What to do with $83,000 in this market

Dear Mr. Berko: The stock market has recovered tremendously, but we think it will crash again. We have $83,000 to invest for growth and income. We are very nervous but desperately need more income. Two stockbrokers recommend index annuities, and a third recommended six stocks (each enclosed), but if we believe that the market is going to crash again, what should we do? Please advise us. - SS, Jonesboro, Ark. Dear SS: Some brokers who think the Dow Jones industrial average will crash pass on fear to investors so they can sell high-commission annuities. Smart brokers consider a market crash to be a buying opportunity, knowing that if the Dow tanks, a Golconda of bargains will abound. And they'll suggest good-till-canceled orders at prices far below current market prices. A GTC order remains, well, good till you cancel it. For example, a GTC order to buy a stock at $19 while it trades at $25 will be executed only when that stock falls to $19. If you think the market will crash, consider trolling with GTC orders well below current prices; you might hook some beautiful yields. Consider GTC orders on the six stocks recommended by broker No. 3. This is called trolling for treasure. Seagate Technology (STX-$33.70) is the world's largest manufacturer of hard drives, and it also provides data storage services for small to medium-sized businesses. The $2.52 dividend, yielding 7.3 percent, may be raised to $2.71 this year. Place a GTC order at $27. If the order were to be executed later on a market dip, the dividend would yield 10 percent. The median target reported by Thomson First Call is $35. Verizon Communications (VZ-$53.10) is a $139 billion-revenue information and entertainment products company. The $2.26 dividend yields 4.2 percent and may be raised to $2.32 this year. Place a GTC order to buy VZ at $38. With the increased dividend, VZ would yield 6.1 percent. The median target price by Thomson First Call is $51. Philip Morris International (PM-$97.97) sells $78 billion worth of tobacco products - e.g., Marlboro and Chesterfield - and has a swell history of dividend growth. The $4.08 dividend yields 4.2 percent. Place a GTC order for PM at $75. With an increased 2016 dividend of $4.55, PM would yield 6.1 percent. Thomson First Call has a lower median target price of $92. GlaxoSmithKline (GSK-$39.63), a $37 billion-revenue pharmaceutical company, also sells Tums, Polident and NicoDerm CQ. Competition from generics has inhibited growth, but management expects a turnaround this year. The $2.68 dividend yields 6.7 percent. Place a GTC order to buy GSK at $35. If executed, the dividend would yield 7.6 percent. The dividend was raised in February. Thomson First Call suggests a median target of $48. AT&T (T-$39.14) is a $140 billion telecommunications giant that also owns DirecTV. T has a long record of small dividend increases, and the current $1.92 yields 4.9 percent. Place a GTC order to buy T at $30. If executed, the dividend would yield 6.4 percent. Most brokerages have a "buy" recommendation on T. HCP Inc. (HCP-$32.18) is a $2.5 billion-revenue real estate investment trust investing in properties that serve the health care industry. For over 25 years, it has grown revenues and annually increased dividends. The current $2.30 yields 7.3 percent, and this year, HCP expects to pay $2.38. Place a GTC order to buy HCP at $25 and the yield would be 9.5 percent. Thomson First Call shows a median target price of $31. Enterprise Products Partners (EPD-$24.36) came public in 1968 and dwarfs its competitors. EPD may be the largest and most diversified master limited partnership in the nation and is one of the few without a general partner. With nearly 50,000 miles of pipeline and enormous storage capacity, EPD has weathered this oil crisis with aplomb. The $1.56 dividend yields 6.4 percent and may be raised to $1.61 this year. If you were to buy EPD at $19 with a GTC order, it would yield 8.4 percent. Thomson First Call reports a median price of $32. Or you can pick 20 or so stocks that have good potential. Observe the 12-month trading range and bait your hook with a GTC order on each issue using its lowest 12-month price. Then cast 20 lines, sit back and begin trolling for treasure. ----- Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775, or email him at mjberko@ yahoo.com. To find out more about Malcolm Berko and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. COPYRIGHT 2016 CREATORS.COM Published: Tue, Apr 05, 2016