Investment Ideas February 2015

American Express scored a double beat on its Q4 earnings report.The financial services titan reported earnings of 1.39 a share versus the estimate of 1.38;it had revenue of 9.11 billion versus the 8.53 billion estimate.CEO Ken Chenault attributed the company's success to the gain from the sale of AmEx's stake in Concur Inc;higher card member spending;increased loan balances;tighter control of expenses;and return of profit to shareholders.
There was an eight percent increase in spending by cardholders.*
We like dividend payers,said Doug Sandler,CFA of RiverFront Investment Group in Richmond,Virginia.They'll do fewer stupid things if they have to pay out.We like companies that cater to the middle class-retailers like drug stores,and homebuilders.*
The price of gold has increased this year,according to William Rhind,CEO of World Gold Trust Services.We've seen Russia going into the market buying more gold.I absolutely would agree investors should have 2-10% gold in a well-balanced portfolio.
We're seeing the paradigms of the last couple of years start to be questioned.Gold miners did well during the Great Depression.*
Biotech titan Amgen also reported a double beat.It reported earnings of 2.16 a share versus the estimate of 2.05;and revenue was 5.33 billion versus the estimate of 5.20 billion.The company reaffirmed its full year guidance.Its success was bolstered by drug price increases.*
Rite Aid Corp(RAD),iShares U.S. Home Construction ETF(ITB),Market Vectors Gold Miners ETF(GDX),Amgen(AMGN),American Express(AXP)

RiverFront Dividend Stock Suggestions

The market is reacting to a few reports.That's the way slow growth feels,says Doug Sandler of RiverFront Investment Group.We're actually getting better and better news underneath the surface.
Seek the selective quality now.Consistent dividend growth is more real than earnings.Dividend companies tend to be more stable.
Among these firms are McDonald's,American Express,Chevron and Lockheed Martin.
RiverFront Investment Group is located in Richmond,Virginia.Majority employee-owned,it provides asset management,investment advice and leading edge market insights by seasoned professionals.
McDonald's(MCD),American Express(AXP),Chevron(CVX),Lockheed Martin(LMT)