AL

We think investors will profit most — and with the least risk — by buying shares of well-established, dividend-paying companies with strong business prospects. These are companies that have strong positions in a healthy industry. They also have strong management that will make the right moves to remain competitive in a changing marketplace.

A company with a long-term record of paying …read more »

Should you stick with your current stock broker or switch to a discounter? To answer that question, you need to consider your own experience and abilities, and those of your stock broker.

Brokers, good and bad

A good stock broker (one who is experienced, knowledgeable, and oriented toward the long term) is worth the top commissions you are likely to pay. For …read more »

Asset allocation funds are mutual funds that distribute their assets in accordance with all investors’ goals (consistent returns, diversified investments, etc.). Unlike balanced funds, they can shift their portfolio allocations between stocks, bonds and cash in order to capitalize on perceived investment opportunities in any one of those classes.

If a fund’s name includes the term “asset allocation,” it means …read more »

Dividend reinvestment plans (or DRIPs) are plans offered by some companies that let shareholders receive additional shares in lieu of cash dividends.

DRIPs can be a good way to slowly build wealth over a long period, for a number of reasons. First, they eliminate the nuisance of receiving small cash dividend payments. Second, some of them let you reinvest your …read more »

Capital gains tax must be paid on the profit that comes from the sale of an asset. An asset can be a security, such as a stock or a bond, or a fixed asset, such as land, buildings, equipment or other possessions.

Let’s look at an example. Say you purchased 1,000 shares of TD Bank at $20 per share many …read more »

Investors are interested in wind power stocks, solar power stocks and other green stocks because they like the idea of making money and helping the environment. But they need a healthy sense of skepticism in order to succeed.

Many stock promotions have an environmental angle. A number of penny stocks have dropped their old, unsuccessful business plans and become a …read more »

Growth stocks are companies that are expected to have earnings growth above the market average. Frequently, growth stocks pay little or no dividends, instead re-investing any extra money to promote further growth.

These are not to be confused with momentum stocks. Momentum stocks are stocks that are moving higher in the market. While individual definitions may differ, the overall goal from …read more »

Bond funds are mutual funds that specifically invest in different government and corporate bond offerings.

Many bond funds posted strong results in the past, with yields of 6%, 8% or 10% over five or 10 years. This, though, was a function of the trend in interest rates; at the start of those periods, the funds were buying bonds with …read more »

If you are interested in gold investing, we recommend staying away from buying gold bullion, coins (unless you collect them as a hobby) or certificates representing an interest in bullion. Unlike stocks, commodity investments like gold bullion do not generate income. Instead, they come with a continuing cash drain, for management, insurance and so on.

However, if you do want …read more »

One challenge with researching investments over time is that companies sometimes change names as they grow and mature. As you search through our archives, one such example of this you will find is Trimark investments.

Long known as Trimark Investments or AIM Trimark, the company changed its name in August 2008 to Invesco Trimark to reflect its relationship with Invesco Ltd., …read more »