Home [ Market Workshop ] [ Stock Analysis Checklist ] [ Market Glossary ] [ Basic Training ] [ Best Investing Sites ] [ Death List ] [ Free Tutorials ]

how to find the best stocks, closed-end funds, ETFs & mutual funds

Basic Training for Winning Investors

Do you want to improve your analysis skills.  There is plenty of stock market information on the Web. Do you know how to use it to find the best stocks, ETFs and mutual funds? Basic Training tutorials describe how professionals employ fundamental analysis strategies to pinpoint the best stocks and mutual funds. Each includes up-to-date links to the data you need to implement the described strategies. New tutorials are added every two weeks. 

Basic Training Contents

Dividend Stocks 
Return to Basic Training Contents

• High Yielding Business Development Corps + Strong Price Charts
  History tells us that recent outperformers are your best bets for future gains. If you like high dividends, Business Development Corporations (BDCs) are worth a look. Combining those two thoughts, here are six strong BDC candidates.

• Seven Dividend Stocks For 2013
  Here are seven stocks for you to consider for 2013. As, I’m often inclined to do; I’ve limited my list to dividend-paying stocks. Why? If the market sinks, say due to the political brouhaha looming over raising the federal debt ceiling, you would still be collecting your dividends while to wait for the market to recover.

• Tax Hikes Won't Affect Popular Dividend Stocks
  The compromise that our leaders in Washington devise to avoid going over the “fiscal cliff” is likely to result in a hike in taxes on dividends. But the tax hike won't affect the most popular dividend categories. Here’s why.

• Time For Preferred Stocks?
  With the market looking weak, and banks paying next to nothing in terms of interest, you should consider shifting some of your cash to preferred stocks. You can find many preferreds paying dividends equating to 5% to 8% annual yields. Here's what you need to know.

• Five High-Dividend Stocks For a Strong Market
  Thanks to the Federal Reserve’s recently announced economic stimulus plans, the stock market as well as the overall economy should be fairly robust for at least the next few months. Here are five stock ideas that should do well if everything goes as planned.

• ETFs Can Pay High-Dividends Too
  You probably know about using exchange-traded-funds (ETFs) to hop on and off market sector swings. But you might be surprised to learn than many ETFs also pay high dividend s as well.

• How to Pick the Best Hotel REITs
  Given the mixed economic reports that we hear so much, you might be surprised when I tell you that the hotel business is booming. But it’s true. All the relevant economic numbers: occupancy rates, room rates, and total revenues, already near multiyear highs, are still trending up. Real Estate Investment Trusts (REITs) are the best way to play the hotel business. Here's how to pick the best of the bunch.

• Time to Stick With U.S.A. Stocks
  Europe is sinking into recession and China's growth is slowing. But here in the U.S.A., despite mixed economic reports, the outlook looks promising. Thus, for stock investors, the U.S.A. is the best game in town. Here are five stocks that will prosper as the U.S. economy strengthens.

• Are REITs Right For You? 
  With the economy gaining strength, this might be a good time to consider investing in commercial real estate. You can do that via real estate investment trusts (REITs). Here's how.

• Like MLPs? You Might Love Their General Partners
  Thanks to surging natural gas production, nat gas pipelines are in fast growth mode. Pipeline Master Limited Partnerships are great, but their general partners might offer even higher returns. 

• Buy & Forget Portfolio
  Is this stock market driving you up the wall? Here are four stocks and one fund that you won’t have to worry about.

• It's Time to Hedge Your Bets
  Escalating debt problems in Europe combined with mixed economic signals in the U.S. are raising fears that we could be headed back into recession. If that happens, stocks are likely to head down, but bondholders will probably still make money. Since bonds are not as easily traded as stocks, it's more practical to invest in bond funds. Here are four ideas.

• Energy Pipelines: High Yields Plus Low Risk
  Energy pipeline operators, organized as Master Limited Partnerships (MLPs) offer a combination of low risk and high yields, an ideal combination for this shaky economy.  Here's how to find them.

• Time For Boring Utility Stocks?
  With  many analysts predicting a market correction, this may be a good time to consider utilities. Here's how to find them.

• Rural Telecoms Pay Big Dividends
  If the market been a little too exciting for you lately, it may be time to consider something really boring, say, rural telephone companies. You won’t be bored after you check out their dividend yields.

• High-Dividend Wireless Stocks
  The iPad, Kindle and all of those new smart phones are triggering a surge in wireless data transmission volumes, benefiting wireless carriers.  Fortunately, many are high-dividend payers. Here are some ideas.

• Opportunities for Patient Investors
  Opportunities abound for investors patient enough to wait out short-term volatility. That’s especially true for many high-dividend stocks. They already have plenty of cash in the bank and business is improving, so their payouts are not at risk.

• Dividend Capture & Other Dividend Questions
  My column describing high-dividend stocks elicited questions about the various dates associated with a dividend payment. Others readers asked about dividend capture strategies, which involve holding a stock just long enough to collect a dividend, and then moving on to another dividend-paying stock. Here are the answers.

• How to Find the Best Dividend Stocks
  With the market for tech and other growth stocks arguably in over-exuberant territory, this may be a good time to consider dividend-paying stocks. Here's how to find solid dividend stocks.

• Utility Preferreds: Safe, High-dividends
  While you’re lucky to get 2% interest from a bank CD, many preferred shares issued by utility companies are paying 6% to 7% dividend yields. Here’s how to find them.

• Safe Dividend Payers
  Since no one can predict when the market will recover, pundits are advising buying dividend-paying stocks on the premise that you will be getting “paid to wait.” Problem is, that only works if you pick stocks that don’t cut their payouts. Here’s how to find them.

• Preferred Stocks: FAQs
  You’d think that preferred shares would be an arcane topic of little interest. But, in fact, my recent columns on preferreds generated unusually heavy volumes of mail. Here are the most frequently asked questions.

• Finding and Evaluating High Dividend Stocks
  Dividend paying stocks are getting more attention, and for good reason. Here’s how to find and evaluate high-yield dividend paying stocks. 

• Dogs of the Dow
  Are you too busy to do the analysis required to select stocks for investment? How about a stock selection approach that requires less than one hour per year. This intriguing stock selection strategy called the Dow Dividend Approach, more popularly known as the Dogs of the Dow, has beaten the overall stock market substantially over the last 26 years. 

• Pay Attention to Analysts - Just Don't Follow Their Advice
  Analysts' earnings forecasts contain important information that could help you make money. But ignore their ‘buy/sell’ ratings. Here are the details.

• Why Investors Can't Make Money Following the Analysts
  Can you make money following stock analysts’ advice? The answer depends on who you are.  For those with the big bucks such as hedge funds and other big players, the answer is yes. But it’s a different story for individual investors. Here’s why.

• When Sell Means Buy
  An analyst’s rating downgrade usually drives a stock price down. But if the reason for the rating change was solely valuation, the downgrade could be a buying opportunity.

• Get the Industry Scoop  
  Many investment professionals consider keeping abreast of industry trends just as important as pouring over financial statements. It makes sense. Knowing that your candidate’s currently hot products are about to go out of fashion would surely influence your analysis. Here’s where to find the info. 

• Industry Timing Using Exchange-Traded Funds
  Not everybody loses money in a weak market. Investors in the right industry can make money, even in rough markets, if they know when to get in, and when to get out. Here’s how to use Exchange-Traded Funds for industry timing.

•  2012 Best Mutual & Closed-End Funds
  Which did best in 2012? Conventional or Closed-End U.S. equity funds? Find out here.

• Mutual Funds, Closed-End Funds, or ETFs?
  Which are best, closed-end funds, conventional mutual funds, or the newest kid on the block, exchange-traded-funds (ETFs)? The answer probably depends on investment category, but as far as preferred stocks are concerned, closed-end funds are the clear winners.

• Exchange-Traded Funds (ETFs)  
  Hedge fund managers have adopted exchange-traded funds (ETFs) as their favorite investment vehicle. But there is no reason why individual investors can’t also exploit the benefits of ETFs. Here's what you need to know. 

• How to Pick the Best Mutual Funds
  The amount of mutual fund performance data can be overwhelming. Not to worry! Here are a few simple rules for picking the best funds.

• Market-Neutral: Funds For All Markets
  Instead of trying to figure out which way the market is headed next—consider “market neutral” mutual funds. They’re designed to generate positive returns whether the overall market moves down or up.

• 10-Year All Stars
  While individual stocks and exchange-traded-funds (ETFs) get most of the attention, in fact, most actively managed mutual funds have beaten the market this year. Here's a rundown on the best funds so far this year, plus the 10-Year All Stars; funds that have posted positive returns over the past 12-month, three-year, five-year, and 10-year periods.

• Corporate Bonds Beat Money Market Accounts    
  With banks paying next to nothing in terms of interest, this may be a good time to consider corporate bonds. Here's how to find and evaluate bond funds suitable for current conditions.

• Screening For Mutual Funds
  Mutual funds offer advantages over owning individual stocks in this rough and tumble market. Here's how to use Morningstar's free mutual fund screener to find worthwhile mutual fund candidates.

• Do Managed Mutual Funds Outperform?
  In a market like this, managed mutual funds, in theory, should outperform the overall market. So far, that hasn’t happened. Here are the details.

• Power of Compounding
  Probably the most important thing you need to know about building wealth is the power of making regular periodic investments and reinvesting rather than spending the profits. The results you’d get are astounding. Starting with nothing, you'd have a cool $1.7 million in 30 years if you just match the market's historical returns. Here's how. 

• Beware of Fund Manager Changes
  A mutual fund’s past performance gives us a good clue to the future. After all, if a fund manager has been a good stock picker in the past, he or she will probably continue to pick good stocks. But all bets are off if the fund changes managers. Here’s how do you find out about fund management changes and a passel of other worthwhile info.

How to Research & Analyze Stocks
Return to Basic Training Contents

• Watch Out for Pump & Dump
  If you’re like me, you probably receive frequent e-mails from people you don’t know alerting you to opportunities to get in on the ground floor of exciting new businesses. Unfortunately, in many cases, it’s more about making money from selling stock to unsophisticated investors than about starting a groundbreaking new business. 

• Guidance Moves Share Prices
  Until recently, when a firm reported earnings, its stock went up if earnings beat analysts’ forecasts and down if they didn’t’ But that was then. Now, the rules have changed. Here are the details.

• Famous Gurus Will Analyze Your Stocks
  Wouldn’t it be great if you could get famous gurus such as Peter Lynch or Benjamin Graham to help you pick stocks? It turns out that you can, here’s how.

• Growth Stock Evaluator
  Growth stocks usually outperform the market in a strengthening economy; such as we’re currently experiencing. However, not all growth stocks are created equal. Here are six tests to help you decide whether your candidates are potential winners.

• Organic Growth vs. Growth By Acquisition
  Some stocks grow by selling more products (organic growers), while others depend on acquisitions (serial acquirers) to maintain growth. Which is better? You might be surprised.

• Six Questions to Ask Before Buying Any Stock
  Here are six questions that every investor, whether looking for high-flying growth stocks or beaten-down value plays, should ask before buying.

• Rules for Avoiding Catastrophic Losses
  Making money in the stock market is as much about avoiding big losses as it is about scoring big gains. Here are six rules that could help you to do that.

• Get a Second Opinion
  Even if you’re a great stock picker, it's worth getting a second opinion before you pull the trigger. Super Stock Screener, a site that I only recently discovered, looks like a good resource for getting second opinions, and potentially much more.

• Four Important Stock Picking Factors
  Want to pick better stocks? I recently did some research that unearthed four factors that should help growth investors pick better stocks. Here are the details. 

• Assessing Management Quality 
  Management quality is one of the most important factors you need to consider when evaluating a company’s outlook, and hence, whether you’ll make money owning the stock. Here's how to do that from the comfort of your easy chair.

• Ten Rules for Picking Better Stocks 
  Picking winning stocks is harder than it looks. Here are 10 rules that will improve your odds of success.

• When to Sell 
  You can find plenty of advice about when to buy stocks, but knowing when to sell is equally important. Here are three "red flags" telling you that it's time to sell.

• Moneymaking Research Tidbits
  Does January's market action really predict the whole year? How much can you make following Jim Cramer's advice? Are high unemployment numbers good or bad for stocks? Here's a compilation of recent research findings that can help you make better investing decisions.

• Corporate Tax Rates Move Earnings
  Corporate income tax rates play a big role in determining whether your stock will beat or fall short of forecasts at report time. Here’s how to figure out which way that wind is blowing.

• Using Margins to Pick the Best Stocks
  Sometimes picking the best stocks in an industry is as easy as looking at gross or operating profit margins. Here's how.

• Looking For Growth in All the Wrong Places
  Acquisition-fueled growth is like a Ponzi scheme. It works until something goes wrong. Here’s how to spot serial acquirers. 

• Avoid Big Losses By Checking Balance Sheet Red Flags
  Crocs' shareholders who ignored two balance sheet “red flags” saw $1,000 turn into $209. Here’s how you can avoid making the same mistake.

• Finding Google
  Most investors are looking for the next Google: stocks with rapidly growing earnings that will send their share prices through the roof. Here are 6 important rules for spotting hot growth candidates.

• For Every Stock, There's a Season
  Making money on a stock may be as much about when you buy as what you buy. Here's how to find the best time of the year to buy your favorite stock. 

• Death List = Risky Stocks
  With the Dow hitting new highs almost daily, the market has been fun lately. Unfortunately, it’s easy to get caught up in the excitement and pay too much for stocks that have already seen their best days. Here’s how to identify stocks in that category.

• Brushing Up On Basics
  Your mail tells me that new investors might not understand all of the terms that I use in these columns. So, here's an explanation of some of the stock market jargon I’ve been throwing at you. But experienced hands need not tune out. As usual, I’ve included enough of my own debatable opinions to make it interesting. 

• Selling Short Can Backfire
  I get a lot of mail asking me to describe a strategy for picking short-selling candidates. That mail has gone unanswered. Now I’m going to tell you why.

• Cramer Can Help You Make Money
  Watching Jim Cramer's "Mad Money" TV show is like a visit to the loony bin. But Cramer can teach you how to be a better investor. Here's the best news: you don't have to watch him on TV.

• Survival of the Fittest
  Survival of the fittest, the law of nature that says, "Only the strongest survive," is a principal that investors should apply to qualifying stock candidates. Here's how. 

• Get a Jump on the Big Players
  Institutional players move your stock’s share price big time when they buy or sell. Knowing how they think will help you predict which way your stocks are likely to move next.

• Easier Way to Spot Accounting Red Flags
  Stocks usually take a big hit when a company reports earnings below expectations. That’s why some investors go to great lengths to detect “red flags” warning of such events. But you don’t have to. Here’s an easier way. 

• Six Quick Growth Stock Checks
  Don’t spend time analyzing stupid stocks. Here are six items you can check in a minute (no kidding) that will help you rule out bad ideas so you can spend your time researching worthwhile candidates.

• How to Gauge Interest Rate Risk
  Interest rates are likely to go up when the economy improves. Here’s how to gauge the risk to your stocks in a rising interest rate environment. 

• Focus on ROE Instead of Earnings
  Investors would fare better by focusing on a firm's profitability rather than earnings per share when researching a stock. Why? Because as you'll soon see, one profitability measure, return on equity, can help you gauge a firm's earnings growth prospects. 

• How to Profit From Stock Buyback Announcements 
  You may be able to improve your stock returns by focusing on firms that are buying back their own shares. But be sure your companies are actually doing it rather than just talking about it. Here’s how to do the analysis. 

• How to Spot Takeover Targets 
  Even in this market, you usually make money if you are lucky enough to hold a stock when the underlying firm is bought out. Her are some ideas for spotting acquisition candidates.

• New Rules for Valuing Stocks
  Investors typically rely on P/E ratios to value stocks. Now valuation is even more important, but in many cases P/E isn’t meaningful because recent earnings, the “E” in P/E, are either depressed or non-existent. Here’s how to get around that problem along with two more ideas to help you evaluate stocks in this market. 

• How to Analyze a Company's Business Model
  If you were buying a real business, you’d probably spend considerable time analyzing each prospect’s profit potential. Yet few investors spend much time analyzing the business models of the stocks that they purchase. They’d be better investors if they did. Here's how to get started. 

• How to Set Target Prices
  Setting target prices is something that professional money managers almost always do, but individual investors almost never do. Most are not aware of the importance of setting target prices, nor how to go about doing it, even if they want to. Here’s a simple procedure for estimating target prices.

• A New Look at Value Investing   
  I’ve recently had the occasion to talk to several value-style managers about their selection strategies. As a result, I have a new appreciation for the craft, and in fact, value investing makes a lot of sense to me. Here’s a rundown on what I’ve learned.

• Get a Second Opinion
  Even if you’ve done a thorough job of analyzing a stock, it pays to get a second opinion before you buy. Here are three sites ready and willing to give you their take on your picks. 

• Stock Scouter, a Powerful Stock Analysis Tool
  Microsoft’s MSN Money's powerful free tool will help you analyze stock investment candidates. Here are the details.  

Finding Stocks to Analyze (Screening, Tips, etc.)
Return to Basic Training Contents

Note: the Reuters and MSN Money stock screeners mentioned in some of these articles
 are no longer available. However, you can run the same screens using the Portfolio123.com,
 and many of them on FINVIZ.com, which is a free screener.

• Finding Stocks in the Value Bin
  Given the market’s big run-up so far this year, this might be a good time to consider relatively low-risk, value-priced stocks. Here's how to find value investing candidates.  

• Finding Small Stocks Before They Get Big
  We know about the big names like Apple, Google, and Starbucks. But that’s the problem, it’s too late, everybody already knows about them. Here’s a screen for finding small companies that haven’t yet hit it big, but are showing signs that they are on the way.

• With the Economy Picking Up: Consider Growth Stocks
  Share prices generally track earnings growth expectations for a stock. Thus, stocks with fast growing earnings usually outperform slower or no growth stocks. Here's how to find them.  

• Check Out Retail Stores
  Many retail stores, especially those selling apparel, are reporting strong sales numbers. Thus, with technology and financial stocks faltering, this looks like a good time to check out retail apparel stocks. Here’s how to find them.

• Buy Like a Hedge Fund: Pick Stocks With Momentum  
  Despite all of the fits and starts, the market looks like it’s gaining steam. Should that trend continue, this is the time when hedge fund's momentum strategies shine.

• Follow the Smart Money
  The old adage, "work smarter, not harder," applies to picking stocks. Here's how to find out which stocks the big boys are buying, and equally important, which stocks that they're dumping.

•  Healthcare Stocks
  Analysts expect hospitals, pharmaceutical makers, and providers of healthcare information systems to be the biggest beneficiaries of the new healthcare bill. Here's how to find candidates in those categories.

• Use Surprises to Pick Stocks
  Here’s a stock picking strategy that doesn’t require scrutinizing financial statements or checking price/earnings ratios, or even worrying about how economic ups and downs might affect a company’s outlook. 

• Spotting Takeover Candidates
  Charlotte Russe shareholders recently enjoyed a 27% share price pop after the teen clothing retailer agreed to be acquired by a buyout firm. Obviously, there’s money to be made if you can spot a takeover target before the news hits the wires. Here’s a screen for spotting buyout candidates.

• Time to Consider Growth Stocks
  With the economy no longer looking like it’s falling off a cliff, and the stock market showing signs of life, this may be a good time to consider edging back into the market. If you agree, here’s a search you can run on Morningstar’s user-friendly stock screener to find interesting growth stock candidates.

• New Tool For Finding Growth Stocks
  It looks like the government will get the credit markets working again. If that happens, the stock market will begin looking beyond current conditions to the recovery. Zacks‘ new tool for finding growth stock candidates will come in handy. Here are the details.

• Stocks For a Rebound
  Despite the continuous flow of bad news, eventually, the market will recover. Today, I’ll describe a strategy for finding stocks worth considering in a rebounding market. Here’s why you should be getting ready now.

• China Stocks
  With the U.S. economy sputtering, many investors are turning their sights to China. And for good reason! China is experiencing unprecedented growth as it emerges from third-world status to a major economic power. Here’s how to find and research China stocks that are listed on U.S. exchanges.

• Cash Rich Stocks: Rx For Credit Jitters
  How to find cash rich stocks with no-debt and strong growth prospects, your best plays in this jittery credit market.

• Little Book Beats the Market
  The best selling stock market book these days is “The Little Book That Beats the Market.” The reason is no mystery. The book describes a simple formula that, according to its author, would have averaged a 31% annual return from 1988 through 2004. It’s worth a look.

• New Sites To Help You Make Better Investing Decisions 
  The Web, at least from an investing perspective, is undergoing a resurgence and dozens of new investing sites have surfaced in recent months. Here are some that I’ve found interesting.

• Important New Investing Resources
  Investing resources on the Web are multiplying and evolving in ways that few of us would have predicted. Here are some of the best.

•  Investing for Beginners
  Is investing an undecipherable puzzle? Here are five sites where you can get up to speed on the basics of investing.

• Four Good Sites
  There is still plenty of free information on the Web that will help you make better investing decisions. Here are four worthwhile sites that I haven’t told you about before.