David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon

Analyst Articles

The search for income-producing investments keeps getting harder. Uncle Sam continues to deliver paltry payouts on government bonds and notes, which has forced many investors to seek out dividend-paying common stocks. Trouble is, the popularity of these investments has pushed their stock prices up — and their dividend yields down. The average dividend-paying stock in the S&P 500 yields just 2.5%. Even investment-grade corporate bonds offer little help. The average payout (with a duration… Read More

The search for income-producing investments keeps getting harder. Uncle Sam continues to deliver paltry payouts on government bonds and notes, which has forced many investors to seek out dividend-paying common stocks. Trouble is, the popularity of these investments has pushed their stock prices up — and their dividend yields down. The average dividend-paying stock in the S&P 500 yields just 2.5%. Even investment-grade corporate bonds offer little help. The average payout (with a duration of 2-5 years) is just 3.5%, which is well below the historical average yield of around 5%. That’s why preferred stocks are getting a fresh look from many investors. Not only do their payouts often exceed 5%, but they offer the chance of solid capital appreciation if the stock market moves higher. Preferred stocks are a favorite vehicle for companies with steady, predictable cash flows. If the going gets tough, these companies can temporarily defer payments to preserve cash. This… Read More

Stocks in the financial sector have been red-hot of late. In fact, the gains in many of the largest and most-prominent banking and brokerage companies have been on fire, particularly during the past month, and especially during the past week.#-ad_banner-# So, what’s the reason for the big spike in financials?… Read More