Cash Flow Is Key… When it comes to evaluating the safety of a dividend, the first thing we need to verify – given the current economic slowdown – is demand for a company’s products. After all, a company needs to generate a steady stream of cash in order to keep paying its shareholders.

Countless studies demonstrate that dividend-paying stocks outperform non-payers by a wide margin. From 1972 to 2006 dividend-paying stocks returned an average of 10% annually versus 4% for non-dividend payers, according to Ned Davis Research.

I promise. Alexander Green and I are not in cahoots about the coming boom in corporate takeovers… We both researched the possibility separately. Unprompted, I might add. And yet, armed with different evidence, we arrived at the same conclusion. If you ask me, such a convergence of analysis in a narrow space of time shouldn’t be ignored. So today, let’s move on from why a takeover boom is imminent and focus exclusively on three takeover targets you can profit from…

If you are waiting to pounce on oils rebound, Lou Baseness of Investment U recommends the best play in crude oil investing.

We are reaching a stage of maximum pessimism in the market, says Louis Basenese. And that means we could be close to a great buying opportunity. But Louis says investors should only consider strong companies with robust growth prospects like ‘nuts and bolts’ firm Fastenal (Nasdaq:FAST).

Like much of the world, China is going through a rough patch. But Louis Basenese says there are many reasons why now is the perfect time to invest.  He recommends four companies for big gains when the market gets back to winning ways.

It’s prime time for small cap investing, says Louis Basenese. Investors need to look for companies with little or no debt and a competitive advantage in their particular field. Louis says E-House Holdings (NYSE:EJ) and American CareSource Holdings (Nasdaq:ANCI) fit the bill, making them great buys right now.

The government is spending like crazy. And the Fed is cranking up the printing presses to keep the money flowing. As the greenback crumbles and inflation returns, Louis Basenese says interest rates will have to rise again. He says the best way for an investor to profit from this trend is to short US Treasury bonds, which are in an unsustainable bubble of their own.

Times are tough. But they are not so bad that we should abandon the quest for profits, says Louis Basenese. Buying US Treasury bonds with zero yields is idiotic. Louis gives six alternative investment options with big profit potential.

The slump in stock markets this year has value investors licking their lips. But Louis Basenese says there are at least three value traps for every true deal out there. How do you spot a bargain from a lost cause? Louis provides the 10 questions that every value investor must ask before making a purchase.