|
|
|
|
A 15%
Dividend Yield Plus the Safety of a Diversified Fund |
Published: February 12,
2007
With an eye-popping yield of
15.2%, the PIMCO International StocksPLUS Total Return Strategy Fund (PIPDX) is quite possibly one of the highest yielding mutual funds
around. That figure is based on the fund's 2006 annual payout of $1.84
per share as a percentage of its current share price: ($1.84/$12.13).
And with a low 1.27% expense ratio and no front load or deferred sales
charges, expenses won't eat very much into your total returns.
Launched in October 2003, PIPDX has delivered impressive average total
returns of +19.4% annually over the past three years. The fund primarily
targets securities based in the developed countries represented in
Morgan Stanley's international benchmark index MSCI EAFE (Morgan Stanley
Capital International -- Europe, Australasia and the Far East).
|
Register
for Carla Pasternak's High-Yield Investing newsletter
today and you'll receive as many as SIX in-depth research reports absolutely FREE!
|
|
Specifically, it holds
derivatives of foreign stocks that are components of this index. These
derivatives are traded in U.S. dollars, which limits the fund's exposure
to currency volatility. The fund seeks to outperform the benchmark index
and juice returns by also investing in short to intermediate-term bonds.
Over 90% of these bonds are rated the highest Triple-A credit quality,
meaning they carry a very low risk of default. Most of the bond portion
of the portfolio consists of residential mortgage-related securities
issued by government-regulated mortgage lender Federal National Mortgage
Association, commonly known as Fannie Mae (NYSE: FNM). The fund also
invests up to 30% of its portfolio in foreign currencies and foreign
debt.
Foreign large-cap funds have seen impressive gains over the past few
years. These gains are largely attributable to the weakening U.S.
dollar, as the Federal Reserve sidelined domestic interest rates while
those in Europe and around the world moved higher. Given the slew of
positive economic news now coming out of the U.S., we can't assume these
out-sized returns will be duplicated in the coming year.
Furthermore, the fund's portfolio of short to intermediate-term bonds
got a lift from the long pause in the Federal Reserve's rate tightening
campaign. As economic signals turn more positive, the fund's
fixed-income holdings may find it harder to generate the same kind of
returns as in previous years.
Still, the fund has an excellent track record, and thanks to its
flexible strategy, experienced management, and low expense ratio, it
should provide a solid income stream over the long haul.
Action To
Take ---> Given the
risks of investing in volatile international markets, this high-yield
fund may be attractive to more aggressive investors.
|
Editor's
Note: Carla Pasternak's model portfolios focus exclusively
on investment opportunities with ultra-high yields. In fact, in each
of her monthly High-Yield Investing newsletters she
provides readers with an entire portfolio of stocks, funds and
preferreds that are delivering annual dividend yields of +10% or
more. That's right -- in order to even be considered for
inclusion in this portfolio, an investment
must deliver cash payments of at least 10% per year. Visit
this link to learn more about Carla Pasternak's High-Yield
Investing newsletter.
|
Good investing!
Carla Pasternak
Editor
High-Yield Investing
http://www.StreetAuthority.com
| To
receive in-depth guidance on today's leading income investing
opportunities each month, plus access to several model portfolios,
please subscribe to Carla Pasternak's premium newsletter -- High-Yield
Investing. |
Carla
Pasternak draws on a variety of financial backgrounds to make profitable
calls on income-generating stocks for her readers.
Carla has
been employed in the investment industry for more than two decades. In
addition to her work as a writer for several other nationally recognized
financial publishers, her previous experience includes a position as
President of a well-respected investor relations firm. She has also been
writing shareholder reports for public companies (annual reports,
speeches, corporate profiles, slide shows, etc.) since 1980.
A highly
successful investment analyst, Carla specializes in high-yield,
income-paying stocks. In that pursuit, she's always mindful to select
companies that not only pay rich dividends, but that also have the
potential to deliver strong long-term capital gains.
On the
educational front, Carla holds both MBA and Ph.D. degrees. When she's
not watching the market, she's teaching business courses at the college
level and managing several million dollars in portfolio assets.
|
|
Income Security
of the Month
If you're looking for
high yields, monthly payments and unprecedented safety from your
investments, then you need to learn more about our "Income
Security of the Month" for November 2008. This stable
preferred stock has a long
track record of paying some of the most solid dividends in Wall
Street history. In fact, the preferred issue pays a monthly dividend
totaling 10.3% annually
and has
outperformed the S&P 500 by more than +44 percentage points over the last
year!
|
Top
10 Stocks for 2008!
Since we began publishing this report back in 2003, the picks we've
featured have consistently beaten the broader market -- delivering average
gains of +21.3% per year and outperforming the S&P by a nearly
2-to-1 margin. Act now to reserve your copy of our newest report -- Top
Ten Stocks for 2008. |
|
|
