How to Choose High-Quality Biotech Stocks

Loan Loss Previsions

Despite continuing market volatility, the S&P 500 has remained relatively flat in 2020 – down just 1.66%.

But there is a silver lining…

The biotech sector is up more than 18% since the start of the year.

Many of you know Marc Lichtenfeld as the “income guy” because of his work with The Oxford Income Letter…

But he’s as passionate about biotech investing as he is about dividends.

In fact, he’s been tracking the sector for several decades now and has spoken about biotech opportunities at events all over the world.

Last year, Marc hosted a summit with former Speaker of the House Newt Gingrich to uncover the opportunities within the gene therapy subsector of biotech.

Since then, gene therapy companies are up nearly 40%. (Compare that with the measly returns of the S&P!)

It’s clear that Marc has a knack for finding biotech stocks that are poised to take off – just ask his subscribers who landed 2,381% gains on his recent recommendation!

So, in Marc’s latest State of the Market video, he addresses a common question from readers…

“What do you look for when you invest in biotech companies?”

In the short video, Marc outlines the five specific qualifications he looks for before recommending a biotech company.

Click here to watch it now.

Good investing,

Rachel

The post How to Choose High-Quality Biotech Stocks appeared first on Investment U.

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Ant Financial IPO Rumored to Hit Hong Kong Exchange

Ant Financial IPO rumours are back amid possible plans for the company to list Ant Financial stock on the Hong Kong exchange.

Ant Financial IPO rumors surfaced back in 2018. Two years later and the rumors are back. Investors have been waiting for this Alibaba affiliate to launch shares on the public markets. But can investors expect Ant Financial stock? 

Here’s what we know… 

Ant Financial IPO: The Business 

Jack Ma, co-founder of Alibaba Group (NYSE: BABA), founded Alipay in 2004. It was a online payment platform. In 2013, Alipay overtook PayPal as the world’s largest mobile payment platform. And the next year, in 2014, Alipay rebranded as Ant Financial Services. 

Now, Ant Financial offers a suit of financial services. It includes mobile payments, savings accounts, personal investing, credit scoring and lending. Ant also became the most valuable investment unicorn. The company was valued at $150 billion in 2018 after a fundraising round of $14 billion in investor capital. 

But analysts believe that value could go well past $200 billion after an Ant Financial IPO. And it isn’t the first time the company has looked at launching Ant Financial stock. 

Ant Financial Revisits IPO Amid Growth 

Ant Financial had plans to go public back in 2018. But stock never hit the market. The company shelved the IPO due to regulatory and profitability issues. Since Ant Financial is a private company and hasn’t publicly filed, financial information is hard to find. However, we can look at what the company is now doing and why investors might be able to expect an Ant Financial IPO. 

The company benefitted from a rise in mobile payments and money market funds for consumers. This trend was heavy in China, Ant Financial’s main consumer base. And with Alipay being the top mobile payment platform in the world, it makes sense the company reflected that growth. 

In addition to the growth of mobile, the company is growing in other ways. Douglas Feagin, president of the international business group at Ant Financial, said Ant Financial is expanding. It’s providing financial services to small businesses. The company also lends to consumers. 

Feagin said the average loan given by Ant Financial is about $1,600. And small businesses are able to use the Alipay platform to accept payments while creating a track record for lending with Ant Financial. 

The company also plans to increase its number of users to 2 billion by 2029. In November 2019, the company had over 1.2 billion worldwide. Feagin said: 

“It’s 900 million in China, 300 million outside. We see the 300 million growing dramatically outside of China. Indeed, we have an ambition of serving 2 billion consumers over the next 10 plus years and so clearly the majority of those are going to come from outside China.” 

He recognized Asia as a growing potential market and a focal point for Alibaba as a whole. In November 2019, Alibaba raised $12.9 billion in a secondary Hong Kong listing. The company’s stock also reacted positively on the market after reported news of an Ant Financial IPO. 

But investors have long awaited to get their hands on the company’s shares. So, will there ever be Ant Financial stock? 

When Will Ant Financial IPO? 

Ant Financial hasn’t filed for an IPO. Therefore, it’s not confirmed the fintech company is going public at all. According to …read more

Kirkland Lake Gold: Bank on This Gold Stock

If there’s been one asset class that has been a steady riser since the middle of this year, it’s gold. All you had to do was throw a dart at a group of gold stocks and you would have made a bundle.

In The War Room, members have been taking profits every month since last May on gold and silver plays.

One of them, Kirkland Lake Gold (NYSE: KL), has been a steady profit maker for us. In fact, members just cashed in for a 40% gain on Tuesday, and we’ll definitely be looking for more from this name in the future.

Gold is barely $80 away from an ALL-TIME high as we go to press. It hit that high in 2011. And between the early 2000s and 2011, gold rose by more than 500%!

So for a lot of investors who follow trends, the price of gold might just be getting ready to make another historic run. And there are many reasons for this.

Just look at some of my reasons for buying gold back in May 2019:

None of these reasons has changed. And with the massive money printing going on since the beginning of the pandemic, the outlook for gold has gotten better, not worse.

That is why you have seen the price of gold stocks rally to new highs over the past couple of months. AndKirkland Lake Gold is just joining the party.

You see, even though it’s an excellent company, it was penalized for an acquisition it made recently that lowered the quality of its mines.

However, as it turns out, its acquisition is panning out (pardon the pun), and Kirkland Lake Gold is now outperforming its peers.

Action Plan: We were well ahead of Wall Street with our precious metals plays in The War Room, and we have a couple more on the books that are also tearing it up.

Join me in The War Room right now and get in on the best metals plays in real time… ahead of the crowd!

The post Kirkland Lake Gold: Bank on This Gold Stock appeared first on Investment U.

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Three Charts That Will Change Your Mind About This Sector

Loan Loss Previsions

I have enjoyed one enormous benefit from the COVID-19 outbreak…

Because school has been canceled, my two daughters have been home every day since mid-March.

Getting to spend time with them every single day is a blessing.

They’re 11 and 13 years old, and they still like hanging around with me.

But I’m no fool…

I’m very aware that the window of time where they still think I’m worth listening to is vanishing quickly.

I’m determined to take advantage of every second that I have in which they still want to learn things it took me decades to figure out.

One lesson that I want to teach my kids is that a willingness to admit you have made a mistake is a powerful asset.

Far too many people (me included) cling to their opinions long after they have been proven wrong.

This unwillingness to admit that you are wrong can cost you friends, time and – in the stock market – a lot of money.

A mistaken belief that I have held on to for far too long is that putting money into the biotech sector is more like speculation than investing.

I’ve seen the absurd returns that some biotech stocks have put up and wrongly assumed that the entire sector is too risky.

And that assumption has cost me…

The chart below compares the value of $10,000 invested in the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) at its inception in 2001 with $10,000 invested in the S&P 500 over the same period.
Over this two-decade stretch (that is long term, folks), the biotech ETF has smashed the performance of the S&P 500.

The $10,000 investment in biotech is now worth $42,690 versus $23,140 from the same amount invested in the S&P 500.

I honestly had no idea that biotech had done this much better than the S&P 500 over this long of a time period.

There is nothing risky about an entire sector that vastly outperforms.

My ignoring of this sector is a mistake that has cost me a lot of money.

Now I’m trying to learn from that mistake.

The Biotech Sector May Be Ready to Run Again

Here is where the biotech sector gets even more interesting to me today…

Despite having vastly outperformed over two decades, biotech has actually significantly underperformed over the past five years.

To me, that smells like the sector might be ready to go on a tear.

Since 2015, biotech stocks have been in a bit of a lull.

While the S&P 500 has risen by 53.9% since 2015, biotech is up only 14.22%.

Biotech stocks are still up but have vastly underperformed their historical performance.
But now COVID-19 is changing the narrative around biotech stocks. Investor interest is quickly returning.

Biotech has been leading the charge to find treatments for the virus.

The virus has also led to the acceleration of the process by which new drugs are developed and approved.

With more investors looking at biotech companies, they have been reminded that this is a very lucrative area to invest in. Unlike most businesses, which plod along slowly generating wealth, biotechs can create incredible value quickly with …read more

10 Financial Freedom Books to Improve Your Personal Finances

Financial Freedom books notes and studying

Do you want to achieve financial freedom? It’s a healthy goal to have. Although, there are many ways to achieve it. And many people get stopped up in the early stages. That’s why I’ve put together a list of my favorite financial freedom books.

These books cover a wide range of personal finance ideas. And with them, you can obtain a wealthier and more fulfilling life. Whether you’re a beginner or an experienced wealth builder, these books can help. Now, without further ado, let’s dive in…

Best Financial Freedom Books

The Millionaire Next Door

Authors: Thomas J. Stanley and William D Danko
Original Publish Date: 1996

The Millionaire Next Door hits a few big ideas home. To start, most anyone with a steady income can reach financial freedom. And the appearance of wealth can be misleading. Many millionaires walk amongst us but you wouldn’t be able to pick them out of the crowd.

The authors have identified seven common traits shared by wealth-building millionaires. Overall, this finance book is packed with research and more importantly, it’s easy to read. You’ll find useful examples and ideas that you can put to work on your path to financial freedom.

Rich Dad Poor Dad

Author: Robert T. Kiyosaki
Original Publish Date: 2000

Rich Dad Poor Dad highlights two different financial stories. The author shares his real (poor) father’s financial approach in comparison to his friend’s (rich) father. With these perspectives, you’ll mindset and lifestyle have a huge impact on your financial outcome.

This financial freedom book is a top seller for good reason. It’s helped improve the way tens of millions of people think about money and investing. Rich Dad Poor Dad has sold over 36 million copies.

I Will Teach You to Be Rich

Author: Ramit Sethi
Original Publish Date: 2009

This finance book provides a 6-week program for 20 to 35 year olds. Although, readers from any age group can really benefit from this insight. There are many overlooked, yet simple, techniques you can use to improve your finances.

The author has based this book around the four pillars of personal finance: banking, saving, budgeting and investing. He also focuses on the wealth-building ideas of personal entrepreneurship. It’s packed with useful financial advice.

The 4-Hour Workweek

Author: Tim Ferriss
Original Publish Date: 2007

The 4-Hour Workweek focuses on one big idea… helping readers learn how to escape the 9-5 workday. And you can forget about the old concept of retirement. With the right mindset, you can boost your income and escape the rat race.

This finance book has an expanded edition that includes additional resources. You will find more than 50 tips and case studies. These come from readers that have doubled their income and reinvented their lives. With these personal studies, you can find ways to improve your income and lifestyle.

The Automatic Millionaire

Author: David Bach
Original Publish Date: 2003

The Automatic Millionaire opens up with the story of an American couple. And together, their joint income never exceeds $55,000 a year. Still, they manage to put two kids through college …read more

7 Sin Stocks for Investors to Buy in 2020

Sin stocks have climbed and outperformed the market. They also often pay dividends to investors.

Sin stocks. The name alone is enough to scare away lots of institutional and individual investors. But their loss can be your gain.

We humans have been sinning for as long as we’ve existed. Our ancient ancestors wrestled with greed, gluttony, sloth, pride, anger, envy and lust. And that’s certainly still the case today.

That’s why sin stocks – a subcategory of the consumer staples sector – do well no matter what the greater markets are doing.

When cash is flowing, money pours into industries like alcohol, tobacco, casinos and firearms. And they’re just as resilient during economic downturns. Because once people get a taste for their “sin” of choice, they don’t stop imbibing just because cash is sparse.

A perfect example came from the coronavirus pandemic in the form of alcohol sales. With unemployment rates rocketing into uncharted territory, booze sales rose right alongside.

Falling into Sin Stocks

As the coronavirus spread, beer sales went up 42%. Wine sale rose 66%. And liquor sales like tequila and gin jumped by a whopping 75% compared to the same time last year. All of which boosted certain sin stocks.

Meanwhile, the FBI broke virtually every record in the number of background checks they conducted for firearm sales… This happened despite the fact that many gun stores across the country were closed because they were considered “non-essential.”

Nonetheless, the FBI conducted more than 3.7 million background checks in March. That’s the highest total since the national instant check system for buyers was launched back in 1998. And they conducted another 3.9 million in June of 2020.

That’s more than double the amount of background checks in June 2018. And 1.6 million more than 2019. And naturally, gun sin stocks rallied in the process.

As for tobacco sales, the uptick has been slightly less pronounced. But they’re still up. And this despite warnings from the World Health Organization that smoking increases the risk of complication from COVID-19.

The bottom line is so-called sinners are gonna sin… No matter what the economy is doing. And that’s why sin stocks are so resilient amidst an uncertain economy.

Sin Stocks For 2020

To help sweeten the pot, sin stocks are routinely undervalued. That’s because so many investors avoid them due to the increased chance of litigation or other implied risks. In turn, sin stock investors are rewarded with a risk premium in the form of higher returns on their investment.

Below are seven sin stocks that fit the bill. They have the potential to make investors a lot of money.

Altria Group (NYSE: MO)
Sturm Ruger & Company (NYSE: RGR)
Smith & Wesson (Nasdaq: SWBI)
McDonald’s Corp (NYSE: MCD)
AB Inbev (NYSE: BUD)
British American Tobacco (NYSE: BTI)
Diageo plc (NYSE: DEO)

No. 1 Altria Group

Altria is one of the Big Tobacco companies. Which makes it a quintessential sin stock. It is the parent company to Phillip Morris USA, which makes Marlboro cigarettes. It’s the parent company of John Middleton, Inc. – a …read more

BlueCity Holdings IPO: Chinese LGBTQ Platform Goes Public

The BlueCity Holdings IPO successfully launched BlueCity stock on the market.

The BlueCity Holdings IPO was filed in June 2020. After a wave of IPOs brought the IPO market back, BlueCity hopes to join in the success. Technology IPOs in the past year returned 59%. Now, investors are looking to invest in BlueCity stock.

But is BlueCity a good investment? Here’s what we know…

BlueCity Holdings IPO: The Business

Policeman Baoli Ma founded an LGBTQ online forum called Danlan.org in 2000. For the next 11 years, he promoted social awareness and connectivity in the LGBTQ community as well as HIV awareness and prevention. In 2011, Ma resigned from his career as a cop. He then founded BlueCity and launched its app Blued in 2012.

Ma stated:

“We are more than just a social network or a live streaming platform. Social interaction, an innate human need, is our point of entry to serve the LGBTQ population. However, we do not stop there; we are excited to leverage this platform to establish connections among people, content and services. We offer our users a safe and secure oasis to satisfy their needs for social networking, information sharing, entertainment, health and wellness, and parenthood that have not been fully addressed by the general commercial environment of the wider society. We provide our users with full-lifecycle services. We firmly believe that everyone is equally entitled to high-quality, tailored, friendly and discrimination-free commercial services.”

Blued gives users a wide LGBTQ platform. BlueCity offers membership services, streaming content, men’s health services and Bluedbaby, a service to help its LGBTQ customers in the process of starting a family. The app has over six million monthly active users (MAU) as of March 31, 2020. And the company hopes to gain more.

That’s why the BlueCity IPO is happening now. The company hopes the sale of BlueCity stock will raise the funds needed to expand. But is there opportunity for China’s leading LGBTQ platform?

Industry and Market: Company Strengths and Weaknesses

BlueCity’s designed its app for the LGBTQ population. The company defines this as “the population who identify themselves as part of the LGBTQ community.” In 2018, this included about 450 million people. Analysts expect it to grow to 591 million by 2023, which is about 7.4% of the global population. Asia and North America represented over 70% of the LGBTQ population in 2014. And that number is expected to grow to 75% by 2023. This is due to an increase in social acceptance.

According to a Frost and Sullivan report, the LGBTQ population usually has a higher average disposable income. It also tends to spend more compared to the general population. This likely contributed to the rapid LGBTQ market growth.

In 2018, the size of this global market was $3.8 billion. By 2023, it’s estimated to reach $5.4 billion. BlueCity believes it has an advantage as a leading platform. It’s well-positioned to evolve according to the needs of its users. This includes updating product features and expanding its services.

Among the company’s strengths, it also lists:

Strong user engagement and stickiness driven by sense of belonging
Proven to provide community-centric services
Culture of commitment to corporate social responsibility
Proprietary and tailored technology infrastructure

However, all companies face challenges and risks. To pursue its market, BlueCity has listed the following risks:

Retaining existing users and acquiring new ones
Sustaining and effectively managing growth
Generating sustainable revenue and profit
Complying with laws and regulations
Creating …read more

Why You Should Bet on DraftKings

DraftKings (Nasdaq: DKNG) is positioning itself to be the leader in online betting and iGaming. This is a $23 billion market in the U.S. alone and a multiple of that globally.

IGaming covers everything from sports betting to casino games and everything in between.

Whether you want to bet on the winner of the Nathan’s Hot Dog Eating Contest or the winner of the first baseball game when the season starts, you can do it now or will be able to very soon (based on where you live) on the top online gaming platform.

State by state, the barriers to online gaming are coming down, which has opened a long runway for companies like DraftKings.

The company officially became public earlier this year through a special purpose acquisition company (SPAC) and has seen its shares triple since March before coming back down to just a double.

But there are more blue skies ahead for DraftKings. Right now, the shares are trading lower based on the lack of clarity about when pro sports and the fantasy leagues that accompany them will get in gear. The COVID-19 pandemic is making things much harder to predict. And Wall Street hates uncertainty.

However, that uncertainty provides opportunity for you to begin to build a position in DraftKings at current levels and even at lower levels if the shares trade lower.

The reason you want to bet on DraftKings is not for what happens today, but for what could happen in the future when the economy finally does open and catches its stride. And this company is sitting on a pile of cash… $450 million, to be exact, with no debt. That gives it the staying power to outlast the pandemic.

There are three ways to play this…

You can buy the shares trading in the low $30s and plan on making two or three buys at $30, $25, and $20 to average your cost lower if the shares trade down or if there is a correction in the market.
You can control the shares with Long-Term Equity Anticipation Securities (LEAPS) options. DraftKings has options going out to 2022 – more than 18 months until expiration. They are expensive, so you may want to use a spread trade.
One of my favorite strategies is to use a put sell to try and pick up the shares for a lot less than the current price or get paid for trying.

You can even do a combination trade, where you sell puts to generate cash to buy the LEAPS. It’s an advanced strategy, but if your goal is to own the stock cheap or profit if the shares go higher, you can let the market do the heavy lifting for you!

Action Plan: Not sure which trading strategy to try above? In The War Room, we’ll give you the exact strategy and strike prices in real time.

This will allow you to take advantage of opportunities like DraftKings… So what are you waiting for? Join me in The War Room today!

The post Why You Should Bet on DraftKings …read more

The World’s Most Influential Cities

The World in 2020

Cities are an essential part of modern life. They now account for 23% of the world’s population.
But it takes more than a large population for a city to become a thriving and influential metropolis. Nicholas Vardy explains how U.S. cities stack up against the competition.

Americans love rankings.

Whether it’s the Forbes 400 ranking of the world’s wealthiest people… the best colleges and universities… or the number of medals won at the latest Olympics, Americans love to know who comes out on top.

Click here to watch Nicholas Vardy’s latest video update.

So how do American cities stack up against their global rivals?

For all the talk of America’s inevitable decline… American cities do quite well, thank you.

The Rise of Global Cities

Urbanization has exploded over the past 120 years.

In 1900, there were only 16 cities around the world with a population of more than 1 million.

Today, there are more than 512. And they account for 23% of the world’s population.

Cities are now an essential part of modern life. More than half of the world’s population currently lives in urban areas.

And in terms of raw economic output, cities are critically important.

When ranking economies, we tend to focus on economic output (GDP). I did that when I compared U.S. states to countries.

We can do the same for cities.

In 2018, the 300 largest metropolitan economies in the world accounted for nearly half of global GDP.

The leading global cities rival countries in terms of GDP.

New York and Tokyo have economies about as large as Russia’s. London’s economy is the size of Switzerland’s.

A Better Measure

The populations of the world’s largest cities are in constant flux.

London became the world’s largest city in terms of population in 1825. New York overtook it precisely a century later.

Tokyo overtook New York in 1965.

And by 2019, London had dropped to No. 37 on that list.

And yet London remains an influential global city.

That’s because cities are about more than sheer population or economic output. They are also centers of innovation, creativity and culture.

Small but well-run cities can easily dominate larger cities in terms of influence on global business, culture and politics.

Singapore and Dubai established themselves as regional financial centers without becoming megacities.

In contrast, Mexico City – one of the largest emerging-economy cities in the world – is burdened by crime, congestion and pollution. All these have kept it from the ranks of influential global capitals.

Ranking Cities by Influence

So once you get beyond economic output and population… what are the world’s most influential cities?

Management consultancy firm A.T. Kearney answers that question every year with its annual Global Cities Report.

The report examines dozens of variables, including business activity, culture, human capital, political engagement and information exchange. It then adds these scores together to rank the cities.

Here are some highlights from the 2019 Global Cities Report.

New York and London top the list, with both cities far ahead of their nearest rivals. Paris rounds out the decade-long dominance of this powerful triad.
The United States boasts …read more

3 Renewable Energy ETFs to Power Your Portfolio

A construction crew arrived at our farm at the crack of dawn last Thursday. By 3 p.m., the crew was gone.

In its dust, it left a brand-new 10-kilowatt (kW) solar array…

Behind it is our 8-year-old existing 10-kW array. The old array has 48 solar panels while the new one has only 28.

Both arrays generate the same amount of solar power. So why does one have more panels than the other?

The new panels are slightly bigger, but the real difference is panel efficiency.

The old panels are 17% efficient while the new ones are 22.2% efficient. That’s 31% more power per panel.

But here’s the best part: The new system cost roughly half what the old one did. Manufacturing costs continue to drop for solar panels.

I think we could easily see another 30% to 50% drop in system prices five years from now. The higher the manufacturing volume, the less the cost to make it.

But why the big jump in solar? It’s part of a much larger, secular trend in the energy sector…

The change from fossil fuels to renewable energy.

The Jump to Renewables

The Energy Information Administration (EIA) projects that renewable energy “will be the fastest-growing source of electricity generation in 2020.”

And I’m not surprised. This year, the EIA expects renewable energy operators to add 12.6 gigawatts (GW) of utility-scale solar and 23.2 GW of new wind farms.

Projections show that renewable energy will provide 21% of America’s electricity in 2020. That’s a rise from 17% in 2019.

Coal-fired generation, on the other hand, is rapidly losing ground. Last year, it was generating 24% of the electricity in the U.S.

But in 2020, the EIA expects that to drop to just 17%. It’s clear that coal-fired generation is rapidly on its way toward obsolescence.

That’s good news. It’s a dirty, polluting and finite fuel.

Renewable energy, on the other hand, is nonpolluting. And the supply is infinite.

My Favorite Plays

Today, with hundreds of companies in the solar and wind business, I think the best way to play this exploding sector is through exchange-traded funds (ETFs).

Here are my favorites, in no particular order.

The First Trust Global Wind Energy ETF (NYSE: FAN) is focused on the wind sector. It tracks the performance of the ISE Clean Edge Global Wind Energy Index.

Over the last year, the fund has gone up about 7.7% and has a dividend yield of 2.01%.

The Invesco WilderHill Clean Energy ETF (NYSE: PBW) follows the performance of the WilderHill Clean Energy Index. Over the last year, its shareholders were rewarded with a 39.9% return. It also has a dividend yield of 1.19%.

Finally, I like the Invesco Solar ETF (NYSE: TAN). It hands investors returns equal to the investment results of the MAC Global Solar Energy Index.

Last year, its shares handed investors a 28.4% return. And it has a small 0.24% dividend …read more

Are These All-American Dividends Safe?

Loan Loss Previsions

A Note From Marc: As many of you know, I recently started a YouTube series called State of the Market.

Last week, I dedicated an entire video to what I call “Forever Dividend Stocks.”

In it, I reveal how to generate enough passive income in retirement that you never have to touch your initial investment.

Click here to watch it.

This was the oddest Fourth of July I’ve experienced since I lived in San Francisco many years ago. At that time, we sat on some rocks overlooking the Bay, trying to watch fireworks in the pea soup thick fog and saying to each other, “Oooh, that was probably a good one.”

This year, we were supposed to go to a friend’s condo on the beach to watch fireworks. Then, they closed the beaches.

So instead, we sat on our patio, 6 feet apart from our friends, and watched amateur fireworks set off by neighbors.

There was no baseball to watch, and we didn’t eat hot dogs. But we had apple pie for dessert, so there was that.

In honor of the recent July Fourth holiday, I’m looking at the dividends of three all-American companies to determine if they’re safe or if they should be handled with care like lighting off a bottle rocket after drinking a six pack of Coors.

The Home Depot

The Home Depot (NYSE: HD) was founded 41 years ago with two stores in Atlanta, Georgia. Today, there are more than 2,200 locations in North America and Mexico.

The home improvement retailer pays a $1.50 per share quarterly dividend, which comes out to a 2.4% yield.

The Home Depot’s free cash flow has been steadily rising and is expected to continue to do so this year and next.
It has raised its dividend every year for 10 years.

The company’s payout ratio was a comfortable 54% in 2019 and will likely creep up to 56% in 2020.

With The Home Depot’s rising cash flow, the dividend is safe.

Dividend Safety Rating: B

Johnson & Johnson

My second all-American company is Johnson & Johnson (NYSE: JNJ).

While Johnson & Johnson is now a global company with 130,000 employees, it got its start in 1886 in New Brunswick, New Jersey, where its headquarters remains today. The company makes consumer health products, pharmaceuticals and medical devices.

With a $1.01 per share quarterly dividend, it yields 2.8%. Johnson & Johnson has lifted its dividend for 58 years in a row.

This year, cash flow is forecast to dip to $17.1 billion from $19.9 billion last year.

Its payout ratio last year was a very comfortable 50%. Because of the drop in cash flow, this year’s payout ratio will climb to 61%.

Like The Home Depot, Johnson & Johnson’s cash flow covers the dividend, and it has a strong track record of a sustainable payout to shareholders. So I don’t see anything to worry about here.

Dividend Safety Rating: B

McDonald’s

Is there anything more American than cheap tasty food that’s terrible for you?

McDonald’s (NYSE: MCD) has served billions of customers since it …read more

COVID Vaccine Stock: Your Best Chance at Owning the COVID Vaccine Maker

The best COVID vaccine stock

Below, Investment U’s Technical Options Expert, Bryan Bottarelli, takes a look at the best COVID Vaccine Stock available today.

It seems pretty logical…

You want to own the company that’ll manufacture and supply the United States (and perhaps even the world) with the COVID-19 vaccines, right?

The gains could be enormous – especially on the day that this world-changing news gets announced.

But the problem is…

How do you identify and invest in the one COVID vaccine stock that’ll emerge as the winner?

A simple Google search shows that 23 of the world’s largest biotech and pharma companies are actively working on coronavirus treatments or vaccines.

You already know that this group includes Pfizer, Gilead Sciences, Regeneron and Moderna.

Break this down even more and you’ll find a collection of companies making vaccines, treatments and testing kits.

And many of them are smaller biotech companies that you’ve never even heard of.

So again, aside from throwing a dart and hoping that it lands in the bull’s-eye…

How on Earth do you pick a COVID vaccine stock winner? Today, I have that answer for you…

The Best COVID Vaccine Stock Available

It comes in the form of the SPDR S&P Biotech ETF (NYSE: XBI).

Unlike other biotech exchange-traded funds (ETFs), I like the SPDR S&P Biotech ETF because it emphasizes small cap growth.

Its top 10 holdings all represent potential diamonds in the rough that could easily emerge as top COVID-19 candidates in no time.

This list includes:

Inovio Pharmaceuticals
Invitae
Novavax
Amicus Therapeutics
Opko Health
Arrowhead Pharmaceuticals
Natera
Alkermes
Alnylam Pharmaceuticals
Esperion Therapeutics.

Not familiar with most of these?

You’re not alone. And that’s why I think the SPDR S&P Biotech ETF is such a winner.

Biotech Sector Action Plan

I like the idea of having cheap upside exposure to the biotech sector – especially the smaller, more exciting names in the group. In my view, the very best way to own an entire basket of the most promising biotech stocks on the market today is by owning the SPDR S&P Biotech ETF. Consider adding it to your ledger now!

P.S. Yesterday, War Room members took a one-day winner trading the SPDR S&P Biotech ETF. Do you want to hit these winners in real time? Then you’re invited to join me in The War Room today!

Each and every day, biotech companies the world over are tirelessly working to end the coronavirus for good. We’ve seen more advancement in the past three months than originally expected at any point this year. Therefore, you may want to consider this COVID vaccine stock over the coming months.

The post COVID Vaccine Stock: Your Best Chance at Owning the COVID Vaccine Maker appeared first on Investment U.

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