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Recent Winners: Three Income Stocks That Delivered
Average Gains of +191% |
Published:
July 9,
2007
In the
August 2006 issue of High-Yield Investing, Editor Carla
Pasternak tackled a timely topic -- profiting from a decline in
the U.S. dollar. At the time, the greenback was sliding steadily
lower and had just dipped to near a five-year low versus the
euro -- and further weakening appeared to be in the forecast.
To take advantage of even further deterioration in the dollar,
Carla recommended that income-oriented investors focus on
established Eurozone firms whose share prices and dividends were
both tied to the euro. That way, any further strengthening of
the euro would help magnify the impact of future dividend
distributions and/or capital appreciation in the stock.
After running a number of quantitative screens to find the most
suitable candidates, Carla settled on a trio of Greek shippers:
DryShips (Nasdaq: DRYS, $46.81),
Diana Shipping (NYSE: DSX, $23.24),
and Quintana Maritime (Nasdaq: QMAR, $16.79).
These dry-bulk shippers are well-compensated for moving cargo
like coal, grain, and iron ore on their fleets. Over the years,
this group has typically offered robust cash flows, rising
dividend payments, and hefty yields of around 8% or better.
However, even Carla was a bit surprised at how powerfully
this sector rallied over the past year. As expected, the
euro has continued to gain strength -- one euro will now get you
about $1.36. Meanwhile, with that tailwind in place, the average
European stock has fared pretty well since our initial report --
the benchmark Morgan Stanley MSCI Euro Index has climbed around
+39% as of last month.
However, readers who climbed aboard Carla's recommendations have
enjoyed even stronger gains. As it stands now, QMAR, DSX, and DRYS
have
delivered impressive returns of +111%, +138%, and +325% (an
average of +191%),
respectively -- and that doesn't even account for their dividend
payments.
Of course, that rally has pushed yields on these three stocks
down to more ordinary levels. Fortunately, in the June
2007 issue of High-Yield Investing, Carla presented
another basket of promising international securities based in
Brazil, Israel, and a half-dozen other countries around the
globe. Like last year's featured picks, this latest crop offers
generous yields of 8% or higher and is primed to deliver
market-thumping total returns, helped in part by the slump in
the dollar.
To learn more about our premium High-Yield Investing
newsletter, including the names of these foreign standouts,
please
visit this link.
Good investing!
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Nathan Slaughter
Editor
Half-Priced Stocks, The ETF Authority
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Stocks |
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Income Security
of the Month
Our "Income Security of the Month" for August 2008 invests in a
fast-growing overseas market that doesn't get much exposure in the
mainstream financial press. And although it typically makes enormous
annual dividend payments -- it has paid an average dividend of
25.5% per year over the past five years -- this fund is perhaps
most appealing for its total return potential. Specifically, the
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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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. |
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