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7 of the Best Stocks to Buy for 2017

By U.S. News & World Report

Ringing in a new year on Wall Street.

Stocks began 2016 on a horrendous note, getting off to their worst two-week start ever. Thankfully, markets quickly erased losses and continued setting new all-time highs. Hopefully, 2017 will bring more record highs. While no one can claim to have a crystal ball, what’s clear is this: Americans are tired of the sluggish economic recovery, and want to see a real boom-time economy. Whether that comes in 2017 or not can’t be known, but the following stocks look attractive going into the new year. Here are seven of the best stocks to buy for 2017.

Ulta Salon, Cosmetics & Fragrance (ticker: ULTA)

Ulta, the beauty retailer and salon chain, has been routinely underestimated by Wall Street. Quarter after quarter, Ulta beats expectations and investors have no choice but to buy the stock. Over the last five years, ULTA stock is up more than 220 percent. There’s more growth ahead for the retailer, which is in the middle of an aggressive multi-year expansion. In 2014, Ulta announced plans to open 500 new stores over the next five years, implying a 70 percent increase in its store count. Ulta is also growing same-store sales at a double-digit pace, and plans to double its market share in the next few years.

Johnson & Johnson (JNJ)

Johnson & Johnson doesn’t have nearly the growth potential that a stock like ULTA has, but what it does have is something that some investors value even more highly: stability and a nice, fat, steady dividend. Johnson & Johnson has been steadily increasing its dividend for 53 consecutive years now, and pays a dividend yield of 2.7 percent, meaningfully higher than the 2.1 percent yield on the 10-year Treasury note. JNJ investors are buying into an insanely diversified health care company; pharmaceutical sales totaled $31.4 billion in 2015, while its consumer franchise brought in $13.5 billion and medical devices revenue clocked in at $25.1 billion. That’s a diversified dynasty.

iShares NASDAQ Biotechnology Index ETF (IBB)

In 2017, Donald Trump will be sworn in as president. As it turns out, that’s likely a major positive for the health care sector, which underperformed in 2016 as it braced for Hillary Clinton to ascend to the presidency. Clinton had promised to crack down on profiteering in the health care sector, and her tweets on these issues could single-handedly move markets. A fine way to bet on the health care sector as a whole without any of the pesky risks associated with individual companies is the IBB, which holds a portfolio of biotech and pharma companies in the Nasdaq. The day after Trump’s victory, IBB soared 8.9 percent.

Match Group (MTCH)

Do you believe in love? Because nowadays you can actually invest in it. Match Group owns an enviable portfolio of online dating platforms, including Match.com, OkCupid, PlentyOfFish and the go-to app of the millennial, Tinder. Match Group has only been public since late 2015, and got off to a strong first year of trading, with shares gaining more than 30 percent in 2016. Judging by MTCH’s third-quarter earnings report, business continues to be booming. Dating revenue was 22 percent higher than it was in the same quarter last year, and the number of paid members grew by 33 percent. In 2017, international growth should be the stock’s core driver.

Facebook (FB)

Facebook is one of the most ubiquitous digital presences on the entire internet, boasting about 1.8 billion monthly active users. That user count was up 16 percent from the same period last year, a remarkable growth rate given the impressive size. Far more remarkable than that, however, is Facebook’s revenue and earnings growth. Revenue soared 56 percent in the third quarter, while earnings per share jumped 165 percent. You can’t expect earnings growth like this forever, especially as Facebook pours more money back into its business, but you can expect Facebook to remain dominant for years to come.

Prudential Financial (PRU)

Prudential is the second-largest American life insurance company by market cap, trailing only MetLife (MET) in size. While Prudential might not be the sexiest-sounding investment, it’s a well-positioned, conservative investment for 2017. Not only does PRU stock trade for less than 10 times forward earnings, it pays a 2.8 percent dividend. And Prudential, like all large insurers, stands to benefit in a rising interest rate environment as it can earn higher interest on the premiums it stows away. Judging by the surge in bond yields after the 2016 election, markets seem to think Trump could bring interest rates higher.

3M (MMM)

Like Johnson & Johnson, 3M is a diversified global commercial powerhouse. It doesn’t make pharmaceuticals, of course, but MMM is similar to JNJ because it’s a fairly conservative stock that can anchor your portfolio and provide regular interest income. Its 2.6 percent dividend yield is nothing to scoff at, and in each of the last 57 years 3M has increased its dividend payout. Sustainable dividends are hard to come by, and so too are large companies with the innovative drive that 3M has; in 2017 3M aims to generate 40 percent of all revenue from products it invented in the last five years.

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7 of the Best Stocks to Buy for 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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