Cash In With Kelly Green
Social media can turn up the volume on any trend, and that includes the price of shares.
Comments that gain traction on Twitter (NYSE: TWTR) or other popular platforms can transform a low-performing stock into a powerhouse — in just a matter of hours. Look no further than this year’s GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) craze.
But what soars spectacularly typically crashes in similar fashion.
Research analyst and Weiss Daily Briefing contributor Kelly Green reminds us that sound investments can hinge on tuning out the allure of hype and headlines:
You go online and you’re just bombarded with all these financial stories, and what’s ‘hot.’ We’ve seen this year, the stocks that people are talking about may not make any sense, fundamentally, and that’s probably not where you’re going to make the most profits. We need to be more mindful about what we’re investing in.
Mindfulness is a skill that Kelly acquired as a certified yoga instructor. Her training helps her approach the market with a cool, rational head. She’s also guided by a critical resource that every investor has at their disposal: the Weiss Ratings, which are safety ratings.
I try and show our readers how they can take what’s going on in the news, and then go to the Weiss Ratings Stocks Screener and actually get quality data. You can easily go on there, sort by sector, sort by price-to-earnings, something with a dividend, and then you get your list of stocks. I can quickly get rid of the junk.
In this special four-minute video segment, Kelly describes the beauty of dividend stocks and her favorite strategy to earn them: through a category of companies called business development corporations (BDCs).
Kelly explains how they must meet certain criteria:
They have invested 70% in small or medium-sized businesses, and they also provide management and organization support. So, it’s not just a surge in capital — the board of directors and management of these BDCs really try to help these companies grow because they want to see a return on their investment.
It’s a no-brainer for me. How else can I invest in these private companies that I know are going to explode? Unless you have a million dollars so that you can be a venture capitalist, or angel investor, you can’t invest in private companies. They’re blocked off from the everyday retail investor.
BDCs are like that back-door play. It’s a way to get exposure to all these different things you wouldn’t be able to get exposure to.
The actual company gets tax benefits, but on the flip side, they have to pass off most their money as a dividend. That’s great for investors because you frequently see 5%, up to 10% dividends!
In this insightful video, Kelly discusses:
• The BDCs she recommends, offering 7.4% to 9% dividends.
• How to pick stocks that won’t “ride to zero.”
• The famously difficult Series 7 license that she earned at age 20!
The information in this short segment couldn’t be timelier. I suggest you watch it now.
Financial News Anchor