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5 of the Best Stocks to Buy for August 2017

By U.S. News & World Report

Last month, U.S. News put together a list of five stocks to buy for July. This month we’re doing the same, putting together a list of the five best stocks to buy for August.

If this month’s list is anything like last month’s, investors are in for big gains.

By month’s end, July’s five picks gained an average of 6.9 percent per pick, and not one of them ended the month down. The Standard & Poor’s 500 index, meanwhile, gained just 1.9 percent.

[See: 7 of the Best ETFs to Own in 2017.]

Since no one owns a crystal ball, there’s no way to guarantee a repeat performance, but without further ado, here are five of the best stocks to buy for August.

Facebook (ticker: FB). Mark Zuckerberg’s brainchild is unique in so many ways: It’s the world’s largest social media company with more than 2 billion users, it continues to grow at rates most small businesses would envy, and it’s the only back-to-back member of our monthly “best stocks to buy” list.

July was good to Facebook shares, which gained more than 12 percent as a stellar earnings report helped FB stock finish the month strong. It was the only FANG stock that didn’t lose ground in the last full week of July trading.

Not only does FB enter August coming off a strong second quarter, it’s still a stellar long-term business. With killer apps like WhatsApp, Instagram and Facebook Messenger all approaching or already in the billion-user club, Facebook is monetizing those more aggressively, and should be able to steadily squeeze more out of each user for years to come, just as Facebook itself does.

Plus, if virtual reality becomes as big as Zuckerberg sees it becoming, Oculus may well be ahead of the curve, and poised to dominate an insanely large industry.

Corning Incorporated (GLW). Corning, a New York-based glass manufacturer that’s one of America’s longest-living corporate success stories, sure isn’t growing like Facebook. But it’s a solid, consistent business, and investors can always use one of those in their portfolio.

One reason GLW looks like one of the best stocks to buy for August is the way shares behaved after its most recent earnings report. Despite second-quarter earnings and revenue that actually beat expectations, shares lost about 8 percent in the subsequent weeks.

Shares now trade at roughly 13 times earnings, lower than their 5-year average of 14.8, and pay a 2.2 percent dividend. A cheap, steady stock that rewards you with a cash flow, it’s no wonder Corning would be one of the best stocks to buy for August.

[See: 9 Ways to Invest in a Post-Election Market.]

GLW is more than just a short-term trade, too. It makes Gorilla Glass, which comprises the screen on the Apple ( AAPL) iPhone and iPad. And recently, Verizon Communications ( VZ) inked a three-year $1.05 billion purchase commitment for fiber optic cables, which Verizon’s using to build and improve its network.

DTE Energy Co. (DTE). In a stock market that seems to be ceaselessly trending higher without a worry in the world, it doesn’t hurt to own consistent performers with built-in demand. That’s why Corning makes sense, and that’s also why DTE Energy makes the list as a stock to buy.

DTE is an electric utility company. With a $19 billion market cap, a 3 percent dividend and just a 55 percent payout ratio, this looks like a fine stock to buy for investors looking for capital preservation and income instead of growth, growth, growth.

A recent bullish catalyst for DTE — and utilities stocks in general — is the Federal Reserve’s decision to stay further rate hikes in July. If the Fed gets less hawkish than it has been, slowing the pace of rate increases, utilities stocks should benefit, as they compete with Treasurys for investment dollars from risk-averse, yield-seeking investors.

The 10-year yield is currently only about 2.3 percent.

Amgen (AMGN). Biotechnology giant Amgen, though different in almost every way from DTE Energy, nonetheless makes this month’s list of stocks to buy. It’s important to note that, despite its $126 billion market cap and more than $22 billion in annual sales, AMGN is likely the most contrarian pick of August.

That’s because, despite its impressive second-quarter earnings report at the end of July — Amgen beat both revenue and earnings expectations — some market-watchers considered its outlook underwhelming, and the stock fell.

While analysts expect flat sales in 2017, earnings per share are expecting to increase about 8 percent, from $11.65 to $12.57. Trading at just 16 times earnings and 13 times forward earnings with a 2.6 percent dividend, Amgen’s downside risk is more limited than your average stock.

One near-term catalyst worth considering: its heart drug Repatha could become a blockbuster multibillion-dollar product, after sales of just $83 million last quarter. The FDA is considering whether to allow AMGN to include results of a recent clinical trial — showing reduced risks of heart attack, stroke and death — on Repatha’s label. The decision will come by Dec. 2.

United Technologies Corp. (UTX). Last but certainly not least: Dow Jones component and industrial giant United Technologies is a great long-term candidate for any investor’s portfolio.

The aerospace and defense behemoth is a clear beneficiary from increased military spending under a Republican-controlled White House and Congress. Perhaps the clearest message by the Trump administration’s first budget proposal was the prioritization of military and defense spending: a proposed $54 billion budget increase will do that.

UTX makes dozens of different engines, including those included in the F-22 Raptor and the F135 fighter jet. It also makes other essentials for aircraft, like landing gear, wheels and brakes, cockpit controls, air management systems, and a laundry list of other features and gizmos we take for granted.

[Read: The 10 Most Anticipated IPOs of 2017.]

With UTX using only 40 percent of its earnings to pay its 2.3 percent dividend, this income stock can keep flying higher for years to come — raising its payout all the while.

More from U.S. News

9 Stocks to Buy for the Aging Baby Boomer Market

The 10 Best REIT ETFs on the Market

9 Psychological Biases That Hurt Investors

5 of the Best Stocks to Buy for August 2017 originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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