Monday Morning Radio Advice

Markets were on the rise this morning but are now flat. Firmer oil prices and the potential for merger and aquisition deals drove them higher initially but have pulled back on lower technology shares. There is no material news on the economy or earnings related out today. Earnings reports are over in the US and only the banks are left to report in Canada this week. In addition to banks reporting in Canada we have retail sales and corp profits later this week. In the US existing home sales, durable goods, corporate profits and consumer sentiment are out.

With the recovery in the US economy waning and expectations for an extended period of below trend economic growth, more and more strategists are discussing the merits of dividends. Barron's article, "The Power of Payouts" screened the S&P500 for stocks that trade below the market's forward P/E , with yields exceeding 3% and payout ratios less than 50%. For a copy of high dividend yielding stocks call me at 868-5525 or visit yourlifeyourplan.ca.