2006 Article Archive
December 2006
Grow Your
Yield
Many times, securities carry exorbitant yields due to rapidly falling share
prices -- after all, yield and price move inversely. But by investing in
securities with strong dividend growth, you can have both high yields and
capital appreciation, which means big returns.
A
Cooling Housing Market Leaves This REIT Yielding Over 20%
The softening housing market has hit mortgage lenders hard -- leaving many
with attractive valuations and high yields. New Century, in particular, may be interesting to income
investors with its low P/E ratio and 20%+ dividend yield.
November 2006
This
Safe Fund Yields Over 9%
If you are looking for a well-rounded, conservative fund, then the Zweig Total
Return Fund may be just the thing. With investments in high-grade bonds and
blue-chip stocks, income investors are able to diversify their portfolio and
still receive a phenomenal yield.
Income Trust
or Not, BCE Deserves a Second Look
Canada's largest telecom provider, BCE, soared
on news that the company planned to convert to a high-yielding income trust. However, following the Canadian government's legislative bombshell, the shares have returned to their previous trading range.
Whether an income trust or not, BCE should interest investors.
October 2006
An
Easy Way to Capitalize on Sizzling Foreign Markets
There has been a lot of press recently
about the major U.S. averages reaching new milestones. However, a number of
foreign countries have delivered superior returns compared to the U.S. markets. Here is how you can get a piece of the action.
This
Stock Carries a Phenomenal 16.6% Yield
Shares of oil tanker stock Frontline (NYSE: FRO) are starting to rebound. After
bottoming out at around $30 per share in May, the shares have gained over +30%
in the past few months. Despite the rise, the stock still carries a monster
yield of 16.6% based on Frontline's $6.00 per share dividend.
Are
Managed Distribution Policies Right For You?
What could be wrong with buying a fund with a "managed" distribution
policy? After all, this policy is a promise to pay you a fixed amount every
month or quarter. But this promise isn't always as nice as you might think.
September 2006
Capture
Yields of Nearly 10% by Investing in Income Deposit Securities
Income deposit securities are a little-known asset class that is generating
large returns...and yields. With only four of these securities in existence, the
rare stock/bond hybrid is treating investors kindly.
Lock
in Yields of 8.5% with Shares of this Foreign Utility
Italian energy giant Enel (EN) generates nearly half of Italy's electricity and
holds an interest in the nation's electrical grid. In addition to providing
sold, stable returns, the stock also delivers an impressive 8.5% dividend yield.
August 2006
Why
Master Limited Partnerships (MLPs) Belong in Your Portfolio
What Makes MLPs so Attractive? It may have something to do with their
enticing yields of up to 11%. Then again, it could be their market-beating
annual returns of +17% since 1996. Or maybe it's their exceptional track record
for raising dividends an average of +8% to +9% a year for the past ten years
that has endeared them to income investors.
July 2006
Municipal
Bond Funds with Taxable Equivalent Yields of 10.8%
Municipal bonds are among the
safest bonds around -- about as safe as Treasuries. Over the past three decades,
their default rate has been only 0.04% versus 9.8% for corporate bonds,
according to credit rating agency Moody's. And with muni funds offering 10.8%
yields, many investors are looking closely at this asset class.
Lock
in Yields of 8.7% with Shares of this Healthcare REIT
Medical Properties is firing on all cylinders. The company recently upped
its quarterly dividend a generous +19% to 25 cents per share, which equates to
$1.00 annually. Its aggressive acquisition and development plans should fuel
earnings and drive dividend growth.
Weatherproof
Your Portfolio with Dividend-Paying Stocks
The jury is still out if the
market is just in a short-term correction or the start of a bear market.
However, one thing is certain -- given the increasing volatility, income
investors would be wise to weatherproof their portfolios with dividend-paying
stocks that can stand their ground when the going gets tough.
June 2006
Mortgage
REITs with Yields of up to 16%
Investment gurus of all stripes have been sounding the alert that the
double-digit returns you've grown to expect from real estate investment trusts
(REITs) may be a thing of the past. Most of these analysts, however, are
overlooking one corner of the REIT universe that has been left largely untouched
in the recent run on REITs.
May 2006
Capitalize
on the Real Estate Market by Investing in REITs
Although real estate investment trusts (REITs) are probably the last group you'd
expect to outperform in a rising interest rate environment, the facts speak for
themselves. As of a few weeks ago, the NAREIT ALL REIT Index was up a robust
+12.7% since the start of the year, well ahead of the broad-based S&P 500's
roughly +5% gains.
April 2006
Earn
9.8% Dividend Yields by Investing in this Business Development Company
Launched in 2004, Apollo Investment Crop. (AINV, $18.50) is one of about a dozen
publicly-traded Business Development Companies (BDCs). AINV provides loans and
takes an equity stake in a wide variety of businesses, ranging from warranty
provider NEW Customer Service to U-Haul parent Amerco. The company is on the
fast track, with per share earnings expected to more than triple this year and
to continue growing at a +10% clip next year.
Lock
in Yields of up to 9.9% with these Stable Bond Funds
Which funds offer the best
yields while taking on the least amount of risk? Over the past few weeks, I've
scoured hundreds of bond funds -- open-end, closed-end, short-term, long-term,
municipal, high-yield, global, emerging market -- you name it. In the process,
I've scouted out some very attractive bond funds with yields of up to 9.9%
March 2006
Grow
Wealthy DRIP by DRIP
You can pocket your dividend payments or plow them back into shares of a company
through its dividend reinvestment plan (DRIP). If you choose to let your
dividends grow drip by drip, then over time you'll be amazed at how much wealth
you can build for yourself. Money doesn't grow on trees, but it sure does grow
with a dividend reinvestment plan.
The
Best of Both Worlds -- High Yields and High Safety
I like a particular diversified fund that seeks to reduce its exposure to
individual country or stock risk. It does so by investing in over 500 different
stocks from around the world. The fund is also yielding a head-turning 9.9%
right now. This fund offers a good balance between high-yield and high-safety.
Earn
Safe, Above-Average Income from your Investments Year after Year
If you're retired or depend on your investments to deliver a significant
percentage of your annual income, then you want to capture the highest yields
available to you. Finding high yield and high safety in one investment can be
tough, but it's certainly not impossible. The following asset classes are a good
place to start . . .
February 2006
Bring
in More Dividends Each Year By Employing a "Dividend Capture" Strategy
By using a dividend capture strategy, investors can capture 50% more dividends
in any given year from the same investment dollars. Here's how...
January 2006
Telecom
Stocks with 8%+ Dividend Yields
The last time you phoned someone, I bet you didn't think you were holding one of
the highest-yielding investments in the palm of your hand. Yes, the average
high-dividend rural telecom stock in the Lehman Telecom Services Income Index
now yields a monster 10.6%.
Looking
Overseas for Growth and High Dividend Yields
Last year, an unrelenting series of 13 rate hikes lifted the dollar to its
strongest point in four years and boosted the attractiveness of
dollar-denominated assets. This year, I expect to see the reverse side of the
coin.
Advice
to the Yield-Hungry: Check Out Payout Ratios
Yield-hungry investors are
sometimes tempted to look no further than a stock's current dividend yield. At
first blush, a stock like investment banker Kent (KENT, $2.45) with its 12.9%
yield looks a lot more enticing than one like one of my portfolio holdings --
Holly Energy Partners (HEP, $36.89), which yields 6.4%. But looks can be
deceiving...
A highly successful investment analyst, Dr. Carla
Pasternak has been employed in the investment industry for more than two
decades. Specializing in high-yield, income-paying stocks, Carla
takes a fundamental-oriented approach to select companies that not only
pay rich dividends, but also have the potential to deliver strong
long-term capital gains. Her past experience includes work as a writer
for several other nationally recognized financial publishers, as well as
President of a well-respected investor relations firm. When she's not
watching the market, she's teaching business courses at the college
level and managing several million dollars in portfolio assets.
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of the Month
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fund has delivered total returns of +178.9% since 2003,
and it ranks in the top 10% of its category over the past decade.
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