Whether you’re a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can both income and growth. At The Motley Fool, we’re avid fans of dividends and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don’t pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference one that you’d be crazy to not take advantage of!

But investing in dividends can be dangerous companies can cut, slash, or suspend dividends at any time, often without notice. Fortunately, there are several warning signs that may alert you, and these red flags could be the crucial factor in determining whether or not a company is likely to continue paying its dividend. Today, let’s drill beneath the surface and check out DR Horton (NYSE: DHI). What’s on the surface? DR Horton, which operates in the homebuilding industry, currently pays a dividend of 1.26%. That dividend yield may not seem like much, but considering that more than 100 companies in the S&P 500 don’t pay anything at all, it’s nothing to complain about. Plus, don’t forget, dividends typically grow with time, so that 1.26% has the potential to skyrocket over time.

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But what’s more important than the dividend itself is DR Horton’s ability to keep that cash rolling. The first thing to look at is the company’s reported dividends versus its reported earnings. If you happen to see dividend payments that are growing faster than earnings per share, it may be an initial signal that something just isn’t right. Check out the graph below for details of the past five years:

Clearly, there doesn’t seem to be a problem, here. Although DR Horton’s earnings took a major nosedive recently, it’s returned to profitability and has been able to maintain its dividend at the same time. The more secure, the better:- One of the most common metrics that investors use to judge the safety of a dividend is the payout ratio. This number tells you what percentage of net income is paid out to investors in the form of a dividend. Normally, anything above 50% is cause to look a bit further. According to the most recent data, DR Horton’s payout ratio is 19.46%. It’s obvious that, at least on the surface, there aren’t any problems with DR Horton generating enough income to support that nice dividend of 1.26%.

More important than checking out the payout ratio may be simply taking a peek at DR Horton’s cash flow. Free cash flow all the cash left over after subtracting out capital expenditures is used by firms to make acquisitions, develop new products, and of course, pay dividends! We can use a simple metric called the cash flow coverage ratio, which is cash flow per share divided by dividends per share. Normally, anything above 1.2 should make you feel comfortable; anything less, and you may have a problem on your hands. DR Horton’s coverage ratio is 14.41, which is more than enough cash on hand to keep pumping out that 1.26% yield. Barring any unforeseen circumstances, there really shouldn’t be any major problems moving forward.

The Foolish bottom line:- Only you can decide what numbers you’re comfortable with in the end; sometimes a higher yield and a higher reward means additional risk. However, when we look at DR Horton’s payout ratio compared to its peer average, we see that it is a lower percentage, which illustrates that its dividend is probably more sustainable. The bottom line, however, is to make sure that with anything whether it be a dividend, a share repurchase, or an ordinary earnings report you do your own due diligence. Looking at all of the numbers in the best context possible is just the best place to start.Get recent talks and informations about Finance and investment news. Visit www.themoneytimes.com for more information and latest updates about personal finance news . Article Source

When we are busy with our  daily work in the new week, our experts also begin their weekly works to analyzed the futures markets to make sure that traders and have necessary information supporting their trading. Because of the limited time, this week we will check out the two typical market reviews to see how they work.

First of all, we will stop by the fiancial market since changes from here usually lead to others’ changes. It was reported that banks won’t have to make adjustments until 2019 on the amount of money they have to hold, which is used just in case there are large losses. The credit card industry, mortgages, and other loans will also see unique changes. Do you think that this is a good news or not? Shouldn’t this be done in a year or less? Loans may be more stringent and this may cause more harm than good for the consumers. The reserves will be 8.5% of the balance sheet to meet the requirements. The news may cause different feelings to people with different purposes.

There is a boost in the market this morning because fo the wews of growth in China and bank reform. This may shift trades from treasuries back into stocks. View back the past 2 weeks, the market has risen with hefty gains and seems to have the same attitude today. The bank stocks may gain steam today because companies have time to adjust. The Street takes this banking news as positive since there is a less of a chance that banks can topple the economy, like they did over the past few years.

Go next to the S&P! The S&P was up 9.7 to 1113.80 and the DOW was up 78 points to 10471.00. It can go higher if it goes past 1117.00 as there is resistance at this level. This level is important, especially when economic data comes in. 1030.00 level could be the next target.

For the long term changes we need to care, but first of all, in term of finance, we also cannot neglect changes in the currency exchange rates. Market keep running and we keep chasing.

End of the road of financials, we will turn to go along with the energy road. Let’s see the pipeline leak that the market saw on Thursday is still in effect here as Crude Oil gets bid for above $77 as the structure of the Oil curve rallies with the wti spreads gaining another 20 cents in each of the first two spreads over the weekend.  During the time of Oct/Nov and Nov/Dec both trading -70.  The Dec10/Dec11 contract is now at -470, as this has rallied +160 points in last week. Around the market, we can see traders are still buying this oil as this key pipeline is still shutdown.  To compare, the S&P is above 1100 and the Euro/USD is above $1.28 as the oil market continues to rally.  Look to see Oil try and test the $78.50 key resistance level this week with indicators pointing to a rally once again.

Natural Gas is now starting to look comfortable at the $3.70-$3.80 level. This may be a good news to traders in the floor. Our market analyst is looking at long opportunities in this market as he believes it will start to see a swift move to the upside.  That Calls in Nov look very attractive right now leads him to think that this will be a great play as this market starts to make its way up.

You have just review how the financials and energies markets will be going on this week. You have noted down key points and may have your own decisions or plans in the next few days. Besides these two reviews, make sure you will not miss the other futures reviews and the daily futures price reports as usuale advised. Markets are changeable and interactive, don’t get any mistake!

- About the Author: I’m a trader in futures trading floor. I’m always eager to learn and share. Reading and searching are my hobbies. Article Source

S&P 500 Composite Closing Price Fell Below 7-Week Lows by Robert W. Colby

Summary: S&P 500 Composite (SPX, 1,047.22) closing price fell below 7-week lows. Energy stock sector Relative Strength Ratio (XLE/SPY) has been bearish since peaking on 7/1/08 and fell below 8-week lows on 8/26/10. Financial stock sector Relative Strength Ratio (XLF/SPY) fell to a new 9-month…

Day Trader:  Click here to read More »

Last week was exciting as investments rocketed higher or tank… We saw Gold and the US Dollar pop while oil and equities dropped sharply with heavy volume.

Just to recap, Wednesday the market went into free-fall mode sending traders and investors running for the door. This was obvious from looking at the large percent drop coupled with heavy selling. That day the NYSE showed panic selling with 37 shares sold for every 1 share purchased meaning pure panic. In my Wednesday night report “How to Take Advantage of Panic Selling for SP500 and Gold ” I explained how to read these extreme market conditions and what to expect the following sessions.

Currently the price of gold, oil, spx are trading somewhat at the opposite extremes seen last week. Below are a few charts explaining the situations:

GLD – Gold ETF Trading Signals

This 60 minute chart shows gold getting hit hard on Wednesday morning. Investors and traders around the globe were closing out positions and moving to cash. This high volume dumping of positions pulled virtually all investments lower and was the first tip-off that the market was in panic mode.

One the dust settled and investor’s regrouped we saw money surge back into gold creating a nice pop the following day. Problem I see is that gold is now trading at a key resistance level when reviewing the daily chart. And if you take a look at the 60 minute chart below you can see the price of gold sold down in the morning on August 13th and drifted up into the close on Friday forming a bearish wedge. Also there was some very strong selling just before the market closed which is also a concern.

USO – Oil Traded Fund

Both times oil has fallen we have seen the price pierce key support levels where the bulls would have the majority of their stops placed. The intraday pierce causes the stops to be triggered washing the market of long positions while the smart money loads up accumulating everyone’s sell orders . This is something which happens with virtually every type of investment and the main reason traders get shaken out just before the market goes in their direction. Anyways, running of the stops is something I will cover in a future report.

Looking at the chart below you can see oil trading at trendline support. Each time the key support levels (blue arrows) have been pierced the market has rocketed higher. Just from looking at the chart from August 9th forward you can see that this move down is overextended and visually looks ready for a pause or bounce in the coming days.

*Trading Tidbit - When trading trendlines it is important to try and play the third test. Reason being is that the first two pullbacks create the trendline and the third test is when active traders generally jump on board causing a sizable bounce. Each test of a trendline it becomes weaker and the probability of a breakdown is more likely.*

SPY – SP500 ETF Trading Fund

The SP500 chart shows last week’s breakdown on the 5th test of the trendline. The market is oversold here and ready for a bounce which I hope we get this week. My concern is that the downward momentum is to strong and a bounce will be negated.

US Dollar Index

US dollar put in a huge bounce last week after testing is 61.8% Fib retracement level from the 2009 December low. The strong bounce has pushed the dollar up to a key resistance level which happens to be 38.2% Fib retracement level from both the December up trend and the recent sell off. I figure this will hold the dollar down for a few days easing the pressure on oil and equities.

Weekend Gold, Oil, SPX and Dollar Trading Conclusion:

In short, I feel there will be a relief bounce in oil and equities while the dollar and gold will have some profit taking and trade sideways or down at the beginning of the week. After that it looks as though stocks and oil will head lower while the dollar and gold rally.

If you would like to receive my Trading Analysis and Signals Complete with Entry, Targets and Protective Stops please visit my website at: www.TheGoldAndOilGuy.com

Chris Vermeulen

- About the Author: Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return. Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com Article Source

Trend trading the e-mini S&P futures is easy once someone, like me, shows you how.  First we start off getting free live charts from your broker, then we check out the time delayed charts available for free like BIG CHARTS.  Switching off between these two charts will allow you to see a trend developing that you can latch onto and grab more than the usual 1-2 points most traders try to attempt getting with day trading.  Learn to trend trade the day trade!   

Remember , markets make their moves near the hour and on the half hour.  So check both the live and time delayed charts about 10am – 11am for starters,  And track constantly until you have a trend brewing that you can see and follow for a trade.  Grab 4-6 points with a 7 point stop from your entry – long or short.  Always use a stop to protect you and protect your trading monies.   

Paper trade first with your live charts and your delayed charts.  Once you get good you can start trading with real money 1 contract at a time to begin, then move to two contracts and stagger one at two points and one at four points to get six points in the space of 4 points.  After you get good, you can trade for other people and make $1,000′s a day legally trading for other people after you register with one of the regulatory authorities governing futures for FREE.   

Forget trying to grab 1-2 points day trading, that’s tedious and will lead you to ruin.  Be smart – follow the trend and remember:  The trend is your friend!   

Learn and Prosper!   

- About the Author: Please see my websites:  www.alignedcapitalventuresllc.com  , www.tradeforothers.com and www.alignedcapitaltradingllc.com  Article Source

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NIFTY OPTION JACKPOT SERVICES

This package is Designed for Option traders who trade in Nifty Option Calls/Puts on intraday basis. Nifty option tips are provided to traders for trading in nifty options call & Puts in intraday basis. Highlights of Package

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NIFTY OPTION JACKPOT SERVICES This package is Designed for Option traders who trade in Nifty Option Calls/Puts on intraday basis. Nifty option tips are provided to traders for trading in nifty options call & Puts in intraday basis. Highlights of Package Daily 20-60% Returns or monthly 500-600% returns Daily 1-2 Option Jackpot Tips will be provided Accuracy is maintained Above 90%. Each call is given with one Target and One Stop Loss Calls are provided by way of SMS with ultra high Servers Minimum Capital Required – Rs 20,000 Only Entry ,Exit and Follow up messages are given Pattern Of Tips NIFTY BUY NIFTY 5100 CE AT C.M.P 40 TGT 53 SL 34

- About the Author: NIFTY OPTION JACKPOT SERVICES This package is Designed for Option traders who trade in Nifty Option Calls/Puts on intraday basis. Nifty option tips are provided to traders for trading in nifty options call & Puts in intraday basis. Highlights of Package Daily 20-60% Returns or monthly 500-600% returns Daily 1-2 Option Jackpot Tips will be provided Accuracy is maintained Above 90%. Each call is given with one Target and One Stop Loss Calls are provided by way of SMS with ultra high Servers Minimum Capital Required – Rs 20,000 Only Entry ,Exit and Follow up messages are given Pattern Of Tips NIFTY BUY NIFTY 5100 CE AT C.M.P 40 TGT 53 SL 34   Article Source

Overnight Developments

• European stocks are trading mildly lower with the European Stoxx 50 down -0.28%. Sep S&Ps are down 4.80 points (-0.44%). S&Ps are on edge ahead of this morning’s Q2 GDP report (expected +2.6%). There is also some caution ahead of Sunday’s expected release of China’s purchasing managers index due to talk of a sharply weaker figure. The market consensus is for a moderate 0.7 point decline to 51.4 from 52.1 in June. The Eurozone July CPI rose to a 20-month high of +1.7% y/y from +1.4% y/y in June, which was in line with market expectations. However, the core CPI rose to only +0.9% y/y from +0.8% y/y in June. Meanwhile, the Eurozone June unmeployment rate remained at 10%, the highest level in almost 12 years. The IMF said today that US banks may need as much as $76 billion more in capital. A senior executive from Moody’s said that Spain, already on review for a possible downgrade, will probably lose its Aaa rating. Spain has already lost its triple-A ra ting from S&P and Fitch. The Moody’s executive also said that the U.S. needs a "clear plan" for tackling its deficit.
• The Asian markets today closed lower across the board: Japan -1.64%, Hong Kong -0.30%, China -0.32%, Taiwan -0.49%, Australia -0.68%, Singapore -0.33%, South Korea -0.83%, Bombay -0.69%. Asian markets were undercut by the report that Japan’s June unemployment rate rose to a 7-month high of 5.3%, which was higher than the consensus of 5.2%. In addition, Japan’s factory output fell 1.5% m/m versus the consensus for a +0.2% rise.

Day Trader: Click here for the complete Morning Call.

It’s amazing how having the right tool for the job can make such a vast difference in your trading success, and if your ‘job’ is to become rich, it’s even more important!

That’s why you’re going to like this: my colleague, Dustin Pass, the guy I’ve told you about a few days ago has said that he is willing to give away a copy of his groundbreaking OracleTrader software.

If you hurry you can grab it from: www.oracletrader.net/get.html?w=otfs&p=mkk7689

Remember, this is the software he used to become a FOREX millionaire by age 29.

And in nearly 5 years, he has never had a losing month with it, and that’s documented thoroughly.

Here’s a little bit about how it works:

The software allows you to make a mint when news releases come out, by getting the news release data through the fastest news feeds possible.  It then interprets how the actual news report data varied from the analysts’ estimates.

If that deviation is large enough to move the market, it tells whether to buy or sell – accurately! It does all this in milliseconds – giving you a major edge!

He will also send you advance notification emails of upcoming news releases, which will tell you when to trade, which currency pairs to trade, and Dustin’s personal recommendation on when to act, or whether to sit it out.

This guy has this trading method down-pat, and he’s offering his software as a courtesy, totally free. And it’s VERY simple to use.

Here’s the kicker: the cost for the high-speed data feeds alone is many thousands of dollars per month, but this software will give you the data feeds for free – another major edge over every other trader!

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- About the Author:

http://www.businesstools.tk

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News plays an important role in stock market as we all know.So for trading stocks/options, you should always be aware of the latest news regarding the stock that you are going to buy or sell.

Here i put forward a very helpful site which enables you to take the most winning decision about which stock or option is truly sound and fruitful to buy or sell.This site gathers each and every information available for a stock having earnings release,from across Twitter and Google.

A short explanation of the site:-

It shows Tweets from Twitter and News from Google separately along with chart, for each stocks.

In the Earnings Release section on the right hand side,you can see:

All the stocks which have earnings anouncements for today. Stocks whose earnings reports were already released yesterday. Stocks which have scheduled their earnings release tomorrow.

You also have the option to see the stocks having earnings BEFORE, DURING and AFTER market hours.

By clicking on a particular stock in the Earnings Release section, you will get all the information about that stock. For example, if you click AAPL, you can see:

Apple Tweets – which gathers all the latest news concerning the stock AAPL, from Twitter which is on the left hand side. Chart – which shows the quotes for that stock on top right side. AAPL news – which filters all news updates concerning AAPL from Google.

So altogether this is an excellent perfect site for those who are keenly interested in stocks.

I would recommend this site which is designed for enthusiastic traders.

Why dont u have a look on www.earningsbuzz.com?

???

- About the Author:

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