Be Careful With Widely Held, Richly Valued Dividend Stocks + MORE

Peak oil is the idea that the world has reached or is about to reach maximum production of oil either a few years ago or a few years from now. From there on we are supposedly going to experience significant declines in oil production, which would have devastating impacts on the world economy, which would need more and more oil in the future…

You might have heard that Google (GOOG) is on the verge of completing its $1.1B acquisition of Israel-based mapping company Waze. On the surface, this could be seen as a surprising move. After all, if there is one company that does not need help with its mapping software, it would be Google. Not only do Larry Page and other Google execs think they have the best mapping product available (I doubt anyone would argue that), but they also feel like no one will be able to catch up…

The broader market continues to show strength on the back of speculation that the Federal Reserve will continue Quantitative Easing because the economy has not shown that it is strong enough to continue a recovery by itself. Whether or not QE continues or tapers, and whatever the reason the broader market continues to be modestly overvalued really matter not to me…

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Federal Realty Investment Trust (NYSE: FRT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors.

I cannot wait to show you my video of the man in the orange jacket, but it still uploading and its taking forever. While it uploaded, I am reviewing my portfolio. There’re many things I like about my portfolio and I am just looking to get my hands on more dividend income, but I want to have it done the right way…

 
Some investors sell in May and go away while others think the current rally can’t continue forever. “The stock market is high enough, there is a correction ahead”. I guess I’m one of those investors who believes strongly that the rally will continue throughout the rest of the year.
 
As I wrote in my article “Stock Squeeze! Look For All The Money You Can Invest in The Stock Market”, I believe we are in a perfect situation for investors:

Money is moving from bonds to equity (pressure on the demand for stocks)
Companies’ profits keep climbing (so you are not paying for a bubble, but for real cash)
Share buyback programs are becoming very popular (even more pressure on the demand for stocks)
Dividend yield is higher than the 10 yr bond yield
Interest rates to stay put (which means it’s easier for company to manage their debts)

 
These are the reasons why stocks have climbed so high so far…

Visit StreetInsider.com at http://www.streetinsider.com/Dividends/QAD%2C+Inc.+%28QADB%29+Declares+%240.06+Quarterly+Dividend%3B+2.3%25+Yield/8410150.html for the full story.

Since Bernanke’s testimony to Congress last week, interest rate-sensitive securities have had it tough. The mortgage REIT ETF (MORT) is down about 5%, utilities (XLU) are down 4.5%, and the long-bond (TLT) is down about 2.5%. This is relative to a mere 1.5% decline in equities (SPY). I don’t see the bottoming in interest rates as a negative for broader stocks, as long as rates are starting to

With the stock market currently doing so well, numerous articles are popping up playing the bubble card.  Personally, I don’t believe we are anywhere near bubble levels for equities, at least in the general sense.  I do think there are certain stocks that are currently overvalued, but very few that I would describe as dangerously so…