JBL: Fearless Forecasts

Dividends for Retirement

I put all my highest-paying dividend stocks into my SEP retirement account because it allows the stocks and dividends to grow tax free. If you have a retirement account, put your dividend-paying stocks there. It's a simple matter of asset allocation that makes sense.

I try to fill up my retirement account as early as possible and also plan to buy shares of Tsakos Energy (TNP Quote) early in 2006.

On Nov. 5, I recommended Tsakos, and since then it is up roughly 5% to over $36 a share. I believe Tsakos is still a buy here. The global demand for shipping has not changed, and neither has my reason for initially recommending and owning Tsakos. With a yield over 5% and a forward price-to-earnings multiple of just over 6, it is a bargain.

The long-term trend of shipping growth shows no real signs of slowing.

I hope you have a happy new year. I hope you give up smoking if you smoke, and I hope you buy Altria.