began publishing five days a week, up from three. We are fortunate to have great insights from contributors with a wealth of experience in the markets.

Here are a few of my favorite moments of the year in Wealthy Retirement.

In This Corner…

In May, right after their record-breaking fight, I wrote about why I believed Floyd May weather and Manny Pacquiao would be broke in 10 years, despite each earning a nine-figure payday in one night.

The problems and behavior that will lead to them both winding up in the poorhouse are common to many people, not just suddenly uber-rich athletes. Making lavish purchases, buying depreciating assets and – the one that gets them all – not paying taxes are just a few of the unwise decisions Mayweather, Pacquiao and many others make on a regular basis.

Crushing It With Small Caps

After a brutal third quarter where the S&P 500 dropped 7%, I pointed out three small cap dividend payers that can help investors weather a bear market.

The S&P rebounded a bit in the fourth quarter (as of the close on December 24), rising 4.1% with dividends included. Two of the three stocks I recommended outperformed while one under performed.

Main Street Capital Corp. (NYSE: MAIN), which had an attractive 7.8% yield at the time the article was written, has generated a 12.4% return since then. Maiden Holdings (Nasdaq: MHLD) returned 11.1% and went ex-dividend on Tuesday, which will add a bit more to the total return.

Stage Stores (NYSE: SSI) disappointed and is off 3.5% since early October.

I still like all three companies, though retail stocks may have a tough time over the next few weeks if Christmas sales weren’t strong. However, Stage Stores, the operator of department stores in smaller towns, pays a more than 6% yield to shareholders while they wait for retail to fall back into favor.

Chairs, Wolves and Safety Nets

I loved Steve McDonald’s story about receiving “200 chairs” as a gift. Wealthy Retirement readers clearly did too, as readers embraced the idea of sharing the lesson with younger investors. And Steve’s weekly “Slap in the Face” Award videos are always sure to make you laugh, shake your head in disbelief or both.

Kristin Haugk was a welcome addition to our team in 2015. She not only knows Wall Street, but also appears to know where a lot of skeletons are buried – as evidenced by her many columns on financial fraud and regulations.

Her column on the wolf guarding the henhouse was particularly unnerving for investors. If you haven’t read it yet, I strongly suggest you do.

And of course, our Safety Net feature, which appears every Wednesday, is enormously popular. Each week, I review the dividend safety of a company that was suggested by Wealthy Retirement readers.

One of the most frequently requested stocks in the Safety Net column is Prospect Capital (Nasdaq: PSEC), due to its nearly 14% yield. In May, I downgraded the stock to a “D” for dividend safety because of a prior reduction in the dividend and the fact that it had not generated enough income in the first nine months of its fiscal year to pay its dividend.

There has not been a dividend cut since the one in February. In the fiscal first quarter, which ended in September, the company’s net investment income was $0.26 per share, a penny more than the $0.25 it paid shareholders during the quarter. So, fiscal 2016 is off to a better start. If it can keep that up for another few quarters, Prospect Capital could be upgraded in 2016.

Next year should be another great one for Wealthy Retirement. We love your feedback, so please leave your comments under any article you read. Also feel free to share anyWealthy Retirement article with friends or on social media.

It is a privilege to know that you choose to spend a few minutes a day or week with us. Thank you for making Wealthy Retirement a part of your lives and for allowing yourself to be a part of ours.

I hope your 2016 is full of good health, prosperity and lots of joy.

Good investing,

Marc

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