"Inflationary fears and the desire to generate higher returns in non-dollar assets should boost BRIC stocks (Brazil, Russia, India and China)," says Chuck Carlson in his The DRIP Investor.

"Despite the run-up this year, BRIC stock markets are still reasonably valued. Russia, India, and Brazil all trade at price/earnings ratios similar to the U.S.

"And while China's stock market does trade at a premium to the U.S., China's economic growth will swamp that of the U.S. this year and for the foreseeable future.

Continue reading 'Compelling case' for China and India

'Compelling case' for China and India originally appeared on BloggingStocks on Thu, 16 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

Continue reading Steady income from Philip Morris Int'l (PM)

Steady income from Philip Morris Int'l (PM) originally appeared on BloggingStocks on Fri, 05 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

"I've always liked Staples (NASDAQ: SPLS); the company has traditionally put up good numbers, and the stock price has been rewarding for investors over the years," says Chuck Carlson, noting, "Staples is the world's largest office products company. With $27 billion in sales, Staples serves customers in 27 countries."

The editor of the blue chip advisory, The DRIP Investor, adds, "The stock has gotten hammered by a variety of issues." Here's his review. It is down 40% from its 52-week high

"Yes, the environment for retailers is lousy. Yes, it's tough to see any near-term improvement. And, yes, debt is evil right now. But the stock is already discounting to a large degree those negatives. The stock's current price level is attractive enough to warrant some nibbling.

Continue reading Staples: Rewards for patient investors

Staples: Rewards for patient investors originally appeared on BloggingStocks on Mon, 23 Mar 2009 15:50:00 EST. Please see our terms for use of feeds.

"What can get this market going again?" asks Chuck Carlson. In The DRIP Investor he says, "It's helpful to understand what stocks within the Dow need to do well for the index to do well."

"Not surprisingly, IBM (NYSE: IBM), the highest-priced stock in the Dow, carries the greatest weighting at more than 9% of the index. Obviously, with such a heavy weighting in the index, IBM will need to be a decent performer for the Dow to do well going forward.

"And when you total up the exposure of IBM with the other tech stocks in the Dow - Microsoft (NASDAQ: MSFT), Intel (NASDAQ: INTC), and Hewlett-Packard (NYSE: HPQ) - the total tech weighting in the Dow is 16%. Thus, tech stocks matter to the Dow, so it is diffcult to see the Dow sustaining a move upward without a nice rebound in the tech sector.

Continue reading What will move the Dow? A look inside the average

What will move the Dow? A look inside the average originally appeared on BloggingStocks on Fri, 06 Mar 2009 15:20:00 EST. Please see our terms for use of feeds.

"Companies dependent on consumer spending have been under a cloud on Wall Street," cautions Chuck Carlson, the industry's leading expert on dividend reinvestment plans.

"However, Disney (NYSE: DIS) is one of those consumer-dependent stocks where conventional wisdom may not be correct," he adds in his The DRIP Investor.

"With $4-per-gallon gasoline, one would think that the high cost of travel would take some steam out of the firm's theme park attendance. However, recent results on this front were decent, and the firm's other businesses have held up, too.

"To be sure, a prolonged recession would impact business. Still, Disney has done a nice job of positioning its theme parks as an affordable vacation for families, and that should help it continue to weather
economic weakness.

"Disney surprised Wall Street with the resiliency of its theme-park and resort business in the fiscal second quarter. Revenue for the unit jumped 11% in the quarter. Results were aided by a boost in international visitors taking advantage of the weak dollar.

Continue reading Disney (DIS): Resiliency and value

Disney (DIS): Resiliency and value originally appeared on BloggingStocks on Tue, 08 Jul 2008 11:33:00 EST. Please see our terms for use of feeds.