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The Global
Construction Boom Helps High-Yield
Investing Readers Grab a Gain of +94%
Published:
March 17, 2008
In every issue of
High-Yield Investing, editor Carla Pasternak
identifies some of the richest-yielding securities to be found
-- many with generous double-digit payouts of 10% or higher.
However, dividends only tell part of the total return story,
which is why Carla seeks out companies poised to deliver
significant share price appreciation as well.
So in October 2004, she decided to introduce readers to
Lincoln Electric (Nasdaq: LECO, $64.42). At the time, the company, which manufactures welding
equipment and cutting tools, was in the midst of a major
turnaround.
In the months leading up to Carla's profile, Lincoln had pushed
through various cost-cutting initiatives, boosted profit
margins, and completed several acquisitions to
dramatically expand its foothold in China -- where demand for
industrial machinery was taking off.
And after two straight years of declining profits, earnings were
finally back on track. In fact, analysts were forecasting heady
earnings growth of +59% that year and another +21% growth spurt
the following year. Yet, few investors had taken notice at that
point, and the shares were still trading at an attractive
price-to-earnings-to-growth (PEG) ratio of just 0.67.
With all that in mind, Carla gave LECO a "Top Pick" rating. And
those that paid attention have been well rewarded, with the
shares soaring from $33.13 to Friday's close of $64.42 -- a gain
of +94%.
In her most recent
High-Yield Investing "Mid-Month Update," Carla
singled out another security with promising triple-digit upside
potential. Riding the boom in gold, oil and other commodities,
this closed-end fund has posted gains of +43% over the past
12 months, outpacing nearly 90% of its category rivals. However,
it still trades at a sizeable -7% discount to its net asset
value and offers a solid yield of 6.6%.
To read Carla's complete profile of this fund, we invite you to
become a
High-Yield Investing subscriber. Simply
visit
this link to learn more.
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Nathan Slaughter
StreetAuthority Staff Writer
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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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