Wyatt Research Week-in-Review: July 13-19

Janet Yellen created a mini firestorm on Wall Street this week.
The newly appointed Federal Reserve chair called biotechs and social media stocks “overvalued” in her monthly monetary policy report. Both sectors were spooked.
The iShares Nasdaq Biotechnology (IBB) ETF fell 5% in the days that followed the Fed chief’s comments. The Global X Social Media Index ETF (SOCL) slipped more than 3%. Twitter (Nasdaq: TWTR) shares alone declined more than 6%.
The damage was limited to those two sectors this time. But what’s to stop Yellen from calling the entire stock market “overvalued” at a future meeting? Would that cause widespread panic?
Perhaps not. After all, investors have been unfazed by the Federal Reserve “tapering” back its bond buybacks this year from $85 billion a month to $35 billion a month. Just in case volatility and uncertainty do start to rear their ugly heads again, however, there are ways to protect your portfolio … namely, with dividend stocks.
We were dividend heavy in our coverage at Wyatt Investment Research this week. Steve Mauzy wrote “Why Warren Buffett Is Wrong on Dividends.” Lawrence Meyers unveiled “Four S&P 500 Dividend Stocks for the Long Haul.” We also told you how to earn eight dividend checks from just one stock.
Of course, there was no real cause for panic this week. Stocks were essentially flat overall, which means they remain near all-time highs. The investment waters are still warm. There’s no need to bat down the hatches with dividend stocks just yet. Growth opportunities abound on Wall Street these days.
Against that increasingly complicated backdrop, here were some of our better ideas – for growth, income or otherwise – at Wyatt Research this week:
Why Warren Buffett Is Wrong on Dividends– I’m in the 1%. No, not the 1% that controls an inordinate amount of wealth and, therefore, draws and an inordinate amount of invective from grandstanding demagogues. I refer to the 1% that believes Warren Buffett is wrong for eschewing dividends in favor of total reinvestment in Berkshire Hathaway (BRK.a).
Invest Like An Activist with These Three Top Stocks– Activist investing has been brought front-and-center on Wall Street, thanks to its poster boy, Carl Icahn.
How to Earn an Extra 3% on Apple Stock…Every Month– Each month, I reveal a way to collect extra income from one of the world’s most divisive stocks: Apple (Nasdaq: AAPL). Most people either love or hate this company – and likewise, they either own it, or they don’t.
But I’ve found a way to make money from Apple – regardless of whether you own shares or not, whether you “like” the company or hate it.
Eight Dividend Checks from One Stock – This highly profitable company rewards shareholders with unannounced “bonus” dividend checks. And it pays them out every quarter. And that’s on top of its regular, scheduled dividends — meaning shareholders are collecting eight dividend checks a year, all from this one investment. If you’d like to earn some extra income then click here to find out everything you need to know.
Five Bold Stock Market Predictions for 2014: Revisited– Knowing that it’s a fool’s game trying to forecast what will happen next on Wall Street, I nevertheless made “Five Bold Stock Market Predictions for 2014” back in December. Halfway through 2014, it’s time to check in on my predictions.
Consider the Subscription Business for the Long Haul– Imagine that you started a business. In your business you build a product once. And you sell that same exact product a hundred, thousand or million times. Regardless of how many times you sell it, the cost to build it remains the same.
This is how a subscription-based business works.
Four S&P 500 Dividend Stocks for the Long Haul– For the most part, dividend stocks aren’t that difficult to find or to choose. There’s very little that can go wrong, from a dividend standpoint, with the most famous brand names in the S&P 500.  The problem I have with some of these alleged “no-brainer” dividend stocks is that while the dividends are safe for the long term, the businesses themselves aren’t really growing, and mask weak EPS growth with share repurchases.
The World’s Richest Men Love Coca-Cola Stock– Billionaires Bill Gates and Warren Buffett have several things in common. They are also avid philanthropists and have similar interests when it comes to investing; the two love simple businesses that are easy to understand. They also have a love for the world’s largest beverage company.
Act Now On Nuclear Energy– Time heals all wounds. Nuclear energy is back in vogue less than four years since the Fukushima power-plant disaster.
A Better Way to Invest in the Broad Market with Equal-Weight ETFs– The explosion of ETFs in the stock market has made broad market diversification easier than ever before. For those seeking capital preservation and low volatility, particularly retired investors, there is a group of ETFs you must not overlook.
Thanks for making us part of your weekend. Throughout the week, please make sure to visit WyattResearch.com for the information you need to know and opinions you need to read to become a better investor.